Rent or buy?
Buying a property is one of the biggest financial decisions you’ll ever make. Is it the right decision for you right now – or would you better off renting?
Mortgage or rent?
Buying your own home is a huge decision. So it’s important to weigh up the pros and cons of owning first.
Benefits of owning
- Once you’ve paid off your mortgage, your home will be yours and you won’t have to worry about paying for somewhere to live.
- If your home increases in value, you could use the equity (its market value less the mortgage debt) to help buy a bigger home or fund a comfortable retirement.
- You can spend money improving your home and increasing its value without having to ask a landlord.
- Sometimes it can be cheaper to buy than rent.
Potential downsides of owning
Can you afford to buy?
The first step towards buying a property is working out whether you can afford it.
If you buy a home, you’ll have to pay for:
Compare this with the upfront and ongoing costs of renting when deciding whether to rent or buy.
If you can’t afford to buy
If you can’t afford the costs right now, think about setting up a savings plan to help you reach your goal.
Government help to buy a home
If you’re on a low income, a first time buyer, a key worker, or only have small savings for a deposit, there are housing schemes available that can help you buy your own home.
Did you find this guide helpful?
Thank you for your feedback