To Rent or To Buy: 6 Factors That Will Determine What Works For You

Buying a property can seem long-winded. There are legal costs, survey costs and let’s not forget the initial deposit of at least 5% of the property value. However, the idea of renting may not sound appealing either. Renting is not for everyone and neither is buying.

Below are 3 reasons to rent a property and 3 reasons to buy a property.

3 Reasons To Rent:

You Don’t Have As Much Responsibility

If something breaks or the boiler goes, you call your landlord. When you buy a house that’s your role. There’s also the added stress of finding workers (plumbers, handymen, etc) you trust if you own a property e.g. someone who won’t rip you off.

Maintenance Isn’t Your Concern

The décor and upkeep of the house have to be maintained by the landlord. In the event that the house needs a new carpet or fresh paint is needed then call up your landlord because that’s legally their job.

Interest Rates Don’t Affect You

When someone decides to buy a property; they have to make repayments along with interest. Interest rates are set by Bank of England (BoE) and any changes made in interest rate are made to keep economic activity balanced. The main aim of stable economic activity is to keep supply and demand of goods and services balanced. If interest rates go up so do mortgage repayments. However, if you pay rent, this doesn’t  directly affect you.

3 Reasons To Buy:


It’s An Investment

When you decide to become a homeowner, it can be a very valuable asset. Effectively, you are making an investment that could potentially yield profits in the future when you own it outright. Every repayment you make is going towards you owning something whereas renting is effectively going nowhere. Buying a property/properties can help you fund other investments and help build your retirement fund.



Being able to save a sizeable amount of money is the first step in creating self-control with your money. Buying a property means taking suitable steps to become disciplined in your investments and financial decisions. Not many other things will prepare you for financial discipline the way a property will.


You Make The Rules

If you’ve ever wanted to redecorate your room and you’ve been told no, expect that to change when you start to own your own property. You can choose the colour scheme of the house along with all the other features you desire. Living by your own rules can give you the sense of freedom you’ve always wanted.

There are many other benefits to renting (flexibility) and buying (stability) and ultimately you will choose what works best for you. Saving a hefty deposit can take a while however it may be worth it if you want to go down the traditional route of buying a place of your own. Also, if renting is for you then be sure to be confident in your decision. Everyone may not understand your choice however the traditional route doesn’t work for everyone.

This post has been written by me from my personal finance website, Refined Currency.