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Renting through Housing Association or buying?

Now most people agree it's better to buy than rent, if you can. But before me and my partner were earning what we are now, we were offered a nice big 2 bed semi in a nice area for £290 a month. On a combined salary of £35k a year, would it be worth (financially) getting a mortgage, or stay here paying £290 a month and saving another £290 a month. Which would leave us in a better position in 35 years time?? My partner is slightly drawn to buying but I seem to think we have an amazing house in an amazing area and we would be financially potty to throw this away! What do you all think makes financial sence? Thanks

Comments

  • Horizon81
    Horizon81 Posts: 1,594 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Is there any opportunity to purchase the housing association property at some point in the future at a discount?

    In 35 years time, will you still be able (and willing) to afford the rent every month? If you buy a house now then you'd have paid it off by then and so be mortgage free.
  • Fire_Fox
    Fire_Fox Posts: 26,026 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    In thirty five years time will you even still be together? If you are together where do you envisage yourselves, 2.4 children/ early retirement? Do you have a 10% deposit plus legal fees plus removals set aside? If not the discussion is purely academic.
    Declutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️
  • Nixer
    Nixer Posts: 333 Forumite
    £290 a month?? Where are you? My rent is £1200 pcm (bit high for the area but we were desperate after a previous house fell through), but there's no way a £1200 a month mortgage would buy half of it.

    There are a lot of factors to consider - it isn't a simple "buying is always better". If you can only afford the interest part of the mortgage it isn't. If you need flexibility to move a lot (e.g. because of your work) it isn't. If you can only buy a nice house in a !!!! area (or even worse a !!!! house in a !!!! area) but can afford to rent a nice house in a nice area it isn't.
  • mazza111
    mazza111 Posts: 6,327 Forumite
    Think if the area is so good I would seriously look into the right to buy. A lot of housing associations offer this as well as councils.
    4 Stones and 0 pounds or 25.4kg lighter :j
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    I'm gobsmacked you got onto a HA list. When I tried, allbeit years ago, they had a low earnings limit and if you earnt more than £8k/year you were deemed to be earning enough to rent privately so couldn't even get ON the list.

    Anyway ... if it's a lovely house in a lovely area, for the ridiculously low rent of £290 ... I'd go for that!
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