Everyone has different opinions about whether renting or buying is better. Truth is there is no right or wrong, only what suits that person at that time in their life. While some see renting as wasting money, others fear the commitment of home ownership and worry about the house becoming a money pit.
Recently, the number of people privately renting has significantly increased with fewer younger people planning to buy a property anytime soon. The rental market is buoyant, with a wide variety of property types available to let in all towns and cities.
Renting can be for everybody too, whether you’re a single professional, a married couple or a family with children, there are rental properties to suit every need. For a helpful Gloucester Letting Agency with a large portfolio of properties, Letting agencies in Gloucester like Alexclarkglos can assist whatever you’re looking for.
Ongoing costs
Owning a home does suck up a lot of your income and these costs can come as a surprise and be higher than expected when it comes to sudden repairs and maintenance. Imagine your boiler going bang in the bleak midwinter or your plumbing starts to leak. When you’re renting, all these problems are dealt with by your landlord but as a homeowner, you’ve got to fix it and pay for it! Renting means less stress and aside from reporting an issue, you won’t have to deal with it.
Mortgage interest
When you pay rent, you only pay for what you get. However, owning a home means taking out a massive loan and paying horribly high interest on top. A lot of the money home owners pay each month with their mortgage payment is interest, with little real money going towards paying off the loan.
Future credit
With most homeowners taking out a loan for a mortgage, many report it as having a negative impact on their credit rating. If you might want to apply for credit in the future, this could affect your chances.
A good investment?
It’s highly likely that a house will appreciate in value, but it can take a long time for this happen and the markets could fall, making buying house an often-risky activity. Only if you are able to afford a sizable deposit and are steady enough to ride out any economic turbulence, does home ownership represent a stable lifelong investment.