House prices might be at an all-time high but when you look at the relatively low-interest rates and consider the high rentals properties are achieving, for many people out there, it is actually cheaper to buy a property than rent one.
Of course, a lot of this depends on if you have a deposit or not, but if you have, you could be considerably better off buying.
The graph above has been based on a 2 year fixed mortgage over 2 years on a 2 bed flat. In the North West, a buyer with a 10% deposit could find it 20% cheaper to buy rather than rent. If you have a 25% deposit, the mortgage payment could be as much as 41% cheaper!
There are lots of advantages to owning a house. A big one is the equity growth as property prices increases. My parents’ first home was only £4000 in 1976. Today it is worth around £250,000. My first home was £60,000 in 1999. Today it is worth around £275,000. I remember selling 2-bed terrace homes in Skerton for less than £20,000 in 2002. Today, we have just resold one for £100,000.
There are also lots of advantages to renting a home. You don’t have to worry about the costs of property maintenance. And many people prefer to rent due to the flexibility it gives them.
My name is Michelle Gallagher, if you’d like to chat about your options, please get in touch. At JDG we are here to help. We work alongside a great team of mortgage and finance experts who can look at your individual circumstances and help you work out what your options could be!
Thanks for reading
Michelle