Should I Rent A Property Instead Of Own One?
Getting on the housing ladder in the UK is a common goal for people in the UK. It is almost seen as a must have for some as they see property ownership as an important part of status and future financial security. However, the price of property is often too high for people looking to get on the housing ladder. And further to that, there really are many benefits to renting a property in the UK.
What Are The Benefits To Renting A Property In The UK?
Even though most people would choose to buy a house in the UK, there are a number of benefits to renting. First of all, there is the relative freedom to move around. Yes, the general length of a tenancy period in the UK is one year, but after that year is up, you don’t need to sell anything, and you can move on to the next location or travel abroad if that is your preferred option. Having the freedom to move around in today’s modern world is a big plus, especially as more people are considering working remotely and even living as a digital nomad in a more exotic location.
Secondly, if you rent a property then the upkeep of the property, beyond general daily care, is up to the landlord. So, if the boiler breaks then it is not you that needs to fix this. If the roof gets damaged from terrible weather, then it is not you that needs to fix it. You do not have the constant worry of repairing a house that could actually fall in value if you don't maintain it. Repairs to a house or flat can run in to the thousands or even tens of thousands if more work needs to be done.
Thirdly, you can test an area in terms of whether you want to live there. So, for example, if you relocate for work in a new job then you want to check the area first as well as get a feel for whether you will stay in the job long term. The last thing you want to do is take on a new job, buy a house, then discover that you hate the job! Renting once again offers that freedom to move around without such a serious commitment as buying a property. Even if you take on a rental in a one-year contract then you know that when the year is up you can move on, having not laid out a huge sum for a deposit on a house as well as the need to pay stamp duty which is often the case. It is also sometimes the case that a landlord will allow you to leave early and cancel the rental contract before the year is up if you have a good reason. You may well lose your deposit but that is still far less than the amounts paid during a house purchase.
Is It Riskier To Buy A House Or Rent In The UK?
When talking about risk, it is not straightforward. It really depends on what your plans are. For example, if you are thinking about your long-term financial future, then you may want to buy a house so that you own an asset that may be worth more than it is today. Generally speaking, over a long period of time, the price of residential property in the UK does increase. There are often short-term fluctuations in the property market though, so it is best to be careful.
If you buy a house, then you are essentially buying an asset. But whereas an asset is seen as a good thing and a liability is seen as bad thing, a property in the UK which is bought as an asset can become a liability if it is not taken care of. If you don’t stay on top of repairs and maintenance then what you intentionally bought as a new home, can quickly become a money pit where so much of your hard-earned finances are wasted. It is therefore very important to get a survey done before buying a property, something that will be a necessity of a lending bank for mortgage purposes.
Even if the survey of your property is fine, you will need to accept that you will be putting money into a property throughout the years. General wear and tear cannot be avoided, either inside or outside. If you hold the property long enough, the money you invest in the property could turn out to be valuable as you sell the property for a higher price than you bought it and therefore achieving a profit, but you still need to carefully manage your finances.
Going back to this point of freedom, if you feel that you want to move around and you do not want to be tied to one place or one property, then renting is certainly a much better option. You will have more spare money to enjoy your life and you do not need to worry about upkeep or maintenance. You also don’t need to watch the economy carefully or track house price growth or decline. Post the economic crash in 2008, house prices in the UK dropped by more than 20% and caused great distress amongst many homeowners.
In summary, whenever you buy a property be prepared to stay in for the long haul with the need to keep laying out money for upkeep. You need to include financial risk for damages in all of your calculations. In the long-term future though, as long as you take care of the house and wait long enough, you may well have a valuable asset for your retirement.
What If I Want To Sell My House Quickly So As To Have The Freedom To Rent?
Once you have bought a property you will most likely have laid out a lot of money. And in the situation that you need to release some cash for future plans or to settle debts or simply because you don’t want to be a homeowner anymore, you may well need to get the cash out fast.
The problem with the standard sale process in the UK is that it takes so long. A typical house sale takes 6 to 12 months and there is no guarantee that the sale will complete. For example, imagine waiting a year for a house sale to go through then at the last minute, the buyer pulls out. Buyers are legally allowed to pull out of any property purchase prior to the legal exchange of contracts. More information on this subject can be found at our Guide To Selling Your House Privately article.
The other problem with following the standard house sale route is that you cannot make definitive plans. If you are moving abroad then how can you plan your move when you have no idea how long your house sale is going to take? More information on this can be found at our Guide To Selling A House And Moving Abroad article. Even if you are not moving abroad, you will most likely have some sort of future plans that you need to commit to such as buying a new house. If you cannot sell your own house on time, then you will most likely lose out on renting or buying your new house.
What property sellers often need is some sort of guarantee that their property sale will go through. This is something that a cash-buying company such as Serene Homes can offer. Once a final price is agreed there is absolutely no chance that a sale will fall through. Therefore, you can go ahead and secure the rental property of your choice if this is the way that you are looking to go.
Serene Homes is one of the UK’s leading cash buying companies and offers an alternative to the traditional estate agency route by buying all properties 100% cash in as little as 7 days. The process is very straightforward and involves only three simple steps. More information on house cash buying companies can be found on our What Is A Cash Property Buyer page.
Every person who contacts Serene Homes and accepts an initial cash offer will be offered a free valuation for their property. More information on receiving a free valuation for your property can be found on our Property Valuation page. Further to this, Serene Homes covers all fees including survey and legal fees, and at no point before an exchange of contracts, are you tied in.
When choosing a property cash buying company, it is important to select one that genuinely has its own funding in place. Without this, it will not be possible to achieve a quick sale and arrange your rental property. Serene Homes is fully funded and does not need to apply for a mortgage or seek external investors. The service is completely hassle-free and once the final price is agreed upon after the survey is undertaken, Serene Homes guarantees to buy the property. More information can be found on our What To Look For In A Property Buying Company page.
Serene Homes will buy any property in any condition and in any location. Our friendly team has vast experience in selling property across the UK and this includes many remote locations. Contact our team today to receive a free valuation for your property and learn how quickly and stress-free your house sale can really be, allowing you to gain the freedom of becoming a renter.