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Is Buying Always Better Than Renting in Doncaster?

In the eyes of many, renting is not something worth doing. If you are younger and your parents own their own home, they might even encourage you to go ahead and be a First Time Buyer in Doncaster if you can afford to do so.

Times have changed though and there are more people renting today than they used to. In this article, we’ll take a look at the pros and cons of buying a home.

Why should I buy?

The property market goes in cycles, leaving people unsure whether a boom or crash is about to happen. If you were to buy a property and it went down in value, you’d be disappointed.

Over the years this has happened to thousands of homeowners in the UK. History has shown though, that even if you buy at the peak of the market, as long as you can afford to keep the property, over time prices will likely go back up.

If you take a look at the sold values during the Credit Crunch, you’ll see it’s one of the worst economic periods of our time. Less than a decade later though, UK property values have gone way back up to reach an all-time high.

If you are forced to sell your home at the wrong time due to things like relationship breakdowns or income reductions, you could lose yourself some money.

Prior to committing to a purchase, you should speak with a mortgage advisor in Doncaster to discuss all your options. This ensures you are well protected from some of the things mentioned.

With that said, this is more than just an investment, it’s a home. The most important factor is finding the most suitable one for your personal circumstances.

Will a mortgage be cheaper than renting?

More often than not, your repayments on the mortgage will be cheaper than rent. Interest rates tend to fluctuate too, which means your mortgage payments can do the same. To put those worries the bed, you could look a taking out a fixed-rate mortgage.

This ensures your payments remain the same for a set time period. On the flip side, rental properties normally see payments stay the same or increase. It’s rare a landlord will lower the rent.

Security

In the eyes of many, owning a home creates a sense of stability for them and their families. Providing you can keep up your payments, nobody can force you to leave your home if you don’t want to.

Whilst as a tenant you do get some protection with things like how much notice you need to be given, if they want the house back your hands are firmly tied. When you factor in things like family, work or schools nearby, this isn’t ideal for you.

At times, Landlords give their tenants the first refusal to buy the property if they are selling, as this saves them on Estate Agent fees.

Flexibility

Renting can be a more flexible option than owning a property. There’s nothing to stop you giving your landlord notice if you want to leave for say a job in another area.

As a homeowner, this becomes awkward as you have to decide whether or not they want to rent out your home or just sell it. The process of selling a home and buying a new one is both expensive and time-consuming.

If you’re unsure of your commitment to a set area and feel you may move again, you should consider whether or not it’s worth buying a property. It should definitely be viewed as a long term investment.

Repairs

Landlords should be responsible for all major repairs that a tenant needs. When it comes to this, some are better than others and you still might end up doing some repairs yourself.

If you are a homeowner, then all of this is down to you anyway, as is insuring the property (a condition of any mortgage you take out).

Contrary to popular belief, owning your own home is not for everyone. If you are young and moving in with a partner for the first time, renting may very well be the perfect option for you.

There’s nothing wrong with renting for a while. Life is unpredictable and for one reason or another, you may need to remove someone’s name from a property, which can be difficult on a mortgage.

There are not many larger financial commitments than buying a home, so everyone should consider the options before diving in. If you decide to rent through, it may take you much longer to save up for a deposit.

Overall, most folks tend to decide on buying over renting. No matter whether you’re paying rent to a landlord or paying for a mortgage, you’re still making monthly payments to live somewhere.

The general consensus is that people would much rather their payments go towards their own benefit than someone else. It’s often just a matter of timing and being in the right financial position.

Getting on the property ladder 

Home Movers in Doncaster are often in two minds whether to move or not (e.g. “I like my neighbours, but I’d like an extra bedroom). However, most potential first time buyers in Doncaster, if asked, would likely say they want to be on the property ladder.

As such, they are often are unphased by and disinterested in external factors such as ongoing political events. Whilst the housing market does go through fluctuations, this hardly ever puts people off wanting to get onto the property ladder. 

It should always be classed as a long-term investment and whilst it might not be ideal if your home drops in value, history suggests that when that does occur the prices go back up in the long run.

So buying is always better than renting then?

No, not always. We do regularly encourage young people to rent when they first leave home, especially if they are a couple. Granted, paying rent obviously makes it harder to save for a deposit, although it’s a much better option than taking out a mortgage and then breaking up!

Getting out of a mortgage can be rather difficult and very expensive, so it’s something you have to be absolutely sure you want to do before you do it.

Small deposit mortgages

95% mortgages are more readily available now than they were in the years prior. So if you are more than halfway to having the 5% deposit available, it’s worth trying to get an Agreement in Principle in place. This is to check that you will be eligible for a mortgage when the time comes.

Doncastermoneyman.com & Doncastermoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
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© 2021 Doncastermoneyman

Doncastermoneyman, 3 Cavendish Court, South Parade, Doncaster, DN1 2DJ.

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