In a previous article on this site, we gave you some house-buying advice. Now, while it does make sense to get your feet on the property ladder, it pays to take stock of your life before you do that. Buying isn’t right for everybody, especially when you are still in your twenties.
Why? Consider these reasons:
- You may not have a stable career, meaning your finances are in a state of flux.
- You may be single, so you may be tempted to buy something without considering your long-term future, such as getting married and having a family.
- You may not have sufficient roots in the area where you are living now.
- You should only think about buying when you have sufficient capital to manage the mortgage payments and other ongoing costs.
- You should wait until your life has settled down, and you have an idea of the direction your life is heading into.
And then there’s Brexit …
Aren’t we getting tired of hearing about Brexit now? When it does finally happen, there is uncertainty about how it will affect the housing market. On the one hand, some are predicting a fall in house prices, a Godsend for first-time buyers. On the other hand, anybody buying with an eye to sell later on may not make a profit from the property. So, while mortgage prices may be down, you should probably withhold on buying unless you are looking to secure a long-term property for your future.
If your heart is set on buying a property, it is worth speaking to experienced chartered surveyors, such as Allcott Associates. With house prices set to fall, you don’t want to be suckered into buying a potential money pit. A surveyor will give you the heads up on the property to help you make an informed decision. You don’t want to waste your money on what might seem like a bargain now, only to have trouble selling the property later should you realise this isn’t the home for you.
What about renting?
Many people consider renting a waste of money. The house isn’t yours, and you may end up paying more than the cost of a mortgage if you live in the rented accommodation for years. However, some financial experts are currently advocating the rental market. As house prices are dropping, so is the cost of rent, in certain areas of the UK at least. So, if you aren’t in a position to lay down your roots yet, it makes sense to withhold from buying. Not only that, but renting offers the following advantages:
- You aren’t responsible for repairs and maintenance on the property.
- You have the freedom to move if your personal circumstances change, or the neighbourhood becomes less desirable to live in.
- You won’t be saddled with the debt of a mortgage.
- You may be able to save money for a better home, rather than settling for something that is cheap and not reflective of your ideal home.
If you are still keen on buying, check out this advice from finance guru, Martin Lewis. You should also keep an eye on the property market, source advice from the media and speak to your local estate agent.
We aren’t trying to put you off getting on the property ladder, but in these uncertain times in the UK, it pays to know what you are getting into before you make a potentially costly mistake.