Say ‘buy buy’ to renting – is buying the better option?

Given the choice, most people would buy a house outright and avoid borrowing altogether. For most of the UK, however, there is no such choice, so a mortgage is the only way to become a ‘home owner’. As house prices rise and fall dramatically in short spaces of time, it can also be an unreliable market to attempt to crack, so getting a foot on the property ladder is not always the simplest task.

Buying a house, however, is seen by most people in the UK as the reliable investment – once you sign the contract, you effectively begin to ‘save’ on a regular basis, on your way to owning something worth many thousands of pounds. It represents the house-buyer making a bid to control their assets. Most importantly, it represents security.

The term ‘dead money’ is often thrown around when it comes to renting. Paying money to someone else for the right to live in a property can be a frustrating prospect for those who have no choice. Traditionally a stepping-stone on the way to buying, renting has actually become a longer-term situation in recent years. In fact, with average house prices for first-time buyers in London being around 6.4 times the average salary, it is increasingly a matter of necessity rather than choice.

On the other side of the fence, however, there are those that prefer the freedom renting can offer. As well as being cheaper, enabling the tenant to live in a better property in a preferable area, it is also useful in avoiding the basic struggle of paperwork and bureaucracy that accompanies the buying process.

It also has smaller day-to-day benefits. A landlord can be a useful and welcome perk, particularly when it comes to avoiding responsibility for fixing the boiler or repairing a damaged roof. And when it feels like time to move on, the tenant is free to go as soon as the tenancy is up. It’s unsurprising then, that around 30% of Brits now rent their homes.

All tenancies are not ideal though. The ability to put one’s stamp on a place can be restricted; rent can be increased to make the property unaffordable; and, perhaps most importantly, it remains a fact that tenant does not invest, but spends. Although buying is not a sure investment, it remains the more reliable option for those wishing to see some ‘bank for their buck’ in the long run.

It’s important that when choosing to take the leap and hit the bottom rung of the proverbial ladder, buyers make educated mortgage comparisons, in order to find the right deal and ensure they control their own investment, rather than paying out and missing the financial rewards.

Although renting may not be a terrible prospect, with many people choosing to continue to do just that, it is buying that remains the eventual goal for the UK’s majority. But, by whatever means those buyers manage to secure a property, it is likely they will need a helping hand at some point.

About the Author

Daniel Collins writes on a number of topics on behalf of a digital marketing agency and a variety of clients. As such, this article is to be considered a professional piece with business interests in mind.