I’m going to do a couple of blog posts around what is probably the biggest purchase(s) of our lives. Buying a house. The majority of folk in sunny Blighty have this burning desire to own their own home as many see renting as ‘throwing money away’ or ‘paying someone else’s mortgage’. Now I can’t argue with the second point, that’s a fact, if you’re renting you probably are. But the first may not be so true.
Consider the advantages of renting. If anything in the property goes awry, it’s a simple call to the landlord or letting agency to get them to organise someone to come and look at the problem and fix it. Now, this doesn’t sound that advantageous but consider a boiler breaking down and a new one being required. It’ll be down to the landlord to part with around £2,000 – £3,000 to get one fitted, not you. There’s also the flexibility of moving to a different part of the town/city/country with minimal hassle, just hand in your notice to leave and away you go.
On the opposite side of the coin, many people consider the biggest advantage to owning a property is that you’re paying into something. Although true, I don’t see this as big a deal as most people. Yes, correct, you are slowly paying off the loan the nice bank or building society has given you but when you come to the end of the mortgage and you’ve paid it off, you are basically sat surrounded by walls of money which you cannot spend. True, you can move and downsize to free up some of that money but I’m sure when you’re into you 50’s and 60’s, moving house probably doesn’t seem that appealing.
It’s true that by buying a house, the mortgage payments will (in theory) go down (but don’t bet on that now as there is no where for interest rates to go but up), so as time ticks away, each month’s payment will be smaller until you’re done. This is what most people are aiming for as they can’t see how they would be able to pay rent once they’ve retired. Or they don’t want to spend their entire pension on rent, which is fair enough. However, I’m hoping you’ve realised, that if the previous blog posts are followed, you budget, save and invest. You can calculate roughly how much you’re going to need to invest for those investment gains to sustain you for the rest of your life!
Slightly off course there so back to what we do around here, how to save cash. The next posts are going to be on the following topics:
- Conveyancing/Solicitors fees
- Fees to watch out for
We’ll look at how to minimise fees and I’m hoping the posts will give you the confidence to DIY instead of leaving these up to someone else to sort out for you at a price.
I’ll be talking from experience here, having recently gone down the DIY route as much as possible when buying a house here in bonny Scotland.