Sunday, 15 February 2015

To rent or buy?

A typical first-time buyer saves 9 per cent a year by living in their own home rather than being a tenant.


Pro's of buying:
  • Once you've paid off your mortgage, your home will be yours and it could be worth far more than you originally paid for it.
  • If your home increases in value you can use that equity to help you afford a bigger home.
  • You can spend money improving your home and increasing its value.

Cons of owning your own home:
  • It’s a big financial commitment – you need to be sure you can afford what you’re taking on.
  • When interest rates rise, your repayments will also go up. (See our previous blog post titled "Different types of Mortgages").
  • You will also be in charge of maintenance costs (e.g. broken boiler).


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