Why buying a house is a good idea
Since the bubble popped in 2008, prices have stabalised and houses are much more affordable to many. That said, there is a frequent debate as to whether or not you should buy a property. Personal circumstances often dictate what to do but as we step into summer, here are our five reasons for buying a house.
It’s a valuable asset
There’s a guaranteed roof over your head and, with a repayment mortgage, you are paying money each month to own it in the future. No dead money, one day you will own it outright. With fewer than 1 in 100 mortgages in arrears and less than 1,000 ending in repossession last year, it is also statistically a safer bet than in the last decade.
Potential for an increase in value
Property prices fluctuate, and don’t always increase but generally have done for the last few years. In North Yorkshire, sale prices between February 2015 and February 2016 rose by 5% on average (from £217,991 to £229,809). This is an 8% rise since 2014 and 12% since 2013.
If you own the property then it is yours to do with as you wish and you can do exactly what you want to it. From redecorating to home improvements, you are in charge of what happens (planning authorities aside). Whether you want to make your mark on it or just move in, it’s under your control. No agents or landlords to deal with.
Mortgages often cheaper than rent
A piece on the Telegraph from the turn of the year explained how “it is now cheaper to make monthly mortgage payments than pay rent in every region of Great Britain”. The average rent was £190 a month more expensive than a mortgage.
Lifetime renters waste money
For people under 30, renting costs almost half of their monthly wage on average. Figures show that lifetime renters will be giving around £300,000 to private landlords without ever owning anything.
Oftentimes, it is not within short-term interests to purchase a home or you might want to build up a bigger deposit to get the best mortgage deal. There are benefits to renting too: flexibility, less responsibility and no maintenance costs.
At Preston Baker, we believe that owning a home is a good idea but it is important to recognise your circumstances and know all the facts. Check out our latest properties and new homes for sale now.
Posted 2 years agoShare this article