Such a debatable topic some say renting your home is a waste of money. However, not everyone has an equal chance to become First Time Buyers in Birmingham straight away; for some, it takes longer than others. Lots more people rent now than in earlier times. Here we will explore the advantages and disadvantages of purchasing a house in Birmingham.
The property market is unpredictable. It is not very pleasant if you buy a property, and it goes down in value. Thousands of UK Homeowners got impacted over the years, but history suggests that even if you buy at the very peak of the market as long as you can afford to keep the property, eventually prices tend to go back up.
As shown, evidence of this looks at Sold values from the period of the Credit Crunch. That was one of the worst economic periods of our time, yet less than a decade later, UK property values had reached a new all-time high. You could also lose money if you get forced to sell your home at the wrong time, for example, due to a relationship breakdown or reduction in your income.
Speaking to one of our Mortgage Advisors in Birmingham before committing to purchase, you can ensure you get protected from some of these things, i.e., Unable to work due to illness. That said, we are talking about a Home here, not merely an investment, and the most critical driver is finding a suitable one for you, given all your circumstances.
Often mortgage payments will be cheaper than rent. Interest rates go up and down, which means your mortgage payments can go up and down too. If you are worried about that, then you should take out a fixed-rate mortgage in Birmingham, so your prices remain the same for a set period. On the other hand, rents either stay the same or go up. It is very unusual for a Landlord to reduce your rent.
Some people have felt that owning their home creates a more stable situation for them and their family; if you can afford your mortgage payment, nobody can force you to move from your own house. Furthermore, when your term does come to an end, instead of moving to another property you can look at getting a Remortgage in Birmingham.
While you do have some protection as a tenant in terms of how much notice your landlord needs to give you, there’s not much you can do if they want the house back. It is not ideal, especially if you have family or work nearby or have children in a local school.
We have seen some cases where Landlords give their tenants the first refusal to buy the property if they are selling it to save on Estate Agents fees.
Renting can be more flexible than owning. There is nothing to stop you from giving your Landlord notice to leave if you get a job offer in another area, for example. Not as easy as a Homeowner.
You will have to decide whether you want to rent out your home or sell it. The process of selling a home and buying a new one is time-consuming and expensive.
If you think you may not be around in an area for very long, you should consider whether it is worth buying. Buying somewhere should be viewed as a long-term investment.
As a tenant, your landlord should be responsible for any significant repairs. Some Letting Agents and Landlords are better than others when it comes to repairs; however, and even if you are renting, you might end up doing some minor maintenance of the property yourself.
If you are a Homeowner, then all this is down to you, ensuring the property will be a condition of any mortgage you take out.
Contrary to what some people might say, owning your own home is not for everyone. Suppose you are young and moving in with your partner for the first time. There’s nothing wrong with renting for a while. Things don’t always work out the way we plan, and it can be tough to get removed from a mortgage.
Buying a home is an enormous financial commitment, and everyone should consider all the options before diving in if you decide to rent though it may take you much longer to save up for a deposit. If you are looking for a rough idea of the deposit and more information, check out our article ‘how much deposit do I need to purchase a property in Birmingham‘.
Ultimately, in the end, most people end up deciding they would prefer to buy than rent. Whether you are renting or paying a mortgage, you are making monthly payments to live somewhere, and most would rather see this go towards their benefit than someone else’s. It is sometimes just a case of getting your timing right and being in the correct financial position to proceed.
If you are looking to purchase a property as a first-time buyer in Birmingham, we are more than happy to help and offer trusted Mortgage Advice in Birmingham, suited to your individual needs.