More people in the UK are now renting than ever before due to the rising costs of home ownership as well as the greater flexibility that renting provides. There is no wrong or right answer but there are a few things that should be considered before deciding which one is right for you.
Here we’ll go into the benefits of both, hopefully giving you enough information to make an informed decision.
The Benefits of Buying
Home ownership can offer many advantages including:
- Security over your living arrangements and not being forced to move because your landlord is selling their property.
- Once your mortgage is paid off, your home becomes an asset which can be sold or used to fund other ventures.
- You can increase the value of your property by selective home improvements and maintaining its condition.
- Your monthly mortgage repayment will often be cheaper than paying the rent on an equivalent property.
The Disadvantages of Buying
There can also be disadvantages which are not experienced when renting a property. These can include:
- Interest rate rises can have a dramatic influence on affordability. Most mortgages will be based on the Bank of England base rate of interest so take this account when doing an affordability assessment.
- Less flexibility. Selling and then buying a new home can be a considerable commitment as the process isn’t always easy or straightforward.
- If the value of your property decreased you could be left in negative equity. This means that you are unable to repay the value of your mortgage through the proceeds of the sale of your home.
- Maintenance of the property will be your responsibility. These costs can add up are not inconsiderable, especially items such as worn or damaged roof coverings.
The Benefits of Renting
Renting a property has many benefits including:
- Being able to quickly relocate to another area and property if required. You will only need to wait until your tenancy agreement expires.
- No upfront costs other than the security deposit and new furniture if required.
- No need to be able to secure a mortgage. Good for people with poor credit history.
- Less desirable areas can have much lower rental costs potentially meaning a better quality property and more value for money.
The Disadvantages of Renting
Long term rental is not suitable for everyone. Disadvantages include:
- Insecurity over your future living arrangements. After your tenancy period has expired, your landlord has the right to ask you to vacate the property.
- Families with small children will find moving regularly to be inconvenient.
- Attractive city centre locations will be very expensive to rent.
For most people, the deciding factor is affordability. The majority of people renting are younger than average who haven’t yet had the ability to save enough money for a house deposit. This in turn has increased demand which has seen rental prices rise across the country.
It is never too late to get on the property ladder so there is no need to feel pressured if you aren’t ready to make the step. Far more important is your financial stability. Once you are ready to make the move, take a look at some of the houses for sale in Clacton On Sea. This and the surrounding areas of Essex offer great value for money as well as transport links into the city of London.
To be closer to the action, Braintree and Colchester make great alternatives within the South-East region of England.