In the UK there is a definite culture of the aspiring homeowner, that settling down and getting a ‘foot on the property ladder’ is what most aim towards achieving after a period of renting with friends in your 20s. However, not everyone can or wants to buy a property. So perhaps we should start taking a lesson from our European neighbours, where long-term renting is much more common, and consider this approach. Here we list a few perks to renting life and why it might beat buying in some cases.
No big deposit needed
Though you will typically need between 1 – 2 month’s rent as a security deposit when renting, this is significantly less than the thousands needed to secure a mortgage deposit – with most lenders asking for at least 10% of the property price. This means being able to secure a home without having a large lump sum or holding onto/investing your savings elsewhere.
Fixed monthly payments
Sticking with money matters, when renting, you know how much you are due to pay each month (and are unlikely to be responsible for unexpected costs on top of that) though mortgages, depending on the deal you have, can vary month to month and are affected by market conditions. Most homeowners opt for fixed rate mortgages, where they pay a set amount each month, however these are agreed for a certain period of time and may not be renewed on the same terms.
No unexpected maintenance costs
As mentioned above, this is a big plus when renting. If there’s a leak, an appliance breaks or work needs done on the roof, the property owner will be responsible for organising and paying for repairs, meaning much less responsibility and financial strain than if you owned the property yourself.
Fluctuations in the market
The property market can be volatile, with values going up and down, times when it takes months to sell and times when properties get snapped up quickly. As a renter you have less to worry about in this respect.
Unexpected savings
You’re likely to save on things like insurance as a renter as well as enjoying lower utility costs if you live in a smaller or shared home. You also won’t be tempted to start costly redecoration or renovation projects as most landlords aren’t keen for tenants to carry out work.
Flatmates and friends
Renting gives the option to share your living space with others, providing social spaces and a chance to make fun memories and lasting friendships – as well as practical matters of splitting the cost of rent, council tax and utilities.
Flexibility
When you buy, you are very much putting down roots, as the costs and hassle involved in the buying process mean you won’t want to keep moving too often. On the other hand, renting keeps things flexible, meaning you can relocate with ease if personal circumstance, work commitments or your outlook changes.
Clyde Property is a leading independent, multiple award-winning estate and letting agent with more than 30 years’ experience in selling and letting property in Scotland. Just call your local Clyde Property branch today for friendly, impartial advice on finding your next dream home.
