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