To Rent or To Buy?… That is the question!
Ok – this is going to sound bias coming from a firm of builders trying to sell houses but we think the answer should be fairly straightforward. Circumstances change FACT!
People need a home for many reasons:
- people need to relocate,
- people move in together,
- people get married,
- people want their own independance,
- people extend their families & need more space,
- people get separated/divorced.
These all are examples of real life. The number of potential buyers out there who need a home is multiplying rapidly and demand for housing isn't a luxury it’s a necessity!
So what are the options?
The options available are limited when you need a roof over your head and essentially they are rent or buy!
We want to look at the advantages and disadvantages of both options and try to be as impartial as possible.
Buying vs Renting
To begin with you should be armed with all the information to help you make an informed decision on what works best for you & your circumstances. The following information should help you with your decision, by focusing on the key points involved in buying a house and of renting.
B U Y I N G
R E N T I N G
“There’s Never Been a Better time to Buy a new Home”
Conflicting reports on the state of the local economy and more importantly the housing market have led to a lot of confusion for would be buyers. It would seem that not a day goes by without some mention of the credit crunch & the impact its having on our businesses and our house prices. Switch on a TV, listen to the radio or pick up a Belfast based newspaper and we are bombarded with doom and gloom so much so it barely seems newsworthy any more. BUT we don’t think its necessarily all bad news in fact the impact that its having means that its actually an excellent time to purchase your first home & heres why.
Obviously the public will always believe its in our interest to “talk up” the market but the fact of the matter is that on a local scale property is still moving. Essentially everyone realises that homes are not a luxury they are a necessity and whilst the rental market is very strong, first time buyers have an underlying desire to be homeowners. Indeed with many of the mortgage deals available at present (in the majority of cases) mortgage repayments can often be lower than rentals demanded in the surrounding areas. Here and now the reality is that the local housing market is stabilised and whilst perception may be that it is as difficult as ever to obtain a mortgage Armoy Homes would disagree - but don’t take our word for it consider the following:-
* PRICE REDUCTIONS
Some of Armoy Homes new developments have seen price adjustments of up to 50% in some cases. Many figures & surveys carried out have been on a regional scale which is pointless data for our local market.
* WOULD BE BUYERS ARE STILL OUT THERE
We talked earlier about demand and the fact that there are countless people all in search of a home. We know from our sales that there are genuinely buyers out there with the desire to own their own home. Realistic prices attract genuine buyers and we believe we have the guaranteed lowest new build prices across our spectrum of developments.
* VARIETY OF PURCHASE OPTIONS
To try to instill momentum into the housing market we are finding that many lenders are trying to implement & introduce new ways to help first time buyers. There has never been as favourable a time to buy as regards interest rates & purchase options. Contrary to general consencous a deposit is NOT always required and in some cases a 5% deposit is enough to secure a mortgage deal with certain lenders meaning the house is 100% yours from day one.
TURNKEY
We are all too aware of the difficulty and cost involved when looking for a home and Armoy Homes believe that offering turnkey homes as standard is one of the best ways to help buyers get started.
All new homes in all locations are finished to a high turnkey standard that we are confident is second to none. Choice of kitchen, sanitary ware, fireplaces/stoves, painting, flooring and even blinds are included leaving the homes virtually ready to occupy.
Armoy Homes believe they have a home for everyone. We can offer 4 prestigious locations all convenient to major road networks and all finished to the same high standard that Armoy Homes are renowned for:-
WORKING EXAMPLES OF MORTGAGE OPTIONS:
NORTHERN IRELAND CO-OWNERSHIP HOUSING ASSOCIATION (NICHA) - This scheme helps people to own their own homes through equity "sharing", which means part-buying and part-renting the property of their choice. If a person would not normally be able to buy the home they need on a full mortgage, the Co-Ownership scheme enables them to buy as much as they can afford initially, with no deposit & with the option of buying the rest from NICHA at any time.
Co-Ownership rents are worked out on the value of the property and the size of the share the participant takes. The larger the share the lower the rent. To start with the participant buys at least 50% of the value of the property, through a mortgage in the usual way and pays a rent to NICHA on the other part of the property. If they can afford it the participant can buy 62.5% or at most 75% of the property at the start. How and when they increase their share after that is up to them.
