1. Rent or Buy?
Learning Objective: To explore whether it is better to rent or get a mortgage.
I can understand what we mean by the terms renting and mortgages.
I can explore the advantages and disadvantages of renting and mortgages.
I can evaluate whether it is better to rent or buy.

2. Rent or Buy?
We should wait until we can afford to buy. Renting is chucking money down the drain.
We should rent because we will be able to move out now instead of waiting.
You will need to make a decision by the end of the lesson – do you think Gavin and Stacey should rent or buy?

3. But what is the difference?
Mortgages and Renting
In the Monopoly Board Game you can either rent the site or you can mortgage it..
But what is the difference?
Mortgage:
A mortgage is where you borrow money from a provider in order to buy a property. A mortgage is specifically tied to the house you're buying. You usually borrow a percentage of the value of that property repaying the amount you've borrowed plus interest charged by the mortgage lender. At the end of the term, usually 25 years, you will own the property.
The amount of money you can borrow will depend on your deposit and annual salary.
Renting:
This is where you live in a property but do not own it. Instead, you pay the owner of the property a monthly sum in order to live there. You will sign a rental agreement set over a period of time, e.g. 6 months or 1 year. This is where you will also agree how much notice you or the landlord have to give if you want to move out or they want you to leave.
Show and explain the differences between mortgages and renting. Then show the clip explaining further what a mortgage is.
– what is a mortgage?

4. Your Ideal Home
Imagine you are about to appear on the Channel 4 show ‘Location, Location, Location’. Kirsty and Phil would like to know the type of property you are interested in...
Think about the type of home you would like to live in. E.g.
Garden
Number of rooms
Size of rooms
Bathrooms
Kitchen
Street
Flat/House
- Trailer

5. Go onto the website ‘Rightmove’.
House Hunting
Go onto the website ‘Rightmove’.
Each group is going to be given a different budget. You need to find a property in the Hedge End area that fits your budget.
Buy
Rent
Group 1
£150,000
£1800 per month
Group 2
£170,000
£1500 per month
Group 3
£185,000
£1300 per month
Group 4
£200,000
£950 per month
Group 5
£250,000
£850 per month
Group 6
£320,000
£750 per month
Ask students to compare what they have found with their ideal home they have just thought about. Does it match? Did anything surprise them about this activity? What did they think about the properties they found? Was it easy to find a property in their budget?

6. Rent or Buy?
Learning Objective: To explore whether it is better to rent or get a mortgage.
I can understand what we mean by the terms renting and mortgages.
I can explore the advantages and disadvantages of renting and mortgages.
I can evaluate whether it is better to rent or buy.

7. Advantages and Disadvantages
Now that you understand what we mean by renting and mortgages, we are going to explore some of the advantages and disadvantages.
Draw this table in your books:
Advantages of Buying a Property
Disadvantages of Buying a Property

8. Advantages and Disadvantages
Decide whether the following statements should go in the advantages or disadvantages column:
Once you’ve paid off your mortgage, your home will be yours and you won’t have to worry about paying for somewhere to live
Sometimes it can be cheaper to buy than rent
If you stretch your budget when you buy you might not have money for meals out, holidays and entertainment
It’s a big commitment – you need to be sure you can afford what you’re taking on
You need to be sure you can afford maintenance costs like fixing a broken boiler or leaky roof
If your home increases in value, you could use the equity (its market value less the mortgage debt) to help buy a bigger home or fund a comfortable retirement
Students need to write these statements in their tables in either the advantages or disadvantages column. They can shorten the statements so it doesn’t take them too long!
Source:
You can spend money improving your home and increasing its value without having to ask a landlord
You have less flexibility than when renting. For example, selling up and moving is more expensive as you have estate agency and legal fees to pay
If you’re living with someone and split up, deciding what to do with the property can be complicated and expensive

9. Watch the documentary ‘Generation Rent’ made by Newsbeat for Radio 1.
Rising house prices mean young people are finding it more difficult to buy their own home and are either having to save at home with parents or renting. But this comes with it’s own challenges…
Show students the Generation Rent program to raise awareness of the difficulties young people face getting affordable housing. However, remind them that it isn’t all doom and gloom by looking through the BBC News article – how to own a home by 25.
- own your home by 25

10. Rent or Buy?
Learning Objective: To explore whether it is better to rent or get a mortgage.
I can understand what we mean by the terms renting and mortgages.
I can explore the advantages and disadvantages of renting and mortgages.
I can evaluate whether it is better to rent or buy.

11. This lesson you have now explored:
Decision Time
This lesson you have now explored:
What the difference is between renting and mortgages
The cost of buying and renting in Hedge End
The advantages and disadvantages of mortgages
The difficulties faced by young people moving out and ways to overcome this
So…
Remind students what we have covered this lesson. Then ask them to make their final decision and vote as to whether they think Gavin and Stacey should rent or save for a mortgage. If there is time ask students to share their reasons.
Should Gavin and Stacey rent or save for a mortgage?

12. Rent or Buy?
Learning Objective: To explore whether it is better to rent or get a mortgage.
I can understand what we mean by the terms renting and mortgages.
I can explore the advantages and disadvantages of renting and mortgages.
I can evaluate whether it is better to rent or buy.