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

PasturesNew

StevieJ wrote: »

what is the problem with dipping into capital if you can soon pick up a property 50 -70% off peak.

Another answer is "left overs".

If you have £200k, say, and buy a house now for £200k .... you have £0 left overs. Left overs are for nice things, like financial security for the next 20 years against repairs/upgrades and a new car.

If, however, one can wait and the £200k becomes £210k and house prices drop to £175k, then the left overs are now £35k plus a stamp duty saving of £2k.

Nice left overs....

The cost of home ownership doesn't stop the minute you buy, you need left overs.

chucky

LydiaJ wrote: »

Suppose you had to move house now, for reasons that were nothing to do with house prices (for example, suppose your job relocated you to another part of the country). Suppose you could afford to buy a house that would adequately meet your needs but not be your dream house (without stretching yourself too much - for example suppose the repayments on a 5 year fix would be OK on your salary but not leave masses of spare cash). Or you could rent, but similarly the houses you could afford to rent would be OK rather than fantastic.

Would you buy the adequate house, or rent and plan to buy later (with all the expense and inconvenience of moving twice)?? And why??

unless i could get a good mortgage rate and a house at a good price and have a good plan to pay back the mortgage i'd rent. buying would be my first option though.

the major question is do you think you'll be paying more for a house on 6 months time?

Mr_Matey

Relocating to a new area I'd definitely rent first. You may find a different area nearby that you like more.

If I knew the area, liked it etc, I'd still consider renting if rental yields are low. I want a place of my own, sure, but I don't want to pay over the odds for it just because I can.

johncolescarr

Notwithstanding your understanding of the desirable places to live, I would always buy. For the majority of people, buying a house is for a place to live rather than an investment, so you will be looking to live in the house for a period of time, rather than looking to sell a few years for profit. The ultimate aim is to pay off the mortgage and live mortgage free, enjoying the financial security that this entails. Whatever the current financial turmoil, owning a house should be a long term goal, you will inevitably go through many more financial crises, so my opinion is buy!

penguine

I'd rent to begin with, simply because it would give me more time to look for the right property to buy. If your friend is still commuting, getting ready for a big move, and trying to find a house to buy before a certain deadline, they're more likely to feel pressured into making a decision before they're certain the house they've found is the right one.

mewbie_2

I'd rent because I believe we are heading for further large drops. But the decision is not mine to make.

GeneHunt_2

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.

Then I'd buy.