Why buy? 5 great reasons to own a home
Why buy? 5 great reasons to own a home
newhomesforsale.co.uk breaks down the top 5 reasons why you should buy a home.
1. Your payments go towards paying for your home, and not into a landlord’s pocket
If you pay say £750 per month in rent, that’s £9,000 per year which you are spending that you will never get back. The money you’ve spent on rent will likely completely cover your landlord’s mortgage repayment figure, any insurances or management fees and leave them with a profit. This is especially true if they have an interest-only mortgage or have no outstanding loans on the home. If you are renting, and have enough money for a deposit and can afford the monthly repayments, it might be time to take the plunge and buy a home so the money goes towards your home, and not theirs!
2. You could make a profit when you sell if house prices rise
When you come to move home, it will likely be worth more than when you bought it. The difference between what your home is worth/ what you sell it for and what you owe your mortgage lender is known as equity. This can be used as the down payment (deposit) on your next home, meaning you’ll probably be able to borrow more money for a bigger or more expensive home, or reduce your monthly payments if the home is of similar value. Beware that fees apply when moving home, including stamp duty and legal and estate agent fees, so this will reduce your overall profit.
3. The home will be yours when you’ve finished paying off your mortgage
The reward after years of saving and paying off your mortgage is fully owning your home. The biggest advantage to fully owning a home without any outstanding mortgage payments is the increase in disposable income you will have. You may decide this is important to you for when you retire, so you have fewer outgoings and financial responsibilities. An average mortgage term is somewhere between 25 and 30 years, so if you will likely retire in 25 to 30 years time, you may want to get a mortgage as soon as possible.
Depending on the conditions of your mortgage, you may be able to pay more than your monthly repayment known as an overpayment, or pay it off in a lump sum for a fee. You may decide to do this if you inherit money, from pension payouts or from additional savings.
4. You don’t need anyone’s permission to have pets or redecorate
This might sound obvious, but your home is yours to do with as you please. You can decorate your home any way you wish. Want a giant tropical fish tank? Go for it. Thinking of painting your downstairs loo walls bright orange? Well, it’s your home. Been waiting forever to have a hot tub in your garden? Sounds fab. However, if you want to add an extension or build on to your home in any way, make sure you check if you will need planning permission.
If you’ve been waiting until you own a home to get a dog or cat, you’ll be able to when you buy your own home. Be sure to check that the home is suitable and safe before you adopt though! The only circumstance where you may need to get permission is if you buy a flat or apartment in a managed building. Be sure to check the rules before you proceed if a pet is really important to you.
5. You can’t be forced to move by a landlord
Yes, another obvious one, but if you own a home, it’s yours! You can live there for as long as you want as long as you continue to repay your mortgage, every month, on time. Every payment you make is a signal of responsible credit management, and can help improve your credit score.
The only other instance in which you could be forced to move is if your home becomes subject to a compulsory purchase order. This would only occur if the government or other body required the land on which your property sits for construction of critical infrastructure, such as new roads or train lines like HS2. However this is very unlikely, but best to do your research into the area before you buy.Disclaimer
newhomesforsale.co.uk is an information platform and not a financial advisor, mortgage broker or mortgage lender. Always get financial advice before making significant decisions about your money, mortgages and buying a house.