Stay renting or buy

Paulm1978

Right I got divorced about a year and half and the family home sold last year and the equity in the property was split what we agreed on 
My equity has being sat in Marcus Sachs account which was in the 1% when I got it but now only making 0.4%🙄

I rented in the meantime in a lovely converted chapel property which I could only dream of buying now  the rent is £795 private rental

i still have been looking over the past year thinking there’s no rush and house prices even might plummet due to the pandemic  
now I’m thinking I’ve missed the boat and because of the crazy house market now I’m panicking I should have bought or am I worrying over nothing and when the stamp duty stops prices and demand might slow and even might dip 

the uk and my dad is so set on buying rather than renting which I do understand if you can be mortgage free in your 50’s which might of happened but it looks like I’ll be retiring age now by That happens if I make it there 

I basically just want peoples opinion if there was in my shoes as there is fours and against for both 

Stubod

I think it's a generation thing. We were always encouraged to own you own house, and for me this seems to still make sense, (unless you are the type of person who likes to move around a lot with work etc. and needs greater flexibility).

However from a pure financial point of view I would think buying a property is still better value for money in the long term rather than renting, which after all is "dead money" with nothing to show for it at the end, and I would assume for the average house a mortgage payment would be the same or less than the rental payment?

okigen

Why not do viewings and see if there is anything sensible coming up? Just remind yourself of the current market and try not to overbid (although that's easier said than done )

The main factor for me was that I won't be able to afford the London rent post retirement, and I don't want to leave the city, so it'd better to buy. But that's just the London rent. Not sure about other places.

If you are determined to buy eventually, then another factor to keep in mind is that you are losing £9.5k per year on rent. Waiting until next year may be fine but the maths will stack up pretty fast as the years go by, and at some points the benefits of reduced house price will be offset by the rent loss.

dimbo61

Most people can now look forward to a long retirement. Due in no small part to the NHS and free health care.
I was going to say " Happy " in that sentence but far too many people are heading towards old age with No savings and No pension other than the state pension.
If you have a Home which is paid for you have No rent to pay you maybe able to manage on a smaller pension/ Income.
If you buy a suitable property you could take in Lodgers, Rent out the driveway or alter the house to create a separate living space which you can rent out

AdrianC

Paulm1978 said:

Right I got divorced about a year and half and the family home sold last year and the equity in the property was split what we agreed on 
My equity has being sat in Marcus Sachs account which was in the 1% when I got it but now only making 0.4%🙄

I rented in the meantime in a lovely converted chapel property which I could only dream of buying now  the rent is £795 private rental

i still have been looking over the past year thinking there’s no rush and house prices even might plummet due to the pandemic  
now I’m thinking I’ve missed the boat and because of the crazy house market now I’m panicking I should have bought or am I worrying over nothing and when the stamp duty stops prices and demand might slow and even might dip 

the uk and my dad is so set on buying rather than renting which I do understand if you can be mortgage free in your 50’s which might of happened but it looks like I’ll be retiring age now by That happens if I make it there 

I basically just want peoples opinion if there was in my shoes as there is fours and against for both 

Long-term, buying is a no-brainer, all else being equal.

But you're asking about short-term market blips and variations... Frankly, if you like the place you're renting, I'd stick with it for now. The market is hatstand.

12mo of your rent is only £9.5k - you could EASILY waste a LOT more than that by buying the wrong property at the wrong time.

In the meantime, yes, bank interest rates are pathetic. You can do a lot better than 0.4%, though, with virtually zero risk.
https://forums.moneysavingexpert.com/categories/savings-investments

It's easy to bring a mortgage term down dramatically if you can overpay, even just small amounts - the joys of compound interest... and, as @dimbo61 says, you live a lot longer than retirement age... State retirement age is currently 67, average life expectancy is currently 81. Nobody has ever had an expectation of a decade and a half of retirement before.

steampowered

For most people it makes sense to buy, because interest rates are currently sitting at historic lows, which makes repaying a mortgage on a property cheaper than renting a comparable property. 

That is a historically unusual situation and may not last. However, it is pretty unlikely that interest rates are going to soar any time soon so you might as well make the most of it.

WoozieSioux_tse

If you have the Marcus account, don't forget to claim the extra 0.1% bonus at the moment for existing customers, at least whilst you're deciding where best to move your money to get a better return. 

lookstraightahead

I rented for a long time after I divorced.

it is better to buy financially if all your ducks are in a row and life doesn't through your curveballs.

I think it's life circumstances that count in making these decisions. In hindsight, buying before a divorce is an expensive mistake, but you don't know it at the time

Suseka97

I agree with what's been said, that in the longterm buying is the better idea.  There's no complete certainty with rentals as you grow older, unless you are renting a council