Everyone seems to want to get onto the housing ladder, and being a property owner certainly has its benefits.
For example, once you've paid off your mortgage, you won't have to pay anything to live in your property, and it can sometimes work out as cheaper to pay a mortgage.
We are always hearing how renting is just throwing money away – but renting can often be a better idea for many people. Here are a few situations when it makes more sense to rent than to buy.
When You Need to Be Flexible
You may know that you don't want to live in a certain area for long. Perhaps you're expecting to get a job somewhere else in the country, or maybe your current job is only temporary. In this case, renting gives you the freedom to move homes when you need to.
When It’s More Affordable to Live in Your Ideal Property
It's often the case that you can get a lot more for renting compared to buying. For example, rather than buying somewhere small on the outskirts of a town, you might be able to afford to rent somewhere large much nearer to the centre.
You might never be able to afford to buy a property in your ideal location, but renting could be a lot more affordable.
When Considering Buying a Property in a Specific Area
If you are considering buying somewhere in a town or county, you may want to rent first. This will allow you to get used to the area and decide if it really is right for you before making the major decision to buy.
If You Want More Money to Spend
Buying a home is expensive. Not only do you have to save up for a deposit, but you also have to pay for stamp duty, mortgage fees, solicitor's fees, surveyor's fees, etc.
You might not have that sort of money, and saving up for the deposit and the fees may involve years of struggle. It could mean lowering your standard of living, or even moving in with your parents.
Renting allows you greater independence. Yes, you'll be spending money on rent rather than saving it, but you might have more money to spend that you would otherwise be saving on a deposit.
When You Want More Independence
If you want more independence – perhaps because you are young and you're not ready to settle yet – renting is often the best option. You will have more freedom to travel, try new experiences, move around the country and take jobs anywhere you want if you are renting. In short, renting gives you the freedom you need.
If You Don’t Want the Hassle
When you are renting, you don't have to pay for repairs, renovations and maintenance, so you can save money on these things. You may even have a furnished apartment, saving even more money on having to kit it out.
Other expenses like buildings insurance are also usually covered by the landlord, making renting a good option if you don't want the hassle of looking after a property.
If You Want More Control of Your Budget
Unfixed mortgages can fluctuate depending on the interest rates, and this can make budgeting difficult. With rent, you know how much you will pay each month, and there are no unexpected extras for repairs.
Yes, your rent can go up, but you will know about it in advance and it will be fixed, helping you to budget more efficiently.
If You Want Fewer Risks
You don't want to miss your rental payments because this can have consequences. But if you miss your mortgage payments? That can bring huge problems.
If something happens like you lose your job or your finances take a hit, this could have dire consequences because your home could be repossessed, so renting can be less risky.
Is Renting Right for You?
Renting is not for everyone, but don’t automatically dismiss it. In these situations and more, renting can sometimes be the best solution for you, so always consider all your options before you start saving for a deposit.