In the UK, it’s estimated that around 65% of us own our own home. If you’re one of the 35% living in rented accommodation, you might be wondering whether buying a house is a good investment.
To help you decide, we’ve weighed up the pros and cons below.
Why Buying is Better Than Renting
Let’s first start by saying that although most people assume that buying is better than renting, this isn’t always the case. Depending on your personal and financial circumstances, buying your own place might not be all that it’s cracked up to be.
However, purchasing real estate is a good way to plan for your future self. Unlike many other assets that are destroyed by inflation rates, homes generally increase in value over time. For example, with inflation rates soaring across the UK, your home might be one of the best ways to protect your wealth.
Buying also gives you freedom. Unlike rented accommodation, when you buy your own home, you’re free to decorate and renovate as you please.
But even if you don’t fancy renovating a property of your own, you can still buy a new build that’s ready to move into.
Not to mention nobody is stopping you from getting that family pet you’ve always dreamed of!
How Much Money Do You Need Before Buying a House?
Now, home ownership isn’t cheap. These days, you should expect to put down a deposit of between 20% to 30% of the value of the house.
When considering an investment property, be prepared to pay a substantial lump sum upfront. This can be daunting for aspiring homeowners. To enter the property market, especially for investment properties, you’ll typically need to commit to several years of dedicated saving.
You’ll also need to pay solicitors’ fees, moving costs, and stamp duty. So, the costs do mount up when you decide to buy.
Is Now a Good Time to Buy?
We’ll start by saying this: there’s never really the perfect time to buy. If you want to get on the property ladder, waiting until the most opportune moment might not be worth it. After all, this perfect time may never come.
But certain times are better than others when it comes to buying your home. For example, you want to wait until the market dips slightly so you can swoop in and purchase your home.
Final Thoughts…
So, is buying a house a worthwhile investment? The answer to that is entirely personal of course. But if we were to make sweeping statements, we’d say that yes – it’s worth it.
As well as being an excellent hedge against inflation, buying your own home gives you the freedom to live as you please. And can you really put a price on freedom?