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Would I be mad to buy?
Neotoma
Posts: 3 Newbie
Ok, the facts:
- I'm currently living with parents. It's cheap, but I want to move, partly to be closer to work and friends and partly... I just need my own space.
- If I pick the house carefully, I have enough savings to buy a 2 bed house nearer work, with a 20 - 25% deposit and a mortgage of about 3.25 times my income. It wouldn't be the nicest property in the best area, but it would be an ok place in a safe enough area.
- However, I only have 2.5 years left on my current contract (although funding for that 2.5 years is completely guaranteed). I'm very likely to get another contract of some kind after that, but I may have to change insitution and therefore area.
- Mortgage repayments for what I'm looking at seem to be in about the £450 - 650 pm bracket depending on the deal. Rents for similar houses are all £600 plus and mostly closer to £700. Plus I keep rats, which closes a lot of the rental sector off to me.
So the question is would it be sensible (or at least not completely insane) to buy in the current climate? I guess my major worry is prices still sinking in 2 years when I might have to move, although given that the rental market seems reasonably healthy in the area, I wouldn't necessarily be forced to sell it. I'm aware the most sensible financial option would be to stay put at home, save as much as humanly possible and buy at the start of my next contract, but I don't think I can hack that for another 2 plus years.
- I'm currently living with parents. It's cheap, but I want to move, partly to be closer to work and friends and partly... I just need my own space.
- If I pick the house carefully, I have enough savings to buy a 2 bed house nearer work, with a 20 - 25% deposit and a mortgage of about 3.25 times my income. It wouldn't be the nicest property in the best area, but it would be an ok place in a safe enough area.
- However, I only have 2.5 years left on my current contract (although funding for that 2.5 years is completely guaranteed). I'm very likely to get another contract of some kind after that, but I may have to change insitution and therefore area.
- Mortgage repayments for what I'm looking at seem to be in about the £450 - 650 pm bracket depending on the deal. Rents for similar houses are all £600 plus and mostly closer to £700. Plus I keep rats, which closes a lot of the rental sector off to me.
So the question is would it be sensible (or at least not completely insane) to buy in the current climate? I guess my major worry is prices still sinking in 2 years when I might have to move, although given that the rental market seems reasonably healthy in the area, I wouldn't necessarily be forced to sell it. I'm aware the most sensible financial option would be to stay put at home, save as much as humanly possible and buy at the start of my next contract, but I don't think I can hack that for another 2 plus years.
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Comments
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Ok, the facts:
Plus I keep rats, which closes a lot of the rental sector off to me.
So the question is would it be sensible (or at least not completely insane) to buy in the current climate? .
My question would be "is it sensible to keep rats?" :eek: :eek: :eek:...............................I have put my clock back....... Kcolc ym0 -
It would seem most sensible in these circumstances to buy in 2.5 years time.0
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It would make more sense to rent. In my opinion house prices won't be more in 3 years' time than they are now - and with renting you're free to change your mind and move again.
In 3 years' time things will be less chaotic, you'll have found out if living alone suits you and what you want out of a property. Also, your future will be more clear.
Rent, but not some flashy/impressive place. Rent something that's just large enough. When you view two flats, view them like this:
Flat A: 1-bed, council tax band A - £500 + £100
Flat B: 2-bed, council tax band B - £600 + £120
Choosing the cheaper option would mean you could save another £120/month towards your deposit.
You'd be surprised how much the bills eat into the rest of your money, so use the renting time to really fine tune your living costs -v- fun money, without locking yourself into a property you bought in haste.
Remember the old saying: Marry in haste, repent at leisure, it's like that with buying a house!
Re rats... is that like keeping gerbils? Tell the LL you have a gerbil.0 -
Obviously it depends on your area.
But Im looking around for bargains at the moment.
If you can look long term with your view on buying, your not going to be losing out.
Prices have never been so low.
Good luck0 -
I think you are be right to think about buying now, it takes a while to find what you want after all. I would also hate to be you neighbour (the rats, no other reason).Value-for-money-for-me-puhleeze!
"No man is worth, crawling on the earth"- adapted from Bob Crewe and Bob Gaudio
Hope is not a strategy
...A child is for life, not just 18 years....Don't get me started on the NHS, because you won't win...I love chaz-ing!0 -
chrisartois wrote: »Obviously it depends on your area.
But Im looking around for bargains at the moment.
If you can look long term with your view on buying, your not going to be losing out.
Prices have never been so low.
Good luck
:rotfl: :rotfl: :rotfl::rotfl:0 -
If it feels the right time to buy then go for it. If you are buying as an investment I cannot comment but if you are are buying a house to LIVE IN and make a HOME then what does it matter if the price drops a little more again before going back up?0
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Yeah, if I bought, I'd be buying a home, hopefully for several years - [EMAIL="I@m"]I'm[/EMAIL] not particularly looking to make a profit, I just don't want to lose money by making a badly judged choice.
You guy's reaction to the mention of rats shows why renting is tricky...0 -
No you wouldn't be mad to buy, but given your situation it makes more sense to rent for the coming 2.5 years. So I'm siding with PasturesNew on this.
Your rats are the white laboratory kind and not the brown sewer kind I presume:D.0 -
chrisartois wrote: »Prices have never been so low.
Good luck
Oh yes they have.
In the sixties I bought a 4 bedroom Edwardian house in London for £5,500 mortgage £35 per month.
It would cost £399,999 to buy it now................................I have put my clock back....... Kcolc ym0
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