Renting can be seen by many as being unworthy of your time. If you are younger and your parents have had their own mortgages in the past, then it is likely they will encourage you to become a First Time Buyer in Hull. Nowadays though, we see more people renting than ever before. In this post we will take a look at the pros and cons of buying and renting.
We never truly know if a sudden boom or plummet is going to occur, due to the market constantly changing. If you buy a property and it suddenly goes down in value, you can understandably be disappointed. Over the years we have seen this happen many times, though history has shown that even when this happens, the value may eventually start to rise again. This is on the assumption you’re still financially able to keep the property.
Looking back at sold values during the Credit Crunch, it was one of the worst economic era’s in our lifetime. Surprisingly though, less than 10 years later we had a full, booming market and property values are at an all-time high! If you unfortunately have to sell your home at the wrong time, you may be in a position where you lose money. This can be due to such things as a relationship breakdown or reduction in your personal monthly income.
Before committing to a home, it is worth getting in touch with an experienced First Time Buyer Mortgage Broker in Hull as we will be able to look at how to protect you from circumstances that may affect you and your mortgage, such as unexpected illness. That being said, this is not just an investment, this is your home. The most important thing here is finding something that fits you and your circumstances.
For the most part your mortgage payments will be cheaper than monthly rental payments. This may not always be the case, but it is more likely. Interest rates have been known to fluctuate which mean your mortgage payments vary depending on the month.
Most people however opt for a fixed rate mortgage as a means of counteracting this. Fixed Rate Mortgages will keep payments the same amount for the chosen length of your term, providing stability for both yourself and the lender. In regard to renting, your payments will either stay the same or become more costly, as it is not often you will see a Landlord lowering rent.
Owning a home creates a sense of stability for some people and their families. On the basis you can afford your mortgage payments, this means nobody can remove you from your home if you still wish to live there, something that doesn’t quite work out for tenants.
Whilst you do have some protection as a renter, if the landlord wants their property back, there isn’t a lot you can do. Sometimes you may find the landlord will give you first refusal (ability to buy the property before it goes to market) as a means of avoiding the stress of advertising with an estate agent.
In some cases, renting is more flexible than being a homeowner. An example of this would be if you found a job in a new area, there is nothing stopping you from handing in notice and moving somewhere else. Although it would be nice, it doesn’t quite work the same way for homeowners. You need to figure out whether you want to sell the property or rent it out. Either process can be expensive and time consuming.
If you are the sort to move frequently or are not sure how long you will be around the area, buying may not be the route appropriate for you to take. Home buying requires long term stability and can be seen as more of an investment.
A landlord is responsible for any repairs needed on the property they are renting out. Some landlords are better than others, however, so be prepared to fix some minor repairs yourself if you’re renting. Homeowners are completely responsible for their own repairs and usually the conditions of a mortgage will require the property to be insured so that the lender doesn’t lose out if something happens.
Despite it being the more popular option, owning your own home isn’t right for everyone. If you are a young couple, there’s no shame in renting together to see how living together could work. Things might not always work out how we would like them to and removing someone from a mortgage can be difficult and stressful.
Home buying is a rather large commitment and definitely something to carefully think about before choosing, however if you are renting a property you may find saving up a deposit a bit harder. In the end, most people decide to buy over renting, though this isn’t the same for every person. Most would rather do something for themselves, as opposed to giving someone else money to live in a house. Timing is key, so always make sure you’re in a solid place financially before you decide to buy a home.