Is it time to leave the rental market and buy a property?

publication date: Sep 3, 2012
 | 
author/source: Kate Faulkner, Property Expert and Author of Which? Property Books
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To Rent or Buy?

Is it time to leave the rental market and buy a property?


For anyone renting a property just now, one of the big questions is, is it all money down the drain and should you be jumping onto the property ladder?

For some this just won't be possible at the moment. Deposit levels and the cost of mortgage rates aren't being kind to first time buyers in comparison to existing homeowners and those with large deposits to put down. However, for those that can afford one of the new build first time buyer schemes or do have enough money to buy on the open market, working out whether to continue renting or buy a property is a tough call just now.

Pros of buying now

  1. Property prices in some areas have already stabilised and are continuing to show growth
  2. In areas where property prices are falling, it can be the best time to ‘bag a bargain'
  3. Owning a property offers you more security of tenure - as long as you can continue to pay the mortgage
  4. There are some great schemes for first time buyers on new build properties across the UK eg NewBuy 


Cons of buying now

  1. Prices may fall further, reducing your equity levels and even putting you into negative equity
  2. You will be responsible for all maintenance costs
  3. Your circumstances may change in the next few years, leaving you unable to sell the property at a profit or even break even
  4. Mortgage rates may increase rapidly, making owning a home more expensive than buying 


The reality of buying a property now versus renting really depends on the market for your area and property type and your own personal circumstances, especially how settled you are in your job and the place you live.

If you want help working out whether to buy now or carry on renting, contact us

For more help, request our free First Time Buyer  Checklist, ask us a question via our Forum or purchase our First Time Buyer  Service, which includes a comprehensive A4 ‘how to' guide, containing Dos and Don'ts, Factsheets, Checklists, Handy Tips and Forms, PLUS access to Kate and her team, by phone and email, for any queries you might have during your first property purchase.

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Property expert, Kate Faulkner, has joined forces with B&Q and other industry experts to offer a unique service, where you purchase a ‘property project pack’ that gives you:-

  • An A4 ‘how to’ guide (approx 80 pages), containing Dos and Don’ts, Factsheets, Checklists, Handy Tips and Forms
  • Access to Kate and her team, by phone and email, for any queries you might have during your project.

See the full list of Kate Faulkner's unique Property Services here!


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