Is there a point in buying at all?...

Fire_Fox

Are you sure you can get a mortgage on a temporary contract? That might make the decision for you.

Fly_Baby

Bufger wrote: »

How many years until both of your children would be in school? If you're in the catchment area of a good school at the moment i would be tempted to stay put and continue saving until they are in that school, then your second income will allow you to comfortably pay the mortgage + bills etc without worrying about childcare costs.

I think house prices wont rise much for a while but you're right that interest rates can only go one way at the moment. The point here though is that with them rising will you then be able to afford repayments or will it be too much of a strain?

OK, so the eldest has 5 years left until secondary school. Then, if we move, the younger one will still get a place there as a sibling. So 5 years then.

I really don't know if we should be waiting that long. We will have spent 51K in rent by then. :eek: But then otherwise, there would be mortgage interest.

Fly_Baby

Fire_Fox wrote: »

Are you sure you can get a mortgage on a temporary contract? That might make the decision for you.

When OH was on a 3-year contract we could get a mortgage (we enquired). Do you think they've tightened the rules in this aspect too?

Fire_Fox

Fly_Baby wrote: »

When OH was on a 3-year contract we could get a mortgage (we enquired). Do you think they've tightened the rules in this aspect too?

How long is his contract now? Probably have tightened up, but you might get away with more as there is a second income and a substantial deposit. Only way to find out is to ask the bank.

kunekune

I'd be wary of taking too much on if he's not permanent. It's not so much the danger of not finding something else, but as you say, the danger it is too far away. I have seen so many academics doing daft commutes: Durham to London? Kent to Scotland! They stay away from home and fit their teaching into 2-3 days a week.

Of course, perhaps if he did that, you could live just about anywhere ... but adjuncts probably have less freedom, and the freedom to compress your teaching depends a lot on which uni and which subject. I guess from your figures that he's on the main uni scale, not the former-poly-scale, and that he's managed to reach the top of lecturer A/bottom of lecturer B. But will adjunct work dry up or will he stop getting any increments now he's more expensive than the new PhD?

getmore4less

Buying a house is just renting money and saving(paying of the borrowings) by building equity.

House prices can go up or down.

renting is renting a house, but you should be saving as well then you start to build up a pot of money that the interest can pay the rent,

Interest rates and rent can both go up and down.

Buying a house is a hedge against future interest rates and rental costs part of retirement planning using capital to reduces the need for income to pay the rent(pension pot)

Some times one option is better sometimes the other but the cost of switching is very high so people tend to stick with one or the other once they decide.


I think a good guide is rental yields if they are below around 5% then renting is a good option if they go over around 10% buying is better in between other factors start to play like it is nice to own or I need the flexability to move quickly, or it is nice for someone else to be responsible for the boiler.

young and potentialy job hopping RENT
starting a family need security BUY

Interest rates are currently quite low for those that got in a while back so sticking with the puchase is a good thing even though yields are low.

For new buyers it is marginal with rates at 4%-5% ish for a fix find a cheap rental and save.


I am also of te few that buying part of a house is the worst thing you can do unless it is just cheap and you could aford a full one anyway.
Buying intothe shared equity will turn into an uphill struggle unless your wages go up a lot.

mrstinchcombe

Buying a house is just a saving plan to pay for your funeral and leave an inheritance. If house prices go down you will spend a lifetime worrying. If house prices go up your lifetime will end before you are able to spend that money.

TBeckett100

owning has its good points. A mortgage of £99pm! and a debt you can call your own.
However, we are trying to move and rental has that advantage of moving to a diff area without the hassle and costs associated with buying and selling.