For those who rent property on a short, medium or long-term basis there is every chance that someone will have questioned your motive and ask why you did not buy a property out right. It is very easy for people to look back over the years and question your decisions but the reality is there are many reasons why a growing number of people rent property rather than purchasing outright.
Finances
The bottom line is that many people are not able to commit themselves to the financial obligations which come with the acquisition of a property. At the time they began to rent property they may have been on a relatively small income and while this may have increased significantly in years to come, it is a very big burden to take on. Indeed many people in this particular situation will hold off acquiring their own property in the hope that the market contracts at some point – although the long-term trend has certainly been upwards for some time and it is difficult to see this changing in the foreseeable future.
Employment commitments
While the employment market in the UK in particular is perhaps not as mobile as many people had predicted some time ago there is no doubt that changing jobs and moving locations is for many people a relatively regular occurrence. Against this background it is difficult for some people to plant foundations in any one part of the country if there is a chance that they may have to move on a regular basis. This is perhaps one of the main reasons why more and more people now look to rent property, especially those without families.
Short-term contracts
The rental market in the UK is very competitive and therefore many companies will offer short-term rental contracts in the knowledge that there is every chance they can re-rent the property as and when a tenant decides to move on. For those who have itchy feet and are looking to travel in the future, whether with work or pleasure, this can be something of a godsend because they are not locked into a long-term potentially expensive agreement. It will be down to the individual to negotiate the best contract terms because some landlords can be a little difficult with regards to the return of your deposit.
Location, location, location
The vast majority of people who acquire a home will probably do so in the vicinity of close family and friends although this is not always the case. More and more people are now looking to sample different locations not only in the UK but also around the world. The opportunity to rent a property for a period which suits them ensures that you are not tied down to one location for the longer term and are able to spread their wings whenever they choose.
Try before you buy
As we touched on above, the purchase of a property will likely be the largest investment people make in their lifetime and they need to be sure. Therefore it will come as no surprise to learn that many people will rent a property prior to a potential acquisition to ensure the location is right, the price is right and perhaps above all they enjoy their new environment. It may well be that they look to acquire the property they are renting but the likelihood is this could be part of a buy to let portfolio and they will end up acquiring another property in the area. It is difficult to criticise the try before you buy strategy!