Should I rent or should I buy?

Am I ready to buy?

Deciding to rent or buy a property can be a hard decision to make, and is a dilemma that a lot of people go through. Buying a property is likely to be the biggest financial decision you’ll ever make, so it’s important you understand everything involved.

The costs

One of the first question you must answer is simply, can you afford to buy? There are many costs involved when purchasing a property other than just the price of the property, and it doesn’t stop once the property is bought.

First off, you’ll likely need to borrow money for your mortgage from a lender. How much you can borrow will depend on your annual income, debt and fixed outgoing costs. You’ll also need to put down a deposit which is usually at least 10% of the value of the property. Speak with one of our mortgage advisers to find out how much you can borrow.

There are other costs involved too, such as surveys, stamp duty, removal costs and legal costs that you’ll have to pay during, or after, purchasing the property. There are also increased running costs when you own the property, for example you will now need buildings and contents insurance. You’ll also need to prepare for any unforeseen maintenance issues that you wouldn’t be liable for if you were a tenant.

Benefits and downsides of owning a property

One of the biggest benefits of owning your own property is that your home is yours. You won’t suddenly come to the end of your tenancy agreement and have to find another place to live and you can live how you want to (and with as many pets as you want!). There’s also the possibility that your home may increase in value meaning that you may be able to use the equity however you wish.

There are however some downsides of owning a property. Firstly, your home may actually decrease in value and depending on the market at the time it may not always be easy or quick to sell your home. There’s also much less flexibility than renting as you can’t just up and move.

We recommend speaking with one of our financial advisers who are happy to spend as much time with you as you need to make the right decision. You can also speak with both and sales and lettings team who will be able to advise what you can get for your budget and the current local market.