The long-term cost of owning your own home - is it worth it?
Buying a property in today’s market isn’t easy; especially if you’re looking to buy in a popular city location. It isn’t just the cost of purchasing a property which has increased over the years, the cost of running a home can also be really expensive. So, the question is, are the high costs associated with owning your own home worthwhile?
What are the long-term costs of owning a home?
Before you can determine whether owning your own home is a good investment, you need to have a good understanding of the costs involved. When working out long-term costs, consider the following:
- Mortgage
- Utilities
- Maintenance
- Cleaning materials
Most homeowners consider the cost of the mortgage, but few take into account the cost of cleaning materials. This is because when you’re paying something like £1 for bleach for example, it doesn’t seem worth adding that to your long-term costs. However, as Tilney reveals, the average cost of cleaning materials a homeowner pays out is a staggering £5,289.
When you add this to the average £592,346 spent on utility bills from the age of 20 and then the mortgage costs on top of that, you quickly see just how expensive it really is to own a property. So, are these costs worth paying or does it make more financial sense to rent a home?
The financial benefits of owning a property
While it does cost a lot to own your own home, it can be financially beneficial too. In fact, it can work out significantly cheaper than renting in the long-term. Research carried out by leading bank Barclays, found homeowners could be saving a staggering £200,000 over their lifetime compared to renting.
There’s also the fact when you rent a property, the money you pay each month doesn’t provide you with any type of security. Yes, you have a roof over your head, but at the end of the tenancy the home isn’t yours. At least with a mortgage, you know the money you’re paying is helping you to actually own the property at the end of it.
Overall, it can be surprising learning just how much a property can cost to run over your lifetime. However, the money you’re investing in the home provides you with security and you could even potentially get more money back if you choose to sell later one. So, if you can afford to buy rather than rent a property, it’s definitely worth doing.