Thanks to high property prices and stringent requirements set by lenders, a whole generation of people is being forced into the private rental sector because unlike their parents, they can’t afford to buy a home. But is this a bad thing?
Apparently not, according to an article written by Mark Coulter, Managing Director of a leading Edinburgh estate agent. He says there are a number of reasons why renting a home as opposed to buying one is the smart choice for many, in particular young professionals and workers who need flexibility.
The High Cost of Buying a Home
There are many costs associated with buying a property: stamp duty, solicitor’s fees, mortgage fees, survey and valuation fees, and of course raising a large deposit. All of this has to be paid up front and for younger, first time buyers it is a huge financial outlay at a time when they don’t have much money. And to make matters worse, a lot of young people change jobs frequently in the early years, so the prospect of moving house and incurring the same costs all over again, is not an attractive one.
The Benefits of Renting Set to Increase
Many experts believe that the benefits of renting will only increase as time goes on. They predict that capital growth will be a lot more modest over the next few years, so people will have even less of an incentive to buy instead of rent. Even security of tenure shouldn’t be an issue with good tenants, as many landlords are more than happy to extend shorthold tenancies for several years.
