Buy Now or Later

wastedtalent

The more we (me and partner) look at houses the more I'm in 2 minds.

We've been looking at the very top end of our budget we can get a 3 bed house, but doing this we're making compromises on location or transport links etc. We were thinking 3 beds so we will be there for the long term, and we wouldn't outgrow it.

However, I've been thinking and I'm not sure which of these would be a better option:

We could buy a 2 bed, which is fine for now, and we would not need to compromise on anything, but may need to sell and move on in a few years, or we could stay where we are in rented accommodation for a few more years whilst we save up a bigger deposit (along with possible wage increases etc) and then have a bigger budget when we do buy.

Either way, I think we'd be able to put aside a similar amount each month to save, so really I'm wondering is it worth buying in the interim whilst we save for a bigger property. I know if we did we'd be gaining in equity on the house (assuming prices hold stable) whereas renting we wouldn't, just not sure if it's worth it.

DannyboyMidlands

The first of your options works well in a rising market but in a falling market you could end up stuck in an unsuitable place. You also pay out 2 lots of moving costs.

I'd go for option 2 and buy a place that's going to be suitable for at least the next 5 years.

NKLK

We bought a 3 bed thinking we would be fine and never need to move, 5 years on I wish we had streched our budget a little more and gone for 4 bedrooms or 3 bed in a different location.

I guess Everyones opinions are different and how secure you are financially also, but when we bought we could of got a mortgage for alot more than now! I do regret not saving and cutting down before we bought as now we have 2 kids and I only work part time it makes me think about all the money we wasted before by comparison!

779

You'll have to do some number crunching.

Can you save as much as you'd be paying off in mortgage payments (and possibly over-paying)?

Money (mortgages) are cheap at the moment... - and houses aren't selling very fast....

In your position, I'd look out for a bargain,... - maybe put in some offers on properties that you would ideally want, at a price that suits you. They can only say no. Alternatively, you might nab yourself a bargain. It's such a volatile market.. - some people NEED to sell... buyers are rare - take advantage of that fact and get on the ladder I reckon.