Hey TGL Family!
We hope you have ad an amazing week, and you have been loving the (limited) sunshine that we are getting. We know it is half term, so we hope you are having fun with your family and make the most of it and Happy Easter to anyone that celebrates it!
This week’s blog is going to be about should you buy or rent a home?
That’s a hard question to answer, it’s probably one of the biggest decisions you’ll ever make. For most people the decision will be influenced by what they can afford. In most areas of the UK, the average rent monthly is higher that mortgage payments, which makes buying a better future decision, however if you can afford the deposit. However, some places it the opposite if you find the right one.
Owning a property is a dream for many people, which they then turn into reality, also given that house prices are rising, and it is easy to see why.
The ups of buying:
- The monthly payments go towards buying your home, and it does not go to the landlord’s pocket, and when your mortgage period ends, you fully own your home, and you can basically live rent free.
- The property market is always rising, and your property can now benefit from it rising, especially if you decide to downsize later on.
- As you’re a homeowner you can have the freedom to do whatever you want to your property, decorate it, refurbish it and more so it can suit the dream house that you have always wanted. The money that you spend on the home improvements will be seen as an investment, which will increase the value of your property if you want to sell it.
The downs of buying:
- Buying involves a large initial financial outlay. You will need to have enough money for a deposit, stamp duty, legal costs, building insurance, and mortgage fees. You will also need to furnish the property.
- Failure to keep up with the monthly payments can result in you loosing you home.
- Mortgage rates have been at historically low levels for several years, but this won’t last forever. While you can protect yourself for a period with a fixed rate, you’ll need to be able to meet the higher monthly payments when rates change.
- You are also responsible for keeping on top of repairs and maintenance and acting swiftly if anything goes wrong. Unexpected emergencies, such as broken boilers or dry rot, can cost a great deal of money.
When you rent a home, people see it as you can’t afford to buy, which could be true, but that’s what you can afford so never let someone tell you otherwise, whatever you think is best, keep on doing you!
The ups of renting:
- It can be easier to move houses if you need to.
- You do not have to worry about falling property prices.
- Renting can be cheaper than mortgage payments, so it’s a win for you, and also you don’t have to go through the large deposit required.
- You may also find it easier to budget as rents tend to change les frequently than mortgage interest rates.
- You can also be able to afford a nicer property in a good area, if that is what you desire.
- You won’t have to worry about putting money aside for unexpected repair jobs and for maintenance.
- Finding a home to rent is quicker than house hunting for somewhere to buy.
The downs of renting:
- The money will go to your landlord, meaning that it will not be going towards the house, meaning that it will not be yours.
- People who never buy a home and are retired could feel less safe as they will be paying rent through their pensions.
- There is less security in renting. What is meant buy this is that the landlord can decide if he wants to sell the house, meaning that you would have to find another home. The landlord can also raise the rent, and if you are unable to meet it, the landlord has the right to give you a notice period to move out, however changes are afoot to remove landlords right to seek possession without a cause.
In short term, it is better to rent, however if you ant something in the long term then it is better to buy. If you decide to buy and the rent is significantly lower then you could consider renting it out, but if you have your eyes on owning the prize go for it, but think about if you can afford it, and everything else that comes along with it.
Things to consider when you are deciding:
- Do I have enough for a deposit?
- Do I have enough for the other costs of buying a house?
- Do I earn enough to afford a mortgage?
- How long will I stay in my next home?
When you are deciding, you can always contact us, so we can give you more advice with the questions that you have. We are always here for you to help with any journey in your life.
We hope you all have an amazing week and remember, do wat makes you happy!
Quote of the week:
“The only thing that will make you happy is being happy with who you are”
- Goldie Hawn