Belvoir Hull compare Renting Vs Buying
SHOULD YOU BUY A HOME? Pro’s and Con’s
Pro’s:
- The repayments go towards owning your own home and not in a landlords pocket.
- You own your own home at the end of the mortgage and live rent free.
- If house prices rise you can actually make a profit.
- You can live by your own rules for example if you have always wanted a pet you can finally do just that.
- You can make changes to the property and actually make it feel like home by decorating, Landscaping the garden etc.
- Renovations can increase the value of the property.
- Buying can actually be cheaper than renting.
Con’s:
- Upfront costs i.e Mortgage Fees and Stamp Duty can make it pricier than renting a property.
- If you are getting a joint mortgage if you seperate it can become very complicated when it comes to selling the property.
- Interest Rates can rise which means your mortgage repayments will also rise unless you opt for a (Fixed Mortgage).
- Any repairs will be your responsibility and can be very costly especially the unexpected leaks.
- If you decide you would like to move to a different area it can take a long time to sell a property.
- If you get into financial difficulty and can not keep up repayments your home can be repossessed.
SHOULD YOU RENT? PRO’S AND CON’S
Pros:
- If you needed to move this can be done quicker.
- Finding and renting a home is quicker then selling a property.
- If the property’s price goes down you are not losing money.
- Any repairs are at the Landlords cost.
- Rental payments usually do not change that often so making it easier to budget.
- If you need a bigger house due to a growing family you may not be able to afford to buy a bigger house.
Con’s
- All payments made go to the Landlord not toward owning your own home.
- If you don’t buy your own home you are tied into paying rent for the rest of your life even once you retire.
- If your Landlord decides to sell you have to find a new home.
- Your landlord can restrict what you can do within the property.
- You have to pay a deposit.
- You can spend money improving the property and only the Landlord gets the benefit of this.
WHICH IS CHEAPER?
In the short term it is cheaper to rent because:
- The rent you pay may be lower than the mortgage repayments.
- The deposit on a rental property will be less than the initial costs of buying a property.
HOW TO DECIDE?
Think about your personal circumstances and your financial situation, ask yourself these questions.
Do you have enough deposit? You need to save a deposit for most mortgages its shown as a percentage of the property value usually at least 5% for example:
If the property value is £200,000 you would need £10,000 plus you will need extra money for other costs of buying your home.
Do you earn enough to afford a mortgage? You can only get a mortgage if your income is enough too:
Afford your repayments and still have enough money for living expenses and anything else you may need.
Will you be living alone or with a partner? If you are going to be living with a partner or someone else you may be able to get a joint mortgage.
If you are unsure if you can get a mortgage or unsure how to go about it get a free initial consultant with a morgage broker. Here at Belvoir we work with Mortgage Advise Bureau :
- Whole of market independent advise
- Free initial consultation
- Flexible home visits
- Search over 11000 products from 90 Banks
- One of the UK’s largest brokers
- Exclusive mortgage products
- They complete all the paperwork
- They will help negotiate on purchase price
- Guide you through the full purchase process
If you are considering getting a mortgage and would like a free consultation with Tony our mortgage Advisor call Belvoir Hull today on 01482 322300 and we will be happy to arrange this for you.
