Majority of the people in the UK are keen on living in their own homes. However, there are still a lot of who think that renting is better – especially in given times of their lives. Before making that decision to buy a home, you still have to think carefully if it’s actually a wise decision for you.
Will I be able to buy a home at this time?
If you’re single and you’re not earning enough to cover the expenses, like most people still are, perhaps renting will be a better choice. But even if you believe you’ve got a good credit standing and enough savings to fund your purchase of an ideal home, you may still want to think it over.
What’s in buying and owning a home for you?
1. Buying a home makes you feel free and secure.
- This means that no one will be able to make you do things against your will.
- You can modify the look of your home anytime you want, as you want.
- You can renovate at any given time if you wish to.
There are no landlords to deal with all the time. No one to keep reminding you that you’re not allowed to bring your dog within the property.
- No one can force you to move out within such short notice.
2. Buying a home saves you a lot of money
- If you happen to put in a big deposit upon purchasing your home, and the interest rates drop, home ownership can really be cheaper.
- If you’re on a Fixed Rate Mortgage, you are in control of how much you spend on your payments.
- However, there are still other expenses that await you when you buy a home for yourself and/or your family.
3. It’s a good source of income.
- At present, the property market is booming. This means, your property’s value may increase at any given time. For a lot of people, most if their income comes from the increasing value of their home.
- Instead of paying rent to your landlord, which they use for their own mortgage, your monthly payments go to your own property.
- If you need to live somewhere else for some time, you can rent your property out.
- It could also be a good source of money when you get older. Upon retirement, you can sell it off, buy a more modest property, and use the rest of the sale proceeds.
What challenges await you when buying a home for yourself?
1. It’s a commitment, and a really big one.
- For a lot of people, buying a home can be the biggest financial commitment they have ever done.
- Mortgages can be a pain in your backside. Something that you cannot run away from at your whim.
- The expenses that await you are massive. There’s the staggering amount of money for the purchase alone, plus the other costs and fees, including your cost of living and maintenance of the house itself.
- If you are not ready, and your job’s not secure enough, you may be looking at a disaster in the end.
- If you don’t have enough savings, and the property market takes a downfall for a certain period, you may not be able to sustain your cost of living. Plus, there’s no chance you’ll be able to sell your property for a favourable price.
- Also, when house prices fall, your property’s value can become less that your actual mortgage. It is likely to be very hard for you to sell or move without declaring bankruptcy.
2. Everything is your responsibility.
- There will be no landlord anymore to call and ask to have the boiler fixed.
- You’ll have to foot the bill for the maintenance or repair work – and it may cost you thousands of pounds.
3. You cannot just decide to move somewhere else.
- If you wish to live elsewhere, you can rent out your money, which requires you to have someone manage it for you if you can’t do it.
- And if you decide to sell, it’s going to take weeks, or even months, to get everything sorted. Something that you have to be prepared to do.
So, if you are unsure of yourself, and you think you are not prepared to face what is ahead of buying a home for yourself, perhaps it is not something for you to commit to just yet.