Hunting for a new home in this climate is an unenviable task. And many people are looking for a solution, but with rising prices, a lot of people don’t have the opportunity to save up for their dream property. And this begs the question, are people better off renting at the moment? In terms of finances, there are certainly benefits to both sides of the equation. But which is best for you? Should you buy or rent?
What Is Your Current Situation?
They say that if you want to apply for a mortgage you’ve got to put yourself in the best position possible, which means eradicating bad credit. And while there are many bad credit mortgages available, you still need to look at your credit situation and your financial situation in a holistic manner. Because if you plan on purchasing a house that you can barely afford and mortgage rates change, this means that you could potentially be paying more for your home. If you struggle further down the line, you could end up losing the place.
Is Renting Actually Cheaper?
Rental properties can be cheaper, but you may find that renting a property comes with a lot more hassle. This is predominantly down to the agency. If the housing agency is not good at returning your phone calls, or you have a landlord that could do a lot more for your property, you may find yourself getting frustrated and paying to have the boiler fixed yourself. A lot of people find themselves in this position because they can’t go without heating, especially during the winter. In this position, buying a property would be better.
Is it More Flexible to Rent?
Some people prefer to rent because they can move whatever they want. Ultimately, it depends on what your long-term goals are. Setting up a home with your family can be better if you bought a property that was close to the right schools because of issues such as catchment areas. But flexibility is important for a lot of younger people.
Is One Better Than the Other?
The fact is that many people talk about renting being better than buying, and vice versa, but there’s a lot of things to think about. A lot of people prefer to have their own home, but more people are having to rent out of necessity. There are so many places that you can rent, and while renting on the surface comes with no maintenance or repair costs, there is the lack of satisfaction that comes with owning your own property. But the modern climate for renting is a precarious one. Because rent costs are increasing, this means many people are trying to find their own place to live, but if you are looking at the best possible solution, it depends on your day to day situation. If you are fed up with giving money to a landlord, it’s better for you to purchase a property and use it as an investment. On the other hand, if you prefer more freedom and flexibility, renting offers a number of positives.