Moving to a new house in the New Year: pros and cons
The New Year is generally a time when people consider and take stock of where they can improve their lives, be it in a small or a large way. Whether it’s a small change like going to the gym more often or a large change such as a new job or bringing a new life into the world, debt management issues need to remain at the forefront of plans. One area that people often look to change is where they live, which can mean a great deal of DIY or home improvement or it can refer to a clean slate in the form of moving to a new house. Anyone with a debt management plan will be well aware of how tight times are at the minute but moving to a new house can make good financial sense, if done under the right circumstances. So, what exactly are the pros and the cons of moving at the start of a new year and what do people need to bear in mind?
In terms of moving at the minute, there are some great deals on offer in terms of mortgages as well as when it comes to the buying properties themselves. Indeed, some deals offer up to 95 per cent value mortgages, which are ideal for many. With initiatives such as NewBuy, there are great incentives available for buying homes, especially if you a potential first-time buyer and looking at newly built homes. What’s more, if you are buying a newly built home, there could be in affect certain financial incentives offered. Not to mention the new house feeling as nobody will have lived there before you.
There are currently around 1.5 million new homes built in the UK every year and Linden Homes’ sales director Steve Woomble is quoted by Easier Property as saying that buying new homes makes a great deal of sense.He said: “In today’s market place, with so many incentives available, the argument for buying new as opposed to old has never been greater. There are massive benefits to ease the financial burden and stresses related to moving your home.” Also, if you can afford it financially, then it can make a great deal of sense because it’s a well known fact that most of the time buying a home makes more sense than renting. Much of the time, rent each month will outweigh what a well-negotiated mortgage would be, and you will get collateral and something at the end of it all.
However, before you go steaming in to sign a mortgage and tie yourself down to a very long-term agreement, you need to ensure that you can properly afford it and that it makes sense to do so. From a purely personal point of view, are you planning on sticking around for a good few years or are you keen to move on to a new job or a new area of the country, or even abroad? If you don’t want to commit to living somewhere for a number of years, then home ownership may not be for you just yet but if you are, such as those who have a family, then there are still boxes to tick.
Consider what money you have coming in each month and then look at how much you could afford to put towards a mortgage. If you misjudge this, then you could end up committing to paying out a major chunk of your income and quickly rack up debt. It’s also important to time it right when it comes to buying. The housing market is a complex one and waiting for a period of months can mean the difference between an absolute steal and an overinflated price tag. The main thing to remember is that home ownership is a big commitment and if you aren’t convinced about it then it’s probably not for you. It can be an incredibly positive thing to do, financially speaking, but at the same time if it’s not right for you, it has the chance to cause a lot of financial worry. Don’t treat it as just another New Year’s resolution, because it’s a lot more important than just cutting down on junk food and going to the gym more often – it’s a major commitment.