Since James and I graduated from university, I have been consumed by the idea of buying my first house. However, after thinking logically about personal circumstances, as well as watching The Break Platform explain Renting v.s Buying, I’ve come to the conclusion that it’ll be a while before we buy our first home. And that’s okay! Here’s why renting isn’t such a bad idea.
In January, I spent a lot of time looking at new build houses. The Help to Buy Scheme (where you only need a 5% deposit and the government helps you out by paying 20% of the house value) made me feel like home ownership was within our reach, but as my period of unemployment continued, I was in no position to save for a deposit or get a mortgage. My goal to buy a house this year came crashing down.
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The reality of home ownership
There’s a lot of pressure to own a home. It’s great to get on the property ladder. It allows you to start building credit and it’s a great asset to have under your belt.
You also get to do what you want with the property. There’s no rules on putting nails in the walls and you can express yourself painting with vibrant colours if that’s what you fancy. The property is all yours but with that comes maintenance responsibility.
Before buying a house, you need to ask yourself some serious questions. How long do you expect to stay in the area that you buy in? Is your job secure? Are you planning to buy a small house that you will outgrow in 3-5 years?
Why renting isn’t such a bad idea
Although you have less freedom to make the space your own, renting still has its advantages. You can move around freely, with only administrative costs to deal with. If you decide that you want to quit your job and travel for 6 months, there’s nothing to hold you back.
Despite the fact that you’re spending the same amount on rent that you could be paying towards property investment, there are still less costs associated with renting. You don’t need to save up thousands of pounds before you can move in for a start! The Break Platform does a fantastic comparison of Renting vs. Buying in the video that I’ve linked below.
To summarise the video for you, if you buy a house and only live in it for 3-5 years before moving again, it may not be financially beneficial for you. House prices are rising but you have to live in the property long enough (and usually add something to increase the value of the property like a conservatory or extension) to gain the financial benefits.
If you move house again within 5 years, you may be spending significantly more in the process than you would have if you had rented. The Break Platform breaks all the numbers down for you in the video. It was so interesting to watch!
All in all, I’m now less obsessed with the idea of owning my own home. Chances are, James and I would move house within 5 years if we bought a home this year. So I’m really glad that I watched the video.
Where are you on the property ladder? I’d love to hear your views on this.
Always remember to take a ‘paws’!
Charlotte x
I think this is a really important topic to talk about, I will definitely be watching Patricia’s video! Up until the last year or so, I wasn’t bothered about ever buying my own home, but the positives you’ve listed about it struck a chord with me one day and I turned so anti-rent overnight. But looking at buying, it is SO expensive just to get the keys, so I’m definitely going to consider renting. However, I’ve had so many jobs I’ve not liked, so the thought of a mortgage looming over my head when I want to quit would be scary!
Exactly! As young people, we are still trying out different careers and learning about ourselves. Having such a debt attached to us only holds us back at this point. Thank you so much for sharing your experience, Emily. Hope you enjoy the video!
My boyfriend and I are looking at when to start saving for our own house – and it is really hard to know what to do. I’m currently unemployed (although at university) because I lost both jobs in coronavirus aftermath so thank you for sharing this for a bit of added insight into what to do!
Paige // Paige Eades
Glad it has helped! I’m in the same boat except I’ve finished university. I saw Martin Lewis suggested that if you’re looking to buy, open a Lifetime ISA? Thanks for reading x