Should you buy or rent or invest?

Posted on November 5, 2012 by

You maybe looking to buy a property with the sole purpose of renting so you need to get a good deal on a property investment and a buy to let mortgage, with sufficient rental yield to make a viable profit. Seeking the help of a property consultant like VUE Property to carry out market area research for your target locations  before you acquire your property is good preparation.  Does the climate favour buying or renting?  There are many facets to contemplate.

Should you buy or rent?

Many people consider the decision to buy a house or to continue renting the biggest decision of their financial life, and quite frankly, it mostly is.

If you are fortunate enough to live in a city where the house prices are affordable, relative to your earnings and savings, then you will need to plan when taking the plunge. Add into the mix economic woes, housing booms and busts, local and regional price fluctuation and the banks changing mortgage criteria on a whim, and you could get so confused you do nothing! Bad move.

When you rent you mostly think you have a good deal. You get the landlord to do everything, right? Well I don’t know about you, but in my experience landlords do things a lot slower than if I were to do them myself. Water issues? Plummer takes three times as long(they’re always busy)if you add in the extra step of needing to contact the landlord…

What’s your situation actually like?

You will need to be realistic about your current financials situation.
How long have you been employed for? Most banks and mortgage lenders will be looking closely into your earnings and income history. If you do not have a long history of earnings they might not consider you for mortgage, or worst you could get a mortgage, bit not one that you can actually afford…

Can you partner up or can anyone else help out?

Going in with a friend or partner (future wife or husband maybe?) can really ease the financial implications of buying your first home. I mean ,there’s no getting away from it. It’s very expensive. You have got all the legal fees, possibly stamp duty too, cost of any alterations, moving costs, not to mention a mortgage! Partnering up can help you get onto the property ladder faster but remember, do not rush into this kind of partnership…

A lift up

Getting help from parents can be an option for some, and if parental assistance is offered- take it!
Deposits are the hardest thing of all to secure, especially in expensive regions. One way of finding out what you can and cannot afford is by using a mortgage calculator.

Finding the best mortgage rates

If you do have a deposit, have a good financial history and credit rating you might be a good position to think about buying. Finding the best mortgage rates can be done easily online.

Should you rent or buy?

Mostly renting is just throwing your money away, or more precisely- giving all to your landlord.
Therefore, if you are in a position to buy, it often makes financial sense to buy.