To buy or not to buy, that is my question

tubseye

Trying to decide whether or not to buy. I currently rent a house for 1500. Yields are low, and a similar place recently sold for about 630000. So rent is cheaper than mortgage would be. It would be a big stretch to buy the place I’m in.

I have about 300k in the bank. I would be comfortable with perhaps a 125k deposit. The bank will lend me 250 or so easily enough, so i'm looking at about 350k ish.

One complicating thing, is future earnings. I work from home running an online business. But the business will probably be busted by AI, hard to say when.

takman

Well the money saving way would be to move to a cheaper area considering that you work from home so don't need to worry about communting.
You could then buy a pretty decent house for under 200k using just the money in your bank so you won't need a Mortgage and don't have to worry as much about possible future drop in income.




By renting your are basically throwing away £1500 a month when you could own a house outright.

stardust09

takman wrote: »

Well the money saving way would be to move to a cheaper area considering that you work from home so don't need to worry about communting.
You could then buy a pretty decent house for under 200k using just the money in your bank so you won't need a Mortgage and don't have to worry as much about possible future drop in income.

By renting your are basically throwing away £1500 a month when you could own a house outright.

I agree. Why would you want to keep renting at those costs when you have so much capital?

I'd also be worried about the potential collapse your business and already be working on a back-up business plan to prepare for the worst. Get your house in order, so to speak!

tubseye

stardust09 wrote: »

I agree. Why would you want to keep renting at those costs when you have so much capital?

I'd also be worried about the potential collapse your business and already be working on a back-up business plan to prepare for the worst. Get your house in order, so to speak!

Moving to a cheaper area is possible of course. But it's pricey where I live for a reason. I'm not the only one in the street who works from home I'm sure. Mortgage on my place would be at the very least 2.3k i guess.

You say it is throwing away 1500 a month. But I am getting something in return.

There does seem to be a disconnect between average wages and house prices around here. So yeilds are low. There is only so much a renter can afford to pay.