According to Finder 2022, 86% of people living in Britain want to own a home, however, with rising house prices and cost of living crisis, it is becoming increasingly difficult for people to get onto the property ladder. As it stands, Generation Rent states that 13 million people in the UK rent from a private landlord and our current generation are known to rent. So, let’s dive into what’s better, renting or buying a property.
Advantages of getting onto the property ladder
- Freedom – you’re able to do what you want with your property without having to worry about restrictions from your landlord
- Security – once you purchase your own home, it is yours and a good investment
- Investment – once you get onto the property ladder, it’s an investment for your future
- Privacy – you will be able to have your own privacy without a landlord coming for an inspection
Disadvantages of getting onto the property ladder
- Financial responsibility – purchasing a property is a big financial responsibility, meaning you’re in charge of your monthly payments, any repairs, etc
- Extra costs – you will need extra finances to cover things like life insurance, ground rent (if purchasing a flat), or repairs
- Reduced flexibility – when you sell your property it is more expensive as you must factor in estate agent fees and other additional costs
Advantages of renting
- Repairs or additional costs are not your responsibility
- In some cases, it is cheaper than owning a property
- No long-term commitment
- No need for a down payment
Disadvantages of renting
- You don’t permanently live there
- Could be asked to vacate the property/ lack of stability
- Pets might not be permitted at the property
- No tax benefits
- Rent is not fixed
Now that we have the advantages and disadvantages of owning a property and renting, I can conclude that it is all dependant on your goals and what best suits you at the present moment.
Most commonly, renting is a better option for people seeking short-term accommodation, whereas buying a property is better suited for long-term commitment. If you’re someone who prefers to move around or travel, buying a property might not be the best course of action. On the other hand, if you’re someone who wants a future investment or stability then getting a mortgage would be best.
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