Rent or buy – which is best?

Rent or buy? In today’s confusing and ever-changing housing market it can be hard to know what to do for the best. ‘It’s a bad time to buy’ or ‘renting is dead money’ are thoughts you’re sure to have rattling around in your head. But what’s the answer?

Buying is more cost-effective than renting but renting is cheaper than buying – it all depends on how you look at it. Not much help is it!

In truth, there are a number of key considerations that impact on the right decision for you, such as your income and how long you intend to stay in the property. Here we take a look at these and some of the other main pros and cons of renting vs buying to help you decide which is the right option for you.

Buying a home

Pros of buying:

• Ownership – your monthly mortgage payments are paying for your home not going to a landlord. So, when you’ve paid off your mortgage, you will be the proud owner of your own property.
• Control – always wanted a dog? Fancy painting the walls green or hanging pictures everywhere? With your own home, there is no list of rules about what you can and can’t do, you’re in charge.
• Home improvements – updating the kitchen, adding an en suite – not only are you free do as you please with your own home, any changes you make could increase its value.
• Making money – never a guarantee, but it is possible to make money on your home if, in the future, you sell for more than the original purchase price.

 Cons of buying:

• Mortgage – upfront costs such as mortgage fees and stamp duty are a big consideration. Be wary also of the type of mortgage you choose. If you don’t opt for a fixed mortgage rate your monthly repayments could rise (but they could also fall).
• Responsibility – any repairs must be arranged, and paid for, by you – the property is your responsibility.
• Moving – need to relocate quickly? You’ll have to wait until your house sells or finance two homes until it does.

Renting a home

Pros of renting:

• Easy to move – if you like to move about or have a job that involves frequently relocating then it is often more straightforward to rent.
• Fast – if time is of the essence, the process of renting can be quicker than hunting for the right property to buy, arranging a mortgage and then going through the conveyancing process.
• No responsibility – leaking tap, broken lock? The upkeep of the property usually falls to the landlord.

Cons of renting:

• Paying rent – your money goes straight into your landlord’s pocket, not towards you owning your own home.
• A landlord – when you rent, the landlord makes the rules – be sure to establish exactly what these are before moving in.
• Forced to leave – you might find somewhere you’re happy to stay for a long time but, unfortunately, the landlord is perfectly within his right to decide to sell the property or to decide to let to someone else. Leaving you with no choice but to move out.
• Improvements – if you are permitted to make changes to your rental accommodation – update the kitchen, paint or perhaps lay new flooring – this will no doubt increase the value of the property but helps the landlord, not you.

Next steps

There’s rarely an ‘ideal’ time to take the plunge and buy, only a time that’s right for you.

It’s essential to way up the pros and cons and take time to fully assess your personal situation.

If you decide you’re ready to buy, the next step is to line up a professional property conveyancer. This is someone who can help steer you through the legalities of the buying process – making it another important decision you need to get right.

And that’s where we come in. At GD Legal we pride ourselves on taking the hassle out of buying a home. As fully licensed property conveyancers we can assist you with a wide range of conveyancing issues and promise to be with you for every step of your buying journey.

Add to this, the fact that our property lawyers are also extremely knowledgeable about the government’s schemes to help you buy a home – including Help to Buy and Shared Ownership – and we believe you’ll be hard pushed to find a better conveyancing service.

Get in touch with the team

Want to find out how much conveyancing will cost? Get your free instant quote now – with no obligation!

You can view your conveyancing quote instantly, along with details of disbursements and VAT costs, so you know exactly what you’re dealing with. A copy of the quote will be emailed to you, and if you’re only looking at this stage, you can simply save it for reference. Alternatively, if you’re ready to move forward, we’ll be happy to get started straight away.

Why not discuss your house purchase with our experts? Call the team at GD Legal today on 0161 7101786 or email info@gdlegal.co.uk.