Guinness Homes: Buying or renting – which is better?

Get on the property ladder with Shared Ownership

Is it better to buy or rent? For many people looking to settle into a new home or find somewhere to live in their local area, this is the ultimate question. Experts from national housing association, Guinness Homes, explore why buying a home can be more beneficial than renting a property.

Is it better value for money to buy or rent?

For those without big savings, renting can often feel like the only option, and in some cases, renting can be a cheaper option in the short term and if you’re not worried about location. However, with the current cost of living crisis meaning many landlords are looking to sell their properties or increase their rent, coupled with any maintenance issues or concerns with older rented properties, renting isn’t always a desirable option.

For those looking to buy, in most cases, a mortgage and deposit is required. Getting a mortgage may seem daunting, but with fluctuating interest rates, and as more of the mortgage is paid off, monthly payments can reduce over time. However, homeowners will pay for additional costs such as insurance, purchasing fees and potential renovations. Property values can go up and down depending upon market conditions, but in a favorable market, values can go up, helping buyers to make a profit if they decide to sell their homes at a later date. Owning a home also provides many with peace of mind and stability.

For those currently renting, the leap to homeownership may feel out of reach, with potentially high rent payments limiting their ability to save enough for a deposit. However, one option that is more supportive of those on lower incomes is Shared Ownership: a scheme enabling you to part-buy part-rent.

What is Shared Ownership?

Shared Ownership is when a buyer purchases a share in a home, with the remaining percentage being owned by the developer. It is designed to support those on lower incomes to buy their first homes.

Shared Ownership means that buyers purchase a percentage of a property, usually between 25% and 75% of the market value, with a low deposit – often 5% of the purchased share. Buyers will then pay a low monthly rental payment on the remaining unpaid shares, on top of any mortgage costs and service charges.

Although buyers initially purchase a percentage of the property that they can afford, they usually have the option to purchase additional shares of the property over time, in a process known as ‘staircasing’. This reduces the rent that is paid to the housing association and increases the amount of the property owned by the resident. Homeowners can staircase any time after they have purchased their initial share.

Affordability without compromising on quality

When it comes to Shared Ownership, look no further than award-winning developer Guinness Homes, who have a stunning new development in Leeds City Centre that offers one, two and three bedroom Shared Ownership apartments and duplexes. Every apartment comes with spacious living rooms and high-quality fittings and finishes in line with modern, contemporary city living.

Situated close to the thriving and popular Leeds Dock area of the city, the Points Cross development proves that quality homes can be owned by buyers on any budget. Shares available from 35%-50% and prices from £86,000 for a 50% of a one bedroom apartment.

Get in touch  

If you have any questions about Shared Ownership or would like to visit the Points Cross show home, get in touch with Guinness Homes today.

Share to Buy is a one stop shop for affordable homes. On our website, you can search for properties, compare mortgages and find out all you need to know about alternative home-buying schemes such as Shared Ownership via our article index.