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Rent vs. Buy: The Ultimate Showdown for Millennials (and Everyone Else!)

When it comes to leaving the nest and finding your own independence or when you are looking to invest and are torn between getting rid of or keeping it as a monthly payment. There is always the biggest debate about whether renting or buying is better. With pros and cons against each other, these are constantly changing, especially with how the current economy is. These options may not even be a choice for some people or you may have the pick of the crop but want to make the best-infrared decision.

 

Either way, depending on how you look at it, we’ve decided to bring together all the important factors for you to consider before making any big decision this year.

 

What Should I Know About Buying a Home in 2024?

Owning a home means you not only have the freedom to do whatever you please, but it also means that you have that added security to give you peace of mind, laying down some roots. It’s been very popular in British culture to buy your home. Staying with your parents for longer so you can buy has become more and more normal and expected. It’s pushed down teens’ and young adult’s throats that renting is a waste of money but with things changing, it’s definitely making both millennials and younger generations rethink this once-popular structure of life.

 

If you are unfamiliar with the current housing market, then I will indulge you. House prices are at the highest they’ve ever been and with that, you expect our wages to be at a certain level, so not only can we afford to buy, but we can also afford the bills and mortgage repayments and be able to enjoy our lives without being restricted so much that you can’t have fun at the weekend. You may then also work with builders to choose the perfect flooring, extension options or anything else. But if you look at the rates of increase compared to wage increases, then you can clearly see that the average wage does not make it possible to afford to save, buy and live.

 

Essentially, the whole balance is off, making it that much harder for younger generations to buy and move away at a reasonable age. It’s unfortunate because if that weren’t the case, it would be cheaper and more cost-effective to buy instead of rent, but with these changes in the climate, it’s hard for individuals to even get to a comfortable financial state to put down a deposit and qualify for a mortgage.

 

When it comes to buying to resell, you might be better off because, while the prices are at their best to sell, this becomes less exciting if people cannot afford to buy. So this balance is off to the point where no one is really benefiting from this increase unless you get lucky with a buyer. Either way, buying to sell is a good route to go down if you are pricing it reasonably. Be sure to look into insurance as a backup, such as bad debt insurance and whatever else you find relevant to your situation at the time.

 

Pros of Buying a House in 2024

  • Gaining equity towards ownership: This is a huge chunk of money that is there and is a great investment, whether it’s for you to use when you retire or something to pass on to your children so they can do the same. It’s that extra bit of security.

 

  • Monthly payments can be affordable: Depending on what mortgage broker you go with, payments can be cheaper down the line and they can be up for negotiation.

 

  • Freedom: The best part is making those spaces where you spend most of your time all tailored to your needs and to your taste. You have the power to do whatever you want.

 

Cons of Buying a House in 2024

  • Unattainable: If everyone could afford to buy, we would but the demand and inflation rates are making the possibility of buying completely unattainable for those coming from lower-income households.

 

  • Greater financial responsibility: if your house insurance doesn’t cover it, then unfortunately you are expected to cover the cost of everything and all in all, they are more expensive than the initial price and bills. Kitchens, bathrooms and boilers are just the tip of the iceberg for expected and unexpected costs.

 

  • Restrictive: People don’t tend to buy and sell often and as they are slow to move, you might put it up to buy but not sell for months or even years so you are very restricted to that one place for a long time. It’s not everyone’s cup of tea to be bound to one place unless you have children.

 

What Should I Know About Renting in 2024?

Renting is very popular in a lot of countries, such as New Zealand, America and many other countries. It’s so normal, to the point where they don’t understand why people in the UK are so obsessed with buying. Either way, it’s not something that appeals to a lot of people due to the stigma that has been instilled in our culture but as I’ve grown up, I’ve begun to see some of the appeals and while it’s true that it’s wasted money, other factors can be appealing to younger generations.

 

While renting can still be considered more expensive compared to mortgage repayments, it can come with perks that buying doesn’t offer. For example, renting in city centres has the perk of being right in the action so you are less likely to be spending money on things such as travel and expensive heating bills.

 

Renting has not avoided inflation and has been at an all-time high, especially in areas like London and Manchester. There are affordable, less modern options but I have seen landlords lower their payments and you can always bargain to get more value for money. We hope to see average rental prices come down in the future.

 

Pros of Renting in 2024

  • Flexibility: you are not confined to one area, country or space; you have so many more choices to choose from when it comes to renting, and they can be on a short or long-term basis.

 

  • Affordability: while they are more affordable if you live with someone else or more than one person, they are also affordable in some cases for those who wish to fly solo.

 

  • Lower risk: if anything were to go wrong, it wouldn’t be your responsibility to replace or to pay for anything so if a leak happened or the boiler broke, it would be the landlord’s responsibility to cash out for upgraded versions.

 

Cons with Renting in 2024

  • No Equity: when it comes to renting, you are basically handing over a large amount of money that you will never see again. While others don’t care about this, it can make you feel uneasy when it comes to building a family and your future.

 

  • Deposits: while these can be an initial large amount of money to pay at first, there has been a common history between deposits being taken off and no damage being done. It can create a lot of stress for some people.

 

  • Restricted: Unless you have any permission from the landlord, you are very restricted from doing anything new, from changing the colours on the walls to adding pictures to the walls. There are renter-friendly hacks all over social media but it’s something that can be frustrating for some people.

 

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