Thursday

Renting Versus Buying a House

When you are moving to a new location and are offered both houses for sale and houses to rent, there are different factors to take into account before deciding whether rental or purchase is right for you.

While purchasing a house does give you the rights and benefits of home ownership and can be a worthwhile investment, it is now difficult to obtain a mortgage without a substantial deposit payment. In addition, in the event your relocation is not permanent, it can be difficult to sell a home quickly enough to be able to purchase a new home in your new location. Still, buying a home is usually recommended once you are sure that your relocation will be a long-term one and so long as you can obtain an affordable mortgage.

Renting a home is often an ideal way to decide whether a new location is right for you, and it is the best option for temporary housing should the home you wish to purchase not be ready or while you save for a deposit that will enable you to get mortgage terms that are comfortable for you. The drawbacks of renting are that you do not build up any equity while you make monthly payments that can be almost the same amount as mortgage payments for a purchased home. Therefore, house rental is recommended as a temporary measure, either for short-term relocations or while preparing to purchase a home.

Most desirable locations in the UK have a wide selection of houses for sale, and some homeowners may offer their houses to rent on a long-term or short-term basis, either because they were purchased as rental investment properties or because they themselves have relocated temporarily or permanently. Professional estate agents throughout the country are your best source for homes and other properties that are offered for sale, and many offer attractive rental properties as well.

Deciding between purchase and rental depends on your plans for the near future as well as upon your financial situation and the availability of mortgages and suitable properties for purchase.