Whilst many people do in fact want to own their own home, it is oftentimes not financially feasible for them to afford this. Therefore, many people may instead choose to rent rather than going through the process of applying for a mortgage. In addition, taking on a long-term loan is of course a big responsibility, which many people may not want to take on. Are there instances where it might actually more sense to buy instead of renting, and vice versa?
First, let’s look at taking out a home loan. There are many advantages, such as the security of knowing you will not be moved out of your property at short notice. Additionally, you have the freedom to change the property as you like. It is also an investment you get to make in your future, and you could make more money in the long term if you choose to sell.
On the other hand, there are several benefits of renting over buying. For example, you will have more flexibility to move wherever you want after you have given your landlord notice. The maintenance is also not your responsibility, and it is also easier to budget when you know how much your rent and bills will be every month.
On the whole, renting can be cheaper in the short term as you do not have to worry about additional homeowner costs such as buildings and life insurance, and property maintenance.
However, whilst buying a property has a greater initial cost, in the long term, it may work out to be cheaper than renting. Really, it all comes down to personal and financial circumstances, so contact us today at Eminence Mortgages to find out how we can help!