To Rent Or Not To Rent - That Is The Question
Tuesday 9th August, 2011 - 1:36pm
The question on many people's minds in the current financial climate is whether to rent or buy a property. Here, we try to shine some light on the situation so that you can make an informed decision.
To purchase a house you will need to pay a bare minimum deposit of 10%, as well as related costs such as legal fees and Stamp Duty for homes costing over £125,000. If your finances allow you to step onto the property ladder, there is no reason why you shouldn't, as house prices aren't doing much (they increased by 0.1% in March, according to Halifax).
However, the beauty of renting is the flexibility which it offers. Buying a house is a long-term commitment, but you can rent one property for as little as a year. This is often a favourable option for young professionals for many reasons. Firstly, when pursuing a career, employers often see it as a great advantage if you are willing to move to another area of the country - leading to increased earning potential. Renting is also a good option for young professionals because their earnings often increase quickly over the first 3-5 years. This means that they could improve their living situation each year by renting a new property.
Renting is also becoming increasingly popular among new families. For example, a couple who have been renting a property for several years could decide to have a child, and move into a slightly larger property. If they then decide to have another child a year or two later, they could move into a larger property again. These transitions can be very smooth and take away the stress of not having enough space to bring up a family.
The decision as to whether to rent or buy will be determined by your financial situation and your life circumstances.