Buying vs Renting
Your decision of buying or renting a house can have a major impact on your financial future and lifestyle. Hence, be sure to put in careful thought before making your decision. You could start by comparing the pros and cons of each option – let’s take a look.
Benefits of Buying a House
- You own the house once you clear your mortgage loan. You will have a permanent place to live. You won’t have to go house-hunting and pay rents periodically.
- You can design your place the way you like instead of settling for whatever comes your way. You can also add new elements that increase the value of your property.
- You’ll have greater freedom to lead a lifestyle of your choice. You could, for example, have pets at home, which may not be allowed in many rental accommodations.
- You’ll have a source of money in the form of equity in case the market value of the property increases (subtract mortgage debt from the market value of your home).
- You could direct your equity to your retirement income or invest in another property.
- You could rent out the property and use the income to pay off the mortgage.
- Buying is a great decision if it is simply cheaper than renting.
Problems with Buying a House
- Buying is a major commitment. You’ll have to pay for the deposit, survey cost, stamp duty, removal costs, legal fees and monthly bills. Determine whether you can afford the commitment.
- Interest rates can increase, in which case, you’ll have to be ready to accommodate the rise.
- Selling the property may not always be profitable, especially if property prices fall. Finding a buyer or tenant too may not be that easy.
Benefits of Renting
- It is easier to find a house for rent and move in. The process of renting is also simpler.
- The options are endless in terms of location, interior design and accessories, and landscaping. Chances of finding a property that is really close to your heart are high.
- Rental payments do not change overnight. So, you don’t have to make allowances for unpredictable expenses in your budget.
- You are at no risk of losing money even if property prices fall.
- Property maintenance expenses are minimal as the landlord takes care of repairs and renovations.
Problems with Renting a House
- You are obliged to live according to your landlord’s rules.
- You will have to move out if the landlord decides to sell the property or plans to get new tenants.
- You are required to pay a deposit, which you may or may not receive after the rental agreement ends.
- Any interior improvements you make to the property will only benefit the landlord.
Identify What Works for You
Take into account your existing financial situation, career and personal commitments, to reach a decision on whether to rent or buy.
As experienced estate agents in Newcastle, we are well-versed with the North East realty market. We’ll help you discover the best properties at the best prices.
We are trusted letting agents for many clients in Newcastle and across the North East. We rely on technology by way of our bespoke website, Zoopla and Rightmove to give your property maximum exposure.
Call 0191 212 8100 today for more information.
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