Is buying a house right for me?
Buying a home is a huge step and is obviously one of the most expensive decisions you can make in your life. So, it’s understandable to feel unsure about whether it’s a decision for you or not.
Most first-time buyers feel a big sense of pride and achievement in owning their own home. And, of course, there’s the added advantage that it will hopefully provide some financial security later in life. But is buying a house the best choice for you?
Take a read of our guide below and see what other options could be available to you alternatively to becoming a homeowner. The decision to get on the property ladder is a big one for first-time buyers and there can be the odd struggle getting a mortgage. But the important question to ask yourself isn't “can I get a mortgage?” it's “can I really afford it?" It could be a good idea to speak to an adviser to discuss your options and what your monthly payment could be.
Should I buy a house?
Pros of buying a house
- Owning your own home gives you independence and a sense of freedom.
- You don't have to follow any rules laid out by a landlord.
- It's your house and you can decorate it just as you’d like to and any improvements you make could potentially add value to your property.
- When your mortgage has been paid off, the property is all yours.
- If house prices generally rise, the equity on your property has the potential to increase (but remember, like any investment, it can also go down).
Cons of buying a house
- The average mortgage lender can ask for a deposit from 5-25% before giving you a mortgage and the bigger deposit you have, the more deals you’ll be able to access and choose from. This isn’t necessarily a ‘con’ or a bad thing, because having more of a deposit means you may be able to access cheaper monthly repayments and better interest rates.
- It's not always guaranteed that house prices will go up and there is always a chance that you might go into negative equity, where you owe more to the bank than your house is worth.
- If you don’t keep up with your repayments, your home could be taken away from you.
- Your monthly outgoings will probably go up after you buy a house, especially if you’re moving out of home where you might not have paid for all the utilities as well as rent.