The rent and buy debate is a pretty hot and controversial topic with no simple answer. Especially as the limbo of Brexit continues on and all the negative press the rental sector gets in the UK, we want to unpick that ever-present myth that buying is always better than renting. The saying goes by renting all you’re doing is throwing away your money and lining someone else’s pocket. It’s not untrue but there are certain moments in life when renting is the best option compared to the huge stress and financial burden buying a house brings.
Here are 8 reasons why renting might just be the right option for you:
1. NO LARGE DOWN PAYMENT - Buying a house with a mortgage requires a considerable down payment as the average house price in the UK is around £231, 422, requiring you to save a 10% deposit of an eye watering £23,000. Which does not compare with the usual deposit required for renting is no more than 1.5x monthly rent which is returned at the end of your tenancy.
2. NO MAINTENANCE COSTS OR REPAIR BILLS - When renting, usually the landlord of your property has the responsibility of maintaining the property, meaning if the boiler packs up you don’t have the financial responsibility for the repairs .
3. YOU CAN KEEP THINGS FLEXIBLE - If renting, you have the flexibility to move houses or areas at the end of your current tenancy for example if your job relocates you, whereas buying a house usually means being tied down for a number of years and is a lot more costly with extra solicitor bills.
4. CHOOSE THE HIPPEST NEIGHBOURHOOD WITHOUT THE PRICE TAG- Urban living in the Trendy neighbourhoods are usually are a lot more renter friendly.
5. INVEST IN YOUR OWN TERMS - Choosing not to invest in your own property right now, opens opportunities for saving and investing when it’s right for you.
6. ENJOY BEING MORTGAGE FREE - Having a mortgage comes with certain responsibilities - there is nothing wrong with leaving that financial burden just a little bit longer.
7. PROPERTY VALUE - Property values go up and down over the years depending on the area you live, or economic circumstances, and while this affects homeowners in a massive way, it does not affect renters substantially (at least not during a fixed term of the tenancy agreement)
8. FIXED RENTAL PAYMENTS - Rental payments are fixed over the term of the tenancy, making it easier to fix your budget. Mortgage interest rate can rise at any time and in quick succession.