Renting can give you some flexibility but many tenants would like to have a place that they can call their own, which is why they have aspirations and dreams to own their own home.
Searching sites like www.austinwyatt.co.uk can give you a clear idea of why you may want to fulfill that home ownership ambition and work your way up the property ladder.
Making that big decision
The general concensus of opinion is probably that it is better to buy your own home rather than rent, but there are pros and cons to weigh up and it is a decision that is not taken lightly in view of the expenses associated with home ownership.
There are numerous factors to consider such as where you are with your personal life and your career, which could influence the timing of your decision to buy, and of course whether your financial situation is robust enough to be able to come up with a large down payment.
Reasons to buy
Stability and security are both appealing commodities to have in your life and owning your home rather than renting can definitely help to provide these two things and a lot more besides.
Being in a position to put down roots and own a property that you can renovate and decorate to your own tastes is certainly something appealing to many of us and there is also the appeal of investing your money in a property which you can call your own once it is fully paid for, rather than paying rent to a landlord every month.
Most rented properties tend to come with a list of restrictions such as no pets or a set of rules about decorations and alterations, so another reason to buy would be that you get to live by your own rules in many respects, although if you have a mortgage, there will be some rules that the lender will impose on, but these definitely don’t extend to how you decorate.
No worries or ties
It is always worth pointing out some of the advantages attached to renting, so that you appreciate all of the pros and cons between buying or renting and reach a decision having evaluated all of your options and reasons for making your choice.
Renting gives you an element of flexibility as well as the freedom to make plans regarding a change of job or location. If you own your own home you will normally have to wait until you have sold or at least find a tenant, which invariably will take longer than finding another place to rent and moving on within a couple of weeks.
Another positive point about renting is the fact that you have little or no repair or maintenance costs to worry about, as it is the landlord’s responsibility to pay for work that needs to be done or replace items.
Financial pointers
If you are thinking about buying your own home you will need to initially decide whether you can afford to buy.
How much you earn is a critical factor if you are going to ask for a mortgage, as lending rules will take into account your annual take-home pay after taxes and also consider how much other debt you have in the form of credit cards, loans and another form of borrowing.
Even if you qualify for a slightly large percentage, it is often prudent to work on borrowing no more than 2.5 times your salary.
You will also need to have accumulated a sum of money that you can offer as a down payment. The amount you need will be a percentage of the purchase value and as lending criteria has tightened in recent years, you will have to budget for finding at least 10%, or more if you want access some of the best mortgage rates available.
Be prepared
Missing your monthly rental payment has consequences and you could be evicted if you don’t keep up with payments, but missing mortgage payments have more serious implications.
The mortgage company has the power to go to court and repossess the property if you fall too far behind with payments, so be prepared for the commitment that goes with property ownership and ensure that your finances can match your property ownership aspirations.
Buying your own home is one of the biggest financial decisions in your life, so make sure you weigh up all the pros and cons so that you know what lies ahead when you book that property viewing.
Amy Marsden is a young entrepreneur and keen writer who has just entered the property market. She enjoys writing about business and property topics for a variety of websites online.
The post Making Big Choices for the Future: Tips for Renters With Homeownership Dreams appeared first on Simply Sweet Home.