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The Pros And Cons Of Renting VS Buying Property

The Pros And Cons Of Renting VS Buying Property

When it is time to fly the nest and get a home of your very own, the biggest question that you usually have to answer is whether to buy a property or rent one.

Most people dream of owning a house, but more often than not, our dream does not match the reality, especially when it comes to your first home.

If you honestly have no idea which option is best for you and feel as though you’re stuck at a property crossroads, then weighing up the pros and cons is usually a good place to start.

Keep reading for some of the most important ones that you need to consider.

Pro – Freedom To Move

When you buy a house, you know that, once you’ve paid off your mortgage, you will always have somewhere to live.

Unfortunately, however, you are also stuck with this house and will find that it takes a lot of time and effort to sell it if you decide at some point that you would like to move.

The same cannot be said for renting a property. When you rent, you can move as many times as you like, and usually only have to give a short notice period before moving out. This is perfect if you have to move around a lot for your job.

Con – Lease Might Not Be Renewed

When you rent a property, you have to sign a lease, which states that you get to stay in the house for a certain period of time, as long as you abide by the terms of the lease.

Unfortunately, this means that, when the lease ends, you may no longer have anywhere to live. After all, even if you are the perfect tenant, there is no guarantee that your landlord will renew your lease and allow you to live there any longer.

Pro – Rent More House

Although, in the long term, buying a house is usually believed to be cheaper than renting one, there is no escaping the fact that it’s a lot cheaper to pay rent than it is to pay a mortgage.

Because rent is cheaper, it can be easier to rent a larger property. On the other hand, you can also find a room for rent, rather than a house, which is something that you couldn’t buy. This is great if you don’t need to rent an entire house, or simply don’t have the funds to do so.

Con – You Can’t Decorate

As already mentioned, when you rent a property, you have to follow the terms of a lease, or you could be told to move out of the property.

Unfortunately, one of the most common things that landlords ask of their tenants is that they don’t decorate the property.

If you move around a lot, this won’t be an issue, but if you wanted the house to be your home for the foreseeable future, then you might have some issues with not being able to put your stamp on it.

Pro – No Maintenance Costs

Maintenance and repairs on a property can get pretty costly, which is something you simply might not be able to afford on top of your mortgage each month.

Luckily, when you rent a property, most of the maintenance and repairs should be covered by your landlord.

Of course, you’ll have to read the terms of your lease to know exactly what is covered, but most of the big things, such as a leaking roof, are definitely the responsibility of the owner, not you.

Con – Pets & Children Cause Problems

If you are looking to find a family home for you, your pets, and your children, then it might be more difficult than you were initially expecting.

While most landlords are fine with children, some prefer not to rent to families, and even more won’t rent to you if you have pets, especially dogs. This isn’t usually an issue when you are looking for a home to buy.

Pro – You Can Save

In the short term, renting is usually the cheaper option, which is one of the many reasons why it’s so popular, especially for people looking for their first home.

While you’re renting, you can save the cash that you have left over, and use it for whatever you wish. In fact, these savings could be used in a few years to put down a deposit on a home to buy.

Often it’s not a case of choosing whether to buy or rent; Sometimes renting is just a stop-gap before you can buy a house.

Con – No Return On Investment

One of the biggest criticisms of renting a home is that you are never going to get anything permanent out of the money that you are spending on rent each month.

Although you are paying to live in the property, for now, it will never actually be yours, which is why so many people view renting as throwing money away.

Buying a house, on the other hand, is an investment, and is one that usually increases in value over time.

Pro – Improve Your Credit

If you don’t have a good credit score, it’s incredibly unlikely that you will be accepted for a mortgage, which is going to cause major issues if you have your heart set on buying a house.

Renting a house isn’t so black and white. Most landlords do run at least a basic credit check before you sign a lease so that they can see if you are going to be a responsible tenant, but this isn’t necessary, and some will accept you regardless.

This means that, if you don’t have the best credit score on the planet, you will still be able to find somewhere to live, and will be able to improve your credit in the meantime.

If you are stuck as to whether to buy or rent a property, it’s important to weigh up the pros and cons. It won’t be an easy decision, but the big ones never are, so just take your time and make sure you are sure before you agree to anything.

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Poppy loves personal finance almost as much as she loves her two cats, Tif and Taz.
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