News broke last week and made headlines online on various property websites and in the mainstream press that buying a house is now officially cheaper than renting.
We think it’s true and not just in east Leeds, but in many places across the UK (London and the south east perhaps excepted).
Look at the figures.
If you were to buy a property in Middleton, Beeston or Harehills for an example figure of £100,000, your monthly repayment would amount to around £370 for capital and interest repayment, a figure lower than rental.
The sticking point though comes with the deposit: you’d need £10,000 saved as a deposit to get a 90% Loan to Value and even then there’s restrictions.
Many mortgage lenders now rely heavily on “Affordability” where you’re expected to enter income and outgoings and they assess whether you can make the repayments.
Child care, council tax, utility bills, credit cards, HP are all calculated for the decision in principle to be issued.
Your age matters too.
You may or may now know that most lenders won’t allow a mortgage term that takes you beyond the age of 70. So if you’re 55 and looking to buy that £100,000 hypothetical property in Leeds, your mortgage payments will be much higher as the term will be for 15 years. You’re looking in fact at a monthly payment of £570 with most lenders.
Either way though, if you can afford to buy a property, the consensus is you should.
Property goes up in value.
In fact if you’d bought a Leeds property 20 years ago, you’d have paid £99,000 for a terraced home across the whole city and it would now be worth £147,000.
At Hogan’s we have many buyers registered and waiting for the right property to come up in East End Park, Seacroft, Beeston, Harehills, Middleton, Gipton etc and if you’re planning to move or just curious about your property value, contact one of our local experts today at Hogan’s.
We’re here to help you as an investor, seller, buyer, or tenant.