The ‘buy or rent’ debate has been around for years, sparking discussion and uncertainty amongst would-be homeowners. However, it may surprise you to hear that now is the perfect time to invest in your own home. Why? The answer is Help to Buy.
The Government’s popular Help To Buy scheme has already helped over 100,000 people get onto the property ladder since its launch in 2013 due to buyers only needing a 5% deposit.
So, what does this mean for ‘generation rent’? Average rent prices in the UK have been creeping up year-on-year since 2012. They rose 2.7% in 2013, 7.7% in 2014 and by May 2015 they were a whopping 10.7% higher than the same time last year! Home ownership, on the other hand, has been made much easier and more affordable thanks to the Help to Buy scheme. With a 5% deposit, and a 20% Government loan, buyers only need to secure a 75% mortgage, making the process far easier for first time buyers in particular.
For example, buying a home here at NGV Liverpool through Help to Buy means that you only need a £6,700 deposit, and a £100,500 mortgage, for a home priced at £134,000 – many of our buyers have already seized this opportunity to settle down with their families and mortgage rates are at their most competitive for many years too.
What’s more, buying your own property means that your money is being invested rather than merely spent. By purchasing your home you’re building equity and you’ll more than likely end up with a property that’s worth more than you originally paid, rather than giving money to a landlord every month and have nothing to show for it when the time comes to move out.
Home ownership can also provide you with financial security in the future – you can choose to sell and move up the property ladder by purchasing a larger home, or release equity by downsizing and living ‘rent-free’ into retirement. Plus, it’s also looked upon favourably by banks and lenders and opens up a greater choice of financial products.
Buying a property also means that you can make your own choices with regards to décor, home improvements, pets etc. There are no more regular checks from landlords on whether everything is being kept in order; a person with a mortgage and a home can live independently without being confined by the rules of a letting agent.
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