The age-old argument when it comes to moving into your first home, do you rent or buy? Different generations often have differing opinions but the truth is that there is no ‘one size fits all’ answer.
There are pros and cons to both renting and buying your first home, whether you are moving out alone or moving in with a friend or partner. It’s important to weigh up the highs and lows of both options in relation to your own personal and financial circumstances and not to do what a friend or your parents would do.
We’ve taken everything into account and below is Quick Buyer’s breakdown of the positives and negatives to renting and buying.
- Generally cheaper, monthly rent payments are typically lower than monthly mortgage repayments
- Bills are more structured, most rental agreements come with set monthly bill payments, some come with water and electricity meters so you are in control of that cost, or some rent payments are increased to cover bills as well
- A more flexible option – if this property is only a short-term measure, renting is the easiest option as you can move relatively quickly or even sign up for a short-term rental agreement, such as 6 months
- Saves on costs such as property maintenance, as the majority of that is covered by your landlord
- Some consider renting ‘dead money’, it can become difficult to save when you’re paying hundreds out every month
- You gain nothing from renting, you will never earn anything from the value of that property
- You can be limited as to how much interior design work you can do, some rented properties do not allow you to decorate, or even put a nail in the wall
- In the long run, you’ll own a property once you’ve paid off your mortgage, which gives you a lot of stability and is a great investment
- You’ll be entitled to equity if the value of your property increases, this can be used towards buying a bigger home
- You have the freedom to decorate and renovate the property as you wish
- In the long run, it could work out cheaper than renting and you’ll be getting something for your money
- The initial deposit can be a very large payment and will realistically take a long time to save for
- You and any other owner(s) of the property are solely responsible for the maintenance and repair costs of the property which is an on-going cost
- Your mortgage repayment rate isn’t set in stone and your monthly repayments could go up if the interest rate rises
- It is a less flexible option, buying a home is a long-term commitment and it isn’t as quick and easy to pack up and move, selling a home also comes with added costs to you such as estate agent and legal fees
So, there you have it, Quick Buyers basic breakdown of the highs and lows of renting and buying a property.
We hope this has shed some light on the reality of both situations and we wish you luck on your property journey!