First-time buyers – Is buying always better than renting?
According to a recent survey by Halifax, 372,000 First Time Buyers got onto the property ladder in 2018. This made up a huge 50% of all house purchases with a mortgage. You would have to go way back to 1995 for a time when First Time Buyers accounted for a larger share of the market.
Getting on the property ladder
Whilst Home Movers are often in two minds whether to move or not (e.g. “I like my neighbours, but I’d like an extra bedroom), most potential First Time Buyers if you ask them would like to get on the property ladder one day.
As such, they are often undeterred by external factors such as ongoing political events. Whilst the housing market does suffer peaks and troughs, this hardly ever stops people want 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?!
Well, no, not necessarily. We regularly encourage young people to rent when they first move out of home, especially if they are a couple. Whilst paying rent obviously makes it harder to save for a deposit, better that than realise a year down the line that you can’t live with each other!
Getting out of a mortgage can be difficult and sometimes expensive so you have to be as certain as you can be that things are going to work out ok.
Small deposit mortgages
95% mortgages are more readily available now than for several years so if you are more than halfway there to having the 5% deposit available it’s worth trying to get an Agreement in Principle in place to check that you will be eligible for a mortgage when the time comes.
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