Purchasing a house vs renting

blizeH

Any reasoning for the 'not a flat' thing? I'd much rather live in a decent semi or something, but a nicely furnished flat is kinda tempting too.

pinkshoes

blizeH wrote: »

Any reasoning for the 'not a flat' thing? I'd much rather live in a decent semi or something, but a nicely furnished flat is kinda tempting too.

It depends on where you live.

Flats have been over-built in some areas of the UK, so are now actually really cheap to buy, as many available. Some are shoddily built, with poor noise insulation, so always check this out.

A semi I lived in, my bedroom was next to the neighbours bathroom, and I could hear them peeing. My current flat is so well soundproofed, I can't even hear the screaming kid below, so it really depends from building to building.

Personally I prefer flats, but that's just me, and perhaps because a semi with the same space is 50% more money, yet doesn't have parking!!

It's all personal preference, so you need to decide what you want!

franklee

I quite like the idea of a flat myself but what puts me off is the maintenance charge. This is a cost that can easily go up a lot and that you don't have much control over. OTH the flat owners may be able to buy the freehold. As said above there is am oversupply. I wonder what happens in the case of a flat owner getting repossessed, losing their job etc. who pays their share of the maintenance charge if they can't afford it. I can see some blocks may go downhill quite quickly.

ukcarper

I would normally say buy as when you pay of your Mortgage you will be living rent free but as you are young and almost certainly won't want to stay where you move now and with property prices falling i would rent.

sympatex

I'd rent to, buying with a friend is dodgy, many things can change both financial and personal at a moments notice.

Maybe one of you loses a job and decides the UK isn't worth staying in and goes travelling.

Getting to know the area is key as you could buy a real duffer and you're stuck with that. 23 isn't that old, i'm 27 and still stuck at home and been looking with gf to buy for over a year now. It's looking like we're going to rent if our mortgage runs out before we find a suitably valued house int he right area! (not easy!)

I saw the old renting is dead money quote earlier, assume they are taking the p***. Mortgage interest (for you low it seems) + capital loss(house price falls, avg per month 1500?) vs rent.

rogerdodger007

100% Rent.

Have a look on this site for a decent place to bank your money and hopefully you'll cover your rent.

Whilst house prices may or may not drop any further, I don't think they'll rise so you're in a great position to take your time and find something you really like.

TDS_2

blizeH wrote: »

...is it possible to rent for just a few months, or are they all 12 month plus contracts? I ask because I'm almost tempted to rent for a few months, get an idea of if I'll like it there, and then look to buy asap. Sound like a plan?

Sounds like an excellent plan.

Most Assured Shorthold Tenancys are 6 months, after which it runs on a month by month basis (ie after the first 6 months you only have to give one months notice).

Good luck

Entertainer

BlizeH, this isn't all good advice.

That's another three references to the "renting is dead money" fallacy in this thread. Rent is only dead money if it exceeds mortgage interest payments plus maintenance which is doesn't and hasn't for years in many parts of the country. As a FTB you will not even be able to take advantage of the currently low base rates. Even those that are, must realise that they will not stay this low for long. You should factor in a mortgage rate of at least 6% in the medium term which, surprise, surprise, is the same as rental yields in many parts of the country. Hence, no "dead money".

franklee

Entertainer wrote: »

That's another three references to the "renting is dead money" fallacy in this thread. Rent is only dead money if it exceeds mortgage interest payments plus maintenance which is doesn't and hasn't for years in many parts of the country. As a FTB you will not even be able to take advantage of the currently low base rates. Even those that are, must realise that they will not stay this low for long. You should factor in a mortgage rate of at least 6% in the medium term which, surprise, surprise, is the same as rental yields in many parts of the country. Hence, no "dead money".

Right, not forgetting the interest earned on any deposit saved up. That's fallen a lot now but some people are still on reasonable fixed rates for now at least.

Ultimately once inflation creeps back up I'd expect interest rates to rise. How long that will take or if they will let inflation go I'm not sure.

ukcarper

I bought my first house in 1972 and since then for the vast majority of the time my mortgage has been less than rent. For a lot of that time it has been considerable less and I’m now paying less than £200 for a house that would cost me £1000 to rent and it will be paid for in a years time so I’ll be living rent free. So in the long term I have been much better off buying.
But if I was 23 now and not entirely sure what I wanted to do and not looking to live long term in the property with the property market as it is I would rent.