D*mn It All To B*ggery Do I Just Buy Somewhere?

[Guest]

We're having to move out of our rental due to whims of landlord. 3 bed terraces rent for £1000pcm. Or I can buy somewhere like this, with a £180k mortgage for £900pm fixed for 10 years:

http://www.rightmove.co.uk/property-for-sale/property-49951132.html

[sisyphal]

Noooo. Went for £170K in 2012.

http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=36305357&sale=46913648&country=england

[Fully Detached]

Seriously mods, WTF was the logic in moving this to Anecdotals?

[bobbo]

I am a total believer in HPC but if you can buy and afford to pay down your mortgage and you intend to stay in the same town for 5 years or more then it usually adds up to buy.

[19 year mortgage 8itch]

I am a total believer in HPC but if you can buy and afford to pay down your mortgage and you intend to stay in the same town for 5 years or more then it usually adds up to buy.

[Squeeky]

If you are able to save while currently renting, then I don't see why not. As long as you don't intend on ripping out the bathroom or kitchen then you should have any major expenses in the short term.

Still a lot of money, so I can certainly understand your reluctance. I don't suspect that rents are going to drop significantly even if house prices do. If you are just doing the numbers game, try out this spreadsheet: http://forums.moneysavingexpert.com/showthread.php?t=1157173

Not having to deal with a problematic landlord and being able to fix decor on my schedule and taste has been positively liberating for me.... How much is no more house inspections and being kicked out for no reason worth to you? - for me it more than covers any maintenance costs.

[19 year mortgage 8itch]

We're having to move out of our rental due to whims of landlord. 3 bed terraces rent for £1000pcm. Or I can buy somewhere like this, with a £180k mortgage for £900pm fixed for 10 years:

http://www.rightmove.co.uk/property-for-sale/property-49951132.html

I saw your other post.

Can you not squeeze into something cheaper/smaller for a time?

[Exiled Canadian]

We faced the same problem in 2008.

When we came to the UK in 2006 we rented and experienced the delight that is being given notice after 6 months to accommodate a friend of our landlord despite being model tenants. We did manage to dodge that bullet with some nifty negotiation but it did put us off renting.

We ended up having to move for work a year later and decided (HPC views notwithstanding) to buy as the stress of having to move while setting up a new offices and find a new job (for my wife) did not appeal one bit. We deliberately went for the smallest house that the thought would be manageable and so kept our mortgage to a minimum and preserved some savings. We also negotiated very hard on price.

Property prices have not moved in our area since we bought so we're probably about break-even on the decision. We have had security of tenure and the resultant peace of mind, which certainly has a value.

I suspect that like us you will have to decide how much "money" you are prepared to lose in exchange for some peace of mind and stability.

[Wurzel Of Highbridge]

We bought late last year after the previous buyer had been declined a mortgage, so got quite a good deal.

One thing I would say is that prices here from genuine sellers (not kite flyers) are at about the same price as 10 years ago. We certainly wouldn't have bought if prices where so high that it didn't make sense.

So, it really depends on where you live and how much the rents are. In this case it may well make sense as the chances of rent backed house prices in the area falling significantly 20%+ are slim without much large economic problems.

I don't know Worthing, so cant say if it's a good price or now, but if you don't plan on moving again (we don't) then does it really matter that much?

For the record I wouldn't consider buying into the London and surrounding bubble, but if your far far away from that madness and looking at fairly stable prices and a significant saving over paying rent then I would seriously consider it.

[Gerinako]

I've given in and bought

Tired of dealing with landlords

Good job so don't intend to move

It is a bit of a doer upper mind

But happy with the deal I got

[wherebee]

We're having to move out of our rental due to whims of landlord. 3 bed terraces rent for £1000pcm. Or I can buy somewhere like this, with a £180k mortgage for £900pm fixed for 10 years:

http://www.rightmove.co.uk/property-for-sale/property-49951132.html

I reckon you'll get quite a bit more if you go a bit west out to goring. bit more green as well?

[Guest]

I reckon you'll get quite a bit more if you go a bit west out to goring. bit more green as well?

That one is actually on the outskirts of goring which is our preferred area.

[Guest]

I saw your other post.

Can you not squeeze into something cheaper/smaller for a time?

In terms of renting we're struggling to find anything even 2 bed for £900... Once we get to £1000 we have no capacity for saving whatsoever.

[norseraider]

I believe that the horror of renting in Britain is one of the unsung drivers behind our house price bubble. It's really no wonder that people will overstretch themselves and/or panic buy to escape exposure to this soul-destroying market and its yearly maelstroms of uncertainty. Renting, as it stands, does not tick all the boxes that we need from a long-term home, and so cannot compete with owning (even at these inflated house prices). Perhaps if we had a healthy long-term rental sector then people wouldn't be so desperate to take on an eye-watering mortgage?

[renting til I die]

I believe that the horror of renting in Britain is one of the unsung drivers behind our house price bubble. It's really no wonder that people will overstretch themselves and/or panic buy to escape exposure to this soul-destroying market and its yearly maelstroms of uncertainty. Renting, as it stands, does not tick all the boxes that we need from a long-term home, and so cannot compete with owning (even at these inflated house prices). Perhaps if we had a healthy long-term rental sector then people wouldn't be so desperate to take on an eye-watering mortgage?

