Is It Time For You To Buy?

Everyone knows that renting a property is so called ‘empty money’. You could rent somewhere for twenty years and get nothing out of it except for a roof over your head during that time. If you bought a place of your own however, you would be eighty per cent of the way towards owning it outright in that same time frame, assuming you borrowed the money to buy it over a period of twenty five years.

Buying your own home can be a nerve wracking experience, as it is quite a responsibility that can be very expensive. But it also comes with plenty of advantages, not least the fact that house prices tend to rise sharply over the long term, leaving you with an investment that is eventually worth far more than you borrowed to pay for it in the first place.

But if you are currently living in rented accommodation, should you be thinking about buying right now?

The answer often depends on your personal situation. There are plenty of costs involved in house buying, and it’s wise to have a reasonable amount of savings behind you in order to pay for these as easily as possible. You also don’t want to move into your first home with no savings in the bank, as there will undoubtedly be costs involved in decorating and sprucing up your new home.

You should also think about what the market is like at the moment. If house prices are down then you could end up being able to afford somewhere far nicer than you would have been able to if you had bought a house even just a few months previously. Conversely, if prices have shot up in recent months then it might be better to bide your time to see if they will at least level out again before you think about buying.

The important thing is not to rush into buying a property simply because everyone else seems to be doing the same thing. If your financial situation is such that it would be a real stretch to do so – even if house prices are lower at the moment – then you might want to wait until you have more money in the bank before you do anything.

When you do start thinking seriously about buying your first home, shop around to see what kinds of mortgages are available first of all. By getting a better understanding of what you could borrow and what your repayments are likely to be, you will be in a much better position to work out what kind of home you could afford.

All of which means your house hunting will be more enjoyable right from the word go.

Daniel Collins writes on a number of topics on behalf of a digital marketing agency and a variety of clients. As such, this article is to be considered a professional piece with business interests in mind.