Buying a home. Sooner or later it is something that we all do. Or is it? In fact, more and more people are now shunning the property market and simply sticking with their rented accommodation. There are various factors why this is, including the rising cost of property compared to stagnant wages, and the fact that fewer people see the appeal of actually buying their own home these days.
Traditionally, buying a house has been seen as a very good investment. Once you own a home, you then have it as an asset. As it increases in value, so too do your finances. You will then be able to sell it for a significant profit, if all goes well with the property market. However, as people are becoming more adventurous with their investments and doing well on the stock market and with other investment opportunities, some are turning their backs on the property market. Not only that, though, but the traditional view that buying your own home would bring you some stability in life is also being reviewed by many people.
So, are you really better off buying a home? Well, if you can afford to and are ready to do so, then the chances are that purchasing property will be good for you. However, if any of the following scenarios ring true for you, then you might be much better off stepping away from a new house and sticking with your rented home for a little longer.
The Market Has Taken A Downward Turn
The property market is much like any other kind of investment market. During good periods, the market will increase in value overall, which will push up the individual values of most houses. However, even though this market is known for being very stable and rarely fluctuates drastically, there can be periods of difficulty. These may see the market take a downturn, which could cause property values to dip. Generally speaking, it’s not a good idea to buy during a downturn as your home’s value will quickly reduce as soon as you buy it. To make sure you don’t buy during these kinds of periods this year, it’s worth following property news 2019 so that you can follow all of the latest trends and developments. Once you establish a good knowledge of the property market, you will probably be able to predict these periods of downturns.
You Can’t Afford The Downpayment
If you don’t have a downpayment to put down on a house then you won’t be able to get a mortgage. And that means that there will be no way of you buying a home for yourself. So, if you are completely sure that you want to buy a home, you will need to start saving up for it well in advance. Ideally, you need to save at least 10% of the property’s value to put down as a downpayment. If you don’t think you’ll be able to save up that kind of amount anytime soon, it could be worth putting your home-buying plans on the backburner for now.
It Could Be Cheaper For You To Build
Buying a home can be very expensive, there is just no getting away from that unfortunately. However, there are some cheaper alternatives to owning your very own home. One of these is building it. Even though on the surface of it, a self-build project might appear to be extremely expensive, it can in actual fact work out quite a bit cheaper than buying outright. That’s because you will be able to build according to your own specifications so will be able to go with some cheaper alternatives. The one thing to bear in mind, though, is that it can be quite a bit harder to get a self-build mortgage. If you do get one, you also need to bear in mind that the money will be released to you in installments, often once you have reached certain building milestones.
You’re Being Pressured Into Buying
I’ve already mentioned that buying a house was traditionally seen as something that everyone went on to do in their lives. This idea still stands with some people, so you might find that some of your friends and family, especially older relatives, might try to encourage you to get on the housing ladder. However, you should never feel pressured into buying a home. Everyone is in a completely different situation, and buying a house might have been the right move for a relative to make. But that is no reason why it would be the best move for you as well. So, you need to weigh up your own situation very carefully and see whether buying a property would work out in your favor. A good Florence SC Realtor can help you with your home search so that you can make the best decision.
Your Job Security Isn’t That Good
Once you have a mortgage, you are tied to it until you pay it off. So, you need to make sure that you will always be in a position to make the necessary repayments on your house. That will require some long-term job security. So, if you aren’t completely secure in your job then this may not be the best move for you to make right now. Even though no job is ever 100% secure – after all, you never know when you might be made redundant – it’s still necessary to have a good job in a company that will help you out if you do ever lose your job. So, be sure to look for somewhere that will offer you a generous redundancy package.
The Building Survey Uncovered Something Ugly
Think you’ve found the home of your dreams? You can never be too sure until you get a building survey carried out! This survey will be carried out by a building expert who will inspect the house inside and out. They will be able to flag up any potential issues that could be cause for concern. For instance, the property might have signs of subsidence. When you get the completed survey back, you will see these issues and the kind of work and maintenance you will need to do in order to sort everything out. If the work looks like it will end up being very expensive, it could be worth walking away from this property and trying to find a different one that doesn’t require too much maintenance.
You Tend To Move Regularly
Some people seem to always be moving house. There could be various reasons why this is, but one of the most common is because of their work. Their job might take them to different locations every couple of years. Are you always on the move? If so, then buying a house might not be a practical option as it will tie you to one location. It will be much cheaper and more practical for you to continue renting until you are in a position to settle down.
The House Isn’t In A Particularly Good Area
When buying a home, you will no doubt do your research into finding the best neighborhood or area for you to move to. However, there might not be any affordable homes in these areas. That’s no reason to start looking in less desirable neighborhoods, though. You might be better off waiting until the ideal property in your preferred neighborhood comes up for sale.
As you can see, there are many good reasons why it might be worth not buying a new house right now. If any of these apply to you, you might want to stop house hunting for a while.
We bought our apartment several years ago, and we went after a bad rent, so, we knew exactly what to avoid and what we wanted for.
great tips all, and we certainly used some of them when we bought our home years ago now
Great tips! We want to buy a house and stop renting but I know it is smart to wait until we are more stable.
The first time we considered buying were couldn’t afford it & needed a cosigner. So happy we walked away & walked a few years.
Yes, so many people (especially if you live in a large city like London where I do) are renting. Much of it is to do with the crazy high cost of buying in London (higher than the rest of the country and about 10-20x an annual wage!!). But also because of things like financial insecurity.
It’s dangerous to take on a mortgage if you’re not sure you can sustain the repayment even if your tired of renting!