Buying versus Renting: Pros and Cons
Moving house is an exciting time in anyone’s life, however, when it comes to deciding whether you should buy your new home or rent a place, it can be a tough decision to make, so in this post we’re going to cover some of the pros and cons of each option so that you can make the best decision based on your lifestyle and your needs.
Buying
You’ll eventually own it
One of the best things about buying a place is that you know where your mortgage payment is going each month, and you know that after a certain amount of time you’re going to own your property outright if you continue to make your mortgage payments, and this can be a big boost for anyone who looks at property as an investment and definitely makes it easier when you see that cash going out of your bank account each month.
You have the freedom to renovate as you please
Another good thing about buying your house is that if you want to make any renovations or changes, you don’t need anyone’s permission. So if you want to change the colour of a room you can do that, if you want to replace the floor or completely renovate the kitchen or bathroom, you have the ability to do that, and you don’t need to ask the permission of a landlord as you would do if you were renting a place.
You don’t have to worry about a lease ending
When you’re paying a mortgage each month, it’s effectively yours, and you don’t have to worry about someone coming in and telling you that your lease is going to be up and that you have to look for a new place, so as long as you continue to pay your mortgage each month then you know that you have a safe and secure place to live.
You have more choice in where you live
There are houses for sale all over the place so when you’re buying a place, you can choose from more options of where you want to live.
It’s expensive
One of the downsides of renting compared to buying is that it’s more expensive. Things like getting a deposit together for the house could be anywhere up to 50%, depending on the country in which you’re buying a property, then you have legal costs, surveyor costs and other associated costs with buying a place that you might not have when renting.
You may not get a mortgage
When you decide to buy a house, most of the time you’re going to need a mortgage unless you already have the cash just sitting there.
In this case it’s worth noting that since the mortgage is a loan it’s going to require you to have a good financial situation which will often require things like credit checks, and this can run the risk of you not being approved, so it’s perhaps worth doing some number crunching and even using things like a loan calculator before deciding to apply for a mortgage to see if it’s worth your while and if you can actually afford it.
You are responsible for any repairs
When you own the place, although you have complete say on what gets done, you’re also fully responsible for anything that does need done. This can include things like repairs and these can run from things like a cracked floor board that can be easy to fix, or it can also be something like a full roof that needs replaced, and these can be very expensive, so it’s worth noting that you could end up having to pay for things that you may not necessarily have budgeted for when owning your house.
It’s not so easy to just move when you want
Unlike when you rent a place, getting up and moving by handing over some keys or giving a few weeks notice is not going to be possible when you own your house.
Of course, you can still move really whenever you want, but it’s going to take a bit more organising and planning and definitely a lot more in the way of paperwork. You could either have to rent your place out, or even go through the process of having to sell it if you want to move, and it’s not going to happen as quickly as it would do if you rent, so if you’re someone who has to move around a lot or simply likes to move around a lot, then perhaps renting is going to be the best solution for you until you find somewhere that you really want to settle down.
Renting
The landlord will be responsible for repairs
When you rent, the landlord will be responsible for taking care of anything that goes wrong. Of course, this means that you do have to take care of the place, and you shouldn’t be neglecting things or letting them get damaged on purpose. However anything that does go wrong with the place, whether it’s internally or externally or just something that needs replaced or fixed, the landlord will be responsible for doing this, and you just have to let them know. Perhaps they’ll ask you to pay the money upfront and then they will reimburse you, but ultimately the expense lies with them and not you. The majority of landlords are good ones, but there are also legal protections in place in the unfortunate event of you needing to make housing disrepair claims. Everyone is entitled to live in safe and comfortable accommodation so it’s reassuring as a tenant that the law is on your side.
Sometimes the repairs might be expensive, for example depending on where you are located you may need to investigate concrete leveling in St Charles. For big jobs like this, you will be thankful for having a landlord to deal with the expense and the administration.
It’s easier to get a lease than a mortgage
One of the great things about renting is it’s a lot easier to get a lease for an apartment than it is to get a mortgage, so if you’re struggling to get a mortgage or you think that it’s just not the right time for you, then renting could be a good option for you and it’s going to be a lot quicker. Sometimes you will need a credit check, but often you simply just have to pay the deposit plus some rent in advance and that should be enough to get you the keys. When you are looking to rent a home, a good tip is to try sorting your search via ‘price: low to high’ as seen here https://www.rent.com/california/san-jose-apartments/cheap if you are on a budget. You can also apply various filters e.g. number of bedrooms, whether or not there is outside space etc.
You have flexibility if you move a lot
If you’re someone who moves around a lot, then renting is definitely a good option since all you have to do is hand over some keys and give some notice and then you can go and find another place.
If you’ve been a good tenant in the place that you’ve been renting, then you’re also going to find it a lot easier to rent a place somewhere else since the landlord will hopefully be able to give you a good reference.
It can be more expensive
Renting can definitely be slightly more expensive than buying. Of course, there are always exceptions to this and it depends on where you live. If, for example, you live in a city, then rent is always going to be higher, but a mortgage would be incredibly expensive. But a monthly rent payment is typically going to be more expensive than a monthly mortgage payment if you’re not living in the middle of the city, but the upside to this is it may suit your lifestyle better to rent in the meantime.
You’re paying someone else’s mortgage
Depending on how you look at it, and one of the reasons why many people are opposed to renting is that they view it as paying someone else’s mortgage. Whilst this is effectively true, there are definite upsides to renting, and really at the end of the day, it always depends on what suits your lifestyle best, so although you may be paying someone else’s mortgage, you could look at the upside of having the freedom and flexibility to move when and if you choose and being able to perhaps live in the city close to work when you wouldn’t be able to afford an apartment to buy there.
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