+1

[bankstersparadise]

Mortgage rates have come down again, even in the face of bond yields rising this year, far too much liquidity coming from Europe.

This is all going ot make the rent vs. buying cash flow calculation even more attractive for potential home buyers.

Where I live; rental yields are 4-5%, with mortgage rates around 2% for 5 years, enough equity rich people from London or BOMAD and I am not surprised houses keep shifting.

If you can pay less on a 10 year fixed repayment mortgage than renting something smaller and you know you can live in the house for >10 years then you have to question why you put so much on the value on the flexibility of renting?

[renting til I die]

Mortgage rates have come down again, even in the face of bond yields rising this year, far too much liquidity coming from Europe.

This is all going ot make the rent vs. buying cash flow calculation even more attractive for potential home buyers.

Where I live; rental yields are 4-5%, with mortgage rates around 2% for 5 years, enough equity rich people from London or BOMAD and I am not surprised houses keep shifting.

If you can pay less on a 10 year fixed repayment mortgage than renting something smaller and you know you can live in the house for >10 years then you have to question why you put so much on the value on the flexibility of renting?

I have to admit that if this was my situation I would probably buy, especially if you don't see yourself ever moving again. 10 years is a long time to basically fix your rent from the bank. Even if prices stagnate or fall you will have time to plan your finances accordingly.

I would even guess, just as long as no huge maintenance costs arise in the first couple of years, that the £100 a month you save on renting should cover the general maintenance costs.

I would note that the 10 year fixes do seem to be a bit harder to get than the shorter fixes but if you can get one it certainly looks like it is worth considering in your situation.

[DownandoutWT]

We too bought (late 2005) as we were fed up with renting. Prices according to Zoopla are up by 15%.

Having a relatively secure home position has been great.

To move up the ladder we are looking at double if not triple our house cost. But we can afford the repayments, so unbelievable as it seems we are considering the move up.

I honestly, hand on heart, do not see a collapse in prices until at least 2020.

[iamnumerate]

No idea, I don't think anyone really knows. I bought in 2001 and moved up in 2006 both times I thought this is crazy it can't keep on going up, sadly I was wrong.

[TheCountOfNowhere]

We're having to move out of our rental due to whims of landlord. 3 bed terraces rent for £1000pcm. Or I can buy somewhere like this, with a £180k mortgage for £900pm fixed for 10 years:

http://www.rightmove.co.uk/property-for-sale/property-49951132.html

You should pm the other three people this has happened to in the last week. They all have the same desire to buy a house at what looks like an unsustainable peak in the government's sub prime pre election housing bubble. Edited June 8, 2015 by TheCountOfNowhere

[TheCountOfNowhere]

I am a total believer in HPC but if you can buy and afford to pay down your mortgage and you intend to stay in the same town for 5 years or more then it usually adds up to buy.

And if it halves in price?

You don't sound like a total believer, anything but, but some chump backing up a trolls post.

Edited June 8, 2015 by TheCountOfNowhere

[TheCountOfNowhere]

No idea, I don't think anyone really knows. I bought in 2001 and moved up in 2006 both times I thought this is crazy it can't keep on going up, sadly I was wrong.

You were right. House prices in most of the country are down in real terms 30 to 50 percent.

Are you so stupid you don't even realise you are right?

No wonder estate agents run rings round first time/young buyers.

Is anyone else getting sick of the current influx of trolls?

Edited June 8, 2015 by TheCountOfNowhere

[iamnumerate]

You were right. House prices in most of the country are down in real terms 30 to 50 percent.

Are you so stupid you don't even realise you are right?

No wonder estate agents run rings round first time/young buyers.

Is anyone else getting sick of the current influx of trolls?

I bought in London - neighbours have paid £100 K more than me for similar houses in the road. Sorry I should have said that.

I am not a troll I think prices are too high and hope there is a correction. (You maybe correct about the rest of the country).

Edited June 10, 2015 by iamnumerate

[Guest]

Well ... we've snatched sanity from the jaws of lunacy. Have agreed to move into another property at similar rent a few doors up the street. Same landlord too which has its pros (better the devil you know) and cons (he's a knob).

So we can now watch prices fall for 12 months, watching our deposit earn some interest.

[moesasji]

Well ... we've snatched sanity from the jaws of lunacy. Have agreed to move into another property at similar rent a few doors up the street. Same landlord too which has its pros (better the devil you know) and cons (he's a knob).

So we can now watch prices fall for 12 months, watching our deposit earn some interest.

Great to hear that you've managed to find something!

Currently unfortunately in a very similar position as our landlord has decided to sell up. Decent rentals that with the schools are snatched up and there are at least some homes that appear suitable without a completely insane mortgage (at close to 2007 prices). So I'm also seriously considering whether or not I need to give up and buy despite thinking that house-prices will simply have to come down. Very, very frustrating.