If you’ve just landed a job in the City of London, moving to Croydon is a great place to start. It’s one of the main commuter towns due to it’s fantastic transport links, (both road and rail) and is a convenient place to live overall. The question is, however; should you buy a house, or rent? I’ll go over both below, and let the advantages and disadvantages speak for themselves.
One of the best things about renting is the lower cost. You won’t have to take out a loan to afford the deposit on a mortgage. The cost advantage isn’t limited to the initial investment, either – you don’t have to worry about house prices dropping, or depreciation on general. Your rent won’t be affected because it’s dictated by your contract, and if the contract changes, then you have the option to move on to a different tenant. Add less maintenance costs and upkeep charges to list of financial advantages, and it’s obvious which one is lighter on the wallet.
When renting, you’re also less tied down. Tenant contracts can usually be broken after six months or so (make sure you read the fine print on the initial signing, just in case), so you can freely choose your home if you feel a different location will suit you better. So, there is a reason to rent even if you can afford to buy.
That being said, if you can afford to buy, then there’s plenty of reasons to take the plunge. For example, when you put your money into a property that will become your own, you’re making an investment. An investment that may well pay dividends at the end of the road, but is also a place to live. With more upkeep and other maintenance costs, comes more of a reward. It’s a place you can call your own rather than a temporary dwelling place.
Even though you’re more tied down when it comes to your location, you’re far less tied down when it comes to the insides. You can decorate and furnish a bought home with far more freedom than in a rented property. There’s also the possibility for expansion, something that’s impossible when renting.
So, there’s upsides to both, so it’s hard to recommend one over the other. I can however, offer advice based on your circumstances and living arrangements. Do you live alone, or with a family, or example? If you live alone, you’re going to be dealing with the costs by yourself, and you won’t need as much space, so renting may well be the better choice. If you have a family, then buying a house with it’s extra privacy and space is a much better idea.
First time buyers with a relatively small paying job will be more secure in a rented property, thanks to the overall lower costs. But it all depends on whether or not the buyer wants to move on; Personal taste is also part of the equation. I hope the decision has been made easier. Happy moving.