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Buy Or Rent?


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HOLA441

I've got to move soon, as me and my girlfriend have split up.

Property to let is pretty sub-standard in the area I'm looking at unless I start paying £700+

But I have seen some 3 bed semis near my brother that have stuck and even started falling in price

Sticking down a deposit of 10% and trying to get ~10% off would mean I'd be paying ~£1050 per month mortgage (over 20 years).

This is just under half my take home per month (without weekend overtime).

I'm seriously considering it, with a starting offer of 20%. This would most likely be my final move ever (32 and I'm sick of moving)

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HOLA442
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HOLA443

IMHO two options, buy and rent out rooms, or rent a room of someone else. There is no point paying an entire mortgage or entire rent when your single more money to save up to buy/pay off or more money go out with, be 100% logical. Oz you should be aiming to pay the 2002/2003 price in the current climat to protect yourself, 10% is peanuts, its possible if you can find a struggling buyer (empty property), you keep your cards to yourself and say your a no chain/cash buyer. Time to be a hard ******* cold and unemotional see my sig.

IMHO the choice between buy and rent is a choice between inflation or deflation.

If its a 3 bedroom house, you could rent out 3 other rooms (inc dining room) at n quid a month each? If you have a nice property in a good area you can charge more and you can be alot more picky with flatmate's.

Edited by moosetea
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HOLA444

If you are prepared to pay 1050 per month mortgage why is 700 per month rent so diagreeable to you? If you ay 700 per month rent for 12 or 18 months you might find that the house in question has dropped 50% by then and your mortgage when you come to buy it a year or so from now is actually the same or less than your rent.

Go to moneyweek.co.uk and read their numerous article on why it is cheaper to rent than to buy in this current climate. At 32 years of age you might have 20 years of painful mortgage payments to regret if you buy now.

Also, you have just broke from a relationship. I have no idea how long you were together and how much this woman meant to you but perhaps you are not in the best frame of mind now to make such a commitment? Would you be buying because you wish to? Would you be buying to teach your ex a lesson and 'show her'? Would you be buying in the secret hope - be honest here - that buying a property will get her back.

I think your girlfriend is more of a factor in your thoughts on buying than perhaps you yourself realise - after all, why mention it in your original post?

At 32 years of age, just having finished a relationship I would think the sensible thing to do is to rent, clear your mind, make no commitments for a year or so, have some fun!

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HOLA447
IMHO two options, buy and rent out rooms, or rent a room of someone else. There is no point paying an entire mortgage or entire rent when your single more money to save/go out with, be 100% logical.

Wise words Moose.I make do with a studio at £55.25 per week and even then share with girlfriend so actually pay less than £28 per week.That is set off against investment income on my equity(girlfriend has her own stash)of £16000 per annum.If you are STRing ,I believe you have to be looking at printing money both ways,on interest and on falling prices.Living Japanese is such a relief after having a 21 year high maintenance Anglo-Saxon homeowning lifestyle.

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HOLA448
I've got to move soon, as me and my girlfriend have split up.

Property to let is pretty sub-standard in the area I'm looking at unless I start paying £700+

But I have seen some 3 bed semis near my brother that have stuck and even started falling in price

Sticking down a deposit of 10% and trying to get ~10% off would mean I'd be paying ~£1050 per month mortgage (over 20 years).

This is just under half my take home per month (without weekend overtime).

I'm seriously considering it, with a starting offer of 20%. This would most likely be my final move ever (32 and I'm sick of moving)

Please don't consider buying. As other posters have said emotionally this is a difficult time.

Once the recession kicks in and jobs are scare then flexibility of location will be vital.

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HOLA4410
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HOLA4411
I've got to move soon, as me and my girlfriend have split up.

Property to let is pretty sub-standard in the area I'm looking at unless I start paying £700+

But I have seen some 3 bed semis near my brother that have stuck and even started falling in price

Sticking down a deposit of 10% and trying to get ~10% off would mean I'd be paying ~£1050 per month mortgage (over 20 years).

This is just under half my take home per month (without weekend overtime).

