Thinking about your next move?

Whether you’re considering buying your first home or renting for the next few years, there are advantages to both. The right choice depends on your finances, lifestyle and future plans.

BUYING A HOME?

Why buy?

• Build equity – Your mortgage payments can help you build ownership in your property over time.
• Long-term investment – If the property increases in value, you may benefit when you eventually sell.
• More freedom – You can usually decorate, renovate and make changes to your home without needing a landlord’s permission.
• Stability – Owning your home can provide greater long-term security.
• Potentially predictable payments – Depending on your mortgage, your monthly payments may be fixed for a set period.

Things to consider

Buying requires a deposit and there are additional costs such as legal fees, surveys, mortgage costs and Land Transaction Tax (LTT) in Wales. You are also responsible for repairs and ongoing maintenance.

RENTING A HOME?

Why rent?

• More flexibility – Renting can be ideal if you may move for work, study or personal reasons.
• Lower upfront costs – You generally don't need to save for a large mortgage deposit.
• Maintenance is usually the landlord's responsibility – Depending on the issue and the terms of your contract.
• Try before you buy – Renting can give you the opportunity to experience different areas and property types before committing to a purchase.
• Ideal for short- to medium-term plans – Particularly if you're unsure where you want to settle long term.

Things to consider

Renting doesn't give you ownership of the property, and rent payments don't build equity in the same way mortgage payments can. Your rent may also increase over time, subject to the terms of your occupation contract and Welsh legislation.

WHAT ABOUT COST?

There isn't a simple answer to whether buying or renting is cheaper.

When buying, remember to budget for your deposit, mortgage, legal fees, surveys, LTT, insurance, repairs and maintenance.

When renting, consider your rent, deposit, utilities, council tax and other household costs.

In Wales, the main residential Land Transaction Tax rate is currently 0% on purchases up to £225,000, with higher rates applying above this threshold.

SO, WHICH IS BETTER?

Buying may suit you if:
You have a deposit, stable finances and plan to stay in the area for several years.

Renting may suit you if:
You want flexibility, aren't ready for a mortgage or aren't sure where you'll be living long term.

THERE'S NO ONE-SIZE-FITS-ALL ANSWER.

The best option is the one that works for your circumstances, finances and plans for the future.