| "What'll happen to house prices?" Turn on the news or | | | | with a variable rate mortgage, payments aren't likely to |
| walk into a pub and there's a good chance you'll hear | | | | grow by anything like as much - and a fixed rate |
| that question. | | | | mortgage costs the same every month until the end |
| If you're weighing up the benefits of buying and renting, | | | | of the term. Plus, unlike rent, mortgage payments won't |
| the housing market's stability might influence your | | | | go on forever: one day they'll finish and the house will |
| decision, but the real question is: "What'll happen to | | | | be yours to live in for free. |
| ME?" | | | | Others rent to avoid the expenses of homeownership, |
| Imagine you buy a house tomorrow. Of course it | | | | from fixing windows to replacing roofs. Inflation might |
| matters if its value goes up or down by 10%, but | | | | drive up rental prices, but it should also keep pushing |
| probably not as much as a major change in your own | | | | salaries upwards so they (hopefully) keep pace. |
| life, like losing your job, getting promoted or having a | | | | No-one enjoys rental price increases, but at least |
| baby. | | | | they're more predictable than the costs that come with |
| What are your prospects? | | | | owning a house. |
| So start with a look at your finances. Let's split them | | | | So which set of pros and cons is more suited to you |
| into three: work, home and commitments. | | | | and your plans for the future? Ask yourself a few |
| Work: Is your job secure? Any chance of a pay-rise / | | | | questions. |
| promotion? Are you expecting your income to go up, | | | | Could your budget cope with unexpected 'homeowner' |
| down or nowhere? | | | | expenses? If not, one disaster (or a series of smaller |
| Home: Are you planning a family? If you already have | | | | problems) could mean you lose the house you'd |
| kids, are they costing you more every year, or about | | | | worked so hard to buy. |
| to leave home? Marriage, divorce, inheritance, big | | | | How much are you spending on rent today? If you're |
| expenses - changes in your home life can have a | | | | waiting for house prices to come down, you might find |
| major impact on finances. | | | | that renting for another year costs you more than |
| Commitments: Do you have any debts? Are you | | | | you'll save on the purchase price. |
| paying child support or supporting an elderly relative? If | | | | Do you need to buy now? It might be a good idea - |
| your children have left home, are they financially | | | | especially if you're young - to wait until your wages |
| independent? | | | | are higher, your career is more secure and you have |
| You can probably answer questions like these with a | | | | a better idea of where you want to live for the |
| fair bit of certainty - and figuring out if (and when) | | | | foreseeable future. |
| you're expecting things to change should help you | | | | What's your financial forecast? |
| make that all-important 'buy / don't buy' decision. | | | | No matter when you buy a house, prices could always |
| What's your monthly budget? | | | | go up or down unexpectedly. So when you listen to |
| If money is the biggest factor, there's no easy answer. | | | | the predictions, don't forget to listen to yourself. No-one |
| Some people buy because they feel they can't afford | | | | knows for sure what the future will bring, but a |
| to keep renting. If rents go up by 4% a year, today's | | | | calculator and a calendar might help you weigh up the |
| £700 rent could be £1,700 by 2030. Even | | | | risks and decide whether to buy now, later, or never. |