Colchester is the oldest town in Essex, thus making it rich in history. However, it also doesn’t fall short of modern amenities, so you will get the best of both worlds. If you plan to live in this town, you can either buy a property or rent one. There are many houses for sale in Colchester, as well as those that are available for rent. These two options have their pros and cons, and we listed some of them below to help you decide.
Advantages of buying a property
- It increases in value. Your home will increase in value over time. If you decide to sell it in the future, it is a good investment because you will not lose on it.
- You are free to make upgrades. Since it’s your own home, you can do whatever you want with it. Whether you want to change the paint, create a partition, or do a major makeover, you have the freedom to do so.
- Monthly payments are fixed. The monthly fee for the mortgage will be fixed, at least for a set amount of years, if you choose a fixed mortgage. It will be easier to manage your finances with this because you will know how much you will be paying every month for a certain number of years.
- It becomes yours. Whether it is paid outright or you pay it through a mortgage, the property will be under your name.
- It will improve your credit score. As long as you pay your mortgage on time, it will help build your credit score. It will give you better chances of being approved for other loans in the future.
Disadvantages of buying a property
- Higher upfront cost. There are several costs that you will incur in buying a property. One of them is the down payment. It is a certain percentage that you need to pay of the total cost of the home. It can be anywhere from 5% and up. Aside from that, you also need to pay for other fees, such as closing fees, agent fees, and legal fees.
- You will shoulder the repair and maintenance cost. The cost of the maintenance and repair will also come out of your pocket.
- You can’t easily move from one place to another. Since it’s your house, it will not be easy to leave it and move to another place. You need to decide if you will sell or lease it.
Advantages of renting a property
- You can move to another place anytime. If you need to move because of work or whatever reason you have, you can do that easily, and anytime if renting.
- Lower upfront cost. The rental fee is also lower. You don’t have to worry about having to pay a high upfront cost.
- Repair and maintenance are shouldered by the landlord. There is also no need to worry about the house repairs and maintenance because the landlord or property owner will pay for it.
Disadvantages of renting a property
- It will never be yours. You will be paying every month for a property that will never be yours.
- The monthly rate can increase. The landlord may decide to increase the monthly rent anytime.
- You have limited control over upgrades. You cannot make changes without the consent of the landlord.
Weigh up the pros and cons of buying a property versus renting one. Either way, you will enjoy living in the town of Colchester.