Five reasons why it’s better to rent than buy a house

There is much debate about whether you should buy or rent property, with some seeing renting as throwing away money, whilst others see owning a house as a money pit.

 

Five reasons why it's better to rent than buy a house

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According to the Guardian, research shows that the number of people privately renting has increased significantly, with fewer planning on buying.

Renting has never been easier, with a vast amount of properties available, and houses and flats to rent in Gloucester and other major cities.

Whether you are single, a married couple or a large family, there is a rental property to cover everyone’s needs. There are many ways to find a property, and TGRES can help with renting a flat in Gloucester.

Ongoing costs of a house

It is no secret that houses are not cheap to run. These costs are higher and often unforeseen if you own your home. If your boiler breaks down in the middle of winter, or your plumbing springs a leak, as a homeowner, you need to hope that you have enough money in savings to cover the repairs.

Less Stress

Problems arising in your home can often be stressful and take a lot of time to fix, if you do not know a local supplier. As a renter, you call your property owner and he/she will normally have the issue fixed by the next day, at no extra cost to you.

Astronomical interest

Although the argument is usually that renting is throwing away your money, at least with renting, you only pay for what you get. The majority of homeowners have to take a huge loan to pay for their property and the interest on these mortgages is incredibly high, with many homeowners paying over £5000 in interest per year.

What about your future

Over 70% of homeowners take a loan for a mortgage and this can have a detrimental effect on your credit rating, meaning future loan applications could be affected.

Is it an investment?

It is usually a safe bet that a house price will appreciate, but this takes a long time and can be risky. You are likely to have the same yield when investing in other assets, so a home is not the only option to see a return on investments.