How Much Will It Cost Me To Rent VS. Buy My Next Home?
Deciding whether to rent or buy a home is a debate that dates back decades. As the price of housing increases, so too does the number of renters who simply cannot afford to even reach the first rung of the property ladder. Understanding where that may place you is complex. Can you afford to buy it? Should you stick with renting? Are there other available options?
The Cost
In most cases, renting tends to be more expensive in the long run than buying a home in the UK. One study found the average UK rent was £1,069 per month. The average mortgage, however, is about £750 per month. It’s important to note, though, that there are initially high costs in making a purchase, and once you’ve finished the purchase of your home, you’ll be responsible for the ongoing maintenance and repair costs of your home as well as council taxes and utility bills.
The Other Factors
There are a number of additional benefits and drawbacks involved in both renting and owning your own home. With a rental, you’ll never worry about interest rates or house price movements. You don’t have to tackle your own maintenance tasks, and a move is far simpler. When you own a home, though, you’ll never have to move if you don’t want to. What’s more, though, is that once you’ve paid off the mortgage, the home is yours forever. Moreover, it’s an investment. As property prices increase, so too does your overall investment.
Additional Options
Not everyone can enter the property market, though, and for those who can’t, one option you may not have considered is rent to buy homes. If you get in on a rent-to-buy house, you may be able to get on the property ladder sooner than you thought. Rent to buy is a government scheme that was specifically designed to help those renting access a newly built property. There are a few advantages to renting to buy a house. First, only new homes are part of this scheme in England and Northern Ireland. That means you’re getting access to a fantastic newly built home. More than that, though, you aren’t locked in until the end of the scheme. These last up to five years, and when you get to the end, if you decide you don’t want to buy the home, you can choose to move out. Maybe the best part of a rent-to-buy house is that it may give you access to properties you might not ordinarily be able to afford. If you simply search “rent to buy a house near me,” you’re likely to come across at least a few different options. There is even some rent to buy homes with no deposit required, but those are few and far between. A rent-to-buy house, many UK home buyers have found, can be a fairly good deal. Can you rent to buy a house? It’s possible if you make less than £60,000 per year and you’re a first-time home buyer. The other caveat is that you must find a home that’s part of the scheme. If you find a home you love, but it’s not currently available under a rent-to-buy scheme, you may ask those selling how to rent to buy. House sellers are often willing to accept this scheme even if it’s not part of the larger government deal, if just for a short time until you can qualify for a traditional mortgage. If the seller turns you down, you may want to talk to other sellers to learn how to buy a house for rent, too, as just because one turns you down, others may not.
