Buy A Property : Key Advantages

Capital Growth: If you rent a property for 25 years, you will end up with nothing. If you buy the property on a 25-year mortgage, at the end of the mortgage term you will own it outright. The opportunity to achieve a capital gain in this way is, for many home owners, the single most important factor behind their decision to buy their own property. Over time, the mortgage balance decreases and equity builds, even if the value of the home does not increase

Tax Advantages : The tax advantages of purchasing a house, outweigh the tax advantages of renting.

Remodel / Redecorate : Owning a house gives you the ability to remodel and redecorate the home to match your needs and desires.

Buy A Property : Key Disadvantages

Initial Outlay : Generally a larger initial investment is required - the downpayment

Equity may go up, down, or remain stable.

Inflexibility : If you wish to move, the house generally must be sold.

Maintenance : Work needs to be done by you--or paid for by you

Costs of Buying / Selling : The costs associated with buying and reselling a property usually mean that if you expect to stay in the property for less than two years it would generally be cheaper to rent than to buy.

Renting a Property: Key Advantages

Staying Flexible: The most important advantage of rented property is its flexibility. Most tenancies are of six or 12 months duration. At the end of this period you can walk away without any further cost or obligation. If your future plans are uncertain, you may find that renting a property is a much better bet.

Moving Fast: It is usually possible to move into a rented property within a few days of seeing it. Buying a property usually takes three to four months. If you are in a hurry to move, a rented property might be a useful stopgap.

Convenience: Repairs and maintenance are usually the responsibility of the landlord. This could be important if you work very long hours or don't have the inclination to undertake or supervise repairs. It also makes it easier to plan your budget accurately.

For more information on buying a property on your own download our property guide