Liked our post about 15 reasons why renting is great? Well, we have 15 more reasons for you! Take a look below.
- Fixed rents not subject to changes in market (unlike mortgages). Mortgages are often on tracker rates which add interest affected by the UK Bank of England base rate. Should the base rate increase then the mortgage payment increases. Your rent cost is fixed for the term of your agreement. It also costs landlords money to find new renters, so you are in a great position to negotiate a fixed term contract with your landlord if you want to stay for a period of time too.
- Lower insurance costs – only need contents rather than building. When you own your own home, you need to insure the house structure against things such as subsidence, flooding, and fire and damage. This is in addition to the contents being insured as well. A home fire is devastating whether owned or rented, but the cost of rebuilding a home is significantly higher than replacing the contents. As such, insurance can be a hefty undertaking.
- Quicker search and confirmation process (rather than buying). Finding your dream home doesn’t take nearly as long when you are renting than when you are buying. You might need to visit more properties but once you find your property, you can get the process of signing contracts done much more quickly.
- You can still save whilst you rent. Renting doesn’t mean never owning your own home – you can still be saving and you don’t have to live with your parents whilst you save.
- You won’t get stuck in a chain. Buying a house often involves chains of people. These can collapse and then you’re back to square one again. Who needs that stress?
- You’re not wasting money! You are actively paying for a roof over your head.
- 6 Month break clause. Want to change your mind? Most contracts have a 6 month break clause meaning that if you are not happy you can get out of your contract.
- Test an area before buying. If you’re moving to a new location (ie. For a new job), it’s a great idea to rent first so you can test the area and see whereabouts you might want to live. It’s a much cheaper process than buying and a cheaper mistake if you get it wrong.
- Get to know what kind of property. When you’re renting you can trial out different types of properties, from the traditional flat or semi-detached, to the less traditional house-boat or converted chapel.
- Renting is easier whilst you’re trying to build up your credit score. If your credit score is not quite so good for buying a house with all its credit checks for the mortgage – renting allows you to focus on building your credit score and if you’re still struggling, you can get a rented property underwritten with a guarantor.
- More disposable income. When you’re not having to pay for the additional expenses that come with owning a property, you have more disposable income to do the things you really want to do.
- Living with friends. Single? Live with friends and build great friendships that last a lifetime.
- Less financial commitment for first time move in with partner. When you choose to move in with your partner, this can be a big risk – make things more cost effective and less risky by renting together rather than committing to a purchase.
- Less responsibility. Renting is perfect for people who are looking for less responsibility and more flexibility.
- Paperwork is easier and quicker. It takes less time to find a rented property, it’s also far easier and quicker to do the paperwork – just sign on the dotted line.
