Recently, there have been an increasing number of people choosing to rent rather than purchase property.
This could be because house prices are too high for young people to be able to afford that first time purchase, or perhaps because it’s taking too long for them to put together enough money for a deposit. Some people also like that they can move in relatively quickly once they have signed a contract. Of course, for some, they just simply prefer to rent.
Whilst there is a lot of advantages to buying a house, there is also a number of reasons why renting is also a good idea. Some people can get caught up with idolising the idea of buying their own house, and we admit that it is a pretty good feeling. However, that doesn’t mean that those who choose to rent are at a disadvantage.
We fully believe that there are some benefits to doing so. This is why we have put together a list for those who are unsure if renting is beneficial to them.
Flexibility
Renting a house means that you have no long-term commitment. Whilst it is likely that you will have a contract stating the number of months you are permitted to live there, it’s still a lot easier to move elsewhere compared to what it would be if you owned a property.
After an initial commitment of 6-12 months, many landlords will put their tenants onto a rolling contract. This gives the tenant more flexibility if they decide to move.
For tenants, especially young professionals, this is an advantage, as it means they are able to relocate more easily if job opportunities come up elsewhere.
Renting also gives people the chance to live in an area that they would not be able to afford to buy a house in (especially in London).
No Big Down Payment
The money you need to pay upfront when renting a property can vary, depending on if your landlord asks for rent up front and a deposit. Unless renting privately, you will also have to pay estate agent fees, as they will be assisting you with the renting process.
However, it will still be significantly less than the amount of money needed when buying. Purchasing a house requires a big down payment, which can be anything from £5000 upwards, depending on mortgage agreements.
No Financial Risk
The property market is forever changing; sometimes for the good and sometimes for the bad. A huge advantage of renting a property is the fact that it doesn’t matter if the property market drops; you don’t lose any money, simply because you don’t own anything.
Renting also means that you don’t have to pay any property maintenance, as this should all be covered by your landlord.
As you can see, there are advantages for those who want to rent. We fully believe that it is an individual decision, in which some people may want to rent whilst others are set on buying. However, it is a big decision and should always be thought through carefully. Also, if you are interested in renting, then it is important that you do so through a reputable letting agent.
Here at Belvoir, we work hard to ensure that all our tenants and landlords are happy. If you are looking to rent, then our letting agency in Sutton Coldfield can help you find the perfect property. Contact us on 0121 321 3388 and a member of our staff will be happy to help.
