Do you or don’t you? It’s a tough decision deciding to rent. Location, bills deposits and ultimately how much you’ll be paying per calendar month will certainly affect your financial budget. If you’re thinking of purchasing a house, things can become even tougher. However many leading experts have concluded that getting on the housing ladder as soon as possible will save you over £200,000 in the course of a lifetime.
There’s no doubt that the attraction of private renting applies to the younger generations of this country. There’s no commitment, short term contracts, no mortgage and you can find landlords that will even furnish the place for you. Especially if your career is on the move, you could be living in different areas of the country every few months. Combined with the freedom of moving out of your parent loft and learning to do your own washing, living in rented accommodation is on the up.
However renting is not a strategy that’s best implemented on a long term basis.
Wolf at the door
As you get older and your priorities change, you’ll be looking for a bit of security when you’re making your tea in the mornings. Aside from placing Rottweilers at your front door, renting will never give you the opportunity to start a family with financially secure foundations. Being given two months’ notice to vacate your rented accommodation when you’re a commercial law solicitor in Crewe, with a two year old and another one on the way, certainly isn’t my idea of security.
However, renting does appeal to people other than the students littering our streets. Owning a property means keeping it up to scratch, which over time will cost thousands. Living with no dependants, renting offers greater flexibility and better value for money. If your landlord does give you a few months’ notice, all you have to worry about is yourself. You’d also have to pay stamp duty if you bought your own property, as well as costs when you sell too. One of the benefits of renting is that you pay a deposit, and the place is yours. Minus bills, the landlord takes on all other costs.
Encouraging home ownership is a policy the government has stuck to for a number of years, and the chance of the UK introducing rental laws that offer tenants protection against such insecurities are minimal. Unregulated rent and short term contracts allow the private rental industry to lead a shifty existence.
Help is on its way
House prices will probably be drifting downwards in the near future which means homeowners losing out on some serious cash. Hold out however, because a housing boom is certainly on its way. When, we don’t know, and where, well we don’t know that either, but it’s definitely coming. The recession has had little or no effect on the housing market, so keep looking for that dream home, it’ll come.
Renting costs significantly less than paying a mortgage each month, and the savings you make could add up to a deposit on a home. However you could also pack up shop and move to Madrid when your contract is up. The proof is in the pudding.