There’s always a big debate about which is better – renting or buying and, really when it comes down to the final decision, it’s about personal preference and ultimately what you can afford.
A big chuck of your monthly mortgage payments are to cover the interest on the loan itself, which is why it takes a long time to pay off – meaning most people tend to stay in the same house for a number of years. Renting, on the other hand, does give you the extra flexibility if your circumstances were to change and you needed to move.
If you have a specific area in mind, then buying a home there may be unaffordable at the present time – so renting may make more sense. Although, paying rent every month doesn’t give you anything back for your investment but if it works for you, then that’s the main thing.
However, depending on where you want to live monthly mortgage payments could be cheaper than rent costs in the same area.
Over the past few years, house prices and average rent costs have both risen significantly while the cost of mortgages has fallen. The best thing to do would be look at the costs for both options, and then decide what is best for you.