Drawbacks of a Second-Hand Home vs Buying a New Home

Are you trying to decide between buying a house and renting? Considering buying your first home but unsure if it’s the right decision for you?

At Mulgrave Properties, we believe that owning a brand-new home can be an excellent choice for a multitude of reasons, and, while renting may seem like an easier and more flexible option, there are actually many benefits to owning a home.

In this post, we discuss the reasons why buying a new build home can be a better choice in the long run. From building equity to gaining stability and security for the future.

Drawbacks of Renting a Home Instead of Buying

• Average private rents in Great Britain have soared by more than a quarter since the start of the Covid pandemic and will keep rising, according to an analysis by estate and lettings agent, Savills. The typical private rent in 2023 ended 9.5% higher than in December 2022 and will rise a further 6% in 2024.
• The severe shortage of properties has led to intense competition for what is available, with long queues of prospective tenants at viewings, desperately paying over the odds, and some landlords demanding a year’s rent upfront.
• When you rent, you are essentially paying someone else’s mortgage, and not building any equity in the property. On the other hand, when you buy a home, you are investing in an asset that can appreciate in value over time. As you pay off your mortgage, you’re building equity in a house that has potential to increase in value, which can be a significant source of financial security for the future.
• Rising rents are stretching the already under pressure finances of those in the private rented sector. Savills estimated the average tenant household is now spending 35.3% of their income on rent, up from 33% in 2021-22. The analysis drew on a mix of data, including its own research, figures from the economic advisory firm Oxford Economics, and data on past rental growth from UK property website Zoopla.
• Although most tenancies have fixed rent for a set period, your landlord could increase it if they want to, or, if you’re on a rolling contract, end your tenancy before you want to leave.
• Getting broken appliances and / or faults fixed can take time, and landlords won’t usually allow you repair problems yourself, which can lead to a lengthy wait.
• While some landlords are willing to be flexible, finding a rental property that accommodates pets can be tricky.

Advantages of Buying a Home Instead of Renting

• Buying a brand-new home means every payment you make is taking you one step closer to ownership, whereas rent goes into your landlord’s pocket. Once the mortgage is paid off, all the equity in the house is yours.
• When you rent, you are typically limited in the changes you can make to the property. For example, you may not be allowed to paint the walls / make certain renovations. When you own your home, however, you have the freedom to personalise and make it your own. Which can be especially appealing if you have specific design or functionality needs. With Mulgrave, the sooner you buy, you can tailor your home to suit your specifications + tastes.
• When you own a home, you have more control over your living situation and can plan for the long term. This can be especially important for families with children, meaning you can remain in the same school district and community. When buying a home with Mulgrave Properties, you have the stability + predictability of owning a home in a great location across North or East Yorkshire.
• As the value of your house goes up, you could make money when you sell! Paying a mortgage each month may feel like a burden, but it can also be a form of forced savings. As you pay off your mortgage, you are effectively saving for your future and building equity in your home. This can be a good way to save for retirement or other financial goals.
• Apart from changing interest rates, which can make your mortgage repayments go up or down, how much you pay and how long you stay in your home is up to you.
• Buying a property can additionally be a great investment for the future and the mortgage you pay may be cheaper than rent. There’s also 0% Stamp Duty for first-time buyers on selected homes at many of our developments (*T&Cs apply).
• We ensure the highest level of efficiency is embedded at the point of construction, which can reduce energy expenses by an average of £2,200 per year for our standard specification homes, according to data analysis from the HBF.
• Our homes with PV solar panels could save £480 in annual energy bills based on Energy Saving Trust estimates.

Finally, there is a certain sense of accomplishment that comes with owning a home. It can be a tangible symbol of stability, and also a source of pride, as well as a place to make memories with loved ones.

In conclusion, while renting may seem like a more attractive and flexible option in the short term, buying a house can be a better choice in the long run. Providing permanence and a way to build equity and financial security for the future.

So, whether you’re looking to invest in a new chapter or simply want the freedom to personalise your own space, buying a brand-new home with Mulgrave Properties can be a great decision.

Find out more about the many ways you can save when buying our final homes in Market Weighton close to Beverley, Nosterfield near Ripon and Tollerton near York. As well as our first homes in Burniston close to Scarborough on the North Yorkshire coast, and Rufforth and Shipton by Beningbrough near York.