buy or mortgage

mikestripe

I can save 30000 a year and im paying 625 rent at the moment a month, theres a 1 bedroom bungalow for sale 80000, am I better off buying that cash and then save for five years { 150,000 } and then sell the bungalow or should I just stay where I am and save

Tixy

Hi
This might be better on the House buying board rather than Loans.

Do you have £80k saved currently?

From a purely financial point of view it is impossible to say whether you would be better off continuing to rent and save or buy and keep saving.

As that will depend on
-what house prices do over the next 5 years, specifically the value of the house you buy.
-what costs associated with homeownership you would end up incurring over and above the costs of renting
-what interest you could have earned on the savings over 5 years
-how much renting would cost over the 5 years (factoring not only current rent but future rent increases, the cost of having to move to a new rented property if your landlord terminates your tenancy etc.)

Often some of the key factors for people are not directly linked to the finances but relate to other issues. Such as is the property big enough for you now and for the next 5 years, will it be in the right location, what are the chances of you wanting to relocate / find work elsewhere. What are the chances of your finances/earnings potential changing and how could that affect how much you can save a month etc etc