Is Buying Better Than Renting?
Buying & Renting | Mortgage Broker in Nottingham
Whether you should rent or buy is a frequent question many aspiring homeowners ponder. Times have changed throughout the years and many people are motivated to purchase a property but are sometimes reluctant. So within this article our Mortgage Advisors in Nottingham will put forward the pros and cons of buying a home.
Why should I buy?
The property market is unpredictable and it can be really disappointing if you buy a property and it later goes down in value. This has happened to many homeowners but evidence suggests that even if a property is bought of the peak of the market, as long as it’s able to be upkept then the price tends to go back up.
Despite past economic downfalls, such as the Credit Crunch which is one of the worst economic periods of our time, the UK property values had reached a new all-time high.
It’s true that money could be lost if the you are forced to sell your home at the wrong time for example, a relationship or reduction in your income. All possibilities and outcomes can be discussed with your Mortgage Advisor in Nottingham to ensure that you are as well protected from some of these things as possible.
Will a mortgage be cheaper than renting?
Most usually mortgage payments will be cheaper than rent. Interest rates fluctuate which means your mortgage payments will too. If this is something that puts doubt into your mind then a fixed-rate mortgage might be the better option for you as your payments will remain the same. On the other hand, rent payments either stay the same or go up – it’s not common for a landlord to reduce your rent.
Some people often feel that by simply owning a home they are in a more stable situation for themselves and their family. If you own your own home then you don’t have to move home if you don’t have to.
If you’re renting, you do have some protection as a tenant in terms of how much notice you receive but ultimately, if they want their house back for any reason, you don’t have much choice and is not an ideal situation for you if you work locally or have children in the local school.
Sometime landlords will offer first refusal to the current tenants and give them the opportunity to buy the property if they are selling it so they are able to save on Estate Agent fees.
In terms of flexibility, renting is the best option. There’s nothing stopping you from giving your Landlord notice to leave if you get a job offer in another area for example. This isn’t how it would go as a homeowner. You would have to decide whether you want to sell your home or rent it out. More often than not, the process of selling a home and buying a new one can be time consuming and expensive.
If you don’t see yourself living in a particular area for very long then it’s worth being as thorough with your decisions as you’re able to as buying a home is definitely a long term investment.
If you’re a tenant, your landlord should be responsible for any major repairs. Some letting agents and landlords can be better than others in terms of repairs around the house. Although sometimes even if you are renting you may still end up carrying out some of the maintenance yourself. On the other hand, if you’re a homeowner then all of this will be down to you including sorting out insurance which will be a condition of any mortgage that is taken out.
Overall, for some people owning a home is simply just not for them. If you are young and moving in with a partner, it’s perfectly fine to rent for a while. It can be hard to predict the future so it’s best not to rush anything, especially when It comes to a mortgage as it’s hard to get removed off a mortgage.
Buying a home is a big financial decision but sometimes renting can be a handy stepping tool before purchasing a home although if you decide to rent it may take longer to save up for a deposit.
At the end of it all most people do normally end up going down the route of purchasing rather than renting. Regardless of which you go for, you are still making monthly payments to live somewhere and most would rather this benefit themselves than someone else. It all boils down to getting the timing right and being in the right financial position to be able to proceed.