Shabab Column: Young Professionals Should I Rent or Buy
Young Professionals should I rent or Buy
A common issue for individuals when they leave home, University, or get married is should we buy or rent. I got my first house at 22, after taking the plunge and completing my degree, and the first issue I had was several months later I took a role in London. This meant I had to rent out the property as otherwise it would have remained empty and cost me several hundred pounds a month as well as headache knowing the property is empty and anyone could break in and worse become a squatter.
I get many people coming to me looking to buy properties, however the one issue young professionals do not consider is: are you going to be living in the same area, or are you looking to move in the not too distant future and more to the point will your future partner like the house or not. In my case, I was forced to renovate, then extend and then re-renovate the house!!!
In this day and age jobs are hard to come by, this is especially the case if you are made redundant, and you
may have to move further afield to be able to get your ideal role, so what happens to the house? Well in essence you are stuck, you either commute daily, or you rent and at the same time rent out your own property.
The one thing I have not mentioned is if you have a mortgage, then you need to get lenders consent to let out, otherwise if anything happens to your house, it may not be insured. This is because most buy to let insurances have a clause highlighting your lender is aware the property is
let. Most lenders will only give consent for one year, and if you still require the property to be rented they may force you onto their standard variable rate, or even make you pay more.
In my view, if you are a young professional, then you should wait to buy when you are settled and you are sure you are not looking to move out of the area for the next five years. The way the market is at the minute, there are more and more properties on sale, which means it is likely it will take time to sell yours.
So renting what’s the benefits to you? Well for starters there is no need to raise a hefty deposit. It will give you time to find the ideal home, and to settle down in your career.
You also do not have any headache for maintenance of the property, and if you do need to move out, well its only a few weeks notice that you need to give.