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Should I Rent, or Buy a Home Now?

23-January-2020
23-January-2020 14:21
in General
by Admin

To be honest, this is a question that has no right or wrong answer. No one can tell you for certain whether you would be better off renting or buying a property right now.

There can be a lot of benefits to both renting or buying a home. A lot of this will depend on your individual circumstances and how stable your finances will be going into the future.

The first thing you should do is to weigh up the positives and negatives of each option before deciding how you want to move forward.

The potential positives of buying now

If you are in a position to buy a home, check to see if house prices have been steadily rising in the area where you want to buy. If prices have been rising, then buying a property now may mean that you can secure a home now that you may not be able to afford in a few years.

Will this place be a short-term home? If you don't plan on staying here for very long you could make yourself a decent profit when you come to sell because of the rising property prices. This can mean you putting a larger deposit on your next home and securing a lower mortgage.

The potential negatives of buying now

With there being uncertainty over Brexit, many potential property buyers are hesitent because they want to see what the market will be like after Brexit has happened.

Some financial experts have predicted that if the UK leaves the EU without a deal, then this could lead to a drop in house prices.

This could mean that if you decide to buy now you could end up in negative equity. However, if you believe that your life would be more stable and secure by buying a home now, and you can afford the mortgage repayments, then there is little reason why you shouldn't buy, especially if you find a home that you can fall in love with!

The long-term thinking

Most financial experts predict that despite what will happen over Brexit, house prices are more likely to stabilise and then continue to rise over the years to come. This means that you should buy a new home when you can afford it rather than continue renting in uncertainty.

The best way to find out if you can afford to buy a new home is to look at your finances and work out how much you can comfortably afford to borrow for a mortgage.

Your ability to afford to buy will depend on: 

  • How much you can borrow for a mortgage
  • How much you can put down on a deposit
  • Can you cover buying fees and expenses
  • Affording your monthly repayments

You can use free online tools such as a mortgage affordability calculator to work out how much you could afford to borrow and work out your monthly repayments.

You could also book an appointment with a mortgage advisor to look over your finances and discuss your options. They will be able to advise you about any help to buy schemes you may qualify for and the type of mortgage to take out that would most suit your needs.

Still not sure? Please do get in touch with our expert team here.