You may hear in the news that property prices may start to go down or that interest rates are increasing so fast that home-ownership costs are becoming unaffordable.
Of course, that's just the current news which will pass. But, looking at home-ownership as a long-term proposition and a way to create wealth helps to showcase all the benefits of home-ownership, regardless of what the short-term market outlook seems like.
It's a place to start growing more wealth
Every pound that is paying off your home or even secondary property is an investment. As you pay down the mortgage every single month, you're increasing the overall value of the property and building your wealth that way. It's the most common benefit associated with home ownership, yet it's only the beginning.
You'll be saving money down the line
With a mortgage, in many cases, comes a predictable payment schedule that may only fluctuate depending on if you have a variable rate or if you choose to refinance at any point. This helps to provide a fixed payment structure under your control. In addition, there's no fear of your landlord raising your rent due to 'market conditions' since you are the landlord now. This also means that eventually, there will no longer be a mortgage and no monthly payments that will need to go into the home. So while you'll still have utilities, taxes, and insurance to pay, it could still be much less than paying rent.
As a home-owner, you'll most likely stay in your home for an extended period, even up to a few decades. That means there's no need to have to move every few years and pay those moving costs to your next apartment or home, nor have the need to place a renter's deposit.
Another common issue that can happen from time to time is that as a lease is about to expire, a landlord simply may not want to renew it. This is another cause of stress as you're looking for a new place when it wasn't the plan.
You can build the home you want
Another major factor is that when you are a home-owner, you can set up the house in any way you want. You don't need any form of permission from a landlord to paint the walls in any colour or if you're going to remodel the bathroom or kitchen. It improves your quality of life while at the same time helping to improve the overall value of your home.
You don't need to worry about reclaiming deposits or having to worry about setting up appointments with the landlord and repair teams, as you're able to handle everything directly at your own discretion. You can maintain (or not maintain) your home on your terms. With the fact that you're able to model the home to your tastes, you'll also have increased privacy. You don't have to worry about random check-ins from a landlord or agent, or emergency repair situations. All that goes away with home ownership.
Focus on the long term
With that said, there's always a consistent benefit when it comes to home ownership. Working with an estate agent will help you find the home that fits within your budget. The economic downturn and rising interest rates will affect everything around it, even the rental market.
So if you're set on home ownership, then start with the preparation. Regardless of market conditions, it's really a matter of when you're ready to start being a home-owner and spending more resources to invest in yourself and the generational wealth that starts to be built with home-ownership.
As you build out your property wealth, you can begin to utilise that property as a financing tool for another property or simply use it as a source of passive income by becoming a landlord yourself. That helps to have the investment not only grow in appreciation but pay for itself faster as a source of consistent income.
Since the process of buying a home can be quite complex, use experts in their respective fields to ensure that you can focus on your dream home while they focus on the correct documentation and paperwork. Estate agents can help you get the best deals while conveyancers will help to make sure everything is in order and efficiently transferred to you.
Put yourself in safe hands with Arrow Conveyancing. We’re friendly, reliable and very experienced. Call us to discuss your purchase or sale.
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The information contained in this article does not constitute financial advice or recommendation and should not be considered as such. Arrow conveyancing does not offer financial advice and is not regulated by the Financial Conduct Authority (FCA), the authors of this article are not financial advisors and are therefore not authorised to offer financial advice.