Recent studies from Santander have found that buying a property is now cheaper than renting across the UK. There are pros and cons to buying a property, just as there are to renting but as a general rule, buying is always a safe investment. However, buying a house is a big financial commitment so it’s important to get all the details right. Here is everything that you need to consider to decide if you should buy a property.
Review your current situation
Buying a home can be a great investment, especially if house prices in your area have been rising. But before buying a house, it’s important to consider how this purchase is going to affect your finances and your lifestyle. It makes sense to review all of the advantages and disadvantages of becoming a homeowner before making such a big commitment. Make sure to compare rental prices to mortgage repayments in the area where you’d like to invest to give you an idea of how much each option would cost you.
Can you afford buying a house?
Buying a property is a long-term commitment and can often work out cheaper than renting. But you need to evaluate your finances before taking the plunge: can you afford the monthly mortgage repayments? Do you have a deposit or a guarantor? Can you afford the stamp duty, and legal fees associated with the purchase? Once you’ve figured out all those details you should be able to have a clearer understanding of where you stand on the property ladder. Investing in a property is big financial decision but one of the best things about owning a home is that you can build equity. Instead of ‘throwing money away on rent’, you are actually putting it toward your home.
Work out your monthly costs
When renting a property, your monthly costs are generally fixed but when you decide to buy, your monthly repayments can vary overtime, depending on interest rates rises. It’s important that you keep those details in mind as a rise in your monthly repayments can have a serious impact on your budget allocation.
How long do you plan to stay in the area?
Whether renting or buying a property is the best option for you usually comes down to one crucial element: timing. Finding an affordable property and later making a profit on it depends on how long you plan to keep the house for. Getting out of a rental agreement is much easier than selling a property, so if you’re not sure where you’ll be in the next few years, renting instead of buying can save you a lot of time and energy.
Don’t forget maintenance costs
As a homeowner you’re responsible for anything that needs to be repaired in your property. If your boiler breaks down you can’t just call your landlord and have it fixed for free. You’ll have to hire a professional to make any repairs. You need to take into account all those additional costs when working out your monthly budget as they can significantly increase the monthly payments related to your property.
Are you thinking about buying or renting a property? Call 020 7078 0214 or email email@example.com today to speak to one of our expert property advisors.
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