Why Rent when you can buy?
29th November 2019
Getting on to the first rung of the property ladder can feel like a real leap; however, there are lots of common myths and misconceptions when it comes to buying your new home. Taking that first step could be easier and a lot nearer than you think.
Long Term Security
When compared to home-ownership, renting can offer more flexibility with the ability to move at short notice, however often the tenant is not really in control of this relationship. If you’re privately renting your landlord could legally serve an eviction notice, meaning you have to move, often within two-months, even if you’ve done nothing wrong. If you own your own home, then you are in charge of these decisions. You can have the security and confidence to put down roots in your local community, taking control of your long-term decisions and future plans.
On average, renting costs more than home-ownership in the long run. The monthly rent amount will almost always be more than the minimum monthly mortgage repayment for the same property. Many mortgage products also offer flexibility, like increasing the maximum monthly contribution to pay off your mortgage sooner, which reduces the amount you pay overall. Some mortgages even offer voluntary repayment holidays, so if you need to take some time-out from paying contributions you can. The real financial benefit of buying is that by paying a mortgage, you’re investing in your own property, not your landlord’s. Once your mortgage is paid, your house is a significant asset that can offer you financial security and flexibility.
Feel at Home
When you own your home, you can do what you like with it! From choosing how you furnish and decorate to planning home-improvements or if you have green-fingers nurturing your blossoming new garden. You can mould the property to suit your needs and your preferred style. With the ability to develop a house to your exact specification, you can create a place to return after a busy day to relax, unwind and truly feel at home.
Routes to Buying
Most people we talk to say the main challenge of buying a new home is saving enough for a deposit. When you start exploring the property market, this can feel like a huge barrier. Most traditional mortgages require a 10% deposit, so for a home costing £275,000, you’d need to have at least £27,500 in the bank; however, there are lots of buying options that can bring down the up-front cost significantly, especially if you’re buying a new-build home.
With the government’s Help to Buy scheme you only need a 5% deposit, just 13,750 for that home costing £275,000, you take out a 75% mortgage, and the government provides a 20% loan which is interest-free for five years. There are also part-buy schemes available, such as Heylo’s Home Reach where you purchase part of your home and pay a low monthly rent on the remaining portion. This gives you the advantage of the security that comes with home-ownership without so much of the upfront cost.
Are you interested in taking your first steps on the property ladder, why not get in contact with us today to discuss the options available in more detail?