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If you had to move now, would you buy or rent?

2

Comments

  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    edited 26 August 2009 at 9:44PM
    I am trying to move right now and I will be renting.
    I can afford to buy a house for cash in most places, it would be pretty much a dream house even at that price.

    I still want to rent, even though I can't afford to rent a place 1/4 of the size of a place to buy.

    Buying: 2-bed, detached maybe, garage, garden, utility, conservatory.
    Renting: 1-bed MAX, possibly studio/bedsit.

    Still going to rent.

    Keep life simple.

    Not with that, check, you can afford to buy a house for cash but you can't afford to rent a worse property :confused: It is like one of those puzzles in the old comics eg what goes up the stairs black and white and comes down redicon7.gif
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • lostinrates
    lostinrates Posts: 55,283 Forumite
    I've been Money Tipped!
    LydiaJ wrote: »
    Thanks for the replies so far.

    The person I have in mind knows the area very well and is certain they want to stay in that area long term.

    Good start. Family situation/dependants/pets? Age?
  • incher
    incher Posts: 182 Forumite
    LydiaJ wrote: »
    The person I have in mind knows the area very well and is certain they want to stay in that area long term.

    In that case, I'd try to buy something I could be happy in for some years.
  • wageslave
    wageslave Posts: 2,638 Forumite
    StevieJ wrote: »
    Not with that, check, you can afford to buy a house for cash but you can't afford to rent a worse property :confused:
    I assume PN doesn't want to dip into her capital
    Retail is the only therapy that works
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    wageslave wrote: »
    I assume PN doesn't want to dip into her capital

    Yes I know but it reads a little comedic, anyway what is the problem with dipping into capital if you can soon pick up a property 50 -70% off peak.
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • LydiaJ
    LydiaJ Posts: 8,083 Forumite
    Part of the Furniture Combo Breaker Mortgage-free Glee!
    edited 26 August 2009 at 9:52PM
    wageslave wrote: »
    I think there are as many answers as there are people and no right or wrong one.
    Absolutely. That's why I'm interested in people's opinions and reasons.

    The person has already been commuting a stupidly long way to the new area for some time and has now decided to move there properly. The house they are in currently is rented, so they don't have to sell in order to move. Situation in the rented house is such that they would really like to move out but don't actually have to move out by any particular deadline.
    Good start. Family situation/dependants/pets? Age?

    Single, mid 30s, kids, no animals.
    Do you know anyone who's bereaved? Point them to https://www.AtaLoss.org which does for bereavement support what MSE does for financial services, providing links to support organisations relevant to the circumstances of the loss & the local area. (Link permitted by forum team)
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    :)
  • I'd buy.

    GG
    There are 10 types of people in this world. Those who understand binary and those that don't.
  • lostinrates
    lostinrates Posts: 55,283 Forumite
    I've been Money Tipped!
    LydiaJ wrote: »

    Single, mid 30s, kids, no animals.

    If still in rented then might be wise to keep options open. Might meet a partner in new place, nd easier to ren with no pets. I think children shouldn't be a barrier to renting, but can see why they are in prctise here. Older children leaving friends/school might feel more settled by having a room to decorate.

    Hmm, I think its a tricky one!

    Next thing is to consider how the repayments would stack up I suppose.
  • wageslave
    wageslave Posts: 2,638 Forumite
    StevieJ wrote: »
    Yes I know but it reads a little comedic, anyway what is the problem with dipping into capital if you can soon pick up a property 50 -70% off peak.
    Because money is easier to spend than it is to accumulate.
    Retail is the only therapy that works
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    StevieJ wrote: »
    Yes I know but it reads a little comedic, anyway what is the problem with dipping into capital if you can soon pick up a property 50 -70% off peak.
    As I see it, the capital exists ... and I don't know how much I'll need when I do buy. I also don't know when I'll buy.

    I have to consider that I am unmortgageable and won't ever want a mortgage anyway... so what I've got is it. No more.

    So I "live within my income means", I rent what I know I can afford from my earnt income alone, which at the moment is quite low ... to rent a 2-bed place would cost £600-700/month, add on bills and basic food (£10/week) and some months that'd be my entire pre-tax income gone, so I'd have to dip into my capital.

    A basic (safe) 1-bed small place, plus basic bills/council tax, plus basic food, plus basic/essential travel in a fuel economic car comes to about £850 in most places. That's a LOT out of one tiny income.

    The capital does not exist... that's how I think about it.
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