According to the Home Owners Alliance, 86% of people in Britain want to own their home1. Yet thanks to rising property prices and the large deposits required to get on the housing ladder, for many people, home ownership is difficult to achieve.
If, however, you have your deposit and a mortgage in principle and are ready to begin your property search, how can you be sure that buying is the right choice for you?
Is buying right for me?
Buying your first property is an exciting time and has the potential to be a great investment that could pay dividends over the longer term. Owning a property also means it is yours to do as you wish and that you can keep pets – something many landlords do not allow.
If you are wondering whether buying a property, rather than renting, is right for you, read on…
- You are sure about where you want to live.
Jobs, relationships and other circumstances can see people having to relocate. If this reflects your situation, before you put down roots in terms of buying a property, be sure the new location is the right, and permanent, place for you. If you do not know the area it may be best to rent while you get to know it better.
- You view a property and can imagine yourself living in it.
This is often the biggest indicator that the property you are viewing is right for you. If you are imagining how the home will enhance your lifestyle, then it could be time to take the plunge!
- You begin to plan the changes you want to make.
We all like to make our mark on our homes. If you can see the potential of a property and find yourself daydreaming about wall colours and new carpets, then this could be the property for you. Be sure however, that you can afford to undertake the work that needs doing. Major projects can be a financial drain and take many months – which also means you need to be prepared to live among construction work.
To protect your finances, ensure you undertake a full survey on the property before you buy to ensure any structural defects or issues are identified and you are not left with any nasty surprises.
- You panic about someone else buying it.
The property market can move quickly, and it is not unusual for desirable properties to sell fast. If you have viewed a property and feel anxious about someone getting in ahead of you, it may be that you have found your future home.
While buying a property is usually a wise choice for most of us, there could be occasions when renting is simply the better option.
Is renting right for me?
The main criticism of renting is that you are paying off someone else’s mortgage while not actually working towards owning something of your own. However, renting can provide flexibility and can be a cheaper alternative to buying. Renting may be the right choice for you if…
- Your goals are short term.
If you are more concerned with the here and now, rather than your long-term investments, renting makes a good choice as it will give you the flexibility you need to be adaptable.
- You are in a new job/relationship.
If your employment situation is not as secure as you would like, or your relationship is a new one and it is too soon to move in together, but you may want to do so one day, it may be wise to put off buying a property until you are more established.
- You need to save money.
Without the costs associated with buying and owning a property, renting, particularly when bills are included within the rent, can be a great way to save cash.
- You can’t afford what you want.
If the type of property that you want is beyond your means, and what you can afford really doesn’t inspire you, it may be best to hold off on buying for now.
By holding off for a while longer you could grow your deposit and perhaps your salary; increasing the amount you can afford to borrow.
Clearly there are many pros and cons for both renting and buying a property, and the decision ultimately boils down to what is right for you and your circumstances.
If you are ready to take a step onto the property ladder, contact us, to find out how our team of experienced property experts can help you every step of the way.
Source: 1 https://hoa.org.uk/advice/guides-for-homeowners/i-am-buying/is-buying-right-for-me-2/