There is a lot of media focus right now on the difficulties many are facing when trying to get on the property ladder. We are told that we could be seeing a whole generation of people who will spend their whole lives renting. It’s easy to listen to the doom and gloom, but if owning your own home is your dream, then don’t give up. Some things are worth the hard work. Here are some obvious and some not so obvious benefits of home ownership:
Once you own your own home, or paying a mortgage towards eventual ownership, you have an immediate advantage over those who don’t. It’s much easier to get approval to borrow money for other things. You will probably need to wait for the mortgage to settle a while but by far the cheapest way of borrowing further money is to add it to your existing mortgage. It’s not a guarantee of course, but you will be looked on more favourably. For Property for sale Cheltenham, visit https://www.ocheltenham.co.uk/
Improved credit rating
Evidence that you have been paying your mortgage regularly and on time will help improve your credit rating. It pays to consider the health of your credit score as the higher the score, the best interest rates you’ll receive when you apply to borrow money. Owning a property also gives you collateral on which to take out ‘secured loans’ on the property. Interest on these types of loans is often lower as it is spread over a much longer period. These loans can be useful for home improvements, buying a car or a holiday of a lifetime.
Useful money spinner
Unless something bizarre and awful occurs, your home will automatically increase in value over time but there are loads of other ways to make a bob or two out of your home. If you don’t live there permanently, you could rent it out through Airbnb. Perhaps you could take in a lodger if you have a spare room. If you live in a prime location with inadequate parking, you could consider renting out your driveway or allocated parking spot if you don’t use it.
Sense of Community
Renters can walk away from a property or area when their lease is up but when you invest in a property, you feel a deep-rooted connection to the local community. Psychology studies have repeatedly shown that a sense of belonging and a common bond with our neighbours increases our happiness. You’re more likely to get involved in local events and help protect your neighbourhood, whether by campaigns to keep it clean or through neighbourhood watch schemes.
Once you have your own place, there’s no more sneaking around your parents’ home and having awkward encounters with your partner. Once you have the key to own place and can lock your own front door, the place is yours with no annoying or embarrassing interruptions from your mum or younger sibling!