The decision to buy or rent is a personal one, regardless of finances and interest rates. There are upsides to both. But which is best for you, your situation and your lifestyle?
Though the majority of rental properties do require a deposit (usually a month's rent with a month paid in advance), it is nowhere near on the scale needed to buy a home with a mortgage. However, aside from the usual household bills, maintenance of the property or building are covered by the landlord, as is the replacement of any appliances when you rent.
It's also a more flexible option. The average rental contract is six months, with the choice of continuing on a month-by-month basis. Not only does that mean that you are not tied to one home or one area for a long period of time, once the original contract is up, you can make a snap decision with just one month's notice. This can be especially useful if you are setting up home with friends or at the beginning of a relationship.
The most obvious benefit of buying a house is clear - it's yours. Once you own a property, you can decorate, extend or alter it (depending on planning permission) as you see fit, put your own stamp on your home. Furthermore, any improvements you do make are likely to add value.
The value is another area where buying can be beneficial. Should the property market improve and prices start rising, you could easily make money when you sell.
What's right for you?
What decision you make as to whether you rent or buy will depend largely on your personal circumstances. Right now, it appears to make good financial sense to buy because of the low interest rates, but while the monthly mortgage payments on a three-bedroom house are lower or similar to the rental costs, the price of the deposit might still prove prohibitive.
If you are struggling to make a choice, do plenty of research in your chosen area, and check both rental and buying costs of similar properties.
Excerpts – AOL.money