Owning versus renting – is it time to buy your first property?
Is it the right time for you to get onto the property ladder? Owning is definitely cheaper than renting, and I bet you can raise the deposit if you go the right way about it. Affordable housing is on the rise, and mortgages take up less of our income than they did a decade ago. Read on for the latest research and savings products, and decide if it’s time for you to become a first time buyer.
Recent research by Santander shows that, nationwide, the average cost of renting is £912 per month, while the average cost of mortgage repayments is just £723 per month. This means that, over a year, the average household could save £2,268 just by owning their own property.
But as we all know, what applies nationwide doesn’t necessarily apply to the London property market. Prices are very different in London, and have a different impact on household expenses.
In fact, London rents are generally higher than for the equivalent properties elsewhere in the UK, meaning that households in the capital could make a saving of up to £3,500.
In terms of day-to-day expenses and your overall family budget, mortgage repayments now cost the average person just 29% of their income each month, compared with 29.6% last year and an incredible 45% in 2007.
What about the deposit?
While deposits can be a sticking point, now is a great time to start saving and getting yourself onto the property ladder. The Government’s Help to Buy scheme provides an additional 25% of whatever savings you have amassed in your ISA. Under the Help to Buy rules, couples are allowed to open an ISA each, meaning that they both benefit from the scheme. You can find out more about Help to Buy ISAs here.
There are other savings products available to help you to save for a deposit for your home. Knowing that you won’t be withdrawing any of the money until you come to buy a property, banks will often be able to offer you a better rate of interest than if you were opening a regular savings account.
Affordable housing in East London
There is also an increasing amount of affordable housing in London. One of the newest developments is Hunts Wharf in Clapton, Hackney, where prices start from just £385,000. Located on the edge of travel zone 2, it won’t cost you the earth to get to and from work each day – another saving.
Buy property in East London
There has never been a better time to buy property in East London. With owning cheaper than renting, good savings schemes available for first time buyers and the average mortgage repayment coming in at the lowest percentage for over a decade, you know you can do this.
If you feel it’s time to get on the property ladder, give me, Adam Dockley, a call today on 020 3633 4440. I have a wealth of experience to share, and countless affordable properties to show you.