Should I carry on the property ladder or rent?

redheadedwoman

We have just had an offer which we have accepted on our property (after it being on the market for 2 years!!!), the equity on our property has decreased and my husbands salary has decreased by approx £5K and we now find ourselves not being able to afford the price range we wanted so this would mean we would have to downgrade which we don't really want to do. This move was meant to be our last for a long time as we are in our 40's, and don't fancy moving again (not with all the stuff we've got which includes my husbands huge record collection!), but if we downgraded it would mean we would have to move again when our situation got better.
We also have a bad credit score because of a debt that we had problems paying, we now have that under control but will affect our chance of getting a competitive mortgage deal
Would it be better to rent for 12-24 months and then get back on the prooperty ladder when our situation improves, or stay on the property ladder but in a house/area that is not what we really want, but within our financial budget.

CloudCuckooLand

Depends on a range of variables;

- is it unlikely/likely/certain your husbands income will pick up after the recession?
- although the price of your place has dropped affecting your equity, the places you want might also take a low offer, if they've been on the market for a long time.
- price range will affect the stamp duty costs, paying twice might be that missing £5k. Two lots of legal fees on top.
- location will affect availability/type/price of rentals.
- your attitude to transitory accomodation. If you can get a two-year deal on a rental, it might result in a greater feeling of security and price reduction.
- rental can give you the chance to experience some alternative locations and property types that might help you choose your final resting place.

butterflyer

daft question maybe,but do you have to move? can you afford to stay where you are and look again in 2yrs when your situation improves?

happywarmgun

I don't get why you have accepted the offer. Both the options, in the way you phrase them, sound worse than the status quo. Am I missing somthing? If not, stay put!