Rent or Buy?

Navigator617

Hi all,

I'm being made redundant in exactly 1 year today from the RAF. :beer:

Part of the redundancy package is Special Paid Leave which allows me to go away and do a PGCE, to retrain as a teacher, on full pay.

I've just over 20k in savings, on 40k wage for another year, will receive a 25k redundancy lump sump on Sep 1st 2012 and I've got around 40k held in trust by my parents from deceased grandparents.

I would hope following my PGCE I'd be able to get a job for the following school year, presumably starting out on around 20k, but of course, there are no guarantees...

I'm considering the possibility of buying a property to live in for a year, and then to let, if I need to move to get a teaching job.

First question then, is it a good idea, considering I can only guarantee an income for twelve months?

Is the fact I'm being made redundant in a year going to stop me getting any mortgages anyway?

How far realistically can my budget stretch?

If I intend to live in the property for a year 1st, do I need a Buy to Let property from the start?

That'll do for starters.

Thanks.

Nav

dlk

With regards to your mortgage there's no need to get a buy to let right now as this will be much more expensive and most lenders will give consent to let when you do move.

If you tell the lender during application that you are going to be made redundant in a years time then you'll almost certainly be declined but that is up to you whether you volunteer this information.

Having said all that I don't really understand why you would want to buy at the moment until you have your long term future sorted and know where you're going to be settling.

getmore4less

You don't give your family situation or age.

Given the uncertainty of future location of job I would be tempted to rent as cheap as possible to preserve cash and increase savings.

This gives the most flexability when you finaly get into teaching.


Currently my view is prices and mortgage costs are going nowhere for a while yet so no rush.


Start living now as if you were on the £20k teaching wage.