When it comes to savings and avoiding extra expenses, people often get confused about whether they should buy a house or whether they should rent one, especially first time buyers in Middlesbrough. This is a very complex and complicated issue for many people. There are lots of people who consider renting a house as a total waste of money but then there are also people who consider it a wiser option.
If you are a young person and your parents are owners of a home, you will most likely be encouraged by them to save and buy a house of your own. But time changes everything and now, a lot more people rent houses as compared to the number of renters in the past. Today, we will take a look at all the pros and cons of buying a home so that you can make a wise decision.
Why should I buy?
There is one fact about the property market that you should know: you never know what cycle it is in. You never know whether it is going to crash or if it is going to boom in the near future. What’s really disappointing is when you purchase a property and the next thing you know, it has gone down a lot in value.
History does suggest that even if you buy a home when the market is at the top, it’s value could go down at some point. However, as long as you can afford to keep the property, you should be aware that its value will surely go up again sooner or later.
If you take a look at the sold values from the period of the Credit Crunch, you will see that it was one of the worst economic times that we have faced and yet less than just a decade later, the UK property values reached to a point that is an all time high!
You can also lose a lot of money if you are forced to sell your property at the wrong time which could be due to a reduction in the overall income or maybe even a relationship breakdown.
You must discuss all the possible outcomes with your Mortgage Advisor in Middlesbrough and also your family before you decide to make a purchase. This will make sure that you are well protected from things like being unable to work because of illness and other things. That being considered, we are talking about a home and not just an investment in property.
Will a mortgage be cheaper than Renting?
A lot of the times, the mortgage payments that you’ll be making will be a lot cheaper than rent payments. Interest rates always go up and down all the time which means that your mortgage payments will surely fluctuate as well. If you are worried about that fact, then what you should look at are fixed-rate mortgages so that your payments will always remain the same over your mortgage term. On the other hand, rents will either remain the same or they will go up. It is very unusual for your landlord to reduce your rent.
Security
Most people feel that owning their own home will create a very stable situation in many regards for them and their family. This is because nobody can ask you or force you to move from your house unless you want to yourself or you fail to meet your mortgage payments.
While you will surely have some protection as a tenant in terms of how much notice your landlord will have to give you, if they want their house back to themselves, sadly, there isn’t much that you can do in such a case. This is not very ideal, especially if you have a family and have your children in a local nearby school or if you work nearby.
Flexibility
Regarding flexibility, renting can be a lot more flexible than owning a home. For example, there is absolutely nothing to stop you from giving your landlord a notice to leave if you get another job in another area. This is not as easy if you are a homeowner though. You will have to decide whether or not if you want to sell your home or sell it out as a buy to let in Middlesbrough. The process of selling a home and then purchasing a new one is very complicated, difficult, and expensive and time-consuming.
If you are aware that you will not be living somewhere for a long period of time, you should surely think a lot about whether it is worth buying a home or not. Buying a home should mostly be considered as a long term investment for everyone.
Repairs
Being a tenant, your landlord is going to be responsible for all the repairs. Some of the letting agents and landlords are a lot better than others when it is a matter of repairs and even if you are renting, you will surely end up doing some of the minor maintenance of the property yourself.
If you are a homeowner then all of this will be on you along with insuring the property as well, which will surely be a condition of any of the mortgage that you take out.
As opposed to what many people might say, having your own home is not for everyone. If you are someone who is young and moving in with a partner of yours for the first time there is nothing wrong with renting for a while. Things will not always work out the way that we plan and it can be a very difficult to get removed from mortgage.
Buying a home is a very major financial commitment and all the people should consider each and every option before they dive into it. If you plan on renting, it will surely take you a longer time to save up enough for a deposit.
Consider the Following
In the end, a lot of people end up deciding that they prefer to buy a house as opposed to renting one. Whether you are going to rent or will be paying a mortgage, you will be making monthly payments to live somewhere and a lot of people would rather see this go towards their own benefit as opposed to someone else’s.
It is mostly just a situation of getting your timing right and also being in the correct financial state to be able to proceed with all this. For a free mortgage consultation and an accurate affordability measure, get in touch with your mortgage broker in Middlesbrough today.
Date Last Edited: January 20, 2023
