Mortgage costs rising and households with the increasing cost of living pressure – the question facing whether to buy property in Stockport or rent is becoming one of the most relevant topics for the average prospective homebuyer. So lets talk renting vs buying….

Ponder the Outcomes

Property prices have seen a surge in the 2020s that resulted in average house prices now being 25% higher than five years prior. However, the shortfall in the rental properties and high tenant demand has been even higher, with the rental price increase of 30% in the same period.

Although mortgage interest rates have risen over the past 6 months, there are still lots of mortgage deals if you have a minimum 5% deposit. With house price inflation forecast to stabilise, is now the best time to rent or buy?

Should I Buy or Should I Rent?

If you look at the upfront costs, it is undoubtedly cheaper to seek advice on renting a house. Deposits have been capped at 5 weeks’ rent since June 2019 and you only need to pay the equivalent of 1 week’s rent to reserve a property.

Buyers have much higher costs which, in addition to finding the 5% deposit which is in the average region of £7,500, you will also have survey and solicitor costs that add up to over £1k. Stamp duty may also factor into the equation. First-time buyers are exempt from this provided they are not purchasing a home over £425,000.

The longer-term benefit of buying property in Stockport is that your mortgage payments gradually build up equity. Those who would have bought their home 5-10 years ago would substantially be better off than if they had gone for renting a property.

Pros and Cons

The pros in renting can be summed up in that the tenants can move within relatively short notice, have lower upfront costs and can rent a home in an area where it otherwise would be out of the question to buy in the price range. The landlords are also responsible for repairs and maintenance, building insurance and any service repair charges.

The cons are that you will not build any equity as you are effectively paying your landlord’s mortgage and not your own, and there is less security as your landlord can raise your rent or request that you leave the property when your lease is up.

The pro in buying property is that you can build equity as you pay your mortgage and there is an opportunity to benefit from rising house prices over time. You also have a lot more freedom in improving your property and altering your living space as you wish.

A con in buying is that there is the risk of negative equity if house prices fall, you have higher upfront costs and less flexibility to move if your circumstances change. You are also responsible for any maintenance required.

For 2023, your decision to either buy or rent comes down to your circumstances, lifestyle and long-term plans. For help finding a solution, call the team at Joules estate agents Stockport for help in finding a property.

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If you have ever purchased a property in the past, you know that it is a mixture of both excitement and overwhelming. You will remember the costs involved with buying a new home, but every home purchase comes with its unique challenges.

To better understand those looking to buy property in Stockport, the process can help alleviate some of the stress and better prepare yourself for those unforeseen hurdles to jump over. Here are some tips for homebuyers that are seeking buying property advice, especially if you are a first-time buyer.

Understand the Cost

Many people may not fully understand that buying a house requires a lot more than simply paying a deposit. There are plenty of costs that are easy to initially overlook such as stamp duty, mortgage broker fees, mortgage surveys, conveyancing solicitor fees and moving costs.

When you are a first-time buyer, you will probably need to keep a large amount of money to be able to furnish your first home and fully decorate it to your liking. This adds a lot to your costs around buying a home and is something you need to plan for.

Set Your Budget

You will no doubt search for homes you desire over ones you can afford, which will add a lot of stress to your house search and can lead to over-stretching your budget.

There are online calculators available where you can figure out how much you can realistically afford and what your monthly mortgage payments will be. When searching online for new houses, focus searches on houses that stick within your budget parameters so that you avoid disappointments as you go down the line.

Agreement in Principle (AIP)

Once all of the costs have been calculated and the amount you can afford has been figured out, you could look into applying for an Agreement in Principle, also known as a decision or mortgage in principle.

An AIP is a written estimate from a mortgage lender indicating exactly how much you can borrow. This is an attractive measure for lenders and estate agents as it gives a clear indication that you are in the market to buy, giving you a step in preference towards them for available properties.

Sell Before You Buy

You may require the proceeds from the sale of your current home to help fund your next purchase, and if you are looking at how to sell a house and for everything to go smoothly, you will need to engage with your local estate agents Stockport. The selling process can sometimes be a lengthy affair and chains can get complicated, so it pays to have someone dedicated to helping to sell as effectively and smoothly as possible.

Tips for homebuyers – Contact the team at Joules estate agents today to help you make an informed choice in your next move.

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If you are looking to buy property in Stockport or in the process of exploring how to sell a house, you need to consider exactly what type of agent you want to work with.

A national chain may seem like a safe bet, but the reality is that these chains care about the bottom line more than anything. Many people are not happy with just being a number on a national chain’s whiteboard, opting to have their best interests in hand with an independent estate agent that goes above and beyond for their clients.

Let us explore why working with an independent estate agency is more beneficial.

Passion

Independent estate agencies are born out of a passion for the sector, not filling a seat with someone just as a job. This is why local estate agencies have lasting local relationships and in-depth knowledge of schools and transport links throughout the area.

Independent estate agents have chosen their profession because it is much more than a job, it is something they have an active interest in. This also provides an opportunity for the work to be more cost effective for you as they don’t need as much staff or offices as a national chain, keeping their overheads low and not requiring as much pressure to hit monthly sales targets.

Their passion will be reflected in the trust, reputation and relationships they have forged with existing businesses and locals in the area, including a pool of trusted sellers and buyers for the area that you can get the early bird notification about.

Service

One of the best advantages you get from an independent is that they are not as pressured or hectic as a national chain is when it comes to you wanting to make enquiries, meaning you are not left waiting to get a response.

You stand to get a better, more personal relationship with an independent agent as they have fewer people to deal with and you can talk directly with the person you are dealing with, not a part of some national call centre where you have to rely on different staff members updating all records and correspondence.

These are just a few of the reasons why you should be talking with an independent estate agent. Contact the team at Joules estate agents Stockport, your dedicated and personalised agent for buying property advice.

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