There are numerous factors to consider when deciding to rent a property or take the big step towards purchasing a property. There are advantages and disadvantages to either option. It is generally only a good idea to buy a property when you have a stable income and are well established in your work and personal life. Although many of us are working towards this level of stability, often the smart thing to do is opt to rent if you can’t commit to long-term mortgage payments. Here are some reasons to rent instead of buy.
If you are not sure about your plans for the future, renting may be a good option. Perhaps you are considering a new career in a different city or want to travel or even emigrate in the near future. When moving to a new city, it’s generally a good idea to rent first, to test the waters, so to speak. Renting means you don’t need to make long-term commitments, so you can take the time to make important decisions for your future.
Another benefit of renting is the lower level of liability. The property owner or landlord usually assumes responsibility for fixing leaks or faulty pipes. Insurance is also less as you don’t need to pay for building insurance, however it is wise to insure your possessions as they are not covered by property owner paid building insurance.
With low deposits it is much easier to rent than to put down a deposit to buy a property. This means that you can change your location in a relatively short time. Fixed income also makes you immune to fluctuations in interest rates. So as long as your lease is in effect, your rent will not increase, regardless of what the economy is doing. This is a comfort because it allows you to budget more accurately. Good financial planning and careful budgeting mean you are better equipped to live debt free.
In short, renting gives you immediate short-term housing with the freedom to relocate at short notice and the certainty of a fixed income can go a long way in planning your monthly budget.
Chiltern Estates have a range of properties to rent, with properties available in Mayfair, Baker Street, Central London, West End and more.
