Buy or stay secured tenant??

HappyMJ

Sam_16 wrote: »

Although buying is working out a bit more I thought it would be better as I would see something back and if the house gains value it would be a good thing.

My worry is that secured tenancy will not be guaranteed forever. David Cameron spoke about this changing and that tenancy would only be possible while it was still needed. So what would happen when my dos grown up would I be forced to downsize?

I appreciate what you are saying regarding maintenance costs. At present I do pay for small maintenance in my house at the minute. I know I don't have to but when it comes to things like roof boiler etc I've never really had those costs before. It's such a hard decision especially because I'm not in a position where I need to buy a property to put a roof over our head.

As long as you're paying the rent it's secured for life.

New tenancies may not be as secure as existing tenancies but as you already have one then you're secure.

Sam_16 wrote: »

SVR after fix is 4.74. Property is freehold no lease.

Another factor which was pushing me towards buying if I stay renting my rent will never decrease only increase so even in retirement I have that cost. If I own surely payments will decrease over time? Worst case scenario I stay 50/50 split my rent should still be cheaper.

If you do get to retirement and haven't purchased the other 50% then housing benefit should be paying the rent on the 50% you do not own so I wouldn't worry about that. Housing benefit may not cover the rent in full on a property which is larger than your needs. ... i.e bedroom subsidy aka bedroom tax...or the 1 bedroom rate of LHA may apply. That won't be the case if you own half and are paying half rent. The half rent will just about always be less than the LHA rate.

*katie*

Sam_16 wrote: »

Although buying is working out a bit more I thought it would be better as I would see something back and if the house gains value it would be a good thing.

My worry is that secured tenancy will not be guaranteed forever. David Cameron spoke about this changing and that tenancy would only be possible while it was still needed. So what would happen when my dos grown up would I be forced to downsize?

I appreciate what you are saying regarding maintenance costs. At present I do pay for small maintenance in my house at the minute. I know I don't have to but when it comes to things like roof boiler etc I've never really had those costs before. It's such a hard decision especially because I'm not in a position where I need to buy a property to put a roof over our head.

As I understand it the changes to the tenancies granted to council tenants will only affect new tenants so your current tenancy won't be affected. You may lose these rights if you decide to move in the future though.

Sam_16

I've had quotes for building insurance for £12 pm. House is new build so hoping I won't have boiler issues anytime soon giving me the opportunity to build my savings again. If house prices do go down it could also work in my advantage as I will be able to purchase a further share in the property at a lower cost as it works off % of market value and not value at which I purchased.

Typhoon2000

Buying seems a better idea. Though you haven't mentioned how much you earn, time to retirement and length of mortgage.

getmore4less

New kitchen in a 7y old house how long have you lived in it.

Debtslayer

Personally I would buy especially as it's a new build and won't have the expense for a few years of anything like a new boiler.
As it's not going to cost much more than your current rent, I would say buy.

HappyMJ

getmore4less wrote: »

New kitchen in a 7y old house how long have you lived in it.

There were parts of my kitchen that were useless after 5 years. It was a very cheap kitchen when built. I still have the worktops which are now 15 years old but everything else has been changed over time. First to go were the drawer runners. Useless plastic cheap rubbish. I did not notice they were past their useful life when I was inspecting the property. Replaced with much better quality and they're still okay.

getmore4less

What term is that mortgage?

getmore4less

HappyMJ wrote: »

There were parts of my kitchen that were useless after 5 years. It was a very cheap kitchen when built. I still have the worktops which are now 15 years old but everything else has been changed over time. First to go were the drawer runners. Useless plastic cheap rubbish. I did not notice they were past their useful life when I was inspecting the property. Replaced with much better quality and they're still okay.

Those sort of issues should be addressed by th HA not the person renting the place.

Sam_16

Reason I would update kitchen is to do with personal taste not necessity. Like I say if I don't buy I plan on staying in this home. It's not the best quality kitchen and I've lived here 4 years and the previous tenants didn't exactly take great care of it.

Sorry should have put earnings etc in..I'm 31 income is £26000, 2 dependants, childcare £160pm. That mortgage rate is over 30 years.