If you are at that age and your parents are Homeowners, then the chances are they might encourage you to buy if you can afford it. On the other hand, were now in a society where more people rent now than in the past.
Here we will delve into the pros and cons of buying a home.
Over the years, the property market has fluctuated, although history suggests that even if you buy at the very peak of the market if you can afford to keep the property eventually prices tend to go back up.
The sensible idea is to discuss all possibilities with your Mortgage Advisor (and family) before being committed to the purchase; you might end up going through a rough time, which could result selling the house.
It’s always important to plan far ahead
That said, we are talking about a Home here not merely an investment and the most critical driver is finding a suitable one for you given all your circumstances.
Often mortgage payments will be cheaper than rent. Interest rates go up and down, which mean your mortgage payments can go up and down too.
If you are worried about that then you should take out a fixed-rate mortgage, so your payments remain the same for a set period.
On the other hand, rents either stay the same or go up – it’s unusual for a Landlord to reduce your rent.
Some people feel in a more stable situation when they own their own home for them and their family. As the homeowner, there is no way that you can be made to leave if you can afford the mortgage payments.
While you do have some protection as a tenant in terms of how much notice your landlord needs to provide to you. If they want the house back, the security is limited.
This could be a very stressful situation, especially if you have a family, with children in the local school and work nearby. In some cases when landlords come to sell their property, they will offer the first refusal to the tenant. This can save the landlord money on estate agency fees.
Renting can be more flexible than owning, nothing can stop you giving your Landlord notice to leave if you get a job offer in other areas, for example.
It’s challenging for a Homeowner. You will have to decide whether you want to rent out your home or sell it, which can be time consuming and expensive.
Consider the following if you aren’t planning on being around the area for the long term, is it worth buying. Buying somewhere needs to be viewed as a long-term investment.
As a tenant, your landlord should be responsible for any significant repairs. Some Letting Agents and Landlords are better than others when it comes to repairs, however, and even if you are renting, you might end up doing some minor maintenance of the property yourself.
It’s all down to the homeowner to ensure the property is in the best living condition of any mortgage taken out.
Contrary to what some people might say, owning your own home is not for everyone. If you are young and moving in with your partner for the first time, there’s nothing wrong with renting for a while. Things don’t always work out the way we plan, and it can be tough to get removed from a mortgage.
Buying a home is an enormous financial commitment, and everyone should consider all the options before diving in if you decide to rent though it may take you much longer to save up for a deposit.
Everyone is entitled to their opinion, and most people end up seeing more upsides to buying rather than renting.
Whether you are renting or paying a mortgage, you are making monthly payments to live somewhere, and most would rather see this go towards their benefit than someone else’s.
It’s sometimes just a case of getting your timing right and being in the correct financial position to be able to proceed.