Everybody has faced dilemmas when it comes to housing in the past – it’s part and parcel of being an adult! Nowadays, though, the housing market is more complex than ever, and the millennial generation is concerned about getting on the property ladder.
To rent or to buy? That is the question! In this post we’ll break down some of the pros and cons of renting and buying, as well as the difficulties facing the younger generations when it comes to housing.
Let’s get started!
The advantages of buying instead of renting
Buying a home is a milestone in any person’s life, no matter their age. Owning your own home can give a person a sense of immense security, as well as giving them an asset they can fall back on if times get tough.
Here are some key advantages to buying instead of renting.
- You have something to show for the money you spend. Some people describe renting as a “money pit” – you give money each month in order to live in a home, but you don’t get much back for your investment.
- Once you pay off your mortgage, you can live for free. Not having a mortgage is one of life’s greatest freedoms: all you need to pay for is maintenance and bills. That’s why many people argue that in the long run, buying a house is cheaper than renting.
The advantages of renting instead of buying
There are some advantages of renting, although many people don’t see them! Some individuals prefer to rent for the following reasons…
- As a renter, you aren’t responsible for maintenance. If your roof caves in as a renter, it’s your landlord’s job to pay for the damages. You can budget carefully each month, safe in the knowledge that no huge, unexpected bills will come along.
- You can leave anytime without many strings attached. If you are somewhat of a nomad and like to change your life often, renting is an easier model for you. You can end your contract and leave without having to go through the hassle of a home sale.
Why is buying a house so hard?
Buying a house is so difficult in this day and age because property prices are continually on the rise. It is very challenging for young people without backing from their families to pull together a deposit for a home, hence why so many people in their thirties are still renting properties rather than buying.
Buying a house is also an arduous process that can take many months, and is financially extremely complicated. Millennials report a lack of support when they are trying to buy their first home. Buying is favourable over renting in the long run, but in the short term, it can be difficult to achieve.
While buying is a great option for long term financial benefits and safety, renting is a great alternative for people who want to take life a little more easily. Use our guide to decide which option is best for you!