Owning your own home is a dream most people aspire to and is increasingly tough in these days of rising house prices. But how important is it to actually buy rather than rent.  We examine some of the pros and cons of buying versus renting – pointing out the advantages and pitfalls of both. buy-vs-rent-53574f1

Renting is something we tend to hide in the UK, as it has become a bit of a shameful secret, whereas on the Continent or in Europe, it seems to be far more acceptable and more transparent in people’s lives.

There are certainly many advantages to living in rental accommodation depending on your lifestyle and plans for the future. Student accommodation is a given in that gives the young adult the first taste of ones own living space, with some of the responsibility, and with the option to quickly move on when the course and tenancy is over.  Likewise with young professionals who are starting out in their career without a deposit or ability to obtain a mortgage, although rents are now quite high which is another deterrent to paying out huge amounts of ‘dead’ money which can prevent you from saving for a down payment.

Some individuals prefer to pay out rather than take on the responsibility of a mortgage which they find stifling, and all the added price tags that come with owning a property. If in rental accommodation this is the job of the landlord – and anything that leaks, breaks down or needs replacing can be handed over to the owner.sales_2879031b

A word of caution about renting however, a recent incident with a ruthless Landlord with a host of rental properties, always held two months deposit, which was supposed to be returned at the end or on vacation of a property. He consistently over charged for what was mere day to day depreciation of the interior decor, and had had this down to a fine art until one canny tenant reported him to the Fair Rents tribunal and he has never repeated this behaviour since that time.  But there are a lot of Landlords who are still ripping off of tenants in the same way.

It has always been a recommendation from Financial Advisors to invest in ‘bricks and mortar’ because even if house prices decrease in a recession, you can bet your bottom dollar that they will pick up with the economy and regain their value very quickly.

The new government ‘right to buy’ scheme is something that a lot of young couples and singles are looking at and provide access to affordable mortgages.   landlord-laws

Even for the more mature over 60s some building societies are providing mortgages up to the age of 75 or older. So the options are there for all of us.

It does all come down in the end to our individual values and what is important to us in our lives right now. What I would recommend is that you evaluate and  investigate all of your options – and then sit down and make a plan based upon your own list of pros and cons regarding buying versus renting.

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