Renting a property definitely has its upsides. It’s a temporary obligation, which means that if you decide
to leave after your lease is up, there’s a lot less hassle in terms of paperwork and other legalities. It is
also a great way to gain independence, as you can see how it feels to fend for yourself and manage
running a household in terms of managing finances, bills, cooking and cleaning responsibilities.
However, after a few years of renting, most people decide that the next step in their life is that they
want to buy a property- something they can invest in, create a family in and leave for future
generations. Most advisors would suggest that homeownership is the best way to build wealth, yet for
those who currently rent, transitioning into becoming a homeowner can be a stressful and daunting
time. Although there are some circumstances in which renting may be the best option, for example if
you relocated frequently, becoming a homeowner gives a new sense of freedom. Here at We Buy Any
House we have compiled our top pieces of advice for those who are going from renting to owning
property.

Begin Budgeting as Homeowner:

In financial terms, the similarities between the cost of renting a house and owning a home are few and
far between. Although owning a home can be less expensive than renting, there are a lot of up-front
costs that need to be dealt with that renters don’t have. Before you get too far ahead thinking about
becoming a homeowner, its important that you are able to budget as one. Start by creating monthly
expenses and debt plans that will cover all payments, but more importantly, its critical that you work out
how you are going to have substantial savings that are a huge part of the budgeting scheme. This
includes things such as:

▫ Saving for the cost of a down payment.
▫ Savings for closing costs on the property.
▫ Ensuring you have an emergency fund for when things need refurbishing or fixing urgently.
▫ Money put aside in case you need to move or relocate at short notice.
▫ Extra money for utility deposits. E.g., if your water bill exceeded the usual amount.
▫ Insurance and tax costs.

Start By Looking at Your Credit Rating:

If you’re looking at getting a mortgage, then you might want to start by checking your credit rating.
Although you may have to pay for it, there are some companies that offer this service. It's important
that you show to mortgage lenders that you are able to pay your credit in a responsible way.

Remember That It Takes Time:

Whereas renting is quite a quick process and things can be turned around literally overnight, buying a
property is certainly not. Buying a house in itself requires a lot of work that can take months, and you
may begin to get impatient- especially if you are used to renting. It’s vital to remember that unlike
renting, buying a property means that you will have this property for a longer period of time- so take the
time to research the whole process, from mortgages, locations and finances.

Be Prepared to Change Your Lifestyle:

Although this may sound daunting, it’s nothing to fear. It’s likely that if you are considering buying a
property, then you are already aware that lifestyle changes will come with this. Owning a home is a
chance for you to plant your roots in the world of property and have freedom in terms of what you do to
your house in terms of renovations and design. However, it’s important to understand that when it
comes to buying property, you will have to change your lifestyle in order to accommodate all the
finances you are expected to cover in the coming months.

You Are Responsible for Repairs and Expenses:

When it comes to renting, luckily, you are not responsible for all repairs and expenses when it comes to
your property. However, when you own a property, you won’t have the luxury of ringing your landlord
to come and fix any issues or problems with the property. When owning your own home, you are
responsible for the designated space and everything in it- so if something breaks, leaks or needs a
repair, then you will have to pay the bill. Due to this, it’s a good idea to keep spare savings in case of an
emergency, as fixing things can be costly.

No More Bundle Bills:

Most landlords will give you the option to bundle your expenses and bills, and pay for everything in one
go including water, electricity etc. However, when you become a homeowner, this is no longer an
option- and all your bills will be separate. All your bills will come through separately, and although your
mortgage may be cheaper than what you were paying in rent- the other expenses will make up the
difference. It’s important that you take extra care to plan your monthly finances, as you don’t want to be
in a position where you are unable to pay bills.

Source:Propertypro