Many people dream of possessing their own home and so work hard to achieve this goal. However, there are those who view buying a property as a huge commitment and instead believe that renting is the way forward.
For instance, there is a strong case for the fact that, in the long run, owing a property is more cost-efficient than renting one. Instead of paying rent to a landlord, thus helping them pay off their mortgage, any money you do pay is going towards a property that you will ultimately own and can potentially profit from.
It is worth noting here that housing experts are predicting that although people have seen huge profits on properties bought in the past – in 1983 an average home cost £30,000 and is worth £197,500 today – this upward trend is doubtful to continue at such a rapid rate, with property buyers ‘unlikely’ to see similar returns in 2033.
On the other hand, renting is said to be desirable, since it gives the individual more freedom. Not only can you move (obviously dependent on the lease) when you want to, but all you have to worry about is packing up. When you own a house and decide to move, there is both the paperwork and cost involved in finding a buyer, showing people around and sealing the deal.
Additionally, if you rent a property, the landlord is responsible for any repairs and general maintenance, whereas a homeowner is accountable for any issues that arise. The flip side is, being a property owner allows you to make any decorative or structural modifications – dependent on planning permission – you see fit: a renter usually doesn’t have this privilege.
Research has also found that it is cheaper to rent than to buy in certain parts of Britain; namely Northern Ireland, the West of Scotland and the North West of England. Here, the study purports, people could be better off renting, since house prices have risen significantly.
There are certain considerations that apply for both buying - and renting - a property. Firstly, whether you are in your own place or rented accommodation, failure to pay your rent/mortgage usually results in having your property repossessed or being evicted by your landlord.
Insurance is another issue, which must be thought about. When buying property, you automatically have to take out buildings insurance. A renter is not concerned with this, since it’s the landlord’s responsibility. Contents insurance, conversely, is discretionary and up to the individual to arrange, whether they are buying or renting their property.
According to warnings from housing experts, there is an acute lack of awareness in the importance of taking out contents insurance, which has resulted in many individuals having to foot the bill after accidental damage or a robbery.
As a result, home insurance is considered vital by many, and whether you own your property or not, your home is where most of your worldly possessions reside; if something unexpected happens, it can be devastating. There are an abundance of insurance options available on home insurance in the UK, making it easy to ensure your possessions are adequately protected.
Isla Campbell writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content.
