Buy or not?

tom9980

This morning i voted NO but since i now know the full facts its a BIG YES. Indeed i challenge you to pay the lot off within 10 years, should be a doddle frankly.

michaels

Seems to me you should compare the interest to the rent then assume house prices are flat (at worst) over your ownership horizon - which I guess is more than 5 years given you talk about secondary schools as well so is fairly safe assumption. You could reduce interest rate risk with a fix assuming you have a decent deposit 5year rates are little more than trackers.

This would suggest that by buying you are effectively benefiting from having a 3 bed house for the same money as you currently spend on your flat, or be it with less flexibility and an enforced savings product (repayment mortgage) - sounds like a no brainer to me.

I always say if it is a house to live in then market fluctuations are not an issue as you will always want to have a house to live in so owning a property is not being 'long' the market but merely being neutral whereas if it is an investment property then the considerations are different because then you are long the market.

somethingcorporate

I'd go for it.

YoungBusinessman

I say go for it and also, get it paid off asap then you wont have a mortgage or rent to pay off!

IveSeenTheLight

Generali wrote: »

The most obvious risk at the moment is that interest rates go up. Normally mortgage rates are somewhere between 5-7%, possibly peaking at say 9-10%. At what point would you cease to be able to afford the mortgage? That's not to say it's a bad idea to buy, more that it's a good idea to know what has to happen for things to go pear shaped.

The OP should consider the option of fixing before mortgage rates ge tto thos levels.

That said, most economists are not predicting thoses levels for some time.