In a muddle! No Cash Saved, need mortgage

tek-monkey

Rates may be at their lowest, but the cost of buying isn't. I am still saving £200 a month compared to buying, without factoring in repairs and all other assorted costs you don't get with renting. That is £200 a month I can save towards a deposit, or actually use to enjoy myself rather than scraping by.

Then of course, as rates will go up, mortgages also increase. I'm not willing to put myself into that kind of financial jeapardy for something I don't actually really need. Renting is safer and cheaper, I am only looking to buy if I can get devent assistance (like the ownhome scheme) or I come into some money. Buying isn't for everyone.

LittleMissAspie

At peak the house we are renting was worth £170,000. Our rent is £635. It's now worth maybe £140,000 so if it were for sale it might be cheaper monthly to buy it.

The catch, of course, is that I would never buy this horrid house. I can't wait to move out of it. I'm perfectly happy to rent a hovel for a year or two but when I buy, I want a house that doesn't have water dripping randomly out of the ceiling.

So, while prices around here are still dropping, it makes much more sense to keep renting and saving.

Geenie

Ducati wrote: »

I'm not sure about renting but maybe it is our only option. Rent to me means paying for something that will never be yours! but I suppose beggars can't be choosers:(

Renting is seen as some sort of pariah in the UK, but is quite normal in other countries.

You can't afford to buy on your wages, so rent, save and then in a few years consider if you are in a position to buy! It is not a given right to buy a home, though the last 10 years have given the idea it is! OH and I rented for some years and saved, and he was on a very good wage for the time through his job! We bought our first place quite run down, after saving a good deposit through basically not doing anything apart from eat! No regrets.

Nothing wrong with renting. I rent out properties that tenants are more then willing to pay for, because they are getting a place in a setting they could never actually afford, plus I maintain them fully.

Good luck OP and see a longer term picture.

Fly_Baby

Geenie wrote: »

Renting is seen as some sort of pariah in the UK, but is quite normal in other countries.

You can't afford to buy on your wages, so rent, save and then in a few years consider if you are in a position to buy! It is not a given right to buy a home, though the last 10 years have given the idea it is! OH and I rented for some years and saved, and he was on a very good wage for the time through his job! We bought our first place quite run down, after saving a good deposit through basically not doing anything apart from eat! No regrets.

Nothing wrong with renting. I rent out properties that tenants are more then willing to pay for, because they are getting a place in a setting they could never actually afford, plus I maintain them fully.

Good luck OP and see a longer term picture.

You are good at advocating renting - yet you got to have your own home AND other properties to make money on them through buying, not through renting.

RobertoMoir

Fly_Baby wrote: »

The rates are at their lowest and can only go up and house prices might never drop to the affordable level in good areas. Whereas you will continue giving away your money.

When you buy groceries are you "giving away your money" then? After all, it isn't like when you buy lettuce for tonight's dinner you're purchasing an asset that appreciates in value over several years.

Fly_Baby

RobertoMoir wrote: »

When you buy groceries are you "giving away your money" then? After all, it isn't like when you buy lettuce for tonight's dinner you're purchasing an asset that appreciates in value over several years.

What about home buyers then - they seem to have their lettuce and eat it too?