We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Renting but is it better to buy?

Dhandy
Dhandy Posts: 5 Forumite
in House buying, renting & selling
Hello Everyone hope you’re all well.
I am currently renting a flat with me girlfriend at the moment and the rent is £500 a month. The flat is up for sale for £90. I have 15k saved up so enough deposit to put at least 10% down. I would rather buy a house in the year. But would it be a good financial decision to buy this flat in the mean time or just keep renting until I’m ready to buy. Thanks

Comments

  • Dhandy
    Dhandy Posts: 5 Forumite
    POOR GRAMMAR IN FIRST POST LOL
    Hello Everyone hope you!!!8217;re all well.
    I am currently renting a flat with my girlfriend at the moment and the rent is £500 a month. The flat is up for sale for £90k. I have 15k saved up so enough deposit to put at least 10% down. I would rather buy a house in the year. would it be a good financial decision to buy this flat in the mean time or just keep renting until I!!!8217;m ready to buy. Thanks
  • csgohan4
    csgohan4 Posts: 10,600 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Photogenic
    have you considered the pros and cons of buying a flat?? Leasehold charges, service charges, possibly needing to extend leases e.t.c?




    Buying a property transcends the 'it's cheaper than rent' argument, you need to make sure your not buying for the sake of buying
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • Doozergirl
    Doozergirl Posts: 34,082 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    It's not very expensive and you've saved a decent deposit. Leasehold flats are a pain, a freehold is so much easier. Personally, I'd wait if it's practical

    How long are we realistically talking before you can buy a house?
    Everything that is supposed to be in heaven is already here on earth.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    10,000 Posts Fifth Anniversary Name Dropper Photogenic
    edited 25 April 2018 at 9:21AM
    Dhandy wrote: »
    Hello Everyone hope you!!!8217;re all well.
    I am currently renting a flat with me girlfriend at the moment and the rent is £500 a month. The flat is up for sale for £90. I have 15k saved up so enough deposit to put at least 10% down. I would rather buy a house in the year. But would it be a good financial decision to buy this flat in the mean time or just keep renting until I!!!8217;m ready to buy. Thanks

    Dont buy a flat for such a short period because the one off costs of buying, and selling, and additional stamp duty could be as much as half your rent over a year, maybe more.

    Also, when you come to buy you'll also have to sell, making for a more complex purchase as opposed to you being able to buy without depending on your buyer.
  • Semple
    Semple Posts: 392 Forumite
    Seventh Anniversary 100 Posts Name Dropper Combo Breaker
    The stamp duty is likely where you'll lose out the most.

    If you're both FTB's you're eligible for SDLT relief, but as your flat is under the threshold anyway for any SDLT (i believe it's 125k+), you won't be able to apply for this relief when you come to purchase a house - essentially costing you a few K more.
  • Stubod
    Stubod Posts: 2,631 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    ..I would hang on for a bit and get a "house". There is too much financial "baggage" that you have limited control over with flats, (ground rent etc.) and very limiting if you ever want to change / add anything, (eg extensions etc.). Plus as above if you buy then move in a relative short time frame you will have selling costs (and the inevitable time it takes to sell), as well as loosing any FTB stamp duty....hang on in there for a bit...
    .."It's everybody's fault but mine...."
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.4K Banking & Borrowing
  • 253.7K Reduce Debt & Boost Income
  • 454.4K Spending & Discounts
  • 245.4K Work, Benefits & Business
  • 601.2K Mortgages, Homes & Bills
  • 177.6K Life & Family
  • 259.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture