Expert Remortgage views & facts

Right to Buy - Pros and Cons of Becoming a Homeowner - 9 May, 2008

Pay rent for 25 years and what do you have to show for it? Home ownership isn’t always easy, but there’s a light at the end of the tunnel when you’re paying off a mortgage: once you’ve made the final payment, that’s it.

But that doesn’t mean it’s always a good idea to own your own home.

Is it Wise to Buy?
If you’re a council tenant and you’re wondering about the government’s Right to Buy scheme, the discount you’d get shouldn’t be your only consideration. Unless you’ve owned a home in the past, home ownership could be very different from what you imagine. Take a look at just some of the pros and cons:

Pros...
Buying your home could be the wisest move you’ve ever made. It’ll make a huge difference to your financial independence – every time you make a payment, you’re financing your own future, building up valuable equity.

Plus, you’ll ‘be your own boss’. If you want to paint your entire home, re-carpet the hallway or knock down a wall, it’s your home, your hallway and your wall – there’ll be no landlord to ask for permission.

...and cons
However, home ownership comes with responsibilities. You’ll be responsible for any repairs / upgrades. You’ll need to take out home insurance. You’ll need to pay for water, heating and other bills that might be included in your current tenancy agreement.

Plus, you’ll have a whole range of new things to worry about: weather damage, interest rates, trends in the housing market, local changes that could affect the value of your home…

More info on Right to Buy mortgages
A look at Right to Buy discounts