Most people you ask might say renting is a waste of money. However, not everyone has the equal opportunity to dive straight in and put their foot onto the property ladder. For some, it takes longer than others.
More people rent now than in the past. Here we will delve into the pros and cons of buying a home.
The property market is unpredictable and can be disappointing if you buy a property and it goes down in value. Thousands of UK Homeowners have been impacted over the years, but history suggests that even if you buy at the very peak of the market as long as you can upkeep the property, eventually prices tend to go back up.
There is certain evidence of this if you look at Sold values from the Credit Crunch timeframe. That was one of the worst economic periods of our time yet less than a decade later, UK property values had reached a new all-time high.
You could also lose money if you get forced to sell your home at the wrong time, for example, due to a relationship breakdown or reduction in your income.
Speaking to one of our Mortgage Advisors in Leicester before committing to purchase ensures you get protected from some of these things, i.e. Unable to work due to illness.
That said, we are talking about a Home, not merely an investment, and the most critical driver is finding a suitable one for you regardless of circumstances.
Often mortgage payments will be cheaper than rent. Interest rates go up and down which means your mortgage payments will also do this. If you are worried about that, then you should take out a fixed-rate mortgage in Leicester so that your payments remain the same for a set period.
On the other hand, rent payments can either stay the same or go up. It is very unusual for a Landlord to reduce your rent. Being in control of your living arrangements eases alot of uncertainty for most people. Therefore, some people have felt that owning their home creates a more stable environment for them and their family; if you can afford your mortgage payment, nobody can force you to move from your own house.
While you do have some protection as a tenant in terms of how much notice your Landlord needs to give you, if they want the house back, there’s not much you can do. This isn’t ideal at all if you have family or work nearby or you have children in a local school.
We have seen some cases where Landlords offer tenants ‘first refusal’ to buy the property if they are selling, so they can save on Estate Agents fees. The Flexibility Renting can be more flexible than owning.
There is nothing to stop you from giving your Landlord notice if you choose to move away – this isn’t as easy as a Homeowner. You will have to decide whether you want to rent out your home or sell it.
The process of selling a home and buying a new one is time-consuming and expensive. If you think you may not be around in an area for very long, you should consider whether it is worth buying.
Maintenances as a tenant means your Landlord should be responsible for any significant repairs. Some Letting Agents and Landlords are better than others when it comes to repairs. However, even if you are renting, you might end up doing some minor maintenance of the property yourself.
If you are a Homeowner, then all this is down to you, as is insuring the property.
In conclusion, contrary to what some people might say, owning your own home is not for everyone. If you are young and moving in with your partner for the first time, there’s nothing wrong with renting for a while.
Things don’t always work out the way we plan and it can be tough to get removed from a mortgage. Buying a home is an enormous financial commitment and everyone should consider all the options before diving in if you decide to rent. Although it may take you much longer to save up for a deposit.
Ultimately, most people end up deciding they would prefer to buy rather than rent. Whether you are renting or paying a mortgage, you are still making monthly payments to live somewhere and most would rather see this go towards their benefit than someone else’s. It is sometimes just a case of getting your timing right and being in the correct financial position to be able to proceed.
If you are looking to purchase a property as a first time buyer in Leicester, we are more than happy to help and offer trusted Mortgage Advice in Leicester suited to your individual needs.
Date last edited 28/05/2020