There is a constant rivalry between buying and renting property. Depending on the personal circumstances of landlords, buyers or tenants, one option will always be more appealing than the other. Of course, the choice is influenced by factors such as income, the housing market, and even the taxation rate.
Consequently, here’s a quick comparison between the pros and cons of buying and renting property.
For the fortunate few, renting property can be a lucrative move to make. Those who cannot yet afford to buy their own property are quite happy to rent for a year or two if money allows. A small empire of rented out accommodation can be a great source of extra income for the landlord too, and the tenants get a temporary roof over their heads.
Still, it’s not all as straightforward or as easy as it sounds. For the residents, renting out accommodation is not always ideal. They’ll be losing money every month in place of investing it into a mortgage. Moreover, if they’re just scraping by as is, then they’ll struggle to save money. Younger people have often be dubbed ‘generation rent’, boxed into a system that drains their limited finances and prohibits them from getting on the housing ladder.
Things can be tough for the landlords too, with tougher taxation and heightened stamp duty obligations, making the process of owning a second home less affordable and more legally convoluted. Moreover, tenant numbers will decline due to the subsequent hike in rental prices, leaving properties empty and profitless for months at a time. Put simply, people looking to become landlords or tenants now need more money and patience if they want to survive in a market that lacked security to begin with.
For the lucky few who have the money to purchase their first property, the process can still be intimidating. It’s a decision that can demand years’ worth of financial dedication, and there’s still so many avenues and options to explore. The first-time buyer needs to ask themselves four important questions:
• When should I start looking to buy my first property?
• How do I purchase the right property for me?
• How do I pull out of a purchase if I am no longer interested in the property?
• How do I avoid rip-off service charges?
Informed and well-researched choices are key here. They make the difference between legally buying the perfect home or being scammed and lumped into a dump. The uncertainty can be unnerving in an economy and market that’s ever punishing, but Andrews can help make the process much easier to understand and operate within, providing an online database full of helpful information. This level of support and care is not typically found for landlords and tenants, where often agents and landlords are gunning for more money at the expense of a vulnerable tenant.
Indisputably, there is more security in buying property and far more flexibility in the decision-making area. Buyers are more than just customers to be fobbed off, which is unfortunately often the way tenants are considered. Buyers are supported right the way through the transaction process, given more control, and ultimately see a better return on their property investment.