The whole “Buying vs. Renting” debate has always been around, but in the last few years it may feel as though it has become more prominent. You log in to social media, and you only have to scroll for a few minutes before coming across a photo of a couple holding the keys to their new house. Buying a house is a big achievement, however, that doesn’t mean that renting is a bad idea. Nor does it mean that everyone can or should strive to buy a house.
Here at Talk Twenties, we believe there are a multitude of benefits that renting has to offer. Renting may be the best option for you and your circumstances and it’s important to know that you don’t ever have to think about buying if you don’t want to.
Here are 5 reasons why it’s perfectly ok to rent:
1. Renting gives you flexibility
Even people who are fixated on buying their own home cannot argue with this. Renting gives you the type of flexibility that buying doesn’t give you. Most renting contracts are fairly short term such as 6 month or 12 months. After a contract has ended, you usually have the option to renew or move.
This is great for young or single people, especially if you need to move jobs or location. Buying a house means you’re tying yourself to one location probably for a good number of years, and that doesn’t work for many people.
2. If anything breaks, the landlord should cover it
If the boiler breaks, what do you do? You call your landlord and it’s their responsibility to fix it. Not having to worry about draining your savings on a new boiler is a wonderful feeling. This is one of the huge benefits of renting vs. buying.
3. You don’t need a large deposit to rent
House prices have increased across the years but salaries have stayed relatively the same, so it’s becoming harder and harder to pull together an initial deposit for a house as usually you are looking at a minimum of £10,000, likely a lot more, depending on the area.
When it comes to renting though, usually you need a much smaller amount to get yourself started. Often, most landlords will request one or two months’ deposit upfront, which you’ll get back when you move out, so long as the property is left in good condition.
4. Lower financial risk
It’s easy to see how renting comes with much less financial risks than buying. You’ll know exactly how much rent you’ll be paying every month and usually not much will impact that.
It’s also much less riskier to rent in a place to see if you like the location rather than jumping in head first buying a property and then realising it isn’t what you wanted.
5. You have less debt to worry about
Many people find that living without a mortgage is a big relief. If your circumstances change, for example, you’re made redundant, usually, those with a mortgage will feel a greater sense of worry because they have little flexibility in their repayments. Whereas with renting, you can always look for a cheaper option or move in with a friend or family to save on costs. With the cost of living increasing many people feel safer renting rather than taking on a mortgage.
Renting isn’t always stress-free but you should never feel pressured into buying a house just because you see others doing it.