Example
| Purchase price* | | £100,000 |
| NO DEPOSIT 50/50 Equity Share |
| Mortgage for | | £50,000 |
| Rental Share | | £50,000 |
| Mortgage Repayment | £214.84 | | |
| Co-ownership Rent Repayment | £105.16 | |
| Monthly Repayments | £320.00 | |
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With rents in the locality averaging £450 month + rates surely there has never been a better time to buy when compared to the example above.
*Based on a 3 bedroom property at £100,000 over 35 year term
Figures correct at time of print 30.9.10
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100% mortgages?
What if I have some deposit saved?
If you have some deposit saved but maybe not the typical 10% Brendan in our mortgage department will be able to match you to the deal best suited to your circumstances. We appreciate everyone is individual and treat everyone with exactly this in mind. For example we are now able to offer a builders 5% gifted deposit:-
| Purchase price* | | £100,000 |
| Your Deposit | £5,000 | |
| Builders Deposit | £5,000 | |
| Mortgage for | | £90,000 |
| Based on Standard Variable Rate @ 4.58% | £214.84 | | |
| Mortgage Monthly Repayments | £430.30 | |
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Again a fabulous turnkey home 100% yours for less that local rentals in the area!
*Based on a 3 bedroom property at £100,000 over 35 year term
Figures correct at time of print 30.9.10
Subject to lenders terms & conditions
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SO BASICALLY………
No deposit is necessary if purchasing through NICHA scheme and subject to lenders criteria. Alternatively we can offer first time buyers a brand new house with deposits from as little as £5000 subject to status etc available through our mortgage department.
Figures & rates provided in the examples are correct at time of print 1.10.10 but may
be subect to change.
WHAT TO DO NOW?
HAVE A LOOK AT WHAT IS AVAILABLE
APPOINTMENT Call into our office at Linenhall Street or ring to arrange an appointment to view any of our new developments. We will be happy to meet with you on site to discuss all aspects of your potential purchase and to assist you in any matters that you are unsure about.
OR
SHOWHOUSES The ‘Castlehill’ development in Castleroe & ‘Bann Meadows’, Bann Road, Ballymoney both have showhouses open and anyone wishing to have a look around to see the high standard of finish or to have a chat about the purchase options that may be open to them will be made more than welcome. Bann Road generally has a showhouse open throughout the working week & if passing please feel free to call in.
Unlock Your Buying Potential
Armoy Homes|Property Services are pleased to be working in association with Brendan Butler Insurance and Mortgages NI (CeMap and FPC qualified adviser). Brendan will offer our clients impartial, sound advice on all their mortgage and financial requirements when purchasing or selling their home.
Brendan can be contacted directly on 028 207 69488 or call in at his office Dalriada House, Coleraine Road, Ballycastle or alternatively through Heather at Armoy Homes sales office 028 276 65138.
So with plenty of great deals and a wide choice of property around, if you are a potential first-time buyer we say grab this opportunity now while you still can! A simple informal chat doesn’t commit you to anything and we think you will be pleasantly surprised with the options that may be open to you.
Armoy Homes|Property Services are pleased to be working in association with Brendan Butler Insurance and Mortgages NI (CeMap and FPC qualified adviser). Brendan will offer our clients impartial, sound advice on all their mortgage and financial requirements when purchasing or selling their home.
With so many mortgage and shared equity/ownership schemes available it is important that you choose the right option for your current needs and circumstances.
Insurance and Mortgages NI, will be pleased to provide you with mortgage advice and recommendations to suit your individual circumstances. They can guide you through the home buying process, no matter where or which estate agent you choose to purchase your home.
For further details, please speak to Brendan Butler on 028 20769488,
or call into his office at 35 Castle Street, Ballycastle, BT54 6AS.
www.insuranceandmortgagesni.com
Your home may be repossessed if you do not keep up repayments on your mortgage.
Brendan Butler is a trading style of Insurance & Mortgages NI,
which is an appointed representative of Intrinsic Mortgage Planning Limited
which is authorised and regulated by the Financial Services Authority.
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