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For Sale
or rent
advice offered
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Rent or Buy
Rent
Most people will find that at sometime or other they will be living in a house or flat that belongs to someone else and they will pay rent to live there. As with anything there are advantages and disadvantages to renting.
Advantages
- You know how much you are going to have to pay for the period of your tenancy usually six months to a year at a time.
- During this period you will have security of tenure (very difficult for the landlord to evict you without going to court)
- Usually the landlord will have responsibility for repairing the property
- It is much easier for you to move on with rented property than with a mortgaged property.
Disadvantages
- You only ever pay out and will never own the property
- No chance to build capital value through buying the property
- Possible to have real problems with your landlord over rent, repairs
Buying
In the end nearly everybody ends up buying their own house and they usually do this by getting a mortgage.
Advantages
- Once you have paid off your mortgage you will own the property
- Even if you move before you have paid off the mortgage you will usually make a tax free capital gain (profit). This is not always true as in the late 1980s and early 1990s there was a period when the value of houses went down and people selling at that time made a loss or had as it was called negative equity
- The cost of a mortgage can often be less than the cost of renting
Disadvantages
- Can be more difficult to move if your work moves or you just want a change
- The rate of interest paid can go up and down rapidly so your repayments can change equally rapidly and this can have an affect on your lifestyle.
If you want more information about mortgages click here
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