Is Renting Property the Savior in these bleak times?

contractThe economic situation in recent times has been very difficult for everyone with words such as credit crunch being used. One of the biggest areas affected has been the housing market with sales figures declining, making buying a house a difficult process as prices are rising. So could renting a property in somewhere like Cambridge be your best bet.

It is the done thing to get a mortgage and own your own house in the UK. People like to have a piece of land and a property that they can call their own, but in many European countries buying a property is seen as unusual and renting is the main way people find a place to live. So we have compiled some of the reasons renting can be better than buying a property.

1. It can be cheaper

In an Abbey National annual survey conducted in 2007, it was found that levels of renters are catching up with people buying. In cost terms some areas such as Wales and the North West, renting works out better value for money. More results from this survey can be found here.

2. Not tied down.

In this day an age, peoples circumstances often change whether it is changing jobs or starting a family. Renting a property is a much more flexible system for people who would like to upgrade or downgrade as they wish. Owning a property is a lot of commitment and can be much harder to sell if your circumstances change.

3. No need for loans.

Purchasing a property will mean taking out a loan or a mortgage which can be very stressful. The thought of owing the bank a lot of money will scare a lot of people, so renting is a lot less daunting.

4. Save on other costs

There are plenty of extra costs that come with buying a property, these include solicitors fees, inspections and stamp duties which can add up to around £3000. If the sale falls through, that money will be lost and you will have to pay out the same on the next property you try and purchase. This website will give you an idea on costs of buying property.

5. Allows you more freedom of choice

If you like to change your surroundings often and like different experiences, then renting a property will allow you to move around the country and live in anything from flats, detached houses to bungalows. Companies like Martin&Co offer property letting in Cambridge and many other areas around the country.

How the Credit Crunch aids the Sell and Rent back market

The unfortunate effects of personal debt and an increase in interest rates has seen a large number of people needing help from a rising number of companies that will allow you toSell your Property and Rent Back . These companies will agree a sale price with the homeowner to enable them to pay off debts, existing mortgage or for other financial needs.

Once the house is bought the cash for property companies will rent the property back to the ex owner at a fair market rate. If you work with the right company some will even allow you to repurchase your home again when you have the funds to do so.

Because of the speed of the transaction (sometimes a deal can be struck in a week!) and the imminent crash of the property market most home owners are getting approximately 75% of the market value for their home. Despite this loss it appears that most customers are happy with the transaction as they will be getting the money that they need and will probably be selling their home for not much less than they would get in today’s market. Another benefit is that neighbours or even family can be kept out of the loop in case you wish to conduct your business privately.