Seddon Blog

First time buyers, what are you waiting for?

Posted on February 3rd, 2017

So, you’ve been living at home for a while now, and whilst your mum’s shepherd’s pie on a Thursday may be one of your favourite home comforts, it might just be time to fly the nest. Even if you’re not living at home but are renting the house or flat you’re in, is it time for you to think about your future?

First time buyers

Owning your own home comes with a whole host of advantages that renting and living at home simply can’t offer. Are you tired of only having your bedroom as your relaxing get away? Maybe that football game on Sky Sports would be more comfortable sat on your own sofa in your own front room, instead of at a laptop on the kitchen table. Whatever your reason for leaving your current living situation behind, buying a property might just be the best thing you ever do.

So, let us identify some of our favourite reasons for first time buyers to start their climb up the property ladder.

1) The Investment

So, you’ve saved up your deposit by living at home or renting, which is fantastic as it means you are in control. You can now use the money you’ve saved up to put towards a new home, which can be a lucrative decision if using Help to Buy.

Help to Buy allows you to save a 5% deposit, which is added to by 20% from the Government in the form of an equity loan. This process means that you to only need a 75% mortgage. Amazing!

Oh, you don’t have your deposit saved yet? But you’ve seen a home you like? Make sure you check out our Deposit Builder scheme here!

Let’s pretend your home buying process is over and you’re moved into your new home, and let us fast forward 5 years into the future. Now unlike a car, items of clothing or laptop, a house tends not to depreciate or lose value but usually gains value! Combine this with the fact your debt has decreased as you’ve been paying your mortgage off, results in you having made a stable investment.

2) The Stability

If you take out a fixed-rate mortgage, your repayments will be the same throughout your repayment period. So, if you’re paying back £400 per month in 2017, you’ll be paying the same in 2027, which is not always the case if you were renting. If you had rent to pay which may increase annually, it makes your life slightly more unpredictable as you cannot ensure stability with your finances.

3) The Privacy

This is self-explanatory, your own gaff means new levels of freedom. No more nagging to pick your clothes up, do the dishes or turn your music down. Whether you want to stay up all night watching documentaries or want to just sleep on the sofa after a big night on the Friday, no one can tell you differently. Personally, we feel that having your own space is one of the biggest pulls to owning your first home.

4) The Security

This links quite heavily with the stability factor of owning your own home, but there are a number of security factors to consider when you buy your first home.

Firstly, you only have to worry about paying back the mortgage repayments on time. So, set up a direct debit or standing order with your mortgage provider and make sure that it’s paid. Once you’ve done this, you have the security of somewhere to call home with no stress. There is no landlord who can turf you out, only having to give you a month’s notice, you are, in effect “the boss”.

Renters will find that their as well as rent increases and landlords evicting them, they’re still reliant on someone else to solve their problems. If your boiler breaks in a rental home it could be weeks before your landlord gets around to fix it. In your own home, this can be sorted as soon as possible as it is up to you – no one wants to shower in cold water!

As we’ve mentioned, rent rises, fixed rate mortgages do not. So, get locked in with your mortgage provider, and get living, safe in the knowledge that you can afford to do so! Whether it’s a holiday, a new furniture suite, a new car or whatever, the security of knowing you are in control opens up a whole new world to you.

5) The Progression

Has your dad ever said to you that you need to start planning for the future? Maybe your mum’s been on at you asking what your next steps are going to be? Well, we’ve all been there at some point (usually at family gatherings – aunties and grandmas seem to rejoice in knowing your life plan) – buying a house offers a great answer to those questions!

By buying your own home, you can progress further up the property ladder as you already have a basis to build on. The equity which is gathered through paying off your mortgage offers funds to progress to a bigger home in the future should you sell. By using a home equity line of credit also opens up plenty of opportunities with banks and lenders as well, which don’t necessarily need to be property related, but having a mortgage helps.

So, if you’ve read this and now you’re thinking about moving into one of our new build homes, visit your local development where our sales advisor can help you on your customer journey.

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