Are you in the market for a new home? There’s no denying that the cost of living increases, more and more people turn to renting to find their perfect home, but is it actually any cheaper than buying a property? Here, we’ll examine some of the costs for rental and ownership, and compare them, with a surprising conclusion.
Maintenance and Upkeep
One of the perks of renting a home is that much of the upkeep and general maintenance is left to your landlord. If you have a good property manager like Rylands-Associates, they’ll take care of much of the property for you, keeping your costs low.
You might have to pay for your own light bulbs, but more expensive fixes, such as replacing appliances if you rent a furnished property, will be your property manager or landlord’s responsibility. Obviously, when you own a home, you don’t have this luxury meaning that every problem is yours to fix.
Rent or Own: Rent
Bills
Your landlord has no influence over your bills, so if you rent, you’re likely to be paying exactly what you would be if you buy. Although that’s the usual situation, there are certain circumstances where the landlord might include the water bill with the rent, so check all of the details before you sign.
You might even be able to haggle with the landlord to reduce some of the cost even further. Bills are non-negotiable when you buy a home, so the only thing you can do is make sure you’re getting the best deal by using a price comparison site.
Rent or Own: Rent
Theft
If you own a property and something is stolen, whether it’s inside or out, it’s certain that you’ll have to pay for a new one. That means having home contents insurance to protect you against damage or theft. This is also the case when you rent, but some landlords or property managers have their own security services – particularly in apartments – which will help to patrol the surrounding areas to ensure your safety.
Rent or Own: Rent
Long-Term Cost
You might think that judging from the past three sections, the best option for long-term cost would be renting. However, surprisingly, this isn’t the case. In fact, it can be much more cost-effective in the long run if you buy a property. This is particularly the case if you decide to sell your home for a smaller one later on in life. Home ownership is therefore a worthwhile investment opportunity, while renting is only good for the short term.
Rent or Own: Own
What’s the conclusion then? Well, for those of you who are looking for a short to medium-term housing solution, renting might be your best bet as the immediate costs can be significantly less. However, if you’re looking for a long-term investment, you should try to save for a home of your own – you’ll save more in the long run.