Tuesday, 26 February 2013

Buying vs Renting: What should you do?


The answer to this question is never simple to answer. It always boils down to personal circumstances and current market conditions, so there is no generic answer. Instead there are several reasons why each option can be beneficial and what factors may play a part in your final decision. Here we outline a few things to consider when deciding whether to buy or rent a property.

Advantages of buying a property

Investing in your future

If you secure your own home and have a repayment mortgage rather than an interest only mortgage, you are effectively investing in your future and slowly creating a very valuable asset. Your payments each month are not going to a landlord and you gain a long term advantage through paying off your mortgage. At the end of the term of the mortgage you will hopefully have full ownership of the property.

Freedom

If you own a home, you are able to do what you like with it (within planning regulations). You can make it a home for your family or simply move in and enjoy the property how you like. You will also control any decisions, problems and other factors regarding the property and won’t have to deal with Landlords or agents.

Discipline and experience

The house buying process can be a scary task. Once you have been through the process once, you will be able to do it again easily should you be purchasing another in the future. It can also be a fantastic way to kick-start financial planning for your future, helping you to create a household budget to manage the costs of running a home.

Community

By purchasing a home you are actually becoming a part of an established community that make up of local amenities, facilities, school, shops, churches and more whilst making lifelong friends.

Advantage of renting a property

Flexibility

By renting a property over buying one, you are able to live pretty much wherever you like. In most cases you can break a rental contract after 6 months, so you can simply move to a new location, or perhaps give a property a test in an area before moving on to purchase a property.

Free from financial responsibility

As a renter you are not going to fall foul of any housing market related conditions. You will of course still pay rent but you aren't tied into monthly repayments then you won’t fall into negative equity at times.

No maintenance costs

A benefit of simply renting a home is that you don’t have the responsibility that an owner has. You are not responsible for decoration, maintenance and upkeep – the landlord usually is.

Cavendish Ikin Estate Agents Cheshire can aid you in buying, selling and renting houses. The Estate Agents are some of the best and most experienced property professionals in the country. Cavenidsh Ikin is Cheshire and North Wales' Number One Estate Agency.

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