Why buying a property could be your smartest move -
There’s no doubt that buying a property sounds a bit daunting and a big responsibility. For some, buying a property seems like a distant dream and a big commitment you may not be prepared for right now.
Whatever stage of your life, buying a property could, in fact, be your smartest move to date, offering a range of advantages compared to renting.
Taking the next step could be life changing: no more inventory checks or living by the landlord’s rules. Buying a house means you can make your own rules, decorate how you wish and even allows you to have a pet!
How do I decide whether to buy a home?
A good place to start is to think about how long you have lived somewhere, and whether you’re happy living there. There’s no point in jumping into buying a property if you haven’t quite worked out if you really like the area you live in. Would you call where you live, a home?
If you’re still unsure, renting is a great way for you to spend time getting to know an area. Take your time and review your circumstances just in case the opportunity to buy is looking more likely.
If you answered, yes, that’s fantastic! Now is the perfect time to start looking to buy a property, so start weighing up your options.
How much does it cost to buy a property?
You’ll need to save a deposit to put towards the value of the property – this is the amount of the property you will own initially.
A larger deposit will increase your chances of getting a better mortgage rate. However, you could save a deposit as low as 5% of the property value, bearing in mind you’ll need to factor in other costs such as solicitor fees, house survey and moving costs.
Owning a property does come with responsibility, so be aware of your finances and the extra costs involved buying a home. Make sure you can keep up with the mortgage payments and the cost of living for a long period of time.
What are the benefits of owning a property?
Buying a house is a good investment, especially if you have saved a larger deposit and got a low interest rate on your mortgage – buying a house could be cheaper than renting in the long-term.
You’ll have peace of mind that every penny you contribute is towards something you own, investing your own money in monthly contributions to pay off your mortgage rather than paying off your landlord’s.
If you’re sick of living with furniture that isn’t yours and you aren’t allowed to decorate, owning a house means it’s time to get creative! Finally, you can paint, replace the carpets, knock down walls, or put up new ones up to transform your new house into the dream home you’ve always wanted.
Furnishing your home is like adding the icing on the cake and is a great time to invest in furniture to your liking – it’s time to go shopping!
Is buying a house a good investment?
Updating your home and investing in redecorating can positively impact the value of your property. If the time comes to sell, you may find the value has gone up, meaning you’ll gain from the capital growth in the difference of price your house is valued to sell, compared to when you first bought it. If this is the case, it’s a good way to start looking at becoming a property developer.
Investing in your first home also offers you the opportunity for your property to become a buy-to-let, should you ever wish to move on from your home without having to sell. Always check with your mortgage provider before going ahead, as they’ll need grant consent to let if this is for a maximum of 12 months – if any longer, you’ll need a buy-to-let mortgage.
If the costs of a buy-to-let work in your favour, it could bring in an additional amount of income. You can find more information on what is buy-to-let here.
If buying a property sounds like a smart move for you and you’re interested in some free (& no obligation) advice, please call into our office to discuss the sales process and ask any questions.
The team at Matthew’s are happy to help – just pop in or get in touch on 01244 346226.
We look forward to hearing from you soon!