Renting vs. owning
Of all the decisions you need to make in life, the “do I rent or do I buy” decision is one of the more complicated ones. There will be a mixture of financial, social and emotional factors involved, and no two people are in exactly the same situation.
Unfortunately, there is no “right” answer, as your personal circumstances and preferences will play a large part in the decision process. The following should provide you with food for thought. Whatever you decide to do – make sure you have put plenty of thinking into your decision, and that you can afford to do whatever you decide!
| Renting | Buying |
| Offers you flexibility (you can downgrade/upgrade if required) and certainty (you know how much you are paying each month). | Offers you the chance to own your own property and build equity in the house you are living in, whilst repaying the debt (repayment mortgage). |
| Safeguards you from any fluctuations in the housing market – if you do not own property, you are not hugely affected by a rise or fall in property prices. | House prices have increased over the years and people have seen an increase in equity that has enabled them to move to better properties / do other things. |
| Enables you to move from location to location relatively easily. | You may want to pay more in owning a property in a good area, than paying rent for it. |
| You pay money to someone else for renting their property | A mortgage may cost you less than you pay in rent. |
| You can choose your housemates, or they may be chosen for you | You can choose your housemates and they may pay you for living in your house (tax incentives for renting a room out), which can help repay your mortgage. |
| You are not responsible for the maintenance of the building you are in | Many new properties do not have any maintenance issues. You can pretty much do what you like to your property (within regulation limits). Buildings insurance will protect the buildings from serious damage / incidents |
| Deposit required is normally 1 months rent and not really any other costs | 100% mortgages can be obtained, but at least 5% deposit is preferable, so that you can get a better rate. Costs of purchasing can be quite high, depending on the area buying in and the purchase price |
We’ve had feedback from our clients that this list has helped some of them to look at renting vs buying differently – to consider some of the pro’s and con’s which they hadn’t thought of previously. It may have helped you a great deal, but if you are still feeling confused, don’t worry, seek advice from a professional who can talk you through the options.
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Charles Antony
18 Downs Park East
Westbury Park
Bristol BS6 7QD
United Kingdom
T: +44 (0) 117 962 0258
F: +44 (0) 117 962 0258
This website is the website for Charles Antony, an Appointed Representative of the Whitechurch Network Limited, which is authorised and regulated by the Financial Service Authority.
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