Terrace mortgage free or Semi with mortgage?

Jigglebiz

Renting a terrace would cost about £650 a month... we’d have £230k sitting in the bank... I think even with the costs of moving again in a few years it makes more sense to buy than rent?

Red-Squirrel_2

Jigglebiz wrote: »

Renting a terrace would cost about £650 a month... we’d have £230k sitting in the bank... I think even with the costs of moving again in a few years it makes more sense to buy than rent?

Do the sums then and be certain.

Solicitor costs, mortgage fees, monthly mortgage payments, moving costs, stamp duty, estate agent fees when you sell, work that needs doing on the 'temporary' house etc. Factor in the time and stress of buying/selling however you wish.

Jigglebiz

Red-Squirrel wrote: »

Do the sums then and be certain.

Solicitor costs, mortgage fees, monthly mortgage payments, moving costs, stamp duty, estate agent fees when you sell, work that needs doing on the 'temporary' house etc. Factor in the time and stress of buying/selling however you wish.

Ok, good advice.



Buy terrace now at £200k:

Cash proceeds: £233,000
Sale solicitors: -£3000
Estate agent fee: -£3600
Purchase solicitors: -£3000
SDLT: -£4000
Survey: -£800
Renovation budget: -£18,600


Renovated, a property like one of these is worth about £230k at the moment. They are rapidly rising in price and showing no slowdown due to Brexit. Although we'd probably want to move in about 5 years for a bigger plot, there would be no urgent need to do so as the house would be within catchment for several excellent primary and secondary schools, near transport links and amenities etc.


I suppose what I'm saying is that if we continue to rent now, we may miss the chance to buy any property in this area. The property we have just sold for £233k we bought 4 years ago for £175k, and I'm very glad we did despite all the associated costs.

Red-Squirrel_2

Jigglebiz wrote: »

They

Brexit hasn't happened yet, remember!

It sounds to me like you actually know what you want to do, and this exercise has probably just cemented that decision, would that be right?

Jigglebiz

I feel like I know what the least bad option is, but none of them are my first choice.

YoungBlueEyes

I'd say option 1.

I was undecided whether to buy myself a little house that's 'good enough for now', or rent somewhere til after the Brexit nonsense dies down. I've put my money where my mouth is, and bought (well, in the process of) a little house that wouldn't be my first choice but it's perfectly fine for now. Then I'll see what happens in a few years.

I know this goes against the grain somewhat, but I decided debt-free security was the most important thing for me.

AnotherJoe

YoungBlueEyes wrote: »

I'd say option 1.

I was undecided whether to buy myself a little house that's 'good enough for now', or rent somewhere til after the Brexit nonsense dies down. I've put my money where my mouth is, and bought (well, in the process of) a little house that wouldn't be my first choice but it's perfectly fine for now. Then I'll see what happens in a few years.

I know this goes against the grain somewhat, but I decided debt-free security was the most important thing for me.

Well done. Hopefully it doesn't have any wannabee bullies locking up side passages nearby?

YoungBlueEyes

AnotherJoe wrote: »

Well done. Hopefully it doesn't have any wannabee bullies locking up side passages nearby?

Ha haa! No it doesn't It has a wee garden with good walls and no shared anything at all :T

Jigglebiz

Congratulations, YoungBlueEyes

We have found one on at 210k that has no shared access to the rear - there’s a passageway shared with a neighbour but they don’t need to cross our garden to get to their house. Been on the market for over a month with no offers.
We offered 197k, then 200k, but that’s been rejected. Having done the sums (needs work) 202k is the best we can offer, but going to wait a few days and view alternatives first.

SeasideSally

Personally, I'd buy cash. We're aiming at doing just that when our flat and house have sold. We've been tempted to go above our cash budget, and we've got carried away looking at the houses on Rightmove, but we always come back down to earth. To gain the security of being mortgage-free, it's worth buying a smaller house (or one that needs work, or doesn't have a sea view, etc.).