Is it better to rent or buy a property when moving overseas? There are reasons both for and against each option and your choice will ultimately depend on your personal circumstances, future plans and the country you are relocating to.
To help you make your decision, Britannia has put together these pros and cons, which will hopefully help you decide on the best option:
Renting Pros
- Renting is certainly the better choice if you are not sure that you want to stay in your new country or if you are planning to relocate soon
- Renting gives you more overall flexibility and freedom to move whenever you want to. You can sign a flexible contract, and if you decide to travel or move to a new city, you won't have any property commitments
- If you are moving to a country or a city for the first time, renting initially gives you the chance to get to know your new city better, explore the property market and thus eventually to make a more informed decision when buying
- When renting, you won't have to worry about maintenance costs, property taxes or any unexpected expenses
Renting Cons
- You might feel less settled down and less at home initially if you are only renting a property
- Many claim that renting is like throwing away money. This is true to a certain extent, as your money is essentially paying off your landlord's mortgage, and not yours.
- You cannot completely redecorate or alter the property as you don't own it
- You may have to pay fees and deposits upfront, and you might find it hard to get your deposit back, at the end of your tenancy. This extra financial burden can certainly make things more difficult, especially when you've just moved to a new country
Buying Pros
- If you buy your own home, you may feel more settled down and established from the very beginning, which is pivotal when moving to a new country
- Your monthly housing costs are going toward the repayment of your mortgage
- You might feel it's important to have a foot on the property ladder and to be a homeowner
- The property is yours, so you can redecorate it any way you'd like to
- A property might also prove to be a good investment for the future. Even if you have to relocate, you can always rent it out or sell it.
Buying Cons
- A property can be a very expensive asset in many countries, and can mean a significant financial burden, especially when relocating
- If you don't know your new country and city very well, you might not be able to choose the most suitable location
- As you are the owner, you are solely responsible for maintenance costs, property taxes and insuring your property
- If you decide to relocate, it might be harder to move if you already own a property as opposed to renting one
- If you don't have an understanding of your new country's property market, you might not be able to find the best deals
After all, whether renting or buying is the better choice will depend on a number of factors. Whatever you decide, however, it is important to get to know as much about your new country's property market, average property prices and rents, as possible. It's also a good idea to make a trip to your new country before you move to be able to explore your new environment better.