“What’ll happen to house prices?” Turn on the news or walk into a pub and there’s a good chance you’ll hear that question.
If you’re weighing up the benefits of buying and renting, the housing market’s stability might influence your decision, but the real question is: “What’ll happen to ME?”
Imagine you buy a house tomorrow. Of course it matters if its value goes up or down by 10%, but probably not as much as a major change in your own life, like losing your job, getting promoted or having a baby.
What are your prospects?
So start with a look at your finances. Let’s split them into three: work, home and commitments.
Work: Is your job secure? Any chance of a pay-rise / promotion? Are you expecting your income to go up, down or nowhere?
Home: Are you planning a family? If you already have kids, are they costing you more every year, or about to leave home? Marriage, divorce, inheritance, big expenses – changes in your home life can have a major impact on finances.
Commitments: Do you have any debts? Are you paying child support or supporting an elderly relative? If your children have left home, are they financially independent?
You can probably answer questions like these with a fair bit of certainty – and figuring out if (and when) you’re expecting things to change should help you make that all-important ‘buy / don’t buy’ decision.
What’s your monthly budget?
If money is the biggest factor, there’s no easy answer.
Some people buy because they feel they can’t afford to keep renting. If rents go up by 4% a year, today’s