Whether to buy or rent your home is a major decision. Renting allows you more expendable money in the short term while owning a house gives you a sense of security and is considered a long-term investment.
Advantages of buying a home
Owning a home offers the long-term benefits of equity, security and potential growth in personal wealth.
The value of a house may increase over time and if you decide to sell, you could also earn a profit off the sale.
When you make the decision to purchase a house it becomes your legal property, which also allows you greater freedom in its use without any restrictions often enforced by a Landlord.
Disadvantages of buying a home
Being a Homeowner comes with huge financial responsibility including regular house maintenance and mortgage repayments.
There are additional costs to homeownership at the outset there are of course the legal expenses and stamp duty. Then there are insurances and maintenance costs for which the homeowner is responsible
A Homeowner runs the risk of not making any profit through the resale of the property. This is often caused by economic factors such as high-interest rates or a recession, or simply through a particular location becoming less desirable.
Advantages of renting a home
Renting a house allows more flexibility than owning one. This is ideal for those who could be faced changes such as a job relocation. It also requires no long-term commitment from a Tenant and is the best option if you do not intend on staying in one place for a long time.
Moving out much easier for a Tenant than a Homeowner, and there is no stress of finding someone to take over the lease or finding a new buyer to purchase, the property is the responsibility of the Homeowner.
The only insurance required by a Tenant will be to cover the contents of the property, while all maintenance work is for the Homeowner’s account, as is with homeowners insurance.
Disadvantages of renting a home
Renting a property offers no wealth creation or return on investment since the house will never legally belong to the Tenant, instead the Tenant is paying towards the Landlord’s mortgage payments.
When renting a house you have to deal with a Lettings Agent who will then be the liaison between you as the Tenant and the Landlord. This can result in some issues taking longer to resolve since there is a 3rd party involved.
A Tenant is bound by the rules of the Tenancy Agreement meaning as the Tenant you cannot make any changes to a rented property without the consent of the Landlord.
There is no guarantee that the Landlord will want to renew the tenancy when this expires.
When renting, you will have no control over annual rental fluctuations which are directly affected by inflation.
If you are located in Swindon and can’t decide whether you would like to rent or purchase a house in Swindon, Moovahome is more than happy to help you. Give us a call on 01793 512345 or send us a message by filling out this form.