Knowing when you’re ready to stop renting and buy a house can be tricky. In this blog, we’re answering the question, how long should I rent for?
When it comes down to answering questions like this, it completely depends on your situation. For many people, renting can be the best option long-term, whereas others may be more inclined to jump on the property ladder. It’s no secret that getting onto the property ladder can be very tricky nowadays.
Before you start trying to find the perfect property to buy, you’ll need to chat with a mortgage advisor. They will assess your situation and let you know how much you might be able to borrow from the bank. You could use an independent advisor or go straight to a bank.
When considering your circumstances, they’ll check the maximum monthly mortgage payments you’ll be able to afford. You will only be able to borrow a certain amount, and you will still need to have a deposit. Depending on the mortgage length you choose, your deposit amount may vary.
As we said, buying a home isn’t for everyone, and there are reasons why you might opt to continue renting. Here are some of the advantages of renting and owning a home.
Advantages of renting
- More freedom and flexibility
- More security (through contracts)
- Reasonably secure payment plans as a new tenant when paying rent
- No maintenance and repair costs (depending on the repairs)
Read more about the benefits of renting a property.
Advantages of owning a home
- Building equity
- Improving credit
- Ability to make your own decisions
- Can look after your own well maintained home
There are many more advantages of both options and often the advantages of one option are the disadvantages of the other. It’s important to consider all of your options carefully before you make a decision.
How long are tenancies?
There’s no set tenancy length, it completely depends on your situation and your landlord’s plans. Typically, tenancy lengths are six months (short term), 9 months or year long. You will need to agree to this when signing your tenancy agreement.
Sometimes, landlords will offer a rolling contract. This gives you more flexibility, but can be trickier for long term tenants wanting more security. Most landlords will be happy to discuss contracts and tenancy lengths with you.
Be aware that you are entering a fixed term agreement when you start renting. This means you may need to serve notice and pay rent arrears if you decide you want to leave early. Remember that your landlord will need to pay property taxes and landlord’s insurance while you rent. Your rent guarantee offers them more security.
It’s a good idea to think early about what your plans may be after your tenancy agreement finishes. This means you’ll have time to plan rather than having minimal options. If you’re not ready to be a property owner, don’t panic. You could find another rental property or stay in the one you are in. Remember that sometimes individual circumstances change, so you need to be able to adapt.
When is the right time to buy a house?
You must ensure that you are ready to buy your own home, here are some things you should consider.
- Wait until you have the correct deposit amount
- Ensure that you have enough money to cover moving costs
- Make sure that you are ready to take on a home
Additionally, you will need to look into when is the best time to buy a property based on the property market.
You should take your time when finding the perfect property. You should also consider looking around a few to understand the different features and costs.
There are many things to look out for when viewing properties. Read our blog on what to look for when viewing rental properties.
We hope this blog has been helpful and answered the question – how long should I rent for? If you’re looking for a new rental property, then get in touch! Our friendly team can help you find the right home.