According to property and money savings sites such as Zoopla, property prices are dropping drastically and recent research has shown that now is the best time to buy a house rather than continue renting.
Latest figures have shown that the average cost of owning and maintaining a home is $429.000 over 50 years. On the basis of this number, buyers who own a home will save over $194,000 over half a century, in comparison to renters who will pay on average a total $623,000 in rent payments over the same course of time.
The cost of an average home to buy in London is $343,522 and would cost a renting tenant $17,520 to rent per year. Whilst that seems like a large number to own a home in the country’s capital, the total lifetime saving of that owner is an astounding $396,049: an attractive figure for those looking for a home and an investment.
The North West also offers an appealing property market with the average house price marked at $111,264 – the second cheapest in the country after the North East. Those renting in the North West and looking to buy in the area are also looking at a $300,456 lifetime saving.
Whilst renting works out cheaper over a short period of time, those wanting to put down roots in a rented property over a long period will become subject to inflation. Homeowners with a mortgage will instead see a reduction, as their mortgage interest payments and amount they owe decrease over time.
In addition to the huge financial savings that come with owning a property over renting, being a homeowner also offers a vast wealth of other benefits.
First and foremost, your property payments become an investment that will allow you to build equity, making your money work for you. These can be used for future plans such as retirement, whereas payments from renting are going straight into the landlord’s pocket, paying their mortgage and increasing their equity.
Another benefit that comes with owning a property is a whole new lease of independence with what you can do with the place you call home. Buying a property allows you to make changes and improvements that will not only enhance your home, but also increase the property’s value if and when you sell.
Owning a home also opens a lot more doors when it comes to securing other loans or potential lending agreements, as you have a sizeable asset that can be used as collateral.
With the spectacular savings and undeniable benefits to be had from owning a property, now is the most prudent time for first time buyers to begin their journey on the property ladder. Click here for further information.