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  • FIRST POST
    • funkey_monkey
    • By funkey_monkey 24th Feb 17, 10:10 PM
    • 286Posts
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    funkey_monkey
    Renting vs buying in 2017
    • #1
    • 24th Feb 17, 10:10 PM
    Renting vs buying in 2017 24th Feb 17 at 10:10 PM
    Hi,

    I've been looking at purchasing a property a number of times, but due to fear and then job security woes (which ended with being made redundant) I have never yet bought.

    I'm now thankfully back in work but just renting a room with a friend whilst I get back on my feet again.

    I'm now looking to move onwards into my own place. I've been looking to rent somewhere in Belfast (I work in the city centre) but I've found that the rental prices make a mortgage a cheaper option for me. (got ~£120k set aside for a place).

    I'm just wondering with Trump, Brexit, folk on the hill, etc where is our property market going - especially in Belfast.

    Am I best to go and rent for 6 - 12 months (costing approx £4,800 in rent - assuming £800pcm for a decent city centre apartment rented for 6 months - although it will more likely be a 12month contract which relieve me of £9,600) or should I start now looking for a property to purchase?

    I'm a single person. I would be looking in S/SE Belfast - as being an ex uni student its the only area I know in the city where I'd be comfortable enough to drop anchor and >£150,000.

    What is currently happening on our local market - are they going above/below asking? Staying on long? Bidding wars?

    I've read that a shortage of supply is maintaining high prices. However, with the uncertainity of Brexit looming in the distance is there any scope for a downturn? I'm aware though that the BoE gov has recently upgraded his outlook on Brexit effects.

    So should I rent or buy?
Page 2
    • Zola.
    • By Zola. 27th Feb 17, 11:19 AM
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    Zola.
    What would you call interest on your mortgage? What would you call a capital loss?

    I think it's probably not a bad time to buy, and your advice seems good, but I thought these old fashioned cliches died in 2006, never to be resurrected. We're at least a couple of years' income richer than we would be if we hadn't spent a few years renting.
    Originally posted by qwert yuiop
    On interest at least you can see where the money is going in the long term, and if you make a habit of overpaying you can significantly reduce the amount you give them in interest.

    I rented for 15 years between uni and my first job etc, wouldnt change it as I had a blast, but at the same there comes a point where you need to consider putting the money into something that will at least give you security for the long haul.

    If I had £120,000 sitting ready, the last thing I would be doing is renting and eating into those funds.
    • Zola.
    • By Zola. 27th Feb 17, 11:23 AM
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    Zola.
    I suppose it depends on where you define South Belfast to be but my idea of SB i.e. city south belfast, Malone, Stranmillis, Ravenhill and Rosetta, it will easily be 50-100% more than that for a decent semi. If you want to include the parts outside of actual Belfast city then it's obviously a lot cheaper.

    It's a tough one. I bought in south belfast. Significantly more expensive for me than renting. I'd say I've spent an easy 100K building an extension and getting the house up to decent spec. My rates are also around 3k a year. I'm still happy I bought, because a it keeps the other half off my back and b I've been able to learn a bit of DIY. I doubt I'll be here long enough to recoup the money I've spent but that's just the way it goes.

    To the OP. You'll be looking at 150k on top of your 120k to get a decent semi near the uni you won't need to do much too. So you'll need to be earning around 30k+. If the sums work for you, go for it. Get a lodger in if you want.
    Originally posted by saverbuyer
    Four winds is a good area and there are always houses for sale. 2 miles from city centre with direct buses every 15 mins. As OP says he is single, he wouldnt need a big old mansion as well.
    • saverbuyer
    • By saverbuyer 27th Feb 17, 11:37 AM
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    saverbuyer
    Four winds is a good area and there are always houses for sale. 2 miles from city centre with direct buses every 15 mins. As OP says he is single, he wouldnt need a big old mansion as well.
    Originally posted by Zola.
    It's about 4 miles. You're nearly in carryduff but still an option. I got the impression the OP was thinking about the area nearer Queens. Standard semis in SB are closer to 250k. Mansions are a mill plus.
    • qwert yuiop
    • By qwert yuiop 27th Feb 17, 11:45 AM
    • 2,137 Posts
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    qwert yuiop
    It's difficult to predict the future especially based on future unique events, ie Brexit.
    Originally posted by SnowyOwl
    Here's another cliche - it's difficult to make predictions, especially about the future. Attributed to George W, back when the USA had a sensible president (!) but probably at least 2000 years older.

    This brexit - no one knows anything. I see Theresa is planning on restricting eu freedom of movement before the summer. Does this include across the border here? Who knows?
    • qwert yuiop
    • By qwert yuiop 27th Feb 17, 11:51 AM
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    qwert yuiop
    [QUOTE=Zola.;72170075

    I rented for 15 years between uni and my first job etc,

    If I had £120,000 sitting ready, the last thing I would be doing is renting and eating into those funds.[/QUOTE]

    Yoicks. Fifteen years between univ and your first job. What did you do for money?

    Who knows what he's doing with his 150 - maybe he's coining it on the stock market or currency trading. Even to have it sitting in euro since before the vote or a high yielding share like Shell would have easily out weighed the cost of renting.
    • Zola.
    • By Zola. 27th Feb 17, 12:11 PM
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    Zola.
    haha no I mean all in, during university (4 years), and then working and renting for the rest with friends.
    • qwert yuiop
    • By qwert yuiop 27th Feb 17, 3:52 PM
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    qwert yuiop
    Interest is the money you pay to the bank to rent their house from them, and unless the house is increasing in value at a higher percentage than your interest rate, is equally eligible to be considered as thrown in the sheugh.
    Even if you're in the happy position of being able to write a cheque for your house without going anywhere near the bank, opportunity cost also applies.
    • Zola.
    • By Zola. 27th Feb 17, 4:15 PM
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    Zola.
    ...but you get something at the end of it!
    • funkey_monkey
    • By funkey_monkey 8th Mar 17, 10:55 PM
    • 286 Posts
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    funkey_monkey
    Thanks for all the replies.

    I think I'm going to start looking online first to see what is out there for me. I'm still totally confused as to whether I should opt for a house or an apartment.
    Decent apartments in good small complexes seem to be quite expensive compared to the size and space that can be got for house in the same area in a similar price bracket.

    I'm trying to consolidate my views on whether the size and freedom of a house is worth the additional maintenance costs incurred and also the potential security risk posed by more visible signs of an empty property when compared to an apartment.

    I tend to go away for long holidays - when I do go - and I feel that an apartment can be left unoccupied with less visibility than a house.

    Yes, apartments have maint fees, smaller spaces etc, but for someone just returning from work and only got weekends free is it a plus to have a smaller space or is the additional upkeep of a house worthwhile?

    I just don't know and I've yet to see an apartment complex which takes my fancy. Large sprawling sites do not take my fancy!
    • Zola.
    • By Zola. 9th Mar 17, 8:53 AM
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    Zola.
    Apartments can be a nightmare, I know a guy who had one and all his neighbours were noisy.

    High heels banging about above his living room, kids screaming beneath his living room, neighbours fighting next to his bedroom.

    Its a roll of the dice as to who you will be beside.
    • qwert yuiop
    • By qwert yuiop 16th Mar 17, 11:32 PM
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    qwert yuiop
    The university of Ulster report is out, and it seems prices are on the slide again - Belfast down 4.2% in the last year.
    • funkey_monkey
    • By funkey_monkey 15th May 17, 10:54 PM
    • 286 Posts
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    funkey_monkey
    Hi - sorry just logged on again. I thought the official report stated prices were still rising something like 4%?
    • qwert yuiop
    • By qwert yuiop 16th May 17, 9:36 AM
    • 2,137 Posts
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    qwert yuiop
    Hi - sorry just logged on again. I thought the official report stated prices were still rising something like 4%?
    Originally posted by funkey_monkey
    There are several studies released every few months which often differ widely. That was the university of Ulster one. I believe the nationwide building society one showed a rise. You have to question their statistics when the results are different. A bit like political polls.
    • qwert yuiop
    • By qwert yuiop 16th May 17, 3:21 PM
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    qwert yuiop
    There are several studies released every few months which often differ widely. That was the university of Ulster one. I believe the nationwide building society one showed a rise. You have to question their statistics when the results are different. A bit like political polls.
    Originally posted by qwert yuiop
    but you could check today's BelTel, which reports a fall in the last three months - Northern Ireland house price index.

    We can be fairly sure there's no boom.
    • ballyblack
    • By ballyblack 16th May 17, 3:28 PM
    • 3,470 Posts
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    ballyblack
    http://www.belfasttelegraph.co.uk/business/news/house-prices-fall-in-northern-ireland-for-first-time-in-four-years-35720645.html
    • Zola.
    • By Zola. 16th May 17, 3:48 PM
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    Zola.
    Bel Tel is such a rag
    • qwert yuiop
    • By qwert yuiop 16th May 17, 10:50 PM
    • 2,137 Posts
    • 1,248 Thanks
    qwert yuiop
    Bel Tel is such a rag
    Originally posted by Zola.
    I'm actually impressed. Usually they're so deep in the developers' pockets that they wouldn't let anything vaguely damaging through. Cue Helen Carson ( remember her? ) to tell us there's never been a better time to buy, and simply everyone's buying.
    • chunter
    • By chunter 19th May 17, 5:22 PM
    • 1,927 Posts
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    chunter
    Let's face it no one has the slightest clue what way Brexit is going to affect Northern Ireland. However, given a couple of hundred of grand, I'd buy a house in Newry..
    It seems almost certain to me that the pound will take a fairly big hit, and as many companies may relocate to southern Ireland, I'd image the thought of living in Northern Ireland and getting paid in Euros would be a popular choice.
    And if you can get to the centre of Dublin in an hour without driving, Newry seems like a mighty good option....
    • qwert yuiop
    • By qwert yuiop 19th May 17, 8:30 PM
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    qwert yuiop
    I'm just getting an image of border guards coming down the train checking passports, like some kind of iron curtain era orient express gone wrong. Down south is going to take a bigger hit than the U.K. itself if the pound goes down against the euro.
    As you say, who knows.
    One thing we have learnt this week - why the dup were so in favour of it. It was all about the money, money, money.
    • tara747
    • By tara747 2nd Jun 17, 3:50 PM
    • 10,093 Posts
    • 26,644 Thanks
    tara747
    Bel Tel is such a rag
    Originally posted by Zola.
    I'm actually impressed. Usually they're so deep in the developers' pockets that they wouldn't let anything vaguely damaging through. Cue Helen Carson ( remember her? ) to tell us there's never been a better time to buy, and simply everyone's buying.
    Originally posted by qwert yuiop

    I'm shocked that they printed that story as well, they were such property shills back in the day
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