There can be no doubt that 2020 and 2021 are going to stand out in UK property market history. With property prices expected to fluctuate as the coronavirus pandemic progresses, this could be a confusing time for anyone wondering whether or not it is a good idea to buy a house, particularly in London. Now more than ever, the answer to the question, ‘Is it better to rent or buy?’ can only be answered in conjunction with a detailed understanding of individual circumstances. This is particularly true when it comes to the financial investments required to rent or buy a luxury home.

A fluctuating property market

We are living through a time of great change. As home working and home educating continue, many of us are making adjustments to our ideas of what a luxury home needs to provide. If you are looking for a property that will suit your developing requirements but are unsure whether to buy or rent, we have explored some of the benefits of each below.

Renting vs buying

Before you make the decision whether to buy or rent a luxury property, it is important to understand exactly what you want from your luxury home. Try to look beyond the accommodation itself to your reasons for acquisition. Asking yourself these questions might help.

• How permanent are your current working and location arrangements?
• At this stage in your life do you want to put down roots or seek further adventure?
• Are you interested in creating something new or moving straight into your dream home?

Renting vs buying in London

Although many of the benefits of renting and buying in London match those across the rest of the UK, there are a few subtle differences you might want to consider. Because of the world-class amenities offered by our capital city, prices for luxury London properties are high. This means there might be less difference than you were expecting between the cost of monthly rent and mortgage repayments.

Another factor to consider when it comes to London property is the probable impact of the coronavirus pandemic. As more people seek a greener, work-from-home life, outside the capital, more exciting property is likely to become available, at more competitive prices. If you are looking for a first-time move into a luxury property, this could really work in your favour. It could also influence your decision when it comes to choosing between renting and buying.

Renting is not necessarily a waste of money

One of the most frequently asked questions around renting vs buying is, ‘Is renting a waste of money?’ The answer to this will depend on how you want the property to work for you, particularly when it comes to luxury property. It is true that any money you spend on rent will not be a direct investment but it is important to balance this with the costs of owning your own home. The obvious ones of these include maintenance, repairs, and sometimes even furniture but you should also consider the possible costs of being unable to re-sell a property when you decide it is time to move on.

The pros and cons of renting vs buying

As with all financial decisions, renting and buying both have advantages and disadvantages. Whether you are new to the luxury property market or looking for something different to suit your needs, moving into a luxury home is an exciting and important step. Even if you already have a set view in the rent or buy debate, it’s worth reading through our list below and reassuring yourself that you are making the right decision.

Renting a luxury property – the pros

• Opting to rent might help you live in a style you might not be able to afford if you were buying
• In an unpredictable world, renting can give you the flexibility to move on when you need to
• Renting allows you to enjoy your new luxury world without the frustrations of maintenance issues
• Renting is often cheaper than buying, and can be a great way to get your first luxury living experience

Renting a luxury property – the cons

• Renting your luxury home does not offer a guaranteed long-term stay
• In a fluctuating property market you may find your rent increasing more quickly than you expected
• No matter how fabulous your rented home, it won’t help you to build equity towards your next luxury move
• If pets are your thing, your choice of property will be limited should you choose to rent

Buying a luxury property – the pros

• The personal kudos of owning your own luxury home should not be underestimated
• Owning the freehold of a property gives you more decision-making power
• Owning a property gives you more opportunity to develop it over time to suit your changing needs
• Luxury London property still represents a great financial investment
• When you own your own property you can choose when and if it is time to move on
• If you want to become part of the local community, owning a property can help you demonstrate your long-term commitment to an area

Buying a luxury property – the cons

• When it comes to agility and moving on, owning the property you live in won’t offer you as much flexibility as renting
• If you are looking for an investment, buying a property might not necessarily provide the level of return you are seeking
• By buying instead of renting you also take on the work and expense of maintenance, improvements and repairs
• The upkeep and general running costs of luxury homes might be higher than you are expecting. For example, if you buy a leasehold property, you need to factor in service charge costs.

Talk to the local luxury property experts

Whatever your current thoughts on renting vs buying in London, our very best advice would be to seek guidance from a knowledgeable local specialist. Our team at Arlington Residential have a unique and detailed understanding of the luxury property market in Central and North West London. We offer a personalised service and our property portfolio includes some of the capital’s most desirable rental and purchase locations. Get in touch today for expert professional advice on luxury property sales and lettings.