Rent or buy?
When the time comes to move out of your family home there are a number of things you need to consider.
The first thing to decide is whether you want to rent or buy your new home. There are pros and cons to both options and these vary depending on individual situations, but a few general issues are listed below.
Renting - pros
- Your landlord is responsible for any repairs, maintenance and usually decorating.
- It is easier to move if you are renting compared to when you own your own house. (If you sign a tenancy contract be aware of how long you have committed yourself to renting the property).
- You are protected under the Landlord and Tenant's Acts.
- There is no chance of falling into the negative equity trap.
Renting - cons
- Some people see rent as money going down the drain because you get no return on it.
- You can get caught in the trap of having to pay for rent and bills and not being able to save a deposit to buy a house.
- Check who you will be sharing with if you are renting a room. Are there communal rooms?
- Check who is responsible for general repairs if you have found the property through an agency. They may be acting on behalf of a landlord so you need to know who to contact if there are any problems.
Mortgages - pros
- You are paying money towards owning your own property, which can be seen as an investment.
- You will not risk having problems with a landlord (although this may not be the case where you are in leasehold property).
- Your gaff, your rules.
Mortgages - cons
- The costs involved in buying a house are quite high - on top of having to pay the mortgage you have to consider the solicitors fee, surveyors fees etc.
- Interest rate changes will affect your monthly repayments so it is very important to consider which mortgage is the best one for you.
- You will generally be responsible for any repairs and maintenance of the property.
- You may find yourself in a situation of negative equity where you owe more than your house is worth.
Top Tips for renting or buying
- Make sure you visit the property at different times. Street lighting and parking can change throughout the day and may influence your choice of property.
- If there is anything that needs to be repaired before you move in make sure it is in the contract. Do not rely on verbal promises.
- If you are renting, the Citizens Advice Bureau will check the contract for legalities and make sure everything is covered.
- Check what is included in the price of the house - items such as carpets, curtains and light fittings should be specified if they are to be included.
- If it is a flat or maisonette, check about rights to parking/gardens etc. Who owns the freehold?
- Does anything look like it might need immediate attention such as windows or plumbing?
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