A roof over your head is one of the most basic and fundamental human needs without which we would be likely to quickly die of pneumonia. However while this is something that everyone needs and everyone should have, there is a fair amount of variation in terms of how you decide to keep yourself sheltered. Not only are there lots of different properties and places to choose from of course but there are also lots of different kinds of properties that all work in different ways and lots of different kinds of deals and contracts.
One of the most fundamental differences here is between renting and buying, and this is an important decision that will have a large impact on the rest of your life after you’ve signed on the dotted line.
It seems these days that everyone and his wife wants to ‘get on the property ladder’ and is promoting the benefits of living in a property that they actually own. The reasoning behind that of course seems sound at first – because by buying you are investing your money and potentially getting it back. However it’s also important to recognize the value of rentals and rental apartments. Here we will look at why you might want to rent rather than buying.
First of all there’s the money. Now as mentioned a lot of people will look at the benefits of buying saying that they are investing the money and saying that they will be paying less toward their mortgage each month than they would toward rent with rental apartments.
That’s all true – but at the same time you still need a lot of money up front in order to buy a property and you need a good credit rating too to be able to pay. This then means that a lot of people absolutely can’t buy a property, but also that some of the people who are maybe shouldn’t and would be better to save some of that money.
And at the same time you aren’t saving quite as much as people say when you buy. The first reason for this is that you will of course be paying a lot of interest on your mortgage. Not all of your repayments is going into the ‘pot’ then and you will actually still be ‘losing’ a fair amount of money each month.
On top of this you will also stand to lose a lot of money in other ways. For instance you will still lose money when it comes to paying for repairs and things and this is something you wouldn’t have had to worry about if you were just renting. Everything that might go wrong with the property here is going to be your responsibility to repair and that also means that you can end up spending a long time waiting in your property without gas, without electricity, or with no washing machine which wouldn’t be the case were you renting.
Most of all though, renting a property is restrictive in that it contracts you in to living in one place and not being able to move easily. That then means if you don’t like anything about where you’re living, you will still be required to remain there for at least a long period of time.