The housing situation is confusing for a lot of people, nowadays. We have more freedom in where we want to live and work now, but seemingly less access to buying a house on average. So, when you get to the point of where you’re able to buy one, you might ask if it’s even worth it. Well, here are the benefits, and even a few disadvantages, to consider.
Cash in reserve
One of the more overlooked aspects of buying a home is treating it as a savings tool. With every year you pay the mortgage on it, you gain some equity on it. Later in the ownership, that equity can be freed to give you the reserves of cash for when you really need it. Especially in times of economic hardships, using your assets is one of the most useful ways of getting yourself out of debt. Equity isn’t only for debt, either. It can even be used to make sure you got a tidy retirement fund waiting.
Long-term, buying is cheaper than renting
There’s simply no getting around it. You get a better deal in the long-term by buying than renting. Even in the famously expensive cities, it is cheaper in more than half of the UK’s population centres. The only barrier for most people who would rather benefit from fewer monthly costs is the high initial payments most houses require.
The art of flipping
No matter how the housing market may look at any one moment, never underestimate the potential for investing in buying a home to sell it later. If you’re not savvy on buying or selling houses, you can earn a better profit by partnering with teams like Flambard Williams. Even as a long term purchase, you can use that aforementioned equity to pay for renovations that improve your return on investment down the line.
Setting up some income
That investment doesn’t have to all pay out at once. Buying a house to let (especially in those areas where letting costs more than buying) can set you up with a great income stream. Of course, it means running the risk of owning a vacant house at times and the responsibilities of being a landlord. But the rate of return and financial security it offers is why a lot of people will rent out a home even when they’re living in rental property themselves.
We’re not going to pretend like there are no downsides to buying a home, however. One of the biggest ones is that you’re taking on a long-term investment. An investment with worth that can rise or fall drastically all tied up in one single asset. You also have to do a bit of digging to find the full costs of owning a home, including tax, repairs, and maintenance.
How important these opportunities and these disadvantages are to you depend on your own situation and your plans. But let it be said that there’s still plenty of financial reason to buy a house.