However, if you are considering the benefits and drawbacks of either buying your own home or continuing to rent long term, these may be some of the considerations you are thinking about:
• Cost of rent vs cost of mortgage – Santander Bank suggests that people who rent property and never buy, may pay almost £300,000 to private landlords throughout their lifetime, but this in itself is not a reason to buy. You should consider the affordability of buying a property against renting one and think about whether the value of your property is likely to fall. If this does happen, you could owe more to your mortgage company than your property is worth. On the plus side however, once you have paid your mortgage off, the property is yours. With a bit of luck, hopefully it will be worth more than you paid for it.
• All the Extras – when you buy a property it isn’t just the cost of the property, but all the other costs, which you may not factor in. You will need to consider:
o Your deposit
o Solicitor costs and search fees
o Cost of the survey
o Any stamp duty (payable for properties over £125,000)
o Removal costs
o All bills and any ongoing repairs to the house, such as replacing a boiler when it breaks or repairing a leaky roof, all of which are paid for by your landlord if you are renting.
• Being tied down – you have much less flexibility if you own your home than if you are renting. You may want to relocate because of your job, and it may prove difficult to sell your house quickly, especially in certain areas of the country where the market is not as strong as it is in the South East. Owning a property jointly with a partner adds complications if your relationship breaks down.
Whether you decide that renting or buying is the way forward for you, you should weigh up your options carefully before making this important decision.
If you have any property questions, please call Sarah Gratton or Jo Ayrton in our Warminster office on 01985 214444, or Sandra Smith in Westbury on 01373 865577 or email email@example.com and we will be delighted to help you (there is no charge for initial telephone discussions).