Choosing a place to live is a pretty difficult process. Some of us aren’t always ready to settle down, so renting is automatically the logical option for us to choose. Perhaps you’re out of school and only plan to be in an area close by for three to four years. Maybe you’re undertaking a temp job and don’t necessarily need to stay in the location you’re working for long. But as soon as you begin to settle down, you may start to question whether renting is really the best option for you and whether you should start saving a mortgage down payment to buy a property for yourself. Of course, for some people, this is the best option. But it’s important to remember that it’s not the only option. As a culture, we often pressure people into buying a property to live in, arguing that it’s always the best option financially. Getting a mortgage is often seen as the “thing to do”. It’s important that you look at this from an individual perspective and choose what’s best for you. Here’s some information on both options that will help you along this journey.

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Benefits of renting

There are, of course, benefits to renting. Here are just a few that you might want to take into consideration!

1. Tenancies (or leases) can be as short as six months. This gives you the freedom to move in a relatively short period of time if you find that a property or location isn’t really suitable for you. When you buy, you’re tied into living in a particular place for a longer period of time, as selling a home is a long and relatively complex process.
2. The freedom to leave your property with relatively short notice (such as a six month contract) gives you the freedom to move around a lot more easily. If you feel that you want to go travelling, move to a different area or even move to a different country, this is much more simple, as you don’t have money tied up in property and aren’t committed to paying a mortgage in one set location.
3. If you are single and looking to get into a relationship, it’s easier to move into a new place together if you are only renting. Your lease can come to an end and you can make the move without having to wait for sales to take place.
4. When you rent, the expense of maintenance costs in the property are not yours to pay. If the boiler breaks, your landlord has to replace it. If there’s a leak, that’s your landlord’s financial problem, not yours. This makes it easier to predict monthly costs, as you’re not going to find yourself lumped with an unexpected bill. 
5. Sometimes, when you rent, you may be offered a furnished option. This means that anything from the furniture to white goods appliances may be included, saving you costs.
6. If you don’t have the money to save a mortgage deposit, getting on the rental ladder is a whole lot easier, quicker and cheaper than trying to get on the property ladder and buy.

Benefits of owning a house

Of course, there are clear cut benefits to owning a house too. Here are some that you should be aware of.

1. If you are ready to settle down and don’t intend to make any major moves such as long term travel or moving overseas, buying can definitely be preferable. From a financial perspective, home ownership can be a smart move. When you rent a property, you are essentially paying your landlord’s mortgage or (if they’ve already paid off their mortgage) disposable income on their behalf. Often, landlords also charge more rent than the actual mortgage cost of the property, making extra money for themselves. There are plenty of buying vs. renting calculators out there that can show how much less you’d be paying if you were actually buying the property than renting it.
2. When you rent, the monthly payments you make to your landlord merely secure your place in the property for another month. When you’re buying, the monthly repayments to a mortgage provider like www.gemhomeloans.com will take you one step closer to owning your home. This will give you an asset to your name. You can sell this in older age to cover your retirement, or you can leave it to your children or other loved ones later down the line.
3. When you rent a property, you’re relatively limited in what you can do with it. You probably have to leave the design and decor as it is, or, if your landlord does allow you to revamp the space, you’ll have to work within their preferences and you’re essentially forking out money to benefit them rather than yourself in the long run. When you buy, you can do exactly what you want with the space. If you invest in renovation, they’ll increase the property value and you’ll benefit from this if you decide to sell.
4. There are a lot of financial benefits that can come with owning a home, in the form of getting to keep the equity you build in the house, as well as the appreciation if and when the home price goes up. Depending on where you live, there can often be a lot of tax benefits too.

As you can see, there are perks to both renting and buying. The best option for you entirely depends on your individual preferences and requirements!

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