Is buying still a better choice than renting?

Buying a house in 2019 is a great investment in your future, giving you a place you can really call your own.

With schemes available such as Help to Buy, you only need a 5% deposit to buy a home, which, on an average property in the East Midlands of £189,622*, would be just over £9,480. 

Help is available

If you can save up that 5% deposit, the Government’s Help to Buy scheme** – currently available on all new homes up to £600,000 – is there to make it a little easier. 

Help to Buy is a Government-backed, interest-free equity loan for up to 20% of the value of your home. This means that with your 5% deposit, you’ll only need a mortgage for 75% of the cost of your new home. The 20% Help to Buy loan can be paid back any time, or on the sale of your property, so your mortgage payments will be cheaper than they’d otherwise have been.***

And while you’re saving for that deposit, a Help to Buy ISA means that you get a Government-backed boost to your savings of 25%. So every £200 you save gets you a bonus of £50 (up to a total of £3000).

Other Help to Buy initiatives are available; see www.helptobuy.gov.uk for details.

You’re the boss

When you buy your own home, your money goes towards something you will eventually own, rather than into the pocket of a landlord. And when you finally pay off your mortgage, your home is yours to do with as you wish.

Unlike renting a home that belongs to someone else, you can decorate your home how you like, renovate, landscape the garden and make changes that will increase the value of your home. You can keep pets and take in a lodger, if you wish. You are in charge.

It’s (usually) a good financial investment 

If you’re buying a home to live in, how much you like it and how it fits in with your lifestyle should always be the overriding priority – not how much profit it could make for you. 

But it’s fair to say that, in the long term, buying your own home will usually prove to be a good investment. If you choose carefully and make sure you don’t over-stretch yourself financially, the chances are your home will rise in value and give you valuable equity when you come to move or pay off your mortgage.

It doesn’t have to be forever

There’s nothing like the feeling of putting down roots and buying a place to raise your family, but you don’t need to be settling down to see the benefits of being a home owner. 

If your job means you need to move to another town or another country for a while, there’s no need to sell your home. You can always rent it out on a short-term basis, with the rent from your tenant to cover your mortgage and bills.

When is renting a good idea?

Buying isn’t always the best choice, of course. If you’re young and haven’t decided what you want to do or where you want to live, if you’re in a job that involves moving round a lot, and if you’re not in a position to save for a deposit, renting can be the best short-term solution.

But in the long run, most of us want to own our own home and enjoy the security and freedom to create a future for a growing family. Jelson Homes is committed to helping first time buyers get a foot on the property ladder, and building communities they want to live in. 

For more information about Help to Buy and other incentives to help you move into your first Jelson home, visit our helping hand page or call us on 0116 266 1541. 

If you’re looking for a mortgage, we’ve teamed up with the experts at Meridian Mortgages who are offering a free initial discussion and advice if you quote ‘Jelson Homes’ when you call their mortgage helpline on 0116 272 0083.  

*May 2019 figures for the East Midlands region from UK Land Registry

**Help to Buy is available on all new homes, with a purchase price up to £600,000, subject to status and affordability criteria, terms and conditions apply. The Help to Buy scheme is subject to availability and may be withdrawn at any time without notice. Not to be used in conjunction with any other offer. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. Not available for second homes or buy to let properties.

***After five years (i.e. in month 61), if you have not repaid your 20% Help to Buy loan, you will begin repaying interest on that loan at a rate of 1.75%, rising annually by the increase (if any) in the Retail Price Index (RPI) plus 1% until the loan is repaid.