Buy or rent: which option is better for you?

If you’re currently renting a home and thinking about purchasing a property, you may be wondering if it’s the right choice for you. The  ESPC Mortgages team look at some of the advantages of buying a home along with the disadvantages.

Many people aspire to own their own home and for many this will be the biggest financial commitment they will make. The choices for most of us are between renting from either a social or private landlord or taking that first step and committing to a mortgage to enable the purchase of a home.

Advantages of buying a house

Retirement income

One of the key benefits of buying a property is that one day, and ideally before retirement, the mortgage will be paid off and the property will be owned outright with no mortgage or rent to pay. This can make a big difference in disposable income during retirement, which is a time when income reduces for many people.

Increase in property value

Once you are on the property ladder, your home may increase in value over the years, which will, in turn, allow you to sell up and fund the purchase of a bigger property. At some point, you may also wish to downsize and take the profit from any increase in the value of the property.

Rental rates

As inflation increases over time, so it is likely that rents will also increase. Rental rates will also be affected by supply and demand and so if there is an increasing demand for rental properties coupled with a lack of supply, rent costs are likely to rise in the area you live in.

Advantages of renting

Care and maintenance costs

When you rent a home, the landlord or letting agent is responsible for the care and maintenance costs, but when it’s your home, it’s your job to cover these, sometimes high, costs. But bear in mind that owning your own property does allow you more choice when it comes to decorating.

Moving

Also, renting a property allows you a reasonable amount of flexibility if you decide to move away from the area you currently live in as you simply need to give your landlord the correct amount of notice that you wish to end the tenancy. However, if you own a property and choose to move, you can sell the home.

About ESPC Mortgages

As independent mortgage advisers, ESPC Mortgages can help with all aspects of understanding your budget, applying for a mortgage and dealing with the relevant insurance requirements. Give us a call on 0131 253 2920.  You can also email us at fsenquiries@espc.com

The initial consultation with an ESPC Mortgages adviser is free and without obligation. Thereafter, ESPC Mortgages charges for mortgage advice are usually £395 (£345 for first-time buyers). YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOANS SECURED AGAINST IT.

The information contained within this website is subject to the UK regulatory regime and therefore restricted to consumers based in the UK.

The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services businesses aren’t able to resolve themselves. To contact the Financial Ombudsman Service, please visit www.financial-ombudsman.org.uk.

ESPC (UK) Ltd is an Appointed Representative of Lyncombe Consultants Ltd which is authorised and regulated by the Financial Conduct Authority.