Is Buying Better Than Renting?
First-time Buyer Mortgage Advice in Hull – Mortgage Advice in Hull
Some people don’t see renting a house as the best route to go down. If you are younger and your parents are homeowners, they will most likely to try to persuade you to buy rather than rent if you can afford it. These days, you often find many more people prefer to rent over buying. Let’s take a more in-depth look at the advantages and disadvantages of buying a home.
Why Should I Buy?
The property market tends to go up and down, and it’s hard to tell what is around the corner. Your property could go down in value after your purchase, however, over the years, due to the market always changing, your property price could rise back up again. If you look at the sold values from the period of the credit crunch, then compare them to a decade later where the prices climbed up to an all-time high.
You may lose some money if you are forced to sell your home due to a separation with a partner or a reduction in your income You might want to discuss all viable options with your mortgage advisor and your family before committing to a purchase. This way, you can ensure that you are well protected from things like separation or illnesses that do not allow you to work, leaving you in a much better and safer position further down the line.
Buying a home is not a simple investment, everything must be best suited to your individual needs and you must consider all possible outcomes, so you are prepared and ready for any change.
Will a Mortgage be Cheaper Than Renting
We often find that mortgage payments are cheaper than renting. Although, interest rates do bounce up and down all the time meaning that your mortgage payments do too. If you are worried about this, then you should consider taking out a fixed-rate mortgage, so your payments remain the same for a set period of time. On the other hand, renting can either stay the same or go up, it is unusual for a Landlord to reduce your rent.
Some people feel that owning their home creates a more stable situation for them and their family. Nobody can force you to move from your own house if you don’t want to (assuming you can afford your mortgage payments).
As a tenant, you do get some protection in terms of how much notice your landlord needs to give you but if they want the house back there’s not much you can do. This is not ideal, especially if you have family, work or children in a local school.
Sometimes landlords give their tenants the first refusal to buy the property if they are selling it so they can save on estate agents fees.
Renting can give you more flexibility than owning a property. As a tenant you also have the right to give your landlord notice to leave anytime, this could be down to a job change in a new area, etc. This is harder to do as a homeowner as you have to decide to sell your home or rent it out. The process of selling a home and buying a new one can be expensive and time-consuming, so reaching out to an expert mortgage advisor could come in handy.
Buying a home requires you to be planning to stay within that area for a very long time, so you think about your future plans too.
As a tenant, your landlord should be responsible for any major repairs. Some letting agents and landlords are better than others when it comes to repairs however and even if you are renting you might end up doing some minor maintenance of the property yourself.
When you own a house, you are responsible for the repairs, as you are when insuring the property which will be a condition of any mortgage you take out.
Owning a house is not for everyone, you might be a First Time Buyer looking to move in with a partner, in this case renting may be an easier short-term option.
Before diving into the world of mortgages, think about your long-term plans as it is a huge financial commitment. Things don’t always end up as you planned them and it can be hard to get removed from a mortgage. If you do decide to rent though it may take you much longer to save up for a deposit.
Ultimately, in the end, most people decide that they would prefer to buy a property over renting one. Whether you are renting or paying a mortgage you are making monthly payments to live somewhere, and most would rather see this go towards their own benefit than someone else’s. It’s sometimes just a case of getting your timing right and being in the right financial position to be able to proceed.