Archive for the ‘Rental Property’ Category
Written by Dane Cross on behalf of One UK, a UK based estate agents who specialise in flats in Leeds.
An ambition for many is to eventually own their own property. However, given the state of the economy, foreclosures are on the rise meaning that owning a home can end in catastrophe. Because of this, you may wish to consider renting over buying. Here are a few more reasons why:
Less risk
Unfortunately, many people do not consider the risks involved when they think of purchasing a home. There are certainly a number of factors to consider. Married couples with an income-based mortgage may have to consider their employment stability – particularly given the current economic climate.
Less hassle
One huge advantage of renting over buying is that maintenance problems will be resolved by the landlord, saving hundreds or even thousands of pounds fixing it yourself. If a pipe bursts or the roof leaks then it are their responsibility – you don’t own the property, therefore you don’t have to fix it. Being a tenant instead of a homeowner also means you don’t need to mow the lawn!
Flexibility
Should you get a job that requires you to relocate, then it can get complicated if you own the house you are in. It would require you to sell the house, rent it out, or, annoyingly, reject the job offer. Renting, however, means you would merely have to move. With current rental agreements, you ARE obligated under contract to stay until the end of your lease. Breaking the contact means you are required to pay the current and next month’s rent, plus a possible charge. However, this is a lot less hassle compared to selling your home.
Owning a home means having to go through several processes such as contacting your estate agent, getting the house in top condition by carrying out repairs/painting before being shown to potential buyers. And what if all of this can’t be done in time for your move? You would then be stuck paying a mortgage as well as the rent at your new property. It might be possible to pull off, but at huge inconvenience.
Save money
In an article entitled ‘Get Rich Slowly’, it is stated that home buyers pay roughly 78% more for their monthly expenses than someone renting the same property. Therefore, don’t buy into the myth that renting is just wasting money. Whilst you might not get your money back by renting, you’re still getting something for it – a less expensive place to live. The money saved by renting as opposed to buying can be used to pay off existing debts, used as an emergency fund, or saved for retirement. Unfortunately, buyers rarely have such a luxury.
For some, of course, homeownership is the way forward. That said, deciding to buy is a huge responsibility and a massive commitment. Take some time and decide what is more appropriate given your current situation. Renting may be the best option for you and your family. It allows more freedom and dependence which might be just what you need.