It might surprise many that it is cheaper in the long run to purchase a home rather than renting, but there are benefits to both situations. If you are prepared financially and are ready for the responsibility of home ownership then it is one consideration that could save you money long term.
Reasons to buy
The interest rates are still at a really low level and this is great news if you are considering buying a property. It means that you will pay back less in interest payments, than if the rate suddenly rose, but being prepared and fixing the low rate is often a great idea to protect yourself from high rate rises in the future.
You will have the advantage of having a large amount of properties that you can chose from because of the amount of homes that have been foreclosed on. But this is a negative point, because many of these places will require more work, people tend to strip and vandalise the property if they are foreclosed on by the banks.
But the advantage means that you could potentially pick up a house for a lot less than what it would have been valued at in the past. But having the deposit for the mortgage is going to need to be saved, before you move into this area. There are more restrictions in place since the crash and lenders are being more cautious as to the amount being lent in relation to the price of the property.
Reasons to rent
If you don’t feel like taking on the responsibility of home ownership, there are still benefits to renting. One of the main points in favour of renting, the amount of the deposit is often lower than the amount of the deposit you will need to find if you are considering purchasing a property.
If you are not planning to stay in an area for very long then it is often not a good idea to buy straight away, renting can be a way to have a nice home and then when it is time to move you just pack up and move along.
If you have children and you want them to get into certain schools, it is often easier to rent rather than to buy, sometimes good school areas can increase the purchase price of a property.
Home ownership carries financial responsibilities that you might not be ready to accept, this is fine, and renting is a great way of moving out of a family home and living how you want to and experiencing the benefits that come with independence.
It might be cheaper in the long term to rent but it is not always the right choice for everyone, this is why it is important that you consider your options and your needs. If you decide renting is going to fit your needs better than home ownership, then this is going to be the route for you. If you buy a home before you are in a financial stable position, it might cost you more in the long run, than you currently realise.