There is a great deal of emphasis on home ownership in the UK. Owning your own property is seen as a secure investment. However, other parts of the world have long enjoyed a renting culture in preference to ownership. Indeed, there are numerous economic reasons as to why renting may be better than buying for some. Here are five of them.
Maintenance and Repair
When renting, the responsibility for replacing broken appliances or attending to wear and tear lies with the owner. Whilst these are factored into rental costs, tenants are not faced with sudden unexpected bills.
Renting a property, particularly in some of the newer purpose-built developments, has the advantage of providing access to communal facilities for which you would normally have to pay a separate service charge.
Not everyone believes that property is a good investment. By paying rent, you are, of course, paying off someone else’s mortgage when you could be paying off your own, and there is the appreciation in the property’s value to consider. However, property can hardly be described as a liquid asset, and you may have better investment vehicles, such as starting your own business.
Buy a property and to move you will have to sell it – not something that can be achieved overnight. Alternatively, you could rent it out and become a landlord. Tenants can move without the ties of prolonged property transactions. They can also enjoy competitive rents, particularly if they consider moving out of some of the larger and over-subscribed cities. In south-west England, for example, flats to rent in Gloucester and other locations are available at a fraction of the cost of comparable properties in London and the South East.
As such, TGRES flat rents in Gloucester and other South West locations may well offer an opportunity for those wanting to make a significant lifestyle change.
No Stamp Duty
Tenants can remain entirely unconcerned with the seemingly constant hikes in stamp duty, the last of which took effect in April this year. Once again this minimises the economic burden and helps in creating a predictable, stable financial situation in a relatively uncertain post-Brexit world.
Home ownership may be a good long-term goal for many, but renting has much to commend it.