When the time comes to leave the parents’ home every young man and woman is faced with the decision to buy a home or rent a home of their own. For some buying simply won’t be an option and renting is the only way forward.

For the lucky few who have a good enough credit rating, a sizeable deposit and the income to pay a mortgage the option to buy will be an attractive one. Renting is often seen as dead money, whereas buying property is usually viewed as a good investment.

For the most part, this is true – however, market conditions do change and it is those that a potential buyer or renter should consider before they take the plunge.

If house prices are rising and it costs less to pay a mortgage than it does the current levels of rent then yes, of course, you should buy. If, on the other hand, house prices are falling or are flat and mortgage costs are high, then renting is no longer dead money, as you will save money – when the housing market begins to recover and prices to rise, you can use that saved money to put down a deposit and get on the property ladder at just the right time.

If you decide to rent then the process is relatively simple. You decide what you can afford to pay each month in rent and begin looking at properties at or under that price limit. There will be plenty of properties to let in the local newspapers and at local estate agents and letting agents.

It may take some time to find just the right property in just the right area at just the right rent level, but the benefit of renting is that you can do these things in your own time.

If buying is your chosen route to a new home then you have far more work ahead of you – don’t let that put you off though, the rewards are almost always worth the effort!

The first thing you should do is visit a mortgage broker or bank and see how much you will be able to lend based on your income and the size of your deposit. That will give you a good idea of your budget for your house, apartment, flat or whatever it is you intend to buy.

As you are buying your property a little more thought should go into the area you wish to live in. Your budget will determine this to some extent, but you should also consider the quality of the area, it’s locality in relation to work and the local amenities. Not only will this affect you while you live there, but finding the best area you can afford now will help you if and when you come to sell your home in the future. When buying, always consider resale potential.

This is not an issue with renting, of course, you can just serve your notice and leave whenever you like!

Once you’ve found your area and shortlisted a few properties you should go and view them. Don’t feel rushed into getting the first one you see. Take your time and find the right one for you. This is a significant investment you are making and you want to get it spot on!

What follows is a series of legal requirements, mortgage applications, surveys and everything you need to get done to purchase the house.

Overall, buying is a better option than renting as it is an investment for the future. But renting is a good option if you don’t have the money to buy, you believe you won’t be staying in one location for too long, you need to live in the city centre for work but cannot afford property prices and other situations.

Take the time to assess which is best for you and don’t believe that renting is dead money ALL the time – sometimes it is the perfect option.

Author Bio: Ian Grainger is writing on behalf of Shepherd Gilmour, Manchester letting agents and estate agents.

Category: Advice
Keywords: renting property, buying property, mortgages, rent