Renting vs buying property
Why rent when you can buy was a familiar slogan years ago when it was cheaper to buy than rent however things changed in 2007 when mortgage lending dried up and since then the number of people renting has steadily increased year on year. Many first time buyers stick with renting as they believe that the costs to buy a property will be too high and out of their reach, which may not be the case. My advice to first time buyers is not to stretch yourself financially and instead purchase a property within your budget, even if the property is smaller than what you would have first wanted you are still on the property ladder and paying off your own mortgage and not someone else’s.
Subject to your income you would need a 10% deposit to secure a 90% mortgage however with a 15% deposit this will get you a much better interest rate and make the purchase more affordable, there is a growing trend of parents and grandparents assisting their children with either all or some of the deposit on the basis that this could potentially be repaid to the parent when property values have risen from the increased equity. Other options are to purchase a property through a housing association on a shared equity or ownership basis which would reduce down the amount of deposit required although the housing association will benefit from any increase in the price of your property. The first step for anyone thinking about entering the property market is to gets some free advice as to the costs involved, this is done by an adviser completing a fact find/ cost of buying analysis which gives you detailed information on buying costs and mortgage payments.
Contact Buzz Homes,104 High Street, Worle BS22 6HD. Tel 01934 519111
This entry was posted in Somerset
. Bookmark the permalink