Why Rent a Property Instead of Buying?
Renting a property instead of buying one is more attractive in some ways due to high interest rates and the large deposit needed to gain a mortgage from a high street bank.
Owning a home is some individuals lifelong dream as it can give you a sense of security, but it can also come with some negatives aspects also.
To get a mortgage with your bank, you will need to first save a large deposit of money which will be between 10 to 30 percent of the property value depending on the bank that you wish to apply for the mortgage with. The application process is also quite lengthy and will will need to complete a series of checks about your finances, credit history and your employers made be contacted to verify that you work for them and what you have stated that you earn is correct.
If all is well, then you will be able to proceed with a mortgage. One thing to bear in mind and one disadvantage it has is as over renting is that you will be responsible for any repairs around the home, for instance if the boiler breaks or needs replacing you will have a large bill on your hands to pay. So it would be a wise decision to put some money aside for the unexpected things in life that can come up by being a home owner.
This is the opposite of renting a property. The application process is roughly the same but you will not need a huge deposit. You will need roughly one months rent for this and your first months rent available so you can move in.
The benefit is if something does go wrong (apart from any damage that the tenants make) estate agents that you have the property with or Landlord will be responsible for any repairs. So unless you damge something yourself the you have no need to worry about paying out as you will be covered.
Read the Andrew Charalambous blog at www.andrewcharalambous.co.uk