I'm seriously considering it, with a starting offer of 20%. This would most likely be my final move ever (32 and I'm sick of moving)

Mortgage payments at just under half of your take home pay per month is A LOT! It is not the right time, to stretch yourself.

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HOLA4412
My original post was tongue in cheek, kinda ;)

But it does gaul me having to fork out 700 quid for a decent place (1k when factoring in all bills).

Britain is a fuc**** mess!

don't then! If your serious about saving why do you need to pay so much?

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HOLA4413
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HOLA4414
don't then! If your serious about saving why do you need to pay so much?

Because that's what it costs? I could rent a flat, but I'm not keen on having neighbours to my left, right above and possibly below with paper thin walls.

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HOLA4415

usually questions

what if you loose your job

have you considered all the costs (stamp dutry, mortgage fees, mortgage insurance, buildings insurane, mortgage payment insurance, house insurance, council tax, ect ect)

personally in your situation.

if you wanted to buy a 3bed semi.

id say you take the box room and let out the two double rooms.

you will probably get at lest 350PCM per room!!

thats about 8k PA. of which most will be tax free if not all of it.

that way. you could potentilly clear the mortgage v.quickly

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HOLA4416

OK, lets just say for sake of argument that house prices are falling at 10% p.a., and the place you were looking at is £150k.

Buying a 150k mortgage costs you, over the term, around £450k (I think - about 3x the house price).

so, a 10% drop in house price is SAVING you 15,000 times 3 = £45k OVER ONE YEAR.

Spending £700 per month on rent doesn't quite sound so bad now, does it? Plus, you get to save the £300 you would have been spending on the mortgage. Plus, you save all that nasty house insurance, roof leaking bills, you are more mobile, etc. etc. etc.

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HOLA4417
OK, lets just say for sake of argument that house prices are falling at 10% p.a., and the place you were looking at is £150k.

Buying a 150k mortgage costs you, over the term, around £450k (I think - about 3x the house price).

so, a 10% drop in house price is SAVING you 15,000 times 3 = £45k OVER ONE YEAR.

Spending £700 per month on rent doesn't quite sound so bad now, does it? Plus, you get to save the £300 you would have been spending on the mortgage. Plus, you save all that nasty house insurance, roof leaking bills, you are more mobile, etc. etc. etc.

however spending 200-300 a month all inclusive on a cheaper rent, or buying and renting rooms means you can save an extra 12k PA, paying 1k a month to live on your own is nuts. Thats money that can go straight into a deposit fund/paying the mortgage off fund.

Edited by moosetea
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HOLA4418
however spending 200-300 a month all inclusive on a cheaper rent, or buying and renting rooms means you can save an extra 12k PA, paying 1k a month to live on your own is nuts. Thats money that can go straight into a deposit fund/paying the mortgage off fund.

Have you considered that perhaps he doesn't want to share a house. At 32 years old I certainly wouldn't have wanted to. There are limits to what people deem acceptable, and everyone is different.

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HOLA4419
I've got to move soon, as me and my girlfriend have split up.

Property to let is pretty sub-standard in the area I'm looking at unless I start paying £700+

But I have seen some 3 bed semis near my brother that have stuck and even started falling in price

Sticking down a deposit of 10% and trying to get ~10% off would mean I'd be paying ~£1050 per month mortgage (over 20 years).

This is just under half my take home per month (without weekend overtime).

I'm seriously considering it, with a starting offer of 20%. This would most likely be my final move ever (32 and I'm sick of moving)

I thought we'd banned these dull and repetitive posts????

[see pinned topics at top of forum]

Edited by munimula
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HOLA4420

4 people have told me in the last week, including a financial advisor that houseprices are dropping and they antisipate that in 6 months time 20-30% drops will be the norm.

Compare this to 2 years ago when everyone thought I was actually unstable wanting to (whispher) rent.

I would wait.

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HOLA4421
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HOLA4422

The world is your lobster - 32 and no ties, no mortgage... Sorry to hear about the relationship breakdown but you are in an enviable position in many respects.

Live cheap and don't rush into any commitments - financial or otherwise. Good luck.

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