It takes a long time to save enough money to buy a house. House prices are at a record high, and the younger generation is struggling to get on the property ladder. Renting is far more accessible and flexible for those who can’t afford to buy a home. However, owning a property comes with numerous benefits that renting does not. It’s worth saving for a property now so you can access these benefits in the future.
Here are the benefits of owning a house in the UK.
It’s a good long term investment
You can pay money in your mortgage every month and slowly start to pay off your home. When you decide to sell the property, you can reap the benefit of your long-term investment. Your property is likely to grow in value over time, especially if you have renovated it. For example, a loft renovation can add thousands to the value of your home. The property value will increase due to economic growth, and you can earn a profit on your home. You could use the money from the sale to buy another home elsewhere.
However – when you pay rent every month, you will never get that money back. Rental properties are not an investment for you.
Makes you eligible for equity release
As you pay off your mortgage, you start building equity. The equity is the portion of the property you own through mortgage payments. Once you are over 55, you can release equity from your home and use the money however you like. You could use it to renovate the home or to buy another property altogether. You could even go on a luxury holiday if you wanted to. Equity release gives you a little more flexibility to use your money how you see fit in your later years.
Provides financial stability
Your property is an asset. Owning assets, like a property, can improve your credit rating and the chance of borrowing money. You could use the property as financial collateral if you wanted a secured loan.
You can decorate!
You can’t make a rental property your own without the landlord’s permission. You have to deal with magnolia paint, chipped flooring and low water pressure. In your own home, you can change the colour of the walls or knock them down if you want to. You can make your new house feel like a home. Check out the latest interior trends for décor inspiration, and make the property work for your family. You can use bold colours and unusual materials to create the property of a lifetime. There is no one to tell you otherwise.
It’s time to jump on the property ladder and find your perfect house.