Buy or Rent?

johnuk_3

Many, many thanks for your tips and anecdotes, Carolt; we are indebted to you. You've given us a great deal of really useful information, much more than I was hoping for! :T

Ditto, Doozergirl. It makes me think that (depending on the LL) it might not be a bad idea to take comprehensive photographs of the property before one moves in. That way, in the situation Doozergirl so graphically described, one would have some concrete evidence to refute the ridiculous claims of a pedantic and hysterical LL. What do you think?

We've just about made up our minds to rent for at least 18 months. We figure that in that time we should be able to increase our savings to something like £50,000 which should be enough for a deposit on the sort of property we're interested in. Making it possible to opt for a 12 or 15 year mortgage with a 20% + deposit where the interest will not be so crippling.

Finally, does 'epz' have a point? Is one more likely to find a decent 'type 1' LL for a more expensive home? The houses we're looking at are all ones that would sell for between £200,000 - £300,000 at current prices.

Doozergirl

Yes, take photos. I took absolutely loads this time!

I'm not sure about being able to know what type of landlord you will get for what type of house. I would just steer clear of anyone that has previously lived in the house and recognise that magnolia walls, white fittings and laminate flooring is the standard professional landlord interior I think. Owning more properties I think makes you less likely to want to get involved!

SquatNow

Have you considered Squatting Sociably? Then you can live in a sensible house for sensible money, while putting the money you would have paid as rent aside so you can buy outright after the crash.

johnuk_3

SquatNow wrote: »

Have you considered Squatting Sociably?

I can't say we have. Frankly, it sounds far too adventurous for two old codgers like us. And I don't think it would go down very well with some of our more straitlaced clients! Thanks for the tip though...:beer:


What we are finding is that letting agents seem strangely disinterested in talking to us once I mention that we work from home. They don't even bother to ask what it is that we do. Don't they want our dosh? Do they have so many potential tenants beating a path to their door that they can afford to turn away a serious, prospective customer? It seems a very bizarre way to do business to me.

We've recently been in touch with a delightful lady (whom we knew abroad) who knows the area we're interested in very well so we're hopeful that she'll be able to put us in direct contact with local landlords, which I guess is a better way to go?

carolt

In that case, just don't tell the letting agents about the business - at least not until the rental has been all agreed, bar handing over the dosh. It's the landlord that makes the final decision, not the letting agent, and TBH, I think you sound like pretty much ideal tenants for most landlords - past the age of wild parties, solvent, no pets etc Why not creatively describe it as 'working from home' rather than running a business - I think the latter probably gives people the idea of having a workshop in the living room or something, which is not what you do.

Personal recommendations for landlords sounds good - never been in a position to do that myself. Not sure that type of landlord varies according to price of home - we've had a range of landlords, from house-proud obsessives to couldn't care less, and the odd very pleasant human being, and I'd guess the price of all of those was approximately the same (well, now I come to think of it, the pleasant human being was the cheapest property...?make of that what you will.....!).

Hope it all works out.....

johnuk_3

carolt wrote: »

In that case, just don't tell the letting agents about the business - at least not until the rental has been all agreed

My wife has reached the same conclusion! That'll teach me to be honest with letting agents.
:rolleyes:

Frankly, the ones we've spoken to so far don't seem to know what day of the week it is, never mind have a clue about their business.

I think you sound like pretty much ideal tenants for most landlords - past the age of wild parties, solvent, no pets etc...

No wild parties? Just a minute! One's never too old to boogie, you know.
But you're right, thanks for the vote of confidence.

Why not creatively describe it as 'working from home' rather than running a business...

Again, sound advice - thank you.

Hope it all works out.....

Thanks. We're sure it will, it just may take some time.

PasturesNew

Two things:
1) Don't tell them you work from home. Just tell them you're a business owner of 15 years' standing.
2) As you don't have an employer, they might want 6 months' rent up front.

IveSeenTheLight

johnuk wrote: »

We work from home and need a decent sized, 3 bed home. Checking out Rightmove reveals that we could rent what we need for between £800 - £1,000 month. Buying a similarly specified home should cost around £2,500 in mortgage payments if we took out 100% mortgage, or close to it.

May be interesting ,but if you work from home, maybe you could move to another part of the UK where the rental / mortgage payments on a three bedroomed property will be much less than the figures you have quoted.

johnuk wrote: »

For instance, We've been told by some letting agents that UK landlords won't allow tenants to run a business. Others have frightened us off with draconian contracts that don't allow the tenant to change as much as a light bulb, own a cat (not that we do!) or plant a few herbs in the garden.

johnuk wrote: »

What is the reality of renting in the UK?

I am a landlord of two properties and have had had both my tenants stay on for longer than they had initially intended. They're reasons for staying longer will be their decisions, however I like to think it is because I provide a good property with good landlord services

johnuk wrote: »

Are all British landlords really such ogres?

While some may be, definately not all are.
There are many landlords who treat their tenants well. it is in their long term interest.
I think tenants are looking for a good landlord and vice versa

johnuk wrote: »

What advice would the experts here give us about whether to buy or rent?

This really needs to be your own decision.
You need to work out whether you are happier renting, or would like to own a property in the long term.
There are pro's and cons for both, you just have to make a valued assessment.

P.S.

johnuk wrote: »

We are no longer young enough to wish to take out a 25-year-mortgage. .

I know a similar couple who took out a rapid repayment mortgage for similar reasons.
Maybe you want to check out this option with a financial adviser

jamesd

johnuk, an interest only mortgage with investing via a stocks and shares ISA may be suitable for your needs when buying. I assume that you'll want to invest some money anyway so that won't be a burden and the interest only payments over a short term will be considerably lower than repayment. Lenders differ in how they accept investing and sale of property as options, some wouldn't like a sale of property as the final mortgage redemption method, others would accept it without trouble with no investment repayment vehicle.

If you have several years of accounts for your business that would probably satisfy lenders about your income but you're still quite likely to be required to provide a 20-25% deposit just because you're self-employed, if you want to get the best mortgage interest rates.

Your type of business isn't likely to be a problem since it won't disturb others.

inmypocketnottheirs

Another approach could be to rent where you want to live now, for the foreseeable future. Then use your savings as a deposit on somewhere smaller and then let that. You would then have the benefit of owning something for retirement, whilst having a tenant paying the interest (at least) on the mortgage. Forget the doom and gloom of the current market, just think about where property prices are likely to be in, say, 15 years time.