Rent vs buy a house: Understand the costs
If you’re trying to decide whether to rent vs buy a home, then this handy comparison table will help you to understand the costs to make an informed decision.
If you’re trying to decide whether to rent or buy a home, then this handy comparison table will help you to understand the costs to make an informed decision.
Renting gives you a lot of flexibility. You can radically change your life plans at any moment – or at least with a month's notice – and you don't have to carry the costs of regular maintenance.
But buying your own home comes with attractive benefits. It gives you a greater sense of stability and security. It's an investment. And you're free to make all the improvements you want to create your dream home.
Going from tenant to homeowner is a big step. It's important to know all the additional costs involved before you work out your ideal price range for a property.
| Renting | Buying | |
|---|---|---|
| Up-front costs |
Your deposit covers any outstanding rent or damage to the property during your lease You get the deposit back when you move out, at your landlord’s discretion. |
Remember these costs are once-off payments in a long-term investment. |
| Monthly payments |
Your rent is subject to an increase every 12 months, usually between 8% and 10%. |
Your repayments are fixed, but you can reduce the interest with extra payments. |
| Extra costs |
Maintenance costs and building insurance are the landlord's responsibility. |
Maintenance may include garden, pool or security services. |