Owning property is often held up as the peak of financial achievement. But, while there are many good points about owning property, it’s important to bear the advantages of renting property in mind as well. 

In this blog, we look at the advantages of renting property, both in general terms and in the context of 2023’s high interest rates. 

What are the advantages of renting property versus owning property? 

1.     Quicker to move into

If you need somewhere to live, it’s almost always quicker to move into a rental property than go through all the hoops required for ownership. Reference checking, the tenancy agreement, the inventory and the deposit are the only paperwork. We can do it all in our office and talk you through what you need to do too. Unlike property purchase, you don’t need a solicitor and the whole process moves very quickly. 

2.     Lower initial costs

Renting property has lower upfront costs than owning property. Your deposit is usually five- or six-weeks’ rent. You pay it in advance and your estate agent holds onto it until the end of the tenancy when all or part of it will be returned to you, depending on whether the property needs work.  This is a lot less than an ownership deposit which should be at least 5% of the property price and ideally more. 

3.     No maintenance costs

When the property you live in belongs to a landlord, they are responsible for large maintenance projects, not you. Expensive jobs like redecorating, refitting, replacing the boiler or repairing the roof are all the responsibility of the landlord. But when you own property, you have to keep an eye on what needs doing and find the money to do it.  

4.     Flexibility

Most tenancy agreements are fixed-term, meaning you must rent for one whole year (occasionally six months). But after that, if you need to move, you can simply give notice and go. This gives you the flexibility to move to different areas or even different countries. You can also move to a larger property if your family grows, or a cheaper one if your financial circumstances change.  Your property investment won’t force you to stay put, or mean you have to wait to sell before you can move. 

5.     Owned property can lose value

Home ownership is always a gamble, and there is a small risk that the property you bought will lose value. In extreme cases, you might find yourself in negative equity, where the value of the property is less than what you owe your mortgage lender. But when you rent, you avoid this problem completely. 

6.     Mortgage rates are high at the moment

When interest rates are low, monthly mortgage repayments are usually less than monthly rent for an equivalent property. But at the moment (summer 2023), with interest rates high and not showing any signs of falling, mortgage repayments can be higher than monthly rent. 

Rent property in Guildford

Owning property is an investment for now and the future, but renting has many advantages too. If you’re looking for property in Guildford, please explore our lettings here. And if you have property to let, Cobbles would love to help – contact our experienced team to find out more.