| There is little doubt that choosing to buy a home is a | | | | financial benefits. Buying a home can be seen as |
| big commitment. For the majority of people their | | | | long term investment. Many people will aim to have |
| home will comfortably be the most expensive thing | | | | paid off their mortgage before they retire meaning that |
| they will ever buy. The system of buying property | | | | when they do retire they are essentially living ‘rent |
| can also be stressful and involve a long drawn out | | | | free’. In the post war period property prices have |
| process. However despite this owning property does | | | | risen at a faster rate than inflation meaning that buying |
| have a number of advantages which is why in the UK | | | | property can offer a greater capital return than building |
| the majority of people prefer to buy rather than rent a | | | | society interest rates and share prices. |
| home. | | | | A further financial benefit is that the value of the home |
| One major advantage of buying rather than renting a | | | | can be used to take out secured loans. Owning your |
| home is greater security. Renting is often seen as a | | | | own home gives you access to loans often a better |
| temporary measure although some people will choose | | | | rate of interest as lenders consider secured loans to |
| to rent over a longer period. The disadvantage of | | | | be less risky. Some homeowners may also choose |
| renting over a long period of time is that since the | | | | to remortgage their property and withdraw equity |
| home is not yours you can be affected by the needs | | | | from the value of their home. Having the option to |
| of other people. For example you may be asked to | | | | remortgage can offer a better alternative to taking out |
| move out at relatively short notice if the landlord | | | | a loan. |
| decides they want to sell the property or if they no | | | | Homeowners also benefit from being able to maintain |
| longer want to rent it out. Rent payments may also | | | | their home exactly how they want it. People renting |
| be increased at short notice to an unaffordable level. | | | | a property are unlikely to have much say in the way |
| | | | | the home is decorated. Landlords may also enforce |
| Therefore people choosing to rent may find that they | | | | certain rules such as no pets or keeping the home to a |
| have to move home every year or even more often | | | | level of cleanliness. By owning their home people |
| than that. Along with the inconvenience of actually | | | | have greater freedom to make the property really feel |
| moving, changing homes on a regular basis can make | | | | like home rather than just somewhere they happen to |
| it harder for people to settle and make long term plans. | | | | live. |
| Choosing to buy rather than rent also has a number of | | | | |