For many people, the dream of owning their own home is a major milestone in life, signifying the start of a new life chapter. However, reaching that point can prove to be quite challenging. The reality is that renting, in the long term, costs much more than owning your home - and that won’t change any time soon. So, in this article, we’ll look at why you should consider buying new instead of renting and how to reach this life goal as easily as possible via schemes such as shared ownership which can make this easier still, as less money is required as an upfront deposit.
Long-Term Financial Benefits
One of the most compelling reasons to purchase a property instead of renting one is the long-term financial benefits it provides. When renting, you’re simply paying a landlord to live in a property and the money you spend doesn’t help you beyond giving you a place to live. Homeownership differs in a few key ways here, including:
Building Equity
Owning a home allows you to build equity with every mortgage payment, unlike rent. This equity is a valuable financial asset over time. As property values generally increase, your investment can grow, providing a substantial return in the long run.
Predictable Costs
Mortgage payments can be fixed for long periods, offering predictability for that set time period unlike rent, which can increase based on market conditions and landlord preferences. This stability makes financial planning easier and shields you from unexpected rent hikes.
Sense of Security and Freedom
Homeownership provides a permanent place to live and a sense of security that renting cannot match. Homeowners are not subject to the terms of a lease, including end dates or the risk of eviction at the landlord's discretion.
Personalisation and Improvements
Owning your home means you can alter it to suit your tastes and needs without needing landlord approval. This gives you the chance to decorate your home in a way that resonates with you, rather than catering to your landlord's taste. These improvements can also increase the property's value, further enhancing your investment.
Government Schemes to Aid Affordability
Recognising the challenges many face in stepping onto the property ladder, the UK Government has introduced several schemes aimed at helping potential buyers, particularly first-timers, to purchase their homes more affordably.
Shared Ownership
Shared ownership allows you to buy a portion of a property (usually between 25% and 75% of the home’s value) and pay rent on the remaining share. You can buy more shares when you can afford to (in a process called staircasing). Typically, you need a much smaller deposit to purchase a shared ownership home, making it a far more affordable option upfront.
Stamp Duty Relief
First-time buyers can also benefit from stamp duty relief, which reduces the cost of the tax paid on new homes up to a certain value. This can result in significant savings, making homeownership more attainable.
Invest in Your Future With a New Build Property
While renting offers flexibility and less responsibility for maintenance, buying a home has long-term financial and personal benefits that renting cannot match. With government schemes like Shared Ownership, the dream of owning a new home is more achievable than ever. These programs are designed to help reduce the upfront costs and barriers, making it possible for more people to enjoy the stability and financial benefits of homeownership.
If you’re in the process of finding your perfect home, then take a look at our latest developments at Sanctuary today. Or, if you have any questions please contact our team for assistance.