Buy or rent a property?

nrishiraj

Hi

I'm thinking of getting my own place to live, at the moment, I'm living with my parents, brother and sister. As you can imagine, it can get confined living in this terraced house.

Anyway, I'm not sure whether to buy or rent a house/apartment.

1) Does the monthly rental free change depending on the state of economy i.e. credit crunch or is it always the fixed charge?

2) If there is another credit crunch in the future and the house prices fall, does the amount of money to put in for a deposit also decrease?

Any advice/info is much appreciated.

G_M

nrishiraj wrote: »

Hi

I'm thinking of getting my own place to live, at the moment, I'm living with my parents, brother and sister. As you can imagine, it can get confined living in this terraced house.

Anyway, I'm not sure whether to buy or rent a house/apartment.

1) Does the monthly rental free change depending on the state of economy i.e. credit crunch or is it always the fixed charge? There is usually an initial period (6 or 12 months is common) when the rent is fixed. When this ends, either a new fixed period is agreed or the rental continues month by month. In either case the rent can be increased/decreased by agreement, and this may well be influenced by the economy, the number of tenants looking for rentals in the area and the number of properties available. However, if you are a good tenant (never late with rent, keep property in good condition, most LLs would rather keep you than increase the rent.

2) If there is another credit crunch in the future and the house prices fall, does the amount of money to put in for a deposit also decrease?
Since the deposit is usually a % of the total house price, if prices fall, then the amount of deposit will fall (a bit!)

Any advice/info is much appreciated.

Hope this helps!