A lot of the time, we’re told that it’s best to buy a property rather than rent one. This seems to be the received wisdom, but have you ever really considered why this might be? There are actually a number of reasons why, if you can, you should buy and stop renting. It might not be easy, but it will be worth it once you finally hold your very own set of keys in your hand. Read on to find out what the advantages of owning your own property are so you can set the wheels in motion to make it happen.
Rent Costs More Than A Mortgage
Although it’s not always the case, the general figures show that a rent payment costs more than a mortgage payment. This will be because the landlord has to cover their own mortgage payment, and then they’ll need to add on additional money to cover repairs, maintenance, and to make a living themselves. This is a big reason why, if you can get away from the rented sector and become a homeowner, you’ll be much better off. This is even the case after you take into account the taxes, removals cost, and down payment needed to purchase a property.
If you add to this fact the knowledge that rents are rising, but salaries generally aren’t, you’ll see that buying a house actually makes a good deal of financial sense, even if it feels like an enormous financial burden.
Property Is An Investment
Buying a home is a good long-term investment, which is one of the main reasons to do so. Instead of just paying your landlord, each monthly payment you make goes toward paying off your mortgage loan, boosting the amount of equity you have in the property.
When you go to sell your house, it's likely that it will be worth more than when you bought it (and the longer you live in it and the better you take care of it, the more it will be worth), so you'll be able to make a profit. If you do, you could use this money to move up to a bigger house or move to a different area. If you had rented for the same amount of time, on the other hand, you wouldn't have anything to show for it.
You Can Make The Property Feel Like Your Home
Another good thing about having your own home is that you can do what you want with it. When you rent, you don't own the property, so you can't always change it the way you want to.
For example, if you care about the environment, you might want to make your home as energy-efficient as possible to lower your carbon footprint. This could also lower your utility bills, which is a nice bonus. If you bought the house, you could make any changes you wanted, like putting in double-paned windows or cavity insulation. If you rented, on the other hand, your landlord would likely have to pay for these changes. Given that it can cost several thousand pounds to put double glazing on a house, they might not want to do it.
When you own your home, you can feel like you have more control over it, which can make you feel more at ease and happy with it.
You Don’t Have To Move
Another great thing about owning your own home is that you don't have to worry about your landlord asking you to leave out of the blue.
When you buy a home, you have more security than when you rent, which can make you feel more at ease. Having the idea that you might have to move at any time can make it hard to get attached to a home. If your landlord wanted to end the lease, they might give you a few weeks' notice, but that's not much time to pack up all your stuff and find a new place to live. When you buy a home, you can feel more comfortable knowing that as long as you keep paying your mortgage, you won't have to worry about having to move quickly.
You’ll Have A Sense Of Stability
When you buy a home, you can feel very secure about your finances. Not only can you change your monthly payments if you want to, but you also have a clear goal to work towards. If you live in a house for a long time and pay your mortgage every month, you will eventually own it outright. During that time, if you were renting, you wouldn't have anything to show for it.
Also, if you own your home, you won't have to pay rent when you retire, which can help you keep more of your pension savings. If you want to feel more secure by buying your home instead of renting, you might want to talk to an expert. Working with a mortgage broker can help you find the right mortgage product for you, which can speed up and simplify the buying process. Don’t forget, there are special mortgages available for a range of different circumstances. If you’re a front line worker, for example, you can get information on a Hometown Heroes mortgage that could help you get on the property ladder even if you didn’t think you could.
Down Payments Don’t Have To Be A Problem
There are loan programs and government assistance programs that can help qualified home buyers buy a home with no down payment. Now, that doesn't always include closing costs, so keep that in mind. Different lenders offer different programs, and borrowers must meet certain criteria. But if you want to buy a home with no down payment, look into the options available, and you might be surprised at the choice.
This means that, whereas saving for a down payment is often the most difficult part of buying a property, especially when paying rent, you might be able to get past this obstacle more easily than you thought. In other words, don’t assume you can’t buy a property, especially when the reasons to do so are so good.
WRITTEN BYBrand Voices