The benefits of renting a property
We’re often asked whether buying or renting a property is the best option. The truth is, finding a place to live is a very individual experience, so we’ve put together a list of the benefits of renting to help you decide whether this would suit your personal circumstances.
Broadening your horizons
Renting allows you to sample residences that you’d never thought of before- perhaps you’ve always lived in houses and want to experience a flat, or you want to try downsizing before you commit to buying a smaller property. The length of a lease (in comparison with a mortgage) means that you have the opportunity to be a little more adventurous with your choice of housing, safe in the knowledge that you won’t have to live there for decades!
Buying a house can be an intimidating commitment- the number of 35-year mortgages rose from 2.7% in 2005 to 15% in 2017, according to research conducted by The Telegraph. Renting, however, requires a much shorter contract, typically with a minimum commitment of six months. This means that renting a house gives you a greater degree of freedom, allowing you to not only move on once your tenancy expires, but to do so with no financial ties.
House prices won’t be as important to you
If the housing market fluctuates, changing prices can be a headache for people who have a mortgage. Resulting negative equity (the value of your home being lower than the total of the outstanding mortgage) can force homeowners to postpone selling their homes until the market recovers. On the other hand, with rented property, the amount you pay for your home is contracted- once the agreement is over, it may go up, but you can then choose to move instead.
More accessible than buying
Often, people choose to rent because they cannot afford a mortgage. Renting is a strategic way of keeping a roof over your head while allowing you to put some money aside for a deposit. It also means that you can learn to budget for and take care of a house, before owning your own. As landlords have a legal obligation to carry out basic repairs, renting may also be a good option for those living alone for the first time- or anyone who isn’t a fan of DIY!
So, would you choose renting or buying? Let us know at @ventureprop; we’d love to hear from you!