First time buyers, couples or young families often consider buying a new property a no-brainer, as long as they can come up with the capital for a deposit. But since the economic crash, house prices have fallen and, although rising, are unpredictable. Nobody can really afford to buy a property with the chance of it decreasing in value but who wants to flush their money away on rent when they could be making an investment.
Many people overlook the benefits of renting; maintenance and upkeep is not your responsibility in any way, contracts are usually around 12 months so after that you can up roots and move on if you wish. There are certain legislations in place to protect you and you have no chance of falling into negative equity.
Unless you find some sort of try-before-you-buy offer, rent is dead money; you pay it and never see it again. Many people over-budget themselves and pay so much in rent that they cannot afford to save for a deposit to actually buy a house. You may get a landlord or agency that is reluctant to spend any money on maintenance and need constant chasing; you should make sure you have a decent landlord who is registered and will put your deposit in the right place as stated by law.
Should you find yourself with the spare cash for a deposit, paying for a mortgage will be paying money into something that should ultimately hold its value if not increase your investment allowing you to purchase a more expensive property. You can avoid any of the problems associated with a landlord and can ultimately do whatever you want in your own pad, your house, your rules.
Buying a property doesn’t just involve the price of the house itself, there are plenty of other costs involved such as setting up a mortgage; solicitor’s fees, surveyors etc, this greatly increases if the property requires any work. Choosing a mortgage is difficult as you will need to find the right one for you, interest rates can vary and some banks and lenders offer more than others. You will be responsible for the property both aesthetically and legally.
Fundamentally, it comes down to two things; do you have the equity to buy a property? And are you willing to take a risk with an investment? If you do then shop away but if not, consider saving money for that deposit.
Many looking for a house rent Wirral often look for Wirral houses rather than flats or property shares which could help save money in the long run.
