You are in the fortunate position where you can afford to buy a property, but does that mean you should?
Here are a couple of things to consider when buying a property compared with renting.
It can take longer than expected
First time buyers often underestimate how long it can take to buy a property. The process of finding a place, negotiating with the seller, and getting all the paperwork ready can take months. More so, you might be in a chain with others, which could increase the time further.
Once you own a property, you will find it harder to move compared to renting a place. You will need to get in touch with an estate agent, arrange viewings, negotiate etc… Or if you decide to let the property, then you will have to find tenants, and update the bank if you have a mortgage.
Overall, a lot more work compared to just ending your rental tenancy with your landlord.
If you’re planning to only live in the property or area for a few years, it might not be worth the hassle of buying a property.
Service charge for flats
If you decide to buy a flat, you will have to pay service charge and ground rent. The actual amount is out of your control, and there have been horror stories of extortionate raises in such fees.
Renovation and building materials costs have gone up significantly
Since the pandemic building materials costs have skyrocketed. It might cost more than you think if you were planning to do up an old house.
Trades people are also busier than ever, and getting someone to give a quote, let alone doing the job, can sometimes be a challenge itself.
If you are interested in comparing the financial aspects of renting vs buying a property, please use the Rent vs Buy Calculator. Or you can try the Buying Calculator to evaluate the all the costs of buying a property.