[jambutty]

Subtitle – Rent or Buy.

The government, the banks, the mortgage lenders and even parents all advocate that their off spring should get a foot on the first rung of the Property Ladder.

But should they?

Well, before people make up their minds just ask yourself why there is such pressure? Could it be a self-interest pressure? Are these young adults being pushed into buying a house that they cannot really afford just so that someone can sell them theirs and buy a better home for themselves?

If people want to buy a house then that is their affair but in this day and age where job security is well down on the list of an employer’s priority it may not be the smartest move.

I know of many couples who have not only lost their homes but also lost the money that they put into them because their circumstances changed for the worse through no fault of their own.

Maybe young couples should rent a home from the local authority or one of the many housing associations for the first few years?

The advantages of renting are enormous.
The average rent will be somewhere around an average mortgage.
You have no building repair bills unless the reason for the repair is your negligence or a deliberate act on your part.
You do not have a mortgage and thus no need to insure the building.
Improvements are paid for by the landlord as are repairs unless the reason for the repair is a tenant’s act.
Before moving in the landlord will either redecorate the premises or hand over vouchers for materials to enable you to re-decorate the house yourself. With judicious paper and paint selection the whole house could be decorated for free.
The payment of rent is one week in advance.
Should your circumstances change for the worse all or part of the rent and Council Tax is paid for you by the local authority from government funds.
If your home becomes overcrowded your landlord must re-house you into more suitable property.
If your home is destroyed or becomes uninhabitable the landlord must re-house you.
You have a ‘right to buy’ after a few years at a very favourable rate.

Renting from a private landlord is not the best idea.
You will be charged a month’s rent in advance and also need to deposit a bond of around £500 or even more.
There is no ‘right to buy’ scheme.
Should your circumstances change for the worse, you will only get part of your rent paid, as private rented accommodation is at least 20% more than local authority.
It can be difficult to get your landlord to effect repairs.

The disadvantages are that you pay rent each week and will never own your home, but then there is the ‘right to buy scheme’ so it’s not such a big disadvantage.
As a tenant you must keep the interior of the house in good working order and also keep a tidy garden. But then it would be in your own best interests to do the same if your owned the house.
You must adhere to the tenancy agreement but that is no hardship for the majority.
In short there are no real disadvantages in renting from the local authority or housing association.

Edited to change the $ to £.