In today’s real estate market, a growing number of tenants are making the jump from rental to owned properties. There are several benefits associated with renting before buying. Continue reading to find out why you should consider renting before taking your first step onto the property ladder.
To familiarise yourself with a new area
Purchasing a home is one of life’s greatest investments. It is also one of the largest commitments you will ever make. Before you submit an offer, you must be confident you will enjoy living in a particular area. Renting beforehand is a great way to familiarise yourself with a neighbourhood and decide whether or not you would be happy living there on a long-term basis. Whether you are relocating for work or are making the move from the city to the suburbs, the only way to get a feel for a place is to live there for a prolonged period of time. If you decide you no longer wish to live there, a short-term lease is much easier to manage than a property sale. A cyberjaya house for rent, for example, can help you choose between stay ingput or making a permanent move. If you are stuck between a few locations, a series of short-term lets can help you make an informed decision.
To try before you buy
Purchasing a home is a big commitment. Trying before you buy can help you confirm you do in fact want to take the plunge and submit an offer. Whether you are a first-time buyer or not, renting a property similar to the type you wish to purchase can help you weigh up and pros and cons and reach a final decision. During your lease, you may realise a ground floor apartment is noisier than you anticipated or that a balcony does not suffice and you require more outdoor space. Renting beforehand can prevent you from making costly and time-consuming mistakes you will regret down the line. You may even fall in love with your rental property and find yourself asking your landlord whether or not he will consider selling it to you. When it comes to buying a home, it pays to be prepared.
To save for a deposit
Monthly rent payments, on average,tend to be less than monthly mortgage payments. As a result, renting can provide you with a greater opportunity to save a bigger deposit. If you rent, your landlord will also take care of the financial cost of maintenance and repairs so you can free up cash to save towards your dream property. It can take a number of years to accumulate enough savings for a mortgage deposit. Renting can help you to cut costs so you can concentrate on saving for a deposit and taking the first step onto the property ladder.
To familiarise yourself with housing costs
While your landlord will usually take care of any costs associated with regular or unexpected maintenance and upkeep, you are responsible for paying rent, bills, and taxes. Letting agents can charge you for rent, utility bills, a tenancy deposit, key replacement, late rent payments, council tax, and any changes to or early termination of your tenancy.These payments can help you familiarise yourself with a number of housing costs associated with purchasing your own home. You will be responsible for paying for a deposit, monthly mortgage repayments, valuation, property survey, conveyancing, removals, land registry, stamp duty, as well as household bills. If you are familiar with the monthly costs required to rent a property, you are less likely to become overwhelmed or be left out of pocket when it comes to the costs involved in taking your first step onto the property ladder.
To find the perfect property
When it comes to selling and buying, sometimes the timelines just don’t align. This is a common problem amongst homeowners. For example, you may have found the perfect property after selling your current home, but your offer was rejected. Similarly, you may be desperate to vacate your current property and are comfortable renting until you find your forever home. There are a number of scenarios suited to renting before buying.
If this is the case, it may benefit you to rent a property with a short-term lease to accommodate any sudden changes to your plans. Some sellers also look for buyers that can move in quickly. If you can opt-out of your lease at any time, you may be given priority over buyers who are still waiting on their current home to sell.
Whether you are a first-time buyer or a seasoned pro, purchasing a property can be stressful. By renting before you buy, you can familiarise yourself with a new area, try before you buy, save for a deposit, familiarise yourself with housing costs, and find the perfect property for you and your family.