subject: Property Decisions: Renting vs Buying [print this page] To rent or to buy is the prime concern for most looking to move into a new property, or to acquire commercial premises for a business. For most, the issue of finance will be the main factor involved in the final outcome; for those who cannot afford the initial deposit for a house or flat for instance may opt to rent in the meantime whilst saving for that next step.
However, many will choose to take out a loan in order to fund their dream home, before committing themselves to a programme of mortgage repayments. Certainly, there are financial benefits to both options, for renting the benefits relate to saving money, whilst the buying advantages manifest themselves in the possession of a property as a fixed financial asset.
Buying a property provides the opportunity to make money within the property market: buy a house, do it up, and sell it on at a profit. Of course the same could be said for those looking to buy to let, however, in this evaluation I assume that the decision maker is looking to live in their property, or at least use it for their own purposes.
Another obvious benefit to buying is the ability to do with the property as you please (to a reasonable extent), whereas a rented premise remains the property of the landlord. Creative and practical license lies solely with the owner, and this is something to keep in mind when making this life-changing decision.
A beneficial aspect of renting is the level of flexibility it affords the renters. With short-term leases of 6 months widely available, one need not remain in the same place for any length of time if they do not wish to. It is perfect for people whose work or lifestyle necessitates a great deal of travel or moving.
As with residential property, commercial property also poses the dilemma of to rent or to buy. In this area however, it suits new businesses in general to begin by renting a property, as they may not possess an adequate amount of capital outlay, or have the opportunity to borrow capital from an investor.
Again, as with residential property and the estate agents on hand to advise you in your property research, commercial property consultants are always on hand to provide expert guidance throughout your journey.
Property Decisions: Renting vs Buying
By: Harvey McEwan
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