Rental versus buying??

arianlady

Got the chance to pay cash for a house as long as its the right price and within budget.... but I am being told by friends maybe I should rent??
£100,000 to buy or £450 a month to rent... am on pensions with no other income....
Any advice?:A

BitterAndTwisted

The way I see it, you've got at least a couple of factors to weight up. £100,000k would pay a rent of £450 a month excluding interest for 18 and a half years IF the rent didn't increase during that time (unlikely) but this needs to be balanced against your life-expectancy and the possible need for repairs to a property if you bought it, so would your pension income allow you enough to set aside some savings for that? It might be possible that in a couple of decade's time, once your savings have been completely exhausted there might be some State help available to you towards any rent.

Renting inevitably brings insecurity, so there's a likelihood that you could be forced to find another rental property every year or even every six months. I don't think that would be particularly easy for an older person.

bigbigmamamoo

another factor is your health, and mobility level, it may be good now and may continue to be so but it also may deteriorate. you may find you need adaptations like a walk in bath or a level shower and this may be easier if you own the property, but of course easier to fund if you keep the money