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skipping a mortgage and buying outright
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getmore4less said:£70pw rent is enough to support mortgage interest on around £150-200k anything around that price that would be more comfortable the the house share.
Secondly, even if 70pw did cover the interest payments on a mortgage, I would still have other costs associated with any such purchase, such as maintenance, mortgage fees, legal expenses etc. Plus, it would not be the house I wanted and I would have to pay selling fees, legal expenses etc when moving again.
Thirdly - What about if there is a crash in the market? In that situation I could find myself stuck in a house I never wanted to buy in negative equity (my uncle lost a fortune in the 1980s on property). Also, with my cheap house share, I can leave at any time (with 1 month notice) and may be able to use a crash in the market to my advantage if it coincides with a nice savings pot. I know it's difficult to time the market, but I have been reading extensive financial opinion (from financial journalists much more qualified than me) predicting a downturn in the market. In light of this, I think it would be a very brave person to buy a property that they plan to sell again in just a few years time. When stacked against these risks, is 11k in rent really much of a gamble? Many people loose that sort of money in depreciation from a new car purchase after a few years and don't think twice about it.
Or am I missing something?0
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