One of the largest future expenses will be housing, whether you choose to rent or buy a home and repay a mortgage.

Advantages of Renting:

  • Renting offers flexibility, as rental contracts can be canceled (within reason).
  • It can be an excellent option for couples or friends who want to live together without committing to a property purchase.
  • For those on a tighter budget, renting—especially when sharing a flat—may be significantly cheaper than buying.
  • Additionally, the landlord is responsible for repairs, and tenants have legal rights protecting them against unfair eviction or rent hikes.

Disadvantages of Renting:

  • Renters have less control over decisions made by the landlord, and all rent payments go to someone else rather than building equity.
  • Renters are also typically restricted in making interior alterations and may need to research landlords (for example, through rating sites) to ensure a good match.

Advantages of Buying:

  • Buying a home can allow you to build capital over time, as property values often appreciate.
  • Homeowners have the freedom to decorate and modify their space without restrictions and do not have to deal with unpredictable rent increases.
  • Additionally, homeownership is often associated with a positive sense of well-being.

Disadvantages of Buying:

  • Purchasing a property usually requires a mortgage—a bank loan repaid over 20 to 30 years.
  • Failure to make mortgage payments can lead to repossession.
  • Buying and selling property is expensive, there’s no guarantee the property’s value will increase, and the owner is responsible for all repair and maintenance costs.

Social Housing:

  • Social housing is an alternative to renting from a private landlord.
  • Typically provided by a local council or housing association, social housing offers properties at affordable rates. However, waiting lists can be long, and options for location and property type may be limited based on availability and priority.