We are sure that by now, you have probably gathered we are in the process of saving to buy our first home. This was a big decision to make, and not one we made lightly.
There may be some of you reading this that are in the process of moving out/planning on moving, and we know from experience that it can often be quite a stressful task! We have made a Pros and Cons list for buying that may help you like it has helped us!
- You can improve your own home however you like. No need to ring the landlord every time you want to paint a wall!
- The money you pay per month is sort of going into your own pocket, not someone else's.
- When you have paid it off, that will be it! It will be yours!
- You can have as many pets as you like.
- Security! You don't have to worry about being kicked out by your landlord at any moment.
- Sometimes the monthly payments can be less than rent.
- It's exciting! And a whole new grown up chapter in your life.
- It's a big commitment! You have to commit to a location, it's a financial commitment and if you are buying with someone else it's a relationship commitment (although that last bit is also a Pro!).
- If you don't earn a lot, it can take a long time to save a deposit- especially if you are doing it by yourself. 10% is usually your typical deposit requirement, although you can get a mortgage on 5%.
- Getting the mortgage! Please sir!
- Your monthly repayments will go up with the rise of interest rates. But usually you can get that secure for a few years.
- If you do need to move due to work or maybe you need an extra room for a newcomer, it is far more costly to sell a house than to just rent somewhere else.
- If you have bought a house with someone and you sadly split up/fall out, it's a bit more trickier to just go your separate ways.
- If your roof tiles come flying off, or your boiler packs in....you better have some savings/insurance to fix it!
After weighing up the Pros and Cons last year, we decided to buy. Although it would mean living at home with our parents into our mid twenties, we decided it was worth the wait. With a strict budget we were able to save half our deposit in 6 months, so we should hopefully be ready to apply for a mortgage in July.
What tips do you have for buying vs renting? It would be great to hear from your experiences.