Nearly 90% of people in the United Kingdom dream of owning their own home. But, having a property in your name isn’t the only benefit. It can propel your financial situation, help you out in the future and be a huge personal achievement. Here, we explore each in more detail.
Freedom and security
Owning a property instead of renting gives you more stability. You don’t need to worry about a landlord increasing the rent and setting ground rules. There’s no risk of your contract being cut at short notice and, as long as you stay on top of bills and mortgage payments, you can enjoy your new home for years to come. Plus, you have the option of settling down for the long term.
Homeownership means you can decorate the property without permission from a landlord and gain from any home improvements. From hanging photos on the walls and painting certain rooms to extending or even doing up the garden – when you own your own home, it’s easier to create a life and property that you want.
You can also live however you like and have as many pets as you wish.
Moving house or buying a new property costs money. But, in the long run, this could actually make you money and save you money. Unlike monthly rental costs, monthly mortgage payments are being used to allow you to own more of your property. When you combine this with mortgage payments on a fixed-rate term, you’ll know exactly what you have to pay each month and there’s no risk of it going up. This can help with budgeting.
When you have your own home, you can take advantage of fluctuating market conditions too – and could excel your financial position from selling. Or, you could rent it out, or rent a room out in your property and make regular money.
Homeowners have multiple options when it comes to the capital in their homes too – which can either be used as savings or a pension plan later on. Many older homeowners choose to downsize and use the capital in their house to live off. And those looking to upsize can do the same – by getting their property valued, and using the capital and a slightly bigger mortgage to afford their dream home. It always pays to get a few different opinions on your property’s value – GetAgent, Rightmove and Zoopla all offer a free property valuation service that takes into consideration current market conditions and any work carried out to your property.
Finally, a study from a HomeOwners Alliance found that 91% of those who own their own home said it contributed to positive wellbeing. This was compared to only 79% of those who rented. That’s before we even think about the self-asteem and pride that comes from purchasing your own property. One report even found that homeowners were happier than renters for two reasons. One, it helps to build personal wealth and, second, it allows us to create valuable memories.