Buy , Rent or Move abroad?

baxxy

Hi
Wondered what the general opinion here is regarding my option of Buying now, continue renting or moving to a different country for a couple of years to see out the house crash.

Here's the background

I'm 30 next month
Recently Single
Debts of about 11k
Earn 30k a year
No Deposit - but parents could probably stump up 5% if i was really desperate


I can comfotably get a mortgage of around 115k, which could buy me a 2 bed house in leeds with the idea that i rent out the spare room to a lodger bringing in about 3.5k a year.

Obviously getting close to 30 has suddenly had me evaluating where i am in life, especially when all my friends have already bought houses whereas i have always rented, and i really feel i should have made the jump by now.

However, all this talk of a posible house crash really has me worried, and i really don't want to be part of that group of people who bought at the very peak of the house boom and to then see 30% of the value wiped off in 12 months.

But i also feel like ive had more than enough of renting, as that money really feels wasted, and if i rent for say another 2 years that would be around 10k spent with nothing to show for it, so maybe that would offset the results of the crash anyway..

Also, another option now that i am recently single and hence no ties to the city of leeds or even the country, maybe i should move to another country for a couple of years, i hear Dubai pays pretty well ( not sure if anyone else can back this up - i'm a web designer if it helps ) and stay there till the crash happens and then come back when property is more reasonably priced.

For the past 3/4 years, ive always told my friends they were stupid to buy as a house crash is going to happen anytime soon, so feel pretty foolish not heeding my own advice and buying now at the peak, but i'm also reluctant to waste any more money on rent.

Anyway, ideas and suggestions would be great.

Alan_M_2

Approaching 30 is just a state of mind, and remember that 40 is the new 30 Well that's what I keep telling myself (I'm 37 and recently divorced)

I think the best thing you could do is clear the £11K debt, it doesn't really matter if you do that here or abroad, I'd say just do what makes you happy.

Will there be a crash? You'll get a reasonable mix of responses to that on here, and the honest answer is no one knows, one fact is that property does seem expensive, but that's about as far as facts go.

Over all I'd say, don't go making any decisions because you think you should be doing something, base your decisions on what you want to do.

lynzpower

Is this flurry of activity to do with becoming recently single? You dont have to asnwer that, but rebound doesnt only mean new partners, it can mean new cities, new horizons the lot.

Would I buy under these circs? NO,
I woudlnt buy with an 11k debt- been there done that, is very difficult would not recommend it.

What Id do is carry on where you are, but find the difference between your current costs & the mortgage+ costs and pay off your debt with this difference.

Once youve done this, you will be in a much betterf position, will be able to see what the market is doing, Hips will be in and the land will lie very differently

baxxy

Hi Lynz,
yes you could say i'm heading for a semi mid life crisis.
Finally pulled my head out of the sand and realised the situation i'm currently in and didn't like what i saw.

Guess i'm at a cross roads now where i can do whatever i like, but want to make some kind of decsion soon as i feel iv'e been drifting for far too long, and that's how i've missed the property boom in the first place.

Renting is really getting me down at the minute, and i know it's peer pressure and i shouldn't react to it, but i'm embarrased to tell people i'm still living like a student as i'm approaching 30.

You may say that is very common, but i am one of very few people i know in my social circle in this situation.

in regards to the 11k debt, very little is on credit cards but is in fact a graduate loan that should be paid off in about 4.5 years if that makes any difference.

Any other ideas about the Dubai option, will it be difficult to get over there with exisitng debt, or are there better alternatives.

Really wish i had a crystal ball for this...

abaxas

A crash will come.

The only questions we dont know the answer to are

When and by how much....

manhattan

abaxas wrote:

A crash will come.

The only questions we dont know the answer to are

When and by how much....

other than a crash, yes it could end up being a minor bump or total write off? no one knows.

or prices could be static for years and years?
pay off your 11k debt first, then look at your options.

could you not rent a room out to someone at your present rented property to pay the debt off faster? im 33 and a ftb'r so dont feel so bad lol

angrygoat

I have to say that houses are great if you live in them and can afford the repayments (even if the rate goes up) but they are not always the best way to go. I have had a house since I was 21, I say that I have had it but the bank still owns the lion's share! I was then in a position where there was some spare money lying around and a neighbour that wanted to move, I made them an offer and a landlord was born. My parents thought that this was a good start for me and I have to agree that it was not the worst thing I have ever done. I now rent out a few of them but it has not always been easy, bad tenants and late rent payments have in the past left me in a nasty financial mess. If you are looking at getting someone in to share the rent then you need to make sure of 2 things... firstly you need to get on with them, tidy person vs messy person will drive you mad.. secondly you need to make sure that they are trustworthy with money, if they don't pay you have the added horror of having to live with a nasty tension in the house. I think that getting a house is different for everyone and the key is making sure that you can afford it, even on your own, and that you are gonig to be able to rent it out/sell it easily when you need to. I wish you the best of luck and hope that this has been of some help.

CB1979_2

blah blah blah, sod all that matey, move abroad!

live for today!!

viva la revolution

manhattan

noooooooo.....not you again! lol

lynzpower

Baxxy do you work and what work would you be able to find in dubai?

baxxy

Hi Lynz,
i'm a web designer.

Not sure if that's needed much in dubai?