Whether you are moving into rented accommodation or into a property that you have just bought for yourself, you can be sure that the removals process will involve many of the same activities and financial considerations. You will need to work out how you will afford your rent or mortgage payments, how much you can spend on your utilities and other bills, and how you will manage the actual packing and removals process. However, there will be some significant differences between buying and renting, including in the financial impact.
Although renting might seem like the more affordable option, a report recently released by Halifax suggests that buying a home could actually be cheaper in some cases. According to the report, the typical first time buyer might actually be able to cut their expenditure by nearly £110 a month by becoming a homeowner. The cost of buying a three-bedroom family home could be substantially cheaper than renting a similar property, even when utilities bills and other monthly living expenses are taken into account.
However, while the current situation seems to be making it cheaper to buy than to rent, this is not always the case. In some parts of the country, renting may still be the more affordable option, and in the past, it has sometimes been cheaper to be a tenant. Five years ago, for example, buying cost on average £37 more every month than renting. The current shift in favour of the homeowner has come about due to a rise in rents and a drop in the interest being charged on mortgages, and it could change again in the future.
It is also important to remember that while some of the other moving costs, such as hiring a removals van, will be the same whether you are planning to buy or rent, there will be some additional financial considerations when becoming a homeowner. It will be necessary to pay extra fees and stamp duty, and to come up with a substantial deposit, so buying a property may not always be the best option for your finances.