Shared Ownership or Renting - which should you choose?

Are you stuck deciding whether to rent a property or to buy one with shared ownership? Here are some of the key things you should consider before making your decision on a shared ownership apartment.

Getting on the housing ladder can sometimes feel impossible, however there are many ways in which aspiring homebuyers can buy a property without the hassle of saving a huge deposit. One such way is Shared Ownership.

What is Shared Ownership?

Shared Ownership allows you to pay a mortgage on a share of your home, while renting the part that you don’t own. The purchaser then has an option to increase their share during their time within the property.

Here are some of the key things you should consider before making your decision on a shared ownership apartment:

Choose Shared Ownership if..

1. You want a more affordable way to own a home
   One of the biggest hurdles to home ownership is the hefty price you must pay for a mortgage. Opting for Shared Ownership homes makes this problem disappear. This is because you only have to pay a mortgage on part of your home, resulting in a much smaller first deposit. Get your shared ownership calculator out and you might discover that the monthly cost of Shared Ownership repayments is less than the cost of rent.
2. You want to take your first steps towards home ownership
   Shared Ownership doesn’t mean you are stuck owning a share of your home forever. In fact, if you come into a bit of extra money, you can buy even more shares in your property through ‘staircasing’. Shared Ownership staircasing is a big advantage over renting, as well as leading you towards full home ownership, owning more shares means that you get to pay less in rent!
3. You want to enjoy the benefits of a new home
   There’s nothing quite like owning a brand-new home that you can put your own personal mark on. With Shared Ownership, you get matched with shared ownership developments that you can personalise and decorate as you please - feel free to let your inner interior designer run wild! With a Square Roots apartment, you can also enjoy the benefit of modern fixtures and appliances, meaning that you won’t have to shell out your cash on repairs.

Choose renting if…

1. You’re not ready to put down a deposit
   Many home buyers decide to rent a home before they take on the responsibility of home ownership. Think of renting as a trial run of what living in your own home is like, without the obligation to sign a long-term contract and pay a big deposit. Because renting involves short-term leases, you can also easily move home if you decide your property or area isn’t for you!
2. You’re not ready for the added costs of home ownership
   Owning your own home is a big financial responsibility that not everyone is ready for. Not only do you need to buy furniture and equipment for your new home - you also need to take responsibility for paying for any fixes or repairs. As a tenant, you can pass off all these boring housekeeping tasks to your landlord (just make sure you get a reliable one!)

At Square Roots, you can enjoy the best of both worlds, whether you want to buy a Shared Ownership home, or rent an affordable home at 80% of the market rate! Check out our latest new build London departments here.