Housing is increasing in price and many of us are beginning to review our current housing situations. Is the type of housing you’ve opted for at the moment right for you, or could something else prove more profitable or beneficial to you in the long run? Let’s take a moment to look through a few different options!
Renting
The first option that you will have available to you is renting. When you rent a house, you’ll essentially enter a contract with a landlord – most often the owner of the house. You will agree to pay a certain amount of rent, usually once a month on an agreed date. There are pros and cons that come with this type of housing. Let’s start with the pros. The pros of renting are that you aren’t tied into a property. Sure, you’ll have a contract, but these only usually last six months or a year. If you want to move once you’ve reached the end of your contract, you can simply pack up and go. You don’t have to worry about selling or other drawn out processes. Now, to the cons. The cons that come with renting largely revolve around the fact that you’re basically paying someone’s mortgage on their behalf. You’re paying for the house but they will ultimately keep it as their own asset. There’s also less stability in renting than having your own home. The landlord can decide to sell up or not renew your contract as soon as your contract ends. This means you can feel settled and simply have to find somewhere else to live without really wanting to.
Shared Ownership
Next up, shared ownership. When you opt into shared ownership, you will generally choose to buy part of a house. It’s a situation that feels like a hybrid between buying and renting. You will buy part of the property, while someone else, usually a housing company, will buy the rest. This makes getting a mortgage easier, as you’ll be asking for a smaller total sum. You get to pay your mortgage each month, knowing your investing in an asset you can sell. You will also only need a small deposit. You do, however, tend to have to contribute some rent to the party buying the rest of the property. A Shared Ownership Calculator can help you to determine whether this could be an affordable option for you.
Buying
The final option is buying. This tends to be best once you’re ready to settle down and live in the same place for a prolonged period of time. You’ll have to save a substantial deposit, but over time you will eventually buy the house outright and have a good asset in your name.
As you can see, there are a few options to choose from when it comes to finding the right type of housing to meet your needs. Hopefully, some of the guidance above should help you to find the best for you!
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