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Rent Or Buy Property

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A major factor behind this decision is the current state of the property market. At the moment we are in a major slowdown here in the UK so if you buy now you run the risk of your mortgage being higher than the value of the property, ie negative equity, if you subsequently sell it in the next few years.

This is a position you definitely do not want to find yourself in, but is nevertheless potentially a possibility if you buy now, so renting in this instance could be worth considering.

Another factor worth taking into consideration is your current and future employment because if you think you may be relocated in a few years time, for example, then negative equity could be a reality if you buy now because property prices may be slightly lower than they are now when you come to sell.

Renting may also be the better option when rental prices are generally a lot lower than mortgage costs for properties in your local area.

In general though you have to remember that in the long term property prices trend upwards, so if you are renting a property for any length of time you are missing out on any potential capital gains in the meantime.

Although the property market is flat at the moment, house prices will eventually start to rise again and you don't really want to still be renting at this point.

My own opinion is that in general you should try and get on the first rung of the property ladder as soon as possible, because if you look at the bigger picture, house prices generally double every 7-10 years, so the earlier you can buy, the more capital gains you can realise, and the quicker you can secure your financial future.

As a first-time buyer, you are in a strong position because there is no chain involved, which is favourable to sellers and means you can negotiate a better price, particularly in the current market.

Furthermore by buying a property in need of redecoration or renovation, you can not only buy a more affordable property, but you can move up the property ladder quicker by doing it up and adding value, and you can also protect yourself to some extent from falling property prices in the short term.

So overall I personally think that as a first time buyer you should always look to buy your first property if at all possible. The only exception would be if you are planning to move within a year or two, in which case renting would potentially make more financial sense in the current market.

Rent Or Buy Property

Several factors go into making a decision about home ownership. Some see it as the American dream and forget that investing in a home is a big financial step. Those who are not ready for it can experience ?buyer's remorse? and get in way over their heads.

Consider the area in which you live or are planning to live. What are some of the monthly rental prices? What are some of the monthly mortgage prices? If both are about the same, buying a home may be the better option.

When looking to purchase a home, find a neighborhood that will appreciate in value. All neighborhoods will appreciate to some degree over time, but there are those that will appreciate more because of location. Are there schools nearby? Shopping centers? Fire stations? Cultural attractions?

All of these things combine to raise the value of your property. Developments with home owner's associations collect dues for the upkeep of the neighborhood. The association also sets down rules and regulations regarding the appearance of the homes it governs. These associations strive to keep the value of their homes going up to the benefit of the homeowners.

Home ownership is usually a long-term option for many. When they decide to purchase a home, it is to have a place of their own. Most want to raise a family in a dwelling with a yard where they can do as they please. In an apartment, putting pictures on the wall can be a no-no. In your own home, you can make changes to the interior as you see fit.

Renting over the long term is an option for some. If an individual has no family to look after or no desire to do yard work or pay dues, then an apartment may be a suitable alternative. But, when an individual lives in an area where the rental rates are steep, they could be losing money hand over fist by not investing in a home.

Purchasing a home for the short-term may not bring you an appreciable return on your investment. Depending on the state of the market, your home may not increase in value more than two percent over the next year or two. With the other bills that accompany home ownership, you could lose more money than you stand to gain. Homes require less of an appreciation to come out ahead the longer you own the home.

Renting is an excellent short-term option. A person that is constantly relocated for work or in school stands to save money when renting. There are no bills for monthly maintenance. If something breaks, the landlord must fix it. You won't be able to decorate the walls, but if you plan on staying there less than a year, you probably aren't worried about that.

There are pros and cons for both renting and owning. Consider your needs along with the term of stay and the real estate market. If you plan to stake down roots, a home builds equity which is money that you can use later on. With a rental, the landlord makes the money. Talk to a financial analyst for market predictions and weigh your options.

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Both James Woolley & David Burch are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

James Woolley has sinced written about articles on various topics from The Internet, Affiliate Programs and Acne Treatment. Click here to read James Woolley's by. James Woolley's top article generates over 6600 views. to your Favourites.

David Burch has sinced written about articles on various topics from French Vacation, Finances and Property Agents. David Burch specializes in articles about the Clovis, NM Real Estate market. For more articles on , please visit hi. David Burch's top article generates over 1900 views. to your Favourites.

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