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Moving - to buy or rent?

 

Whichever route you take, the search for the right property is a time-consuming business and the chances are you will spend weeks, possibly months, looking at lots of unsuitable properties before you cross the threshold of your new home.  If youre working full-time, this means doing the rounds in the evenings or at weekends.  If you're relocating to a different part of the country, the job gets even more difficult, especially if you dont know the area you're moving to very well.  Even with the help of estate agents, property details or web-based search engines, the hassle factor can still go through the roof, and you could end up making a costly mistake.

For most doctors, time is short and if you would rather someone else did the leg work for you, you could use the services of a professional home finder.  This isnt some new hi-tech gizmo, its a real, living person with local knowledge who will scour the property pages and agents windows on your behalf and give you a hassle-free approach to finding a home or investment property.

In-depth knowledge of the local market, & negotiating the purchase price of a property for you are just two of the benefits of using a professional home finder.

You may also wish to consider help to start or expand a property portfolio; people purchase investment property for many reasons from providing for school fees, inflation-proofing their children for future home purchase or to act as a nest-egg for their old age.

Be aware of making costly mistakes when buying a property for investment purposes and consider getting professional advice from the start and talk to a buyers agent.  The ideal residential property investment is a combination of yield, 'rent-ability, 'sale-ability' and capital gain.  Its important to deliver these factors to provide you with the highest return, combined with the least risk.

 

To Rent?

Pros: Flexible term - leases are usually for a minimum of six months.  The Landlord is responsible for property maintenance.

Cons: Expending rent monthly without any financial benefit at the end of the lease term. There will always be a mild feeling of insecurity when renting, as there is always the chance that the landlord may terminate the contract.  Landlords will typically ask for a bond to insure themselves against damage to the property or in case the renter attempts to leave the premises without paying rent. This is usually refunded at the end of the rental agreement, after a post-rental inspection.

 

To purchase?

Pros:  Using your finances to invest in an asset which experience has shown will grow in value over time.  Building up equity: rather than the dead money argument of renting, by purchasing your own property and repaying a mortgage, you build up equity over time, in what can be considered a valuable investment. The property is likely to be your most valuable asset and, if necessary, can be sold or remortgaged at any time to realise capital for the homeowner.  If you need to move temporarily, there is nothing stopping you from letting your current house while you temporarily rent elsewhere. This is a particularly popular option with individuals that move overseas for a period of time.

Cons: Level of deposit needed against loan to value mortgage and the associated costs in purchasing, eg stamp duty, lender and solicitors fees.  On-going repairs & maintenance costs for the property.

 

Buy-to-let Investment?

Pros: Buy-to-let is a form of residential investment where you buy a property, usually with the aid of a mortgage, and rent it out to tenants.

A good managing agent can assist with all the legal obligations and ongoing management of the property.

Cons:  Requires on-going expenditure on property maintenance costs.  There is a risk of void periods where the property is not let.

 

Carole Stubbs, FRSA, Medics on the Move Limited

http://www.medicsonthemove.co.uk/

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