The Top reasons to buy your own home
To buy or not to buy is a big decision since it involves such large sums of money. It may seem like too much money to find, but mortgages are becoming more flexible and affordable through the necessity to keep the housing market going.3
The government is keen for citizens to own their own homes, as the housing market generates tax income in various forms, as well as helping the economy by creating jobs. There is a list of upfront costs involved in buying a home, but it is worthwhile doing some research and comparing things such as conveyancing quotes to find the most affordable option. Comparing conveyancing quotes will also help you to work out what the going rate is for these services and ensure you do not overpay. The government has introduced schemes to encourage people to buy rather than rent, such as shared ownership, help to buy, and the more recent stamp duty holiday. However, should you buy just because the government encourages you to? What are the main benefits of owning your own home rather than renting?
Make it your own.
A huge benefit of owning over renting is that the house is yours and you can decorate it to your tastes. If you want to paint your living room pink, for example, you don’t have to ask anyone’s permission to do so. Of course, if you want to make larger changes, such as adding a conservatory or converting the loft space, you may need to seek permission from the local authority. However, if these are reasonable changes and not anything which will annoy your neighbours or create an eyesore, you should find the local authority are happy to approve your request.
Investing in your future.
Although rent and mortgage payments are often quite similar, rent can be considered ‘dead’ money, meaning that you rent a house for five years and have nothing to show for it at the end, apart from that you have lived somewhere for five years. However, five years of mortgage payments, assuming you take a repayment mortgage and not an interest only, and you will have paid off some of the amount you borrowed, and you will have some equity in your home. This will allow you to make a profit, so long as house prices haven’t dropped, which you can put towards moving to a larger home as your circumstances change. According to USwitch buying usually offers better value than renting in the long run. It is also worth considering that if you have a family, owning your home gives you something to leave for future generations.
Whilst owning a home can be seen as an inflexible way of living since it is more difficult to move, for some, the stability of knowing you can live where you are for as long as you wish may appeal. For others who like or need to move home frequently, renting is likely to be a better option.