How can you save and build up a deposit for a house when rental prices are so high? Welcome to London and the residential property predicament.
Moving out and into your first home can be an exciting time. You’ve got a proper grown up job and it is time to cut the apron strings and make a life of your own. You’ll rent for a while in a chic apartment in the centre of London and then in a year or 2 you’ll buy your own place. Sounds great right?
Well, sadly for many this is only a dream. 4 or 5 years down the line many young professionals in London are living in a house share or studio apartment, a half hour commute to work simply because rental prices are so high. How are you meant to save for a house when all your pay goes on rent?
Many people rent because they have to. They are either unsure of the area to live in or simply can’t afford to buy. These renters live in areas where they wouldn’t be able to buy and enjoy a lifestyle that often isn’t sustainable.
Of course there are great benefits of renting a house. Contracts are flexible, usually 6 months or a year in length. This means you can easily move areas if you change jobs or decide to go travelling without being tied down. Also you can live with your friends without a great deal of commitment. You can’t decorate and if anything breaks you will have to call the landlord but for many this means a fuss free home.
Renting a property is essentials a bottomless pool for money. It may be cheaper short-term but in the big scheme of things you are better off paying that money towards a mortgage as you will reap the rewards of capital gains when you decide to sell the property.
Purchasing your first home is a life changing event. You’ll feel like a proper adult and have something that is truly your own. Plus you’ll get to put your hard hat on and smash a load of things up if you get a renovation project.
Buying a property is the sensible long term option and it can even make you money. In order to build up a substantial deposit many people live at home with their parents well into their 20’s or move out of London completely in order to find lower rental prices.
When purchasing your own home there are many buying costs to consider, such as a deposit, legal costs and the price of a survey. This may seem daunting but your estate agents will cover this in detail for you. If you are struggling to afford a property in your chosen area then you may be able to get help from the Government’s Help to Buy scheme.
Help to Buy equity loans provide you with 20% costs so that buyers only need to provide a 5% deposit. You will not be charged fees for 5 years and then you will pay the money back in increasing amounts starting at 1.75%. This scheme can be used on properties up to £600,000 which is easily afforded in London.
If you are one of the lucky ones that has been able to banish their renting woes and are now able to afford a home then head down to Islington Estate Agents, Hugh Grover Associates. They are independent residential sales specialists and know all the best place to buy and how to get you a great deal. You’ll be moved in no time at all.
Hugh Grover Associates (HGA) is the go to independent residential sales-specialist in Islington, London. Hugh Grover has nearly 30 years of experience in the Islington property market and set up the company in 1993. HGA is a respected company and is a member of the National Association of Estate Agents and the Property Ombudsman scheme. Hugh Grover Associates are the obvious choice for Islington properties.