With
mortgage rates tripling over the last 12 months, one could be forgiven for thinking
buying a Bridgend home as a first-time buyer would out of the question.
Yet,
what if I told you, it is £254 a year cheaper to buy a Bridgend home as a
first-time buyer than renting, would you be surprised?
The average 2-bed home in Bridgend is worth £183,290.
The monthly homeownership cost of such a Bridgend home (including the mortgage payments,
property maintenance, and insurance bills) comes to £778.82 per month compared
to £803 per month for the same Bridgend house for rent.
Because
Bridgend rents have risen like a rocket ship in the last two years, this
has helped to tip the balance in favour of homeowners.
This is based on the average first-time buyer mortgage with a deposit of 23% (that being the average last year for a first-time buyer nationally) and industry-recognised amounts on property maintenance and insurance bills.
Yet I thought 23% seems quite high, so I
thought what it would cost with a smaller deposit of 10%.
Before I answer that, I believe the ‘buy versus
rent argument’ is more than a simple pound notes question. Let me expand.
Renting a home in Bridgend
has several advantages.
Firstly, renting allows for short-term living
arrangements, with tenancies often lasting just six months. This provides
flexibility for those who want to try out a new location or property.
Additionally, renters are not responsible for maintenance costs, including
broken boilers, and may have the option to rent a furnished property. There are
also lower upfront costs, as renters do not need to pay legal fees, maintenance
costs, stamp duty or a mortgage.
However, there are
also some disadvantages to renting in Bridgend.
Bridgend
tenants face large upfront costs, including a deposit and first month’s rent –
and landlords may increase rent. Renters also lack control over maintenance and
may have to move if the landlord decides to sell the property.
Additionally,
they may have to battle landlords to receive their full deposit back.
On the other
hand, owning a Bridgend home provides long-term security and the ability to
decorate and control maintenance. Even though mortgage interest rates have more
than tripled in the last 18 months, mortgages are currently still comparatively
low compared to the long-term average. Let’s not forget …
Bridgend homeowners
can benefit from property price increases.
However,
saving for a deposit can be difficult and homeowners are subject to the housing
market and price fluctuations. They must also pay mortgage and legal fees and must
foot the bill for repairs.
Let’s be
frank, both renting and buying a Bridgend home have advantages and
disadvantages.
Renting offers
short-term flexibility and lower upfront costs, while owning provides long-term
security and control over maintenance.
It is
important for individuals to carefully consider their financial situation and
personal preferences before deciding.
So, let me
look at Bridgend first-time buyers who have a 10% deposit.
It is £1,267 a year more expensive to buy a Bridgend home, as a first-time buyer with a 10% deposit, than rent.
Yet
when that annual figure is broken down into a monthly figure, surely paying £105.59
a month, with all the advantages mentioned above, is still worth it to buy your
own Bridgend home?
To
conclude, whether it’s worth buying a home or renting a home in Bridgend
depends on your personal circumstances and priorities.
While
owning a home can offer security and stability, it’s important to consider
factors such as your future, financial situation and long-term goals.
Before
deciding, take the time to ask yourself the right questions and weigh up the
pros and cons carefully. By doing so, you can ensure that you make a choice
that is best for you and your family’s future.
These
are my thoughts, what are your thoughts people of Bridgend?
