Property to Buy

When to buy Property, and when to let the opportunity pass...

To buy ... or not to buy

While home ownership may be seen as the wisest financial option, for some people, far from being a waste of money, renting a property can make the most sense. Indeed, depending upon personal circumstances, buying a home may not be the best option, with prospective buyers well-advised to take into account a number of factors before making a massive commitment and taking a step onto the property ladder. Issues to take into account The most obvious issue to take into account when considering whether to buy or rent a home is finance.

Of course, in most instances, the decision is taken out of a prospective buyer's hands if they simply cannot afford a home or are unable to put down the necessary deposit.

However, often would-be buyers could, at a stretch, afford to move out of the rental sector and decide to try and purchase their own place, but the mortgage their lack of equity or relatively low income would saddle them with would make this a far from attractive option and discredit the theory of renting being lost money.

What's more, it could be wise to examine market conditions and take other financial issues into consideration before ditching the rental sector: For example, if a person's salary is likely to change in the near future or if they expect a slump in the housing market, then renting could make the most sense over the short-to-medium-term future.

At the same time, it's also necessary to take into account several lifestyle-based issues.

Even those who can comfortably buy their own place may be better off renting should they have itchy feet and desires to travel around the world in the not-too-distant future, while anyone looking for a change of career or who believe that their current job may require them to relocate could also be wise to consider the commitment-free nature of renting as opposed to the responsibility of buying.

What's more, many people simply enjoy the relatively hassle-free nature of renting, with tenants able to call on their landlords to tackle potentially costly repair projects and general maintenance work.

Buying a house or a flat?

Once the decision has been made to buy a property, a choice then has to be made regarding what type of property, with buyers generally split between houses and flats.

While houses usually boast more living space, as well as more character and all-round homeliness, flats are not without their advantages, with new builds in particular being both cheaper and easier to maintain.

Again, lifestyle choice, including plans concerning family or pets, as well as proximity to the city and the desire to personalise a property, should all be taken into consideration alongside money matters and other practicalities.

Tax

Though buying a property usually makes more financial sense in the long-run, in the more immediate term, getting onto the housing ladder can be a massive economic burden.

Alongside a deposit, solicitors' fees, and of course mortgage repayment commitments, buyers may also be required to pay stamp duty on a home, dependent on its value, while additional fees such as council tax and maintenance costs are also likely to be significantly higher for those moving into their own place, particularly those making the move from a shared rental home.

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