First time buyers Is buying always better than renting?
First time buyers. Renting or Buying?
First time buyers Is buying always better than renting? – We often have First Time buyers considering their first move onto the property ladder as they ponder whether to buy a home or continue renting. According to a recent survey by Halifax, 372,000 First Time Buyers got onto the property ladder in 2018. This equates to a huge 50% of all house purchases with a mortgage. You would have to go way back to 1995 for a time when First Time Buyers accounted for a larger share of the market. So the question for First time buyers Is buying always better than renting, lets look at a few points to consider.
First Time buyers, Stepping on to the property ladder
Whilst Home Movers are often in two minds whether to move or not (e.g. “I like my neighbours, but I’d like an extra bedroom), most potential First Time Buyers if you ask them simply, would like to get on the property ladder one day. As such, they are often undeterred by external factors such as ongoing political events. Whilst the housing market does suffer peaks and troughs, this hardly ever stops people want to get onto the property ladder. Buying a home is a long-term investment, over time house prices can fluctuate and whilst it on occasions house prices can drop value, history suggests that when that does occur the prices go back up in the long run.
Buying a home. Is it always better than renting?
Not necessarily. We will often encourage young people to rent when they first move out of home, especially if they are a couple. Whilst paying rent obviously makes it harder to save for a deposit, renting first allows you to get used to living together, managing finances, paying bills etc. It is a good idea to get used to living in your own home and getting used to what it actually means and to see that you can live with each other! Getting out of a mortgage can be difficult and sometimes expensive so you have to be as certain as you can be that things are going to work out ok.
Small deposit mortgages
95% mortgages are more readily available now than for several years so if you are more than halfway there to having the 5% deposit available it’s worth trying to get a ‘Mortgage Agreement in Principle’ in place to check that you will be eligible for a mortgage when the time comes.
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