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Factors You Could Consider When Deciding Whether to Rent Or Buy
To rent or buy that is the question on many individuals' lips when considering housing. There are of course many advantages and disadvantages...
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Factors You Could Consider When Deciding Whether to Rent Or Buy To rent or buy that is the question on many individuals' lips when considering housing. There are of course many advantages and disadvantages to both which would need considering before jumping into a decision. For one, taking on a mortgage is a huge responsibility as you would have large repayments to make over what could be 20 or more years. Throughout this time you would be at risk of losing your home if you should fall behind on the repayments of the mortgage. On the other hand, if you rent the property it would never be your own and you could never make a profit from it. However, monthly rental is often cheaper than mortgage repayments. When buying a property then of course you would either have to remain it until the mortgage was repaid and hope that you would be able to make a profit from the sale when the time came, if of course you wanted to sell. If you were to sell within a few years' of buying the property you could lose out. On the other hand, if you choose to rent a property and then decided for any reason you wanted to move straight away then you would be able to give notice to the landlord and then simply move on, though many landlords now do ask that you sign up for a six month period at least. When you own your own home, the responsibility for any repairs would of course be your responsibility. Of course buildings insurance would pay for larger repairs for such as storm and flood damage but you would still have the excess to payout. If you were renting the property the repairs to the property would be down to the landlord and all you would have to do would be to call him or her - the money would not come out of your pocket. Other considerations when looking at renting v. buying is insurance. If buying you would have to pay the premiums for the buildings insurance along with contents insurance if you wanted to cover your possessions. This would cover the outer shell of the home and outer buildings. Mortgage lenders will usually insist that you have this insurance before giving you the mortgage. If renting you would not have to pay for buildings insurance as this would be your landlord's responsibility. However you may wish to consider taking out insurance for the possessions inside the property. If buying you would be able to make changes to the home that you wanted. You could decorate to your specific tastes as it would be yours. However if you were renting then you would not be able to make any changes to the layout of the property and you might even have to get the landlords permission before you decorated. In summary, you need to weigh up the pros and cons of each option and decide what is best for you.
Jason Hulott is Editor of Rhino Money, the solid finance information site for UK residents, which covers topics including Insurance and Credit cards Article Source: http://EzineArticles.com/?expert=Jason_Hulott
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