One of the hardest choices one has to make in adult life is choosing a place to live and it is even harder to decide between renting and buying a place. Property is one of the major investments you will make in your lifetime and there are a variety of factors that govern your decision of buying or renting.
Let’s discuss some pros and cons of both renting and buying in London and then you can decide which one is better for you.
Let’s start with buying first;
Your investment is worthy, once you have cleared the mortgage and the property is yours it will be worth more than what you bought it for. You can customise it according to your needs and taste; this is something you can never do in a rented house without your landlord’s permission.
You won’t have to worry about paying rent post retirement, you will own the place and will retire free of housing worries. You can buy a better and a bigger house once your property increases in value. Owning may turn out to be more affordable and cheap than rent in the long run.
It is a very serious financial investment so you need to be ready for all the expenses that come along with buying like Deposits, Mortgage, Legal costs, survey costs, Gas and Electricity bills etc. The maintenance can be very expensive. If you have to move for some reason and sell the house, this comes with a lot of hassle like the legal payments and the real estate companies which is too much work and also your house may not always be on market, there is a possibility that you won’t have a potential buyer at that particular time.
If you have a job that involves going out of London to other cities then renting is a good option for you, as mentioned above that buying and selling houses is a big problem if you are moving too much.
Renting suits younger people because they may not want to be tied to one place. They can count on their landlord for the maintenance of the house. If the rent is reasonable then they have a good lifestyle. Renting is very flexible. You don’t have to worry about the decrease in worth of the property that you are renting.
According to a survey it was found that an average London tenant pays £1,500 in rent for a house or flat to the landlord which is a staggering £126,000 over seven years! In the long run sometimes rent turns out to be more expensive than all the expenses of buying a house. But it is the eye-watering deposits at 20% that stop most people.
Both the options have their good sides and downsides; you have to decide what is best for you keeping your needs and responsibilities in mind.
If you’re not sure which avenue suits you, give us a call for advice on buying & renting in London.