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Renting vs Buying

Wednesday, September 7, 2022 1:24 PM By koch properties

Renting vs Buying


There is no doubt that buying a home is a major life decision, “Should I buy a house or should I rent it?” Of course, there’s no single correct answer. Your decision can boil down to several lifestyle considerations, such as whether you want flexibility or stability, what your career goals are and whether you want a place to truly call your own. While renting might be the right choice for one person, this may not be the case for another. It depends entirely on what you want out of your home. It is important to remember that there is no definite answer for this debate. Renting and buying both have their advantages and disadvantages. If you’re on the fence about whether you should rent or buy, read on to find out what you need to consider before taking the plunge.

Renting vs Buying

Pros of Buying a Home:

Cheaper In The Long Term Although mortgages involve high upfront costs, buying a house usually works out to be cheaper than renting in the long run. As a result, mortgages are better suited to those who are looking to live in their home for an extended period of time. Therefore, it is worth considering how long you plan on living in a particular property before choosing to take out a mortgage.

Renting vs Buying


Home owners can take satisfaction from knowing that their monthly payments are going towards buying their home, and not simply going straight into their landlord’s pocket. Buying a home can be viewed as an investment as opposed to ‘dead money’ (monthly outgoing as rent instead). You also have the freedom to sell your home as you please, and you can even make a profit if the value of your house goes up. If you do not decide to sell, once you pay off your mortgage you will have nothing left to pay.

Renting vs Buying

No Limits

While a landlord may impose certain rules regarding guests, pets and what changes you can make to your home, buying a house allows you to make the rules. You could choose to redecorate, landscape your garden or renovate as you like. In addition, any modifications you make to a house will most likely increase its value, making it easier (and more lucrative) to sell if you choose to do so in the future. Depending on the size of your property, you may also be able to rent out part of it to help pay your monthly mortgage payments.

Renting vs Buying

Peace of Mind

As per the terms of notice agreed to in your tenancy agreement, a landlord may decide to sell or move into their property at any time. Therefore whilst renting, you cannot be certain how far into the future (beyond the notice period) you will be able to remain at the property. When you own your property – you call the shots.

Renting vs Buying

Cons of Buying a Home:

Expensive Upfront Costs Buying a house comes with various fees to pay upfront. You need to pay a deposit, along with mortgage fees and stamp duty. All of this can add up to a hefty amount, which is why those looking to buy will often have to save up for a while before being able to buy a house, or seek financial help from friends or relatives.


The ownership aspect of buying a house certainly has its benefits but these come with some downsides. As the homeowner, you are responsible for paying for any maintenance that may need to be done on your home, which can vary in price and arise unexpectedly. While fixing a toilet can be relatively cheap, replacing a boiler can be expensive (and inconvenient – but then so can waiting for your landlord to fix it).


Moving house can be expensive and you are committed to paying off your mortgage within the agreed terms of your mortgage deal. Depending on the housing market at the time, selling your house may not be the easiest task if you need to move before you have paid off your mortgage. It can take a long time for a house to sell, which restricts you to being able to move house when you like. If you have a joint mortgage with your partner and decide to separate, choosing what to do with your property can be complicated.

Pros of Renting a Home

Cheaper In The Short Term While renting a house will often require you to pay a deposit, this will still be significantly less than the deposit and other fees that come with buying a house. Moreover, you will avoid having to pay for any maintenance costs while renting, as these are paid for by your landlord. For this reason, renting is better suited to those who are not currently in the financial position to afford a deposit and mortgage, but may be eventually


Choosing to rent makes it much easier to move house if you need to once your lease has finished. Most leases only last for twelve months, which is the same amount of time it could take to sell a house (or even longer in some cases). What is more, some contracts also include a break clause allowing you to leave sooner. Renting is a good choice for those not wanting to live in a particular area permanently. For example, if your job requires you to move around the country frequently, then renting may be the better option for you.

Less risk

If you rent your house, your landlord is entirely responsible for adapting to the changing conditions of the housing market. You will not have to worry about whether the house decreases in value, as this is up to your landlord to manage.

Cons of Renting a Home

The Landlord Benefits, You Don’t One of the major drawbacks of renting is that your payments are simply funding your landlord’s bank account rather than a long term investment for yourself. Although a mortgage requires a greater level of commitment, you are paying for something that you may one day have complete ownership of

Subject To Rules

As your landlord is the one who owns the house, they have the final say over the rules of the lease. These will be outlined in your tenancy agreement, so make sure you read it carefully. They may restrict you as to what changes you can make to the house or how many guests or pets you can have (if any). The landlord can also make changes to the amount of rent you pay each year, and can even decide to sell the property.

More Expensive, In The Long Term

Renting is not the most cost effective option for someone looking to live in a house for a prolonged period of time. Unlike a mortgage, you will have to keep paying rent for as long as you live in the property, which will eventually work out to be far more expensive than buying a house. As a result, renting is far better suited to those looking for more short term housing.

How To Decide Between The Two?

Do you have enough money to pay for a deposit and other upfront costs? If affordability is what is holding you back at the moment, an interest only mortgage may be a good option for you. Do you have the financial stability to pay your mortgage and still live comfortably? There is no point living in a house that is going to force you to make unreasonable cutbacks, so make sure to consider your long term financial situation. How long do you plan on living in the house for? By contrast, if you are looking to stay in your house for the foreseeable future, then buying a house is the more economical option.