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Rent or buy?

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Ankerson
Ankerson Posts: 1 Newbie
in House buying, renting & selling
I have a very specific problem - my ex-partner hit 50 and ran off with a fake blonde, leaving me with half the proceeds of our house sale (and nothing else). My son is at university for the next couple of years, but needs and wants to have a home base in this area with me during the (very long) holidays. I was initially thinking of using most of the money I have to buy somewhere for both of us, and then moving again once he has finished uni and is able to move out. But house buying entails extra expenditure in terms of stamp duty etc. so I was wondering whether it would in any way make financial sense to rent somewhere for a few years, keeping a large part of my funds invested. Any ideas?

Comments

  • TamsinC
    TamsinC Posts: 625 Forumite
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    If it was I, I would buy - renting is just money thrown away - 2 years of renting has got to cost more than the buying and selling costs. Investments can go down as well as up (as can house prices, admittedly). Or buy somewhere you would like to stay.
    “Isn't this enough? Just this world? Just this beautiful, complex
    Wonderfully unfathomable, natural world” Tim Minchin
  • dunroving
    dunroving Posts: 1,881 Forumite
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    I think buying carries potentially a huge risk. You could easily spend more in purchase costs (survey, stamp duty, solicitor), maintenance costs and depending on the market, lost capital, than you'd ever spend on rent. And you may struggle to sell at the end of two years.

    The days of buying being better than renting are long gone, especially over the short term.
    (Nearly) dunroving
  • lookstraightahead
    lookstraightahead Posts: 5,540 Forumite
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    Short term rent, long term buy imo
  • kinger101
    kinger101 Posts: 6,282 Forumite
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    edited 18 March 2018 at 5:43PM
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    If you know you'd be there three years, personally, I think buying would be cheaper. Will your son live in halls? If off-campus, typical rental contracts involve 10 months full rent, 2 months half rent. So it's only slightly cheaper for him to stay where his university is. Not everyone goes home for the summer, and if he takes part time work where he studies, he might make a circle of friends there.
    "Real knowledge is to know the extent of one's ignorance" - Confucius
  • Mojisola
    Mojisola Posts: 35,557 Forumite
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    Ankerson wrote: »
    My son is at university for the next couple of years, but needs and wants to have a home base in this area with me during the (very long) holidays.

    I was initially thinking of using most of the money I have to buy somewhere for both of us, and then moving again once he has finished uni and is able to move out.

    He might 'want' to stay in the area where you now live but he doesn't 'need' it.

    If you know where you would like to live in three years time, look there for something to buy.
  • AdrianC
    AdrianC Posts: 42,189 Forumite
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    Once he's finished Uni, will he never come and stay with you again?

    Sounds to me like you'll still want a second bedroom.
  • Cakeguts
    Cakeguts Posts: 7,627 Forumite
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    Your son might get a job in a completely different part of the country and never come home again. Probably not a good idea to base your housing needs on what he is doing at the moment.
  • AdrianC
    AdrianC Posts: 42,189 Forumite
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    Cakeguts wrote: »
    Your son might get a job in a completely different part of the country...
    ...which makes it more likely he'll come and stay occasionally.

    If he gets a job locally, he'll simply move in for the duration.
  • Smodlet
    Smodlet Posts: 6,976 Forumite
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    Just read a fraction of the nightmares on this board that tenants are subjected to, then ask yourself whether you prefer to rent or to buy. I am fairly sure any and all of them would give their eye teeth to have the choice to buy.

    Good luck and remember you have your own life too, not just your son's.
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