Today, we’re exploring some key differences between renting and buying a property and why, depending on your situation, renting a property could be much better than buying one!
Renting a property is a much simpler process than buying one. The purchase of a property takes several months on average and involves legal work, surveys, reports and often, the involvement of a bank or lender for a mortgage, which adds time, significant cost and complexity. In contrast, in order to rent a property, you’ll find one that you like the look of, view it, apply via the agent and can be moved in within a week.
Renting a property gives you additional freedom. You'll be able to upsize, downsize or re-locate at a rate that is unachievable when you own the property. Mortgages can restrict homebuyers from moving regularly, unlike the flexibility renting allows, with some rental properties being available on periods such as 6 months.
If you’re planning to move jobs, or relocate for family or personal circumstances, renting offers the best flexibility and is more cost-effective than buying a property.
Significant Cost Savings
The cost saving associated with maintenance and repairs is often overlooked. If your cooker or washing machine breaks, you contact the property manager. If the boiler breaks, you contact the property manager. If you have a leak, you contact the property manager…
Things like repairs and general wear and tear also fall under a landlord's responsibility. Whereas, if you owned your own home, you would be entirely responsible for all of this.
Lower levels of commitment
When you buy a property, you're taking on a substantial, long term financial commitment - which isn't for the faint hearted. You will part with a large amount of money and be committed to making mortgage repayments for the entire duration of the mortgage term, which could be 15, 20, 30 years or more in some cases.
When it comes to renting vs buying, it all depends on your personal circumstances and what’s best for you might change over time but renting a property provides a host of fantastic benefits.