The perception of renting a home can often be seen as wasting money. However, many people do seem to be renting nowadays than buying but there are pros and cons to whichever decision a person chooses to go with.
The property market never stays the same and with prices being everchanging no-one is ever sure what is round the corner. It can be really disappointing if a property is bought and it suddenly goes down in value. This has happened to thousands of UK Homeowners over the years but there is always a chance for the value to go higher at some point.
We can reflect on situations as proof of this. The Credit Crunch which was one of the worst economic periods of our times yet less than a decade later, UK property values had reached a new all-time high.
Furthermore, if a property is sold at the wrong time such as needing to move because of a relationship breakdown then there is the possibility that money can be lost. If this is happening then a chat with a Mortgage Advisor in Derby can mean that all possible avenues can be overviewed before a property is purchased to reduce the chances of it happening in the future and proper protection is in place.
The most important thing about buying a property is not just that it is an investment but that it is a property which is suitable for a person’s individual circumstances.
Mortgage payments will often be cheaper than rent despite interest rates going up and down. Though this will mean your Mortgage payments could also fluctuate. If this is a concern then it may be worth talking to a Mortgage Advisor in Derby about a Fixed Rate Mortgage which will mean that mortgage payments remain the same for a set period of time. On the other hand, rent will either stay the same or go up – it is unlikely that it will ever go down but will not go towards the benefit of home ownership.
Some people purchase a property to create a more stable situation for themselves and their family. If a property is rented, the landlord is able to revoke this tenancy and can mean that within a short time a person may have to find somewhere else fast. When a person owns a property, no-one can force them out.
There are some forms of protection in place as a tenant which includes such things as how much notice a Landlord will need to offer a tenant but if the tenant wishes to reside for longer then there’s not much they can do to sway the landlords decision and this can have an adverse effect if the tenant has a steady job in the local area.
All is not lost if this happens when renting though as landlords are able to offer their tenants first refusal so that they have the opportunity to purchase the property, which would save on Estate Agents fees.
Flexibility is more of an option that comes along with renting rather than owning. There’s nothing stopping a tenant to give your landlord notice if there is a better offer that the tenant wants to chase up, such as a better job in a different area for example. This is not something which is easy as a homeowner, in this instance the decision will be whether the homeowner will want to rent out the home or sell it. The process of selling a home and buying a new one can be very time consuming and expensive.
If there’s uncertainty on the decision to buy on the terms that factors will change such as a new job or a desire to relocate then the decision to buy should be thought through thoroughly because buying a property should be seen as a long term investment.
As a tenant, landlords should be responsible for any major repairs. Some Letting Agents and landlords are better than others in terms of repairs but sometimes some minor maintenance will be the tenants’ responsibility. As a Homeowner this is not anyone else’s responsibility and the same can be said for insuring the property so if this is forgotten about it could lead to a disastrous situation for the homeowner.
Some people may choose to buy a home but sometimes, it isn’t for everyone. At some stages of a persons’ life will mean that buying a property just simply isn’t the right fit such as the first time moving out of a parents’ house will mean that renting may be a better option.
It can be hard to get removed from a mortgage which is why it’s important to remember that buying a home is an enormous financial commitment and everyone should consider all options before diving in. If the decision of renting is taken then it will take a lot longer to save up a deposit.
In most cases at our Mortgage Broker in Derby, we see that the majority of people would prefer to buy rather than rent. Whether a mortgage is being paid for or a property is being rented monthly payments are still going towards living somewhere. The only difference is that if a person is buying then they are seeing them payments going towards their own benefit rather than someone else’s. The main factors ultimately make up the decision are timing and financial position.