Should UK First Time Buyers Just Buy Or Should They Rent?
Since mortgage rates have begun to rise, the discussion over whether it is better to buy or rent at this time has raged on.
THE BENEFITS OF RENTING
👉🏻 Not bound by fixed mortgage terms with high termination fees
👉🏻 Job market adaptability, ease of relocation
👉🏻 Lowered ‘start-up’ and sunk costs (like stamp duty or mortgage fees)
👉🏻 Fewer maintenance and repair concerns
👉🏻 Savings potential for additional investments
THE DISADVANTAGES OF RENTING
👉🏻 There is less security.
👉🏻 Restrictions on decorating, renovations, pets, and so on…
👉🏻 Landlord compliance with fundamental requirements might be sporadic.
👉🏻 If you are a long-term renter, you will miss out on capital appreciation benefits.
BUT IS IT BETTER TO BUY OR RENT?
According to Moneyfacts statistics, the average first-time buyer pays £1,606 per month with a 90% LTV mortgage.
HOWEVER, an average house costs £1,162 to rent… not to mention the deposit, Stamp Duty, and all the additional expenditures a first-time buyer must currently find…
