Is Renting a Waste of Money?

There is a common misconception that compared to buying a property, renting is a waste of money, but that isn’t true for all movers

More frequently, renting is becoming a lifestyle choice rather than a necessity, allowing for professionals to relocate easily across the country when their job requires it. Renting is also a great option for those in the early stages of their careers, like graduates who haven’t yet decided where they want to settle. 

Managing director, Kate Watts said, “Choosing to rent rather than buy can be a positive financial decision in the right circumstances. Renting gives you increased flexibility, helps you save money on short-term costs and gives you the benefit of living in a home that feels like yours while you save for the next step. 

“Buying a home requires saving for a large deposit, whereas if you choose to let you can immediately move into a property of the same value with a significantly smaller first payment.” 

Putting this into context, to purchase a property worth £275,000 with a 10% deposit, the current interest rates alone would result in a monthly payment of approximately £1,295. While it’s true tenants will miss out on the capital appreciation associated with property ownership, there are still some financial benefits to renting. Upfront costs are significantly lower for renters, covering only the initial rent and safety deposit, sparing them from hefty legal fees and stamp duties. 

When it comes to repairs, choosing to rent can also save you money. It’s no secret that fixing serious issues like roof leaks can be very expensive, but renting offers financial reassurance for tenants, as these costs are the landlord’s responsibility.

Deciding when to buy vs when to rent is a big financial decision. If you need further support, we recommend seeking professional advice. Get in touch with our local trusted partner: The Mortgage Maestro 87 Cross Roads, Keighley, BD22 9BG

Tel: 01535 666601

Web: www.themortgagemaestro.co.uk

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