The choice between buying and renting not only varies from person to person, but also depends on personal circumstances which can change over time.
Deciding whether to buy or rent a property
While many people would prefer to own their own home, others prefer the flexibility of renting. Some people may rent in the short term while they save for a deposit to buy their first property while others choose to rent in the long term. This article looks at some of the pros and cons of buying a property compared to renting. The choice between buying and renting not only varies from person to person, but also depends on personal circumstances which can change over time.
Advantages of buying a property include:
- You can make alterations to your own taste.
- Have the security of your own home.
- If you have a mortgage, you will own your own home at the end of the mortgage term.
Disadvantages of buying a property include:
- You will be responsible for maintenance and insurance of the property.
- If house prices fall and you have a high mortgage you might find yourself in negative equity.
- If you need to move to another area, eg for work, you may need to sell the property. This may take longer when the housing market is slow.
- If you have bought the property with cash you will have a large amount of capital tied up in the property, money which is not available for other purposes without selling (or arranging finance).
Advantages of renting a property include:
- The landlord will normally be responsible for maintenance of the property.
- The landlord will normally be responsible for insuring the building.
- If you want to move you would typically only have to give one months notice to a landlord. This can be particularly useful if you need flexibility, eg, you might wish to move to a different area for employment.
- You can live in a property without long term commitment. This can be useful if you are new to an area and do not yet know which area most suits your needs.
Disadvantages of renting a property include:
- You will normally need to get permission from the landlord/agent before decorating.
- When rents are high it may be more difficult to save for a deposit to buy a first property.
- In some areas there is less choice of rental properties than properties for sale and you may find it more difficult to find a property which suits your needs.
- A rental property may not feel like “home” particularly if it is short term.
- If you rent in the long term you will never own your own home and will have to continue to pay rent.
When choosing an older house it is important to establish the condition of the property and be aware of any works which are required in the short, medium and long term.
Buying an old house – old versus modern
While some people prefer the benefits of a modern house, others might only ever consider buying an old house. To some people, the characteristics of an older house can outweigh the disadvantages. This article has been written with Victorian houses in mind, although some of the points can be applied to houses of other ages.
Choosing an old house
When choosing an old house it is important to establish the condition of the property and be aware of any works which are required in the short, medium and long term. Some properties may require extensive works but this usually has the advantage of allowing the owner to carry out works to their own taste. On the other hand, it is possible that a property has been maintained and modernised by the present owner, leaving a buyer able to move into their new home and carry out any minor works when time and budget allows.
Whatever condition the property appears to be in, the first step is to arrange a survey. This will:
- Help you establish what works are required so that cost estimates can be obtained from contractors. You can then decide whether the works fall within your budget and whether you are prepared to proceed with this particular property with full knowledge of what is required.
- Help you decide whether to renegotiate the purchase price. However, you must remember that the vendor is under no obligation to reduce the purchase price (and in some cases cannot afford to), and if another potential purchase is ready to proceed then it is possible that you may lose the opportunity to buy the property.
Advantages of buying an old house can include:
- More character and individuality.
- Larger rooms, higher ceilings. Some modern houses, particularly those on high density estates, have small rooms and minimal circulation space.
- Interesting features, eg, fireplaces, picture rails, deeper skirtings, plaster cornices, window seats, and exposed beams.
- Traditional materials, eg, stone walls, stone floors; slate, clay tiles or thatched roofs rather than concrete tiles.
- Original walls and partitions are more likely to be of solid construction rather than modern lightweight partitions and are likely to provide better sound insulation.
- Mature gardens.
- Useful outbuildings.
Disadvantages of buying an old house can include:
- Higher heating bills. Solid walls (instead of insulated cavity walls) will allow greater heat loss. More heat will be needed for larger rooms with high ceilings particularly hall/stair/landing areas.
- Draughty windows and doors (unless they have been replaced). Draughty fireplaces.
- Lead pipework. Any water supply pipework which is lead should be replaced with modern potable pipework.
- Sloping floors and distorted door openings.
- Check the cause of any cracking, eg, settlement, expansion and contraction, wall tie corrosion, etc.
- If a property is a Listed building then approval will be required to carry out certain works.
- Increased maintenance, particularly if windows, doors and joinery at roof level are timber.
- Dampness, rot and/or woodworm.
- The electrical installation may need upgrading or rewiring may be required.
- The heating and hot water system may need upgrading or replacing.
- Presence of asbestos containing materials, eg, textured coatings, floor tiles, sheet board materials, rainwater goods, man-made slates.
- Mice and/or rats particularly in rural areas. Also, possibility of bats nesting in roofs or outbuildings.
See also How much does a survey cost? and Is a Mortgage Valuation the Same as a Survey?