Whether you’ve outgrown your current place or just fancy a change of scenery, there may come a time when you need to up sticks and move. After saving up the money you need, the next step is to decide whether to make an investment and buy a new property, or preserve your capital and rent. This is rarely a straightforward decision, with factors such as your future plans, house prices and location all affecting your choice. As real estate specialists, Engel & Völkers are perfectly placed to advise you on the most important considerations.
Before committing to the exciting role of homeowner, it’s important to think about your future plans. Whether or not you can see yourself living in the same town or city for the foreseeable future will have a major impact on your decision. If you have no real ties to the area or consider your current job to be just a stepping stone in your career, chances are you might have reason to move in the next five years. If this is the case, buying a home may not be worth the costs you’ll incur when compared with renting. Taxes and charges including stamp duty, solicitor’s fees and upfront mortgage costs all act to raise the price of buying a new property, and these are best avoided for short term arrangements.
Buying a house is naturally a major investment, and there are a number of other financial implications to consider. While rent can take up a large proportion of your monthly income, as a homeowner you’ll be responsible for all expenditure associated with maintaining your property, which can add significantly to your outgoings. As a tenant, on the other hand, it’s up to your landlord to pay for repairs and building insurance, and in many cases utility bills are included in the rent. This allows the landlord to protect their investment, and these are costs that you can easily avoid if you aren’t planning to settle in the area for the long-term.
While there are a number of obvious benefits to renting for small periods of time, when it comes to choosing a place to live for longer stretches, actually buying a property may be in your best interests. While the taxes and fees can make a dent in your existing savings, buying a home can be a profitable investment, especially if you are looking to move to a high growth area. Of course, buying and selling property for a profit is not as simple as it once was, but providing you are planning to stay for more than five years, it could be worthwhile.
If you’ve concluded that buying is the right step forward, owning your home outright can be extremely rewarding. As real estate experts with offices around the world, Engel & Völkers can advise you on your next purchase, helping you to find a property that’s right for you. Head to our website for more information, or to find your nearest E&V office.