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There’s certainly an expected timeline of life that’s been instilled in society for years; find a partner, buy a house, get married, have a family and retire. But of course, there’s nothing wrong with going against the status quo – and many people do. In recent years, marriage often falls lower down the priority list and people are choosing to start families younger. Similarly, more and more people are renting.
Buying a house is a huge financial commitment and getting on the property ladder is becoming more and more out of reach for many. People renting well into their 30s is becoming the norm, and as a result of this, renting as a family is too. Whilst many people may see this in a negative light, there’s actually some great financial benefits to renting for families…
Less costs to worry about
Ever heard the phrase, ‘renting is dead money’? Whilst it’s true that you’re paying someone else’s mortgage instead of your own, you’ll be living a less financially-complicated lifestyle as a result. There are a lot of costs that come with owning a home; stamp duty tax, solicitor fees, buildings insurance, home maintenance repairs, plus the cost of selling-up and moving.
When you’re renting, all these costs (and more!) are for your landlord to worry about. All you need to do is make sure your rent is paid on time, and perhaps cover your bills if not included in your fixed monthly payments to your landlord. Whilst you’re not saving every penny for a house deposit, or spending time trying to find the best remortgage deal to free up some money for a new car, you’re left with more money for the things that matter; days out with the kids, family holidays and making memories.
No home maintenance costs
When you rent and the property needs a little TLC – be that structural repairs, fixing leaks or boilers – these responsibilities all fall to your landlord. Every landlord should have landlord insurance. There’s plenty of great insurance policies out there and landlords can use companies such as CIA to compare and be sure that they are getting the best deal on specialist insurance and contents insurance. Unless any damage in the property was your fault or any items damaged belong to you, or the fault of anyone in your household, this is another cost you can avoid.
So long as you’re looking after the property, you won’t be hit with any unexpected maintenance costs – something that homeowners need to keep in mind. Although it’s always sensible to have money set aside when things go wrong, you can focus on things such as any necessary car repairs, parking tickets, replacing broken furniture – whatever it may be.
Home ownership doesn’t always mean equity
A big argument for buying a house is the equity that you’ll then gain in the house, meaning you’ve always got money behind you. Whilst this is completely true, home ownership equity doesn’t always equate to profits.
The housing market is quite unstable at the moment; first with the uncertainty of Brexit, now with the effects of the coronavirus pandemic… House values in your area could always decrease, which would drag down the value of your home and lose you money when you come to sell.
Quite often with a rental property, you’ll find that some come partially – or perhaps even fully – furnished. Be that with sofas, bed frames, or white goods and appliances such as fridges, freezers and dishwashers. When you buy a house, you then have to fill it with everything you need to live comfortably. Whilst there’s certainly something nice about doing this, it takes a lot of time, energy and of course money.
If you do move into a partially furnished rental property and the furnishings are not to your taste, then that’s ok. It’s always worth asking your landlord if there’s minor changes that you can make. If you want to swap out things for your own, it’s usually not an issue if you can keep whatever was there before safe, ready to swap back out if you ever move to a different property.
Everyone lives a little differently. If you can buy a house and that’s what you want, then that’s great. If you can’t, then renting is no inferior option. There’s many financial benefits to renting as a family, leaving you better off with more time and money to spend on your precious loved ones.