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A real dilemma- advice appreciated
Chichi_2
Posts: 192 Forumite
Heard on radio today that there has been a drop in house prices as supply exceeded demand.
I'm due to exchange in a few days:
Choice 1:
Rent a house for year to year and a half and then buy. Even though rents are very high, I will use interest from equity/savings.
Choice 2:
Rent a smaller place and look for anywhere to buy within the next few months.
My outgoings will be roughly the same for renting or owning my own property but need to weigh up whether, a property (around £240K) I bought would be likely to increase by £9,600 a year (my annual interest) or would I get a property in a year's time for £9,600 less than they are now?
Where I live, offers of around £240K are accepted for houses marketed at £255K. It's such a dilemma, as I was convinced I should rent... not sure now.
BTW, I have a dependent so need some stability, hence renting for up to 1.5 years.
I'm due to exchange in a few days:
Choice 1:
Rent a house for year to year and a half and then buy. Even though rents are very high, I will use interest from equity/savings.
Choice 2:
Rent a smaller place and look for anywhere to buy within the next few months.
My outgoings will be roughly the same for renting or owning my own property but need to weigh up whether, a property (around £240K) I bought would be likely to increase by £9,600 a year (my annual interest) or would I get a property in a year's time for £9,600 less than they are now?
Where I live, offers of around £240K are accepted for houses marketed at £255K. It's such a dilemma, as I was convinced I should rent... not sure now.
BTW, I have a dependent so need some stability, hence renting for up to 1.5 years.
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Comments
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You want an answer as to what house prices will do? No one at all can answer you that
Everything that is supposed to be in heaven is already here on earth.
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Doozergirl wrote: »You want an answer as to what house prices will do? No one at all can answer you that
I can
They'll go up or down or stay the same
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Yeh yeh, I know no-one has a crystal ball but what d'yall think???0
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I guess it depends on your circumstances.
We thought about selling to rent to see what will happen with property prices. We have a son though, and the thought of moving schools to an area we like better, then maybe having to move again because we still may not be able to afford in a year put us off. The next time we move, it will be to our home for the next 20 years. If you want to move but know you are going to move again, then maybe renting is an option.
I have heard that they will stay the same or go up slightly, then fall over 4-5 years. But when they start falling, the lending criteria will probably tighten up, which will exclude some people from the market anyway.
Basically:
Stability of a home now vs potentially getting more for your money at some point in the future, at the risk of being priced out.
I think you must need nerves of steel to gamble with renting!!I have had many Light Bulb Moments. The trouble is someone keeps turning the bulb off
1% over payments on cc 3.5/100 (March 2014)0 -
Have you not seen the way we fight about it? :rotfl:
I think huge rises are unsustainable. I think that regions and even towns have their own circumstances. I read yesterday that the Richmond area of London(ish) rose by 31% in the year to June. In contrast, my area has seen virtually no impact on house prices for 2/3 years.
Interest rate rises slowed growth in the back end of 2004/2005, I think the same will happen as a result of any further increases. Whether it puts prices into reverse, I dunno.
There are SO many different ways of reporting house prices, you have to delve through the dross and spin to find your own truth.Everything that is supposed to be in heaven is already here on earth.
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You pays your money......
I would guesstimate that house prices will stagnate and/or drop depending on the area. However IR's will rise without any doubt. Overall, I think that what you pay pcm will not change too much.In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0 -
Doozergirl wrote: »There are SO many different ways of reporting house prices, you have to delve through the dross and spin to find your own truth.[/quote]
And here's a new one
http://www.telegraph.co.uk/property/main.jhtml?xml=/property/2007/06/30/pword130.xm0 -
http://www.telegraph.co.uk/property/main.jhtml?xml=/property/2007/06/30/pword130.xmwecanhelpu wrote: »And here's a new one
Page unavailable or something?Everything that is supposed to be in heaven is already here on earth.
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Sorry, I'll try again
http://www.telegraph.co.uk/property/main.jhtml?xml=/property/2007/06/30/pword130.xml0 -
That's better 0
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