| "What'll happen to house prices?" Turn on the | | | | costs the same every month until the end of the |
| news or walk into a pub and there's a good | | | | term. Plus, unlike rent, mortgage payments won't |
| chance you'll hear that question. If you're weighing | | | | go on forever: one day they'll finish and the house |
| up the benefits of buying and renting, the housing | | | | will be yours to live in for free. Others rent to |
| market's stability might influence your decision, but | | | | avoid the expenses of homeownership, from |
| the real question is: "What'll happen to ME?" | | | | fixing windows to replacing roofs. Inflation might |
| Imagine you buy a house tomorrow. Of course it | | | | drive up rental prices, but it should also keep |
| matters if its value goes up or down by 10%, but | | | | pushing salaries upwards so they (hopefully) keep |
| probably not as much as a major change in your | | | | pace. No-one enjoys rental price increases, but at |
| own life, like losing your job, getting promoted or | | | | least they're more predictable than the costs that |
| having a baby. What are your prospects? So | | | | come with owning a house. So which set of pros |
| start with a look at your finances. Let's split them | | | | and cons is more suited to you and your plans for |
| into three: work, home and commitments. Work: | | | | the future? Ask yourself a few questions. Could |
| Is your job secure? Any chance of a pay-rise / | | | | your budget cope with unexpected 'homeowner' |
| promotion? Are you expecting your income to go | | | | expenses? If not, one disaster (or a series of |
| up, down or nowhere? Home: Are you planning a | | | | smaller problems) could mean you lose the house |
| family? If you already have kids, are they costing | | | | you'd worked so hard to buy. How much are you |
| you more every year, or about to leave home? | | | | spending on rent today? If you're waiting for |
| Marriage, divorce, inheritance, big expenses - | | | | house prices to come down, you might find that |
| changes in your home life can have a major | | | | renting for another year costs you more than |
| impact on finances. Commitments: Do you have | | | | you'll save on the purchase price. Do you need to |
| any debts? Are you paying child support or | | | | buy now? It might be a good idea - especially if |
| supporting an elderly relative? If your children | | | | you're young - to wait until your wages are |
| have left home, are they financially independent? | | | | higher, your career is more secure and you have |
| You can probably answer questions like these | | | | a better idea of where you want to live for the |
| with a fair bit of certainty - and figuring out if | | | | foreseeable future. What's your financial forecast? |
| (and when) you're expecting things to change | | | | No matter when you buy a house, prices could |
| should help you make that all-important 'buy / | | | | always go up or down unexpectedly. So when |
| don't buy' decision. What's your monthly budget? | | | | you listen to the predictions, don't forget to listen |
| If money is the biggest factor, there's no easy | | | | to yourself. No-one knows for sure what the |
| answer. Some people buy because they feel they | | | | future will bring, but a calculator and a calendar |
| can't afford to keep renting. If rents go up by | | | | might help you weigh up the risks and decide |
| 4% a year, today's £700 rent could be | | | | whether to buy now, later, or never. |
| £1,700 by 2030. Even with a variable rate | | | | Melanie Taylor is associated with Debt Advisers |
| mortgage, payments aren't likely to grow by | | | | Direct, providing debt solutions and debt |
| anything like as much - and a fixed rate mortgage | | | | consolidation advice to UK consumers. |