Renting vs buying, and where Proptee fits in.
For years there has been a stigma surrounding renting a house. It's usually seen as the only option if you can't afford to buy one. People think of it as a short-term thing, whilst they save up for a deposit.
Whilst ownership of a property may be good, it shouldn't be the only option. There are numerous advantages and disadvantages of renting and buying a property.
Will Proptee be able to change things? Yes! I also talk about how Proptee will give you the advantages of buying a property, without the drawbacks.
Renting
Renting a house doesn't necessarily mean you’re throwing money away. Depending on your situation it may be better to rent than to buy. It depends on what stage you’re at in your life.
Benefits
- Location & size - You're able to rent homes that that may be out of your budget to buy.
- Short-term commitment & flexibility - Tenancies can be as little as 3-6 months.
- No maintenance - Most maintenance costs are your landlord's responsibility (unless they have a good inventory report).
- No mortgage/legal fees and stamp duty - It's easier, quicker and cheaper to rent a property than to buy one.
Drawbacks
- Rent can change - Your landlord can decide to increase your rent when renewing your tenancy.
- Making your landlord richer - Money is going into your landlord's pocket rather than towards owning the property, like a mortgage.
- Upfront Costs & losing deposit - You're expected to pay a deposit and your first month's rent before moving in and can be difficult getting your full deposit back.
- Forced to move - You may have to move property if your landlord decides to sell it.
Buying
We would ALL love to own the house we live in. Not just because it's a good feeling to be independent, but it's typically also a good investment.
So let's see what are the real benefits.
Benefits
- Homeowner - Once you have paid off the mortgage you own the property.
- Rental income - If the property is being rented you will get monthly income from tenants.
- Investment- If property prices increase you will benefit when you sell.
- Interior decoration - You can design the property however you like, no permission required.
Drawbacks
- Expensive - You'll have to pay a deposit, mortgage, legal fees and maybe even stamp duty.
- Repairs - You are responsible for all repairs. This can get expensive with many unexpected bills.
- Time-to-buy & sell - As we mention in Issue #5, it's a long process to buy or sell a property.
- Commitment - You need to make sure you can afford to pay for the property and the extra fees, or repossession is a risk.
Proptee
Proptee wants to give you the advantage of investing in a property, without the disadvantages. We simplify how you buy, how long it takes and reduce how much you pay.
Benefits
- NO maintenance - You don't have to worry about any unexpected costs. That's the responsibility of Proptee.
- NO deposit/mortgage - We don't ask you for 6 months of payslips or need you to pay a large sum of money.
- Buy and sell anytime - No commitment is required. You can buy and sell whenever it suits you.
- Cheap - You will be able to invest as little as a Spotify subscription in all the properties.
- Rental Income - You get paid rent every month if your property is rented.
- Investment - If property prices go up you can benefit when you sell.
Drawbacks
- Risk - There is always a risk with investing, nothing is 100% guaranteed.
- Proptee is not out RIGHT NOW - The private beta will be launching very soon. Make sure you are on the waiting list to get early access.
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