Is it always worth buying just to get on the ladder?

Mortgage_Moog

I was in a similar position recently. I had the choice of renting anywhere or buying but having to move a few miles further out than would be ideal but would only add a 10 to 20 minute drive on to some journeys I do.

I chose to buy because it's the right deal for me in the long term. Sure it's a bit of a pain sometimes having to drive that bit further but it'd be much more of a pain paying twice the amount I am for my mortgage on rent so someone else can have their mortgage paid off for them!

There's a lot of rubbish talked about how owning a home can cost more. What if the roof needs changing? What if the boiler packs up? If you're living in a maisonette (as I do) then those costs are tiny because they get split between everyone living in the same block. My block has 6 maisonettes in it so even if we got hit with an 18k bill for a roof repair it would only cost each property £3000 and that can be spread over 3 years so you're talking about £100 a month. Same for the boiler, a whole new system would only be £3000 and I could spread that over 3 years. Boilers and roof repairs are always used to scare people out of buying but they don't just blow up at random every year or two. A new roof and boiler would add value when you sell or you could knock some money off if the buyer would have to take over the payments. Either way you get it back give or take a little bit.

Many renters have a false sense of security thinking that EVERYTHING is covered by their rent. Wrong. If you rent then the landlord can put the rent up by any amount they want at any time they want. Do you really think a landlord is just going to take a hit of several thousand pounds and not get it back through your rent? Even if you have it written into your contract that they can only put it up by 10% per year then they can get around that by simply ending that contract and starting a new one. Don't want to pay the new price? You've got a few weeks to find somewhere else to live then.

It isn't always better to buy than rent but it's rare that you're better off renting. If prices are falling then rent but they'd have to be falling a lot for it to work out better buying, I mean thousands per year which is highly unlikely.

I planned my move well over several years and could sell up now for more than I bought it for as I held out for the right property and got it at a crazy price due to the seller being in a rush after his previous sale fell through. Don't rush in to buying just anything or you could regret it but choose carefully and you can be paying off your mortgage instead of someone elses.

I'll be moving as early as this coming summer because I saved up enough to cover moving fees before I moved in and have so much spare income that I can be ready to upgrade on in as little as 6 months.

To sum up, don't just buy for the sake of getting on the ladder but don't be afraid to get on because it really isn't hard to get off if you change your mind so long as you're aware of the costs of selling and buy the right place to begin with.

seven-day-weekend

Things were probably a bit different in my day, but there is absolutely no way I would rent if I had any choice. Having said that, I would not overcommit myself either, so there might not actually BE a choice.

As for the property under discussion, the lack of parking might be a problem in a three-bedroomed place, but once the building work opposite ids done, I think it will enhance rather than detract.

Is there nowhere at all to park, n ot even in the road?

Person_one

Peter333 wrote: »

And as you said, what happens if they become ill or disabled and are unable to work for a long time? Unemployment insurance only usually pays out for a year, that's if it pays out at all, and the insurance company doesn't pull an excuse out of their hat to not pay you!!!

As you said, if someone had lost their job 6 months after buying the house, they would be up the creek. If they were renting, they could claim housing benefit.

If you buy, its a good idea to have 6-12 months mortgage payments in savings, or as much as possible, as a buffer.

If absolutely everything goes wrong and you definitely can't pay your mortgage anymore, you sell your house and live off the proceeds until you hit the threshold where you qualify for housing benefit. It would suck, but buying a house does not mean that you'd be in any different a position from anybody else who found they couldn't work ever again in the long run.

If, as is far more likely, you don't have a terrible accident or life changing illness and continue to work until retirement, then you have a secure home, no rent payments and an asset that you can release equity from if you need to.

alchemist.1

I wouldn't be taking a risk on 3 bed maisonette without a garden or parking. Especially with newbuilds across the road. It will be difficult to sell on at a later date.

My personal opinion is that once you get into the 3-bd range you are looking at families as potential buyers. You wont get that without a garden even with the park.

ScorpiondeRooftrouser

alchemist.1 wrote: »

I wouldn't be taking a risk on 3 bed maisonette without a garden or parking. Especially with newbuilds across the road. It will be difficult to sell on at a later date.

My personal opinion is that once you get into the 3-bd range you are looking at families as potential buyers. You wont get that without a garden even with the park.

It won't be difficult to sell on at the right price.

ognum

Three bedroom flats are unpopular for BTL unless they can be let to families which if you have no garden is less easy.

Once you have three unrelated tenants living in a property it comes an HMO with all the additional regulations.

This may be why this particular flat is a less popular buy, it would also be a less popular resale.

Ozzuk

Rent vs buying aside (as we could debate that until my mortgage is paid off!) it really depends what your priorities are. For me the lack of parking with the added likelyhood of even more parking needed would be an instant no.

You've already said this isn't your perfect home so its more an investment. As much as I'm pro-property I would want to be very sure of a good return within my intended payback period, especially if it is a house I didn't want to live in long term.

I've bought houses previously as an investment and have done well - but I was sure I was paying a price I could make money on. If you aren't that sure then its likely not worth the risk IMO.

Cakeguts

What is the local aspiration in terms of housing? If this property is in an area where most people buy flats as a first purchase then it is a good idea but if first time buyer properties mostly consist of small terraced houses and new builds are houses rather than flats then a 3 bed maisonette would have to be very very cheap to be worthwhile because you would also have to sell it very cheap.

Out,_Vile_Jelly

A 3 bed leasehold with no parking or garden has a fairly limited range of potential buyers. If it's not your forever home I wouldn't bother.

bris

It's on the market since may and keeps being reduced, you would be mad to buy it just for the sake of it.


No one wants it just now then it's not desirable, why lumber yourself with an undesirable property?


When it comes to you wanting something you really like your stuck with the undesirable property no one wants, unless another mug comes along to take it off your hands. By that time your accepting reduced offers just to get rid of it, if your lucky.