The following contribution is from another author.
You may have noticed that there is a housing crisis going on, which means that the number of first time buyers has dropped significantly for the first time in a very long time. Not only is this due to the physical restrictions of the pandemic that are still rippling through the property market, but people are just unable to save a deposit these days because the high cost of living and the energy crisis are taking over.
It’s the most imperfect storm because those who want to get on the property ladder seemingly can’t. However, first home buyers may have seen their hopes of getting on the property ladder quite diminished but that doesn’t mean they aren’t looking at custom homes so that they can get on the property ladder for the first time. Owning a home is so much more freeing than renting one, but it also can be more economical. If you are looking at getting on the housing ladder for the first time, here are some of the benefits.
- You are going to save your money. The costs upfront of buying a house, especially when it’s your first one can be quite daunting at first glance. However, buying a home can be substantially cheaper than continuing to rent. Did you know that December 2020 showed that it was 9% more expensive to pay rent than it was to make a mortgage payment? The rental crisis right now is proving that people are still searching for a home and landlords are buying up.
- You have the opportunity to build equity. Not only will you be saving money from a lower monthly expenditure on your home, but you will be building your equity at the same time. When you pay your rent you are literally pouring money down somebody else’s drain. Merely sustaining a present living situation in which you don’t have a steak isn’t a good way. The money that you paid towards a mortgage is going to do more than just disappear, it’s going to build equity and increase the ownership of your property.
- It’s a good way to invest money. Owning a property is a very worthwhile very long term investment. Property values tend to grow overtime, so when prices rise and fall here and there, you’ll still have the opportunity to increase your income and therefore buy a house. Your home will tend to appreciate value faster compared to the rate of inflation, which means that you can continue to get the most of your initial investment.
- You get to have a home of your own. It’s not easy to reach any wrong of the property ladder, let alone the first one, but once you do it you end up with a home of your own. Not only can it improve your quality of life, your home is yours to do with as you wish. Plenty of rented properties don’t perfectly suit the lifestyle of a resident, so why not buy a house and make it the way you want it to be?