In this day and age, most first time buyers are looking at putting down a deposit of between 5 and 10 percent of the asking price. When you’re paying rent and bills every month, it can be difficult to save, especially when the end goal seems so far away. If you’re aiming to become a first-time buyer, you may feel like you’ve arrived at this point in your life at the worst possible time. It’s not an ideal time to be a first-time buyer, but there are ways of getting onto the property ladder, so try not to be disheartened. In many cases, buying is not the only option, and it’s always worth weighing up the pros and cons before you make a decision. Hopefully, this guide will help you make up your mind if you’re not sure which path to take.
The pros and cons of buying
Most of us grow up with dreams of settling down with a partner and holding the keys to our very own castle. Unfortunately, it’s no easy task getting onto the ladder these days, and there’s a lot to think about if you are considering buying. Firstly, there’s a deposit to save, and this is no mean feat. You may need up to £20,000 just to put a deposit down, and this is before you factor in additional costs, such as surveys and first time buyer solicitor prices. Buying may be a convoluted process, but it gives you an asset, which will hopefully appreciate with time. When you’re a homeowner, you have freedom to do what you like with the decor and design, but you also have to assume responsibility for the upkeep of the house. If the boiler goes, for example, you can’t just ring a letting agency and arrange for somebody to call and fix it. You’ll be liable for the cost of repairs.
The advantages and disadvantages of renting
Renting is often a convenient option for people who can’t afford to buy at the moment and those who move around frequently. Some people also prefer the freedom renting gives you, as you can take on short-term contracts, and you don’t have to assume responsibility for upkeep costs. The rental market in the UK is booming, and this does mean that prices have increased steadily. When you rent, you may end up paying a lot more each month than you would if you took a mortgage to buy a house. When you rent, you’re also at the mercy of a landlord or landlady, which may mean that you’re restricted when it comes to making the home your own.
If you currently rent and you’re hoping to buy, or you want to move out of your university home or the family home and take the next step, you may be considering your options. There are pros and cons to both renting and buying, and the choice you make will often come down to your financial situation. Even with the introduction of affordable housing schemes, you’ll still need a significant amount of money to get started, and the reality is that many people find it hard to save for a deposit.
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