In the perception of many, renting can be seen as a waste of time. If you are younger and your parents have had mortgages of their own in the past, then it is likely they will encourage you to take that leap and become a First-Time Buyer in Hull. Nowadays though, we see more people renting than they ever used to. In this post we will take a look at the pros and cons of buying versus renting.
We never truly know if a sudden market boom or drastic plummet is going to occur, due to the ever-changing nature of the market. If you buy a property and it suddenly goes down in value, your disappointment will be understandable. Over the years we have seen this happen often, though history has shown that even when this happens, the value may eventually start to rise again, as it once did. This is all based 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 the property market was booming and property values were on the up! If you unfortunately have to sell your home at the wrong time, you may be in a position where you lose out on a lot of money. This can be due to such things as a relationship breakdown or reduction in your personal monthly income, requiring a need for a cash injection via a home sale.
Before committing to buying 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 mortgage protection insurance for you from circumstances that may affect you and your mortgage, such as unexpected illness or even death. That being said, this is not just an investment, this is your home, where you will be creating a life for yourself. The most important thing here is finding something that is appropriate for you and your circumstances.
Generally, your mortgage payments will be cheaper than monthly rental payments. This may not always be the case, but it is more likely to be the case. Interest-rates have been known to go up and down on a whim, which mean your mortgage payments vary depending on the month.
Most people tend to choose a fixed-rate mortgage as a means of counteracting this. Fixed-Rate Mortgages will keep payments consistent for the chosen length of your term, providing a sense of 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 opting to lower the rent.
Owning a home creates a true sense of stability for some people and their families. On the basis you can afford your mortgage payments, this means that so long as you still wish to live there, nobody can forcibly make you leave the property, something that doesn’t quite work out for private tenants.
Whilst you do have some protection as a renter, if the landlord wants their property back, you’re kind of stuck in what 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 and costs of advertising with an estate agent.
In some cases, renting is a more flexible choice 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 to that new area in order to pursue that career. Although it would be nice, it doesn’t quite work the same way for homeowners, as you will then need to figure out whether you want to sell your home or rent it out. Either process can be expensive and time consuming.
If you are the sort who likes to move often 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 in both money and time.
A landlord is responsible for any repairs needed on the property they are renting out to you. Some landlords are better than others, however, so be prepared to fix some minor repairs yourself if you’re renting and encounter anything that needs doing. 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 in the event of something happening to it.
Despite it being the more popular option, owning your own home isn’t the right choice for everyone. If you are a young couple, there’s no shame in renting together to see how living together could work out for you in the future. Things might not always work out how we would like them to and removing someone from a mortgage can an awkward and difficult process.
Home buying is a rather large commitment and definitely not something to do out of the blue. It requires careful planning. That being said, if you are renting a property you may find saving up a deposit a bit difficult. In the end, most people decide to buy over renting, though this isn’t the same for every person out there. Most would rather do something for themselves, as opposed to giving someone else money to live in a house that they don’t have control over. Timing is key, so always make sure you’re in a solid place financially before you decide to buy a home.