Pros and cons, renting and buying...

RedLichtie_2

Hullo folks! I'm looking at flats in Edinburgh at the moment. The question is whether I should rent or buy. In my mind, renting is the better option simply because it is cheaper. I save what I'd spend on a bought place and could invest in (possibly in my own business in a few years' time) something else. Does this sound a reasonable? Basically I've seen a couple of flats on the same street - one to buy one to rent. The one to buy is certainly a higher standard of decor, but for an extra £300 or £400p/m can this be justified? Say, in a few years I did want the money to start a business, would I be able to get my hands on that I'd spent on the house? Cheers, Ian

BitterAndTwisted

Renting is more flexible in that you can up sticks and move if you haven't tied yourself into a very long rental agreement but the other side of that coin is that your landlord could end your tenancy with a similar amount of flexibility as well and then you're looking for somewhere else all over again. Depends on how much security you feel you need. Of course, should your circumstances change radically, owning a property and having a sizeable mortgage may not offer the same flexibility but you do have more security as long as you can afford the mortgage. Swings and roundabouts.

In a few years, IF the property has increased in value you could consider remortgaging to free up some cash for the business but that's swapping equity for something a tiny bit more risky. Depends on how risk-averse you are

Cannon_Fodder

Over a lifetime, buying makes more sense, so you don't have to find the rent for a place of your choosing throughout retirement.

If you couldn't find raise rent in the event of job loss/retirement, you'll have to live where the council tells you, or where the benefits will be accepted.

Picking the best time/house to jump on the ladder, is a matter of opinion.