Depending on who you ask, renting over buying may not be favorable to you. If you are younger and your parents or other family members have a mortgage of their own, then it is much more likely that they will encourage you to take out a first time buyer mortgage in Sunderland.
These days, though, we tend to see more people renting than ever before. Many seem concerned about owning their own home. As such, we will examine the advantages and disadvantages of buying and renting in Sunderland.
Often, mortgage payments can be cheaper than rent. Of course, this is not always the case, but it can happen based on the market! Payments can fluctuate as interest rates rise and fall, which means that many choose a specific type of mortgage.
A popular recommendation is a fixed-rate mortgage that keeps your monthly mortgage payments the same at the beginning of your mortgage term. This provides stability for you and the mortgage lender.
On the other hand, when you rent, your payments will remain the same or eventually increase in rare cases. A landlord has their own mortgage, and they are in the business of making money.
Many homeowners believe that their home ownership gives them and their families a sense of stability. So, if you stay up-to-date with your mortgage payments, you cannot be removed from your home if you do not want to leave. The same cannot be said for tenants.
Whilst there may be some protection for those who are renting if the landlord wants their property back you do not really have much of a say. Sometimes you may find the landlord will give you the chance to buy before it goes on the market, which can save them time and money.
Renting is usually more flexible than being a homeowner. An example of this would be if you found a job in a new area, you are free to give notice to your landlord or estate agent, and then move elsewhere.
It would be nice if it were so simple, but if you are a homeowner, it does not work that way. You need to decide whether to sell the property. Some may even let it out and become a landlord themselves.
Buying may not be the best option for you if you like to move home quite often or are not sure how long you will be in the area. Buying a home requires long-term stability, it is more of an investment than anything else.
A landlord is responsible for any repairs that are needed on the property when tenants are living in said property. When it comes to these repairs, some landlords will be better than others, so be prepared to fix some minor repairs yourself.
Homeowners are fully responsible for their own repairs, and usually mortgage conditions require you to insure your property, which is an additional cost to consider.
Although some are so highly regarded, owning your own home will not be something everyone wants to do. If you are a young couple, there is no shame in renting together to see what it would be like living under the same roof together for a while.
It may not go the way you would like it to, and unfortunately, if things do not go well, it can be difficult to remove a name from a mortgage once you are both tied into something contractually. With renting, it will be slightly easier.
Buying a home is a huge financial commitment and not something to rush into, however, if you rent a property, you can find it much harder to save for a deposit. In the end, most people decide to buy through renting, though it all depends on the person and their circumstances.
Mortgage payments benefit you, unlike renting, which puts money in someone else’s pockets. As such, most would rather do something for themselves. Timing is the key, so always make sure you are in a strong and stable financial state before you want to buy.
The property market is unpredictable and always changing. If you bought a property and suddenly fell in value, you could understandably be disappointed. Alternatively, it can go the opposite way too and your house can go up in value.
Over the years, we have seen this happen to many different people. Having said that, history has shown that even if this happens, if you’re patient enough, the value may eventually rise again. Of course, it depends on whether you can afford to keep the property in the meantime.
A good example of this is looking at what properties sold for during the era of the Credit Crunch. Arguably one of the worst economic times of our lives, but years later, property prices were again higher and the market was booming!
You may also be in a position where you may lose money if you must sell your home at a time when the real estate market may be underperforming for reasons such as relationship breakdown or reduced income.
Before you commit to buying a property, it is worth getting in touch for mortgage advice in Sunderland before your first buyer mortgage in Sunderland. We can see how you can protect yourself from circumstances that could affect your ability to repay your mortgage.
After all, it’s not just an investment, it’s your home. The most important thing here is to find something that matches your situation.