There could be one of many reasons for you to look into the possibility of moving in to your own property. You may need a bigger house for the family, you may just want to get on the property market or maybe you are just looking to spread your wings and get some freedom.

If you are one of the many who find yourself in a similar situation, then it’s important to know the options available to you, and the positives and negatives of each aspect. We are at hand to run you through some of the pros and cons of buying and renting.

Buying

The first major benefit for many is that they have taken their first steps, or have continued, to climb the property ladder. There are an abundance of advantages to owning your own property, with many schemes and incentives in place to help every homeowner. For first time buyers there is the ‘First Time Buyers Scheme’, which is available to all with a household income of under £60,000 and means you can put a deposit down for as little as 5% of the price.

Further incentives include property tax deductions, mortgage Interest deductions, capital gain exclusion and preferential tax treatment.

Something you will want to be aware of is the risk of depreciation of your property. This does not mean that if you buy a property then the value of your home is going to depreciate, but you will want to do some research in to the possibility of it happening. Are the any plans to cut school budgets, has criminal activity in the area increased or are their any development plans that will have a detrimental affect to the local area?

If you are looking to buy then you should consider the amount you will spend on homeowners Insurance, as it is vastly expensive in comparison to renter’s insurance. Add this to the cost of your deposit and the mortgage payments every month, and it can become a lot to manage.

The thing that most people struggle to cope with is the stress and anxiety that comes with taking out a mortgage. A mortgage is a massive commitment to make, so before commencing you will need to do some planning to ensure that you can afford the deposit, and that you can manage the monthly payments. If you are able to cope with this, then it sounds like buying is the right choice for you, if possible.

Renting

Renting is normally an option for anyone looking who can’t quite afford a mortgage, or for anyone who is looking to sell property quickly as they cannot withstand their current mortgage payments. Having a landlord has both its benefits and negatives. The positives being that if there is a problem with the property, then it is up to them to fix it and pay the cost. On the other hand you may be unfortunate enough to fall in to the hands of a bad landlord who will not attend to these problems, or try to charge you for repair work. Make sure you know your rights, and take all necessary precautions before signing any agreement.

The major financial benefits are that the cost of a deposit and your monthly rent payments will be far less than if you were taking out a mortgage. Also, there is no long term commitment, with most landlords offering 6 month or year long tenancy agreements. The major financial negative of renting is the fact that for all the monthly payments you make, at the end you will have nothing to show for your money.

Finally, one of the more frustrating aspects of renting is that you are restricted when it comes to personalising your living space. Bring in your own furniture, but you may be unable to hang any of your favourite paintings or paint the walls a new colour. If you do have any plans to redesign a rented property, then you must always ensure you contact your landlord beforehand.