Should I buy or keep on renting?

There are going to be arguments and reasons why someone would rather rent the property they live in rather than own it. Many feel it gives them short term flexibility and freedom, whilst others don’t want the feeling of paying a landlord money that they will never see again.

Here are the top 6 reasons why you may want to consider being on the property ladder. 

  1. Many home owners feel that they are investing their money by buying the property that they live in.  With your money going each month in to paying off the mortgage, you can actually start to plan for the day when you can live rent and mortgage free.
  2. Spending money on the property and improving it can improve its value.  If you are doing this in your own home, not only are you going to see the financial reward, but you can do so without needing to speak to your landlord.   
  3. A really important reason that many people find is that it is actually cheaper to buy the property that they live in than to rent it. Renting over longer periods of time will mean you will see a rise in your rent payments.  If you are purchasing your property with a repayment mortgage, you should see your monthly payments reduce as the amount you owe the lender decreases. 
  4. Your house, your rules.  If you own it, you chose the colour on the walls, the furniture, what the kitchen looks like and whether you have a pet or not.
  5. One that is often forgotten is those companies offering credit, love homeowners.  Your credit report will show you have a mortgage, and your monthly payments being made on time, will show financial responsibility that will put you in good favour for future credit purchases.
  6. A build up of equity in your property, the difference between the property value and your mortgage, can be used at a later time.  Your mortgage lender, or other loan companies, will consider lending against this equity.  Money you can use for further home improvements, debt consolidation or other purchases you may be considering.
  7. Many renters leading a nomadic lifestyle of 6 and 12 month rental periods, often find it difficult to enjoy an area and its community.  Buying your home allows you to put down roots and be more active in enjoying what is around you and your home.

Sitting down and working out the pros and cons of owning your home is vital.  As is good advice on whether you can afford it, or whether you need to be doing some more planning and saving before you take the plunge.

The use of a good Mortgage Broker can help with this.  They will work with you to make sure you are fully aware of what is involved and provide help in finding a lender for the money you need to make your purchase.