Investing in property is a big step, especially for first time buyers. It’s normal for prospective buyers to spend a long time mulling over the idea of buying property before taking the plunge. However, with property prices rising every day, it’s probably not a good idea to spend too long procrastinating! Buying property in the UK has long been considered a wise way to spend your money; let’s take a look at a few reasons why buying sooner, rather than later, is usually the best bet.
Most UK buyers are aware that the money they spend on a home isn’t just ‘gone’; any property purchase should be seen as an investment, regardless of whether you choose to live in the property or not. With property prices across the UK rising every month, especially in sought after rural areas and big cities such as Birmingham and Liverpool, it’s usually wise to buy as soon as possible, particularly if waiting means postponing your purchase by a year or two. In the past year, UK property prices have risen by 5.2%, an amount which will easily have added thousands of pounds to your purchase if you’re buying this week rather than last year. Why wait? today, because it’ll cost you more tomorrow.
Stop wasting your money on rent
If you don’t already own property, the chances are you’re paying somebody rent. Unlike most of the money you pay on a mortgage, rent is really just money down the drain – at least for you. The average monthly rent in the UK is over £1,000, while the average rent in London is a staggering £1,871. Imagine saving £12,000 or more in a year – that’s £12,000 to spend on holidays, a new car, or even to invest in more property.
On the flipside of this, even if you do already own your own home and you’re considering buying a second property to let out, every month that you put off buying your new property is another month’s rent gone. Again, this will add up substantially over the course of a year. If you think you do want to take the plunge into Buy to Let property investments, it’s always best not to hang around.
2018 is a good year for buyers
While ‘now’ is usually better than ‘later’, there are a few other reasons why buying property this year is a good idea. The chancellor abolished stamp duty on all properties bought by first-time buyers up to a value of £300,000, which means a saving of up to £5,000 for these buyers. In good news for all buyers, despite an interest rate hike in spring, interest rates are set to stay low for the coming few years. Finally, between the increasing number of new homes under development across the country and the effect of ‘Brexodus’ mass migration and uncertainty, pressure on UK housing is relatively low in comparison to previous years, making property as affordable as it’s likely to be for a long time.
If you’re keen to get your foot on the ladder, it’s a good idea to start arranging a mortgage and browsing UK properties now, so that you’re ready to pounce when the perfect property comes along. In other words, the time to invest in property is now. With property prices – particularly those offered for modern developments and new builds – relatively low despite a healthy, growing market, UK property remains a solid investment across the country.