There have long been two schools of thought about the best way to secure a place to live. For those who can save a deposit, who have stable employment and earn enough to both service the mortgage and maintain the property, home ownership has proven in the past to provide security and capital gain.
For the rest of the population, renting has been the other option, and for many people in Liverpool it has given them years of stress-free living. Provided they pay the rent on time, they have little else to worry about as the property maintenance is looked after by the owner or property manager. Better tenancy laws now give them a more secure environment and they have legal avenues to pursue if the owner becomes unreasonable.
Rent vs. Buy Figures Very Similar over a 30 Year Period
The rent or buy question has again been raised following the recent release of up-to-date figures comparing the two. The overall results are broad and may vary from region to region, but basically the figures show that over a 30 year period, the cost of a mortgage and the cost of renting in the current economic climate are very close at around $1 million in total.
Professional home valuations in liverpool show that in our own area, these figures are close to the mark. Low interest rates are driving the push for home ownership, and for those who meet the eligibility criteria, now is a good time to buy a home. We make this statement with caution as we know that interest rates are historically very low. At some time in the economic cycle they will begin to rise and when they do, mortgage holders who have extended themselves too far financially will feel the pinch.
Low Interest Rates won’t be Helpful for Many Tenants
At Prudential Real Estate Liverpoolwe have many clients who find home ownership a burden for a range of reasons. For some of our tenants on low incomes it is completely out of their reach regardless of interest rates. They are good tenants who pay their rent on time and look after their rental accommodation, but have no extra financial capacity to pay for repairs or home ownership responsibilities like rates.
Others are in jobs where they move around a lot and they prefer a gypsy lifestyle. Renting suits them perfectly as they just have to provide the normal notice period and they can vacate the premises and move on. Some have medical conditions that require them to be close to hospitals and other facilities.
Everyone has a different story and different needs in home accommodation. They should take note of their own particular circumstances and make the decision that is best for them.
