Should You Rent Or Buy When Leaving Home?

When we leave the family nest, we all face the decision of whether to look for a LifeLock home mortgages with bad credit the only Identity Theft Prevention Solution backed by a one-million dollar guarantee! Click here to get a 10% discount! that we (or our parents) can afford to buy, or look for a property to rent. There are pros and cons to each, but with all things being equal, should you rent or buy your first property?

Well a lot depends data recovery the current property market. At the moment prices are most definitely in a downtrend here in the UK, so if you decide to buy now, you face the potential dilemma of negative equity if prices drop further and you wish to move houses in a few years time.

Having a mortgage that's greater than the value of your house is a truly horrible position to be in and one you have to consider a possibility if you buy now. If it is a major concern for you, then renting could be an option to consider.

There may also be other factors to consider. For example, your current employment could be a factor because if you feel you may be switching jobs or being relocated in the near future, then it obviously makes a lot of sense to rent rather then buy, particularly in the current property market where the value of your property may go down slightly in the short term.

It may also be the case that rental costs in your area are substantially lower than any mortgage costs you would incur if you bought a property, so that is another instance where renting may be the better option.

In the long term of course property prices only ever go up due to inflation and other issues, so the longer you rent a property, the more you are pricing yourself out of being able to afford to buy your own property.

In the current market that isn't such a factor, but in a few years time prices are likely to pick up again and you don't want to be out of the property market at that point. Remember that property prices on average double every 7-10 years, so you're potentially missing out on some large capital gains by renting rather than buying.

Indeed equity line of credit loans own view is that you should get on the property market at the earliest possible opportunity in order to move up the property ladder and secure your financial position in later years.

As a first time buyer you are in a strong position because you are not in a chain and can therefore negotiate a strong bargain in a lot of cases. A good tactic is also to buy a property in need of renovation because by car insurance insurance quote it up and adding value to your first property, you can climb the property ladder a lot quicker.

So to answer the original question, I would say that you should always look to buy your first property, and to get on the property ladder as early as possible. I've always considered renting to be throwing money away, and even though the current market is in a slowdown you can protect yourself from falling prices to a degree by buying undervalued property in need of renovation and increasing it's value by doing it up.

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