subject: Why renting could work for you [print this page] Why renting could work for you Why renting could work for you
Why Renting could work for you
The economy today is very difficult to predict, and while the housing market invariably rises, recently house prices have fallen. Home owners who were planning to move, either have to take a significant shortfall on their expectations and sometimes a financial loss, or they just have stay where they are, scuppering their moving plans.
Renting flats, which was traditionally popular with students and young families in difficult circumstances, is making a big come back.
More and more people are turning to short term lets as viable options. There are numerous websites now, such as www.letsearch.com, which gives you free and immediate access to private houses to let, so there are plenty of opportunities available.
People rent their homes for differing reasons, a sudden change in their finances, as a stop gap between selling and buying, getting to know a new area before they commit, or, as is very common, now that the banks have stopped giving 100% mortgages, they can't save up for the deposit and thus can't get a mortgage.
Renting also gives people the freedom to act quickly if the ideal property comes on the market.
There are numerous pro's and cons when renting a property, and you must assess these against your circumstances and lifestyle when deciding whether to rent or buy, some of which are listed below.
Pros for Renting your home
Renting gives you the opportunity to get to know a new area before making a commitment
You could if you are lucky get to rent a much more luxurious home than is normally in your price range.
(Some homeowners make the huge mistake of renting out houses which they cannot hope to get a proper rent for, as they are far too up market.)
You have the freedom to move on quickly, to another rented property which you like better.
Avoid being stuck in a long buying chain.
Move to an area where you can't afford to buy, this is common when you want to be within a certain scool catchnet area.
You could take a risk and invest the money from the sale of your home, to start up your dream business.
You are not responsible for costly insurance, repairs and maintanance of the building.
Liberate yourself from commitment of owning.
If you have to work with short term jobs in different parts of the country, for example road builders, short term lets can be much less stressfull and time consuming, than having to buy and sell every 6 months.
Cons for Renting your home.
Renting can seem like a huge waste of money, as you are missing out on investing in an increasingly valuable asset.
Landlords can often be arrogent and difficult to deal with
It can be harder to get back into the property ladder if there is a boom in prices
Renting can be unsettling, moving all the time.
You could be asked to vacate the property after the 6 month lease, even if you don't want to.
Your landlord could default and through no fault of your own, you could be evicted if reposessions take place.
