Is Mortgage Better than Rental?

Many people love the idea of owning their own home but others prefer to rent. It is worth considering which might suit you best in your own personal situation. Understanding a bit more about the pros and cons of each might help you to make up your mind.

Advantages of owning a property

If you own your property then you will have a place that you can do what you wish with. It means that you will be free to make changes to it, not just to how it is decorated but extend it, change the layout and things like this. This freedom can mean that you will be able to be a lot more creative. You also have the advantage of not paying rent. Although you will have to pay for a mortgage and insurance, you will not have to always pay mortgage payments. After up to thirty years you will have finished paying for your apartment or house and you will no longer have to worry about rent. This can be particularly advantageous as you go into retirement and have a lower income. You also have the security of knowing that you can never be evicted unless you do not keep up with mortgage payments.

Disadvantages of owning a property

If you own a property you are responsible for keeping it in good repair. If there is damage to the property or it needs modernising, then it will be your responsibility to organise for it to be repaired and paid for. This can be costly and if you delay getting work done, there could be more damage and it could be more expensive in the future. You can have insurance which will cover some of these costs, but it may not cover all costs.


If you tend to move between areas regularly then you could find that owning a property can be a problem. Rather than just handing in your notice and then finding a new place to rent, you will have to wait for your home to sell and then look for another one to buy and pay for all of the various things that go alongside buying a new home. This can make things pretty complicated.

Advantages of renting a property

If you rent a property you will not have to stay there that long if you do not like it. You will be able to hand in your notice and move out, sometimes within a few months. If you want to move to a different area or a new home, you will need to do the same. This means that if your income changes and you need to downsize or can afford something dearer, you need to relocate for work or something like this, then it will be fairly quick and convenient to be able to do this.


It might be cheaper to rent rather than own your own property as any work that needs doing will need to be organised by your landlord. It could mean that it will take longer to get fixed but at least you will not have to pay for it.


Although you will need a deposit before moving in it will be significantly less than the deposit required for getting a mortgage. This means that if you are not good at saving or find that you cannot save much, then this will mean that you still have an option.

Disadvantages of renting a property


When you rent a property there is a chance that your landlord could give you sudden notice to move out. This could happen if you struggle with the rent or if they want to sell the property. This can be extremely stressful and disruptive and if it happens to you a lot then you could feel unsettled. If you have children then they may need to change school if you are forced to move to an area which is too far away from the school that they are currently at.


There is also the risk that the rent may be put up at any time. This could mean that you will end up paying significantly more rent and find that it is too expensive for you to be able to manage.

So, as you can see there are advantages and disadvantages of both renting and owning a property. This means that you will need to think about what is important to you and therefore this should help you to think about whether you feel that renting or owning is best for you. If you are happy to settle down then owning a property could be better for you as long as you can put together the significant deposit required and are happy to cover the costs of any repairs required. It could work out very much cheaper in the long run compared with renting as once the mortgage is paid off you will have significantly less to pay for.

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