Rent v buy

stan2015

We're in a position to sell our property and make a nice enough profit...with all that's going on does anyone have advice whether or not we should rent and wait for a housing crash and then buy or just buy straight away after/if ours sells.

I know no-one has a crystal ball, just after general advice.

I've never posted on here before so go easy

[Deleted User]

If a housing crash doesn't happen, or happens and no one wants to sell their properties because there's been a housing crash, or happens and all the cheap properties get snatched up, how long would you be willing to rent for?  

If you're flexible enough re your living arrangements, or not want to be tied down to a location, renting may suit you better.

MaryNB

I was told a few years ago to wait until Brexit for house prices to fall. I wasn't in a position to buy then anyway so didn't.
In the last 5 years houses prices in the area where I eventually bought last year have gone up by over 10%. 

While the stamp duty holiday fueled a mini boom here, in my home country there was no similar incentive but the housing market has still thrived despite Covid. There are no concerns about a collapse in the market due to covid. With regards to the 2008 recession, mortgage lending is much stricter than it was back in 2007 so unlikely to be as severe a crash in the foreseeable future. 

If renting suits you now, rent. If buying suits you, buy. If you have a decent deposit you should be able to weather any future storm. 

Salemicus

I recommend you rent and wait for a crash. It has worked out so well for @Crashy_Time, a regular poster here, who I am sure will be happy to tell you all about how profitable it has been for him.

In fact, Crashy has been renting and waiting for a crash for over a decade. In this time, prices have gone up massively, and he's paid a fortune in rent, such that even if a major crash did happen now, he would still be well behind. But I am sure it will work out for him in the end - and you, if you follow his example. 

Norman_Castle

How much are you prepared to spend on rent while gambling on a housing price crash?

JJR45

Depends if the house you want is on the market. If not, you are most probably better off renting for a bit to find the right house.
Buying the wrong house at the wrong price can be an expensive mistake.
It's a limited market at the moment, my brother is an EA of over 20 years and has said he would sell in this market but not buy .
It will calm down, slow down and possibly dip.
But the main objective should be getting the house you want and will live in for a long time. That will save you money in the long run.

Mickey666

JJR45 said:

Depends if the house you want is on the market. If not, you are most probably better off renting for a bit to find the right house.
Buying the wrong house at the wrong price can be an expensive mistake.
It's a limited market at the moment, my brother is an EA of over 20 years and has said he would sell in this market but not buy .
It will calm down, slow down and possibly dip.
But the main objective should be getting the house you want and will live in for a long time. That will save you money in the long run.

So is his house on the market??

Sunsaru

Personally, I'd wait till the mad rush calms down. It's not the selling that's the problem it's the buying. Yea you could make a nice profit but you'd eat into that renting. Far better off staying put till the dust settles and you know you're not having a bidding war with 10 other people. If other houses have sold in the area then you'll get a decent price anyway just on the comparison stakes.

JJR45

Mickey666 said:

JJR45 said:

Depends if the house you want is on the market. If not, you are most probably better off renting for a bit to find the right house.
Buying the wrong house at the wrong price can be an expensive mistake.
It's a limited market at the moment, my brother is an EA of over 20 years and has said he would sell in this market but not buy .
It will calm down, slow down and possibly dip.
But the main objective should be getting the house you want and will live in for a long time. That will save you money in the long run.

So is his house on the market??

No, as he said he would not buy in this market!
He is going to wait a year or 2 when the market is more normal. 
It's a seller's market, so not exactly an outrageous comment by him. 

Mickey666

JJR45 said:

Mickey666 said:

JJR45 said:

Depends if the house you want is on the market. If not, you are most probably better off renting for a bit to find the right house.
Buying the wrong house at the wrong price can be an expensive mistake.
It's a limited market at the moment, my brother is an EA of over 20 years and has said he would sell in this market but not buy .
It will calm down, slow down and possibly dip.
But the main objective should be getting the house you want and will live in for a long time. That will save you money in the long run.

So is his house on the market??

No, as he said he would not buy in this market!
He is going to wait a year or 2 when the market is more normal. 
It's a seller's market, so not exactly an outrageous comment by him. 

Right, so a pretty daft and pointless comment for 99% of home owners.  Still, he is an EA

JJR45

It was a personal comment to me personally, brother to brother it is not what he tells his clients 🙄.
He does want to move but would not in this market. So completely relevant to the OPs question.

Why the personal comments, does saying, it is not a good market to buy in effect you in some way?

From what I can see you have not contributed to the OPs question, just jumped on a point I have made, so you are offering absolutely 0 to the OP, other than highlighting you have a petty vendetta against someone who does not say it is a great market to buy a house!