First Time Buyers – Should I buy or rent?
First Time Buyer Advice | Mortgage Advisor in Doncaster
Buying Or Renting? | Mortgage Advice in Doncaster
According to a recent survey by Halifax, 372,000 First Time Buyers got onto the property ladder in 2018. This made up a whopping half of all home purchases with a mortgage. The last time First Time Buyers dominated the market in such a way was back in 1995!
Getting on the property ladder
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). However, most potential First Time Buyers, 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.