UK Property
by theWatchdog.co.uk

 

Should you rent or buy UK property?

This is a question often asked, in particular those entering the property market, however the answer will vary according to your circumstances, we try to outline some of these below:

First time buyers

If you fall into this category then you are most likely in your 20s or 30s. A key factor will be your income and where you want to live. As a general rule if you are buying for the longer term, e.g. you intend to be a UK property owner for more than 10 years, then in almost all cases it is better to buy than it is to rent. Of course there will be cycles in the property market which may affect your timing, for example if property prices are decreasing then you will probably want to rent for a while waiting for stability to return.

Downsizing

This is often a difficult situation for people later in their lives who may consider releasing equity from their property. Should they sell up completely releasing all of their equity and then rent somewhere to live? Or may be just downsize to a smaller or cheaper property to release some equity but continue to live in their owned/mortgaged property. Again there are many factors to consider here, such as how much equity do you need and what you would like to leave as inheritance.

Have you heard about Rent to Buy or Rent to Own?

This is, for the UK market, a relatively new way to get on the property ladder. In simple terms you start out as a tenant and then at a later date purchase the house or flat you have been renting. At Simple2buy.co.uk/forum you can read and join in discussions about rent to own. It is worth having a look.