Last month we took a look at the few of the reasons why you should consider buying over renting, however, it is important to note that each has its advantages. Renting a home can be a better choice for many, especially when personal circumstances are taken into account, so this month we are going to examine just a few of the reasons why you should consider renting over buying.
Lower Initial Investment
One of the biggest barriers facing potential homeowners is the amount of money that needs to be raised before they can place their bids on properties. With deposits being as high as 20%, this often means that tens of thousands of pounds need to be raised before a person can seriously consider buying. Renting removes that obstacle, lowering the initial investment required quite considerably. Instead of having to raise a deposit, you will only be required to pay a security deposit, which is usually in the hundreds of pounds, and the first month’s rent in advance. There may also be some estate agents’ fees to cover as well, but overall the initial investment is much lower.
As a homeowner you will be responsible for everything in your property. As such, if a window breaks or your boiler stops working, the buck will fall on you for getting them repaired, which can often be a costly endeavour. However, when you are renting you should find that maintenance is much less of an issue. As long as the damage has not been caused directly by you, most landlords will cover the costs of routine maintenance. You may also find that your building is checked over fairly regularly, either by the landlord or letting agency, which means that there is even less chance of a maintenance issue occurring.
Another major factor when choosing between renting and buying is the speed at which they can be done. Buying a property often takes a number months, as you will need to secure a mortgage, go through the negotiations and handle all of the legalities associated with the move. Renting, on the other hand, is a much faster process. It can often be completed in a matter of weeks as long as you have all of the necessary paperwork and can pay the relevant fees. This makes it ideal for those who are looking to move home as quickly as possible.
Another cost that homeowners need to take into account is the various forms of insurance that they will need to take out in order to keep their properties protected. Again, this is less of an issue for those who rent property, as most forms of insurance will have already been taken out by the landlord. Instead, renters need only concern themselves with contents insurance, as the things they move into the property are the only things that they own. This reduces monthly bills quite considerably, often to the point where renters are then able to afford living in areas that they might not have been able to purchase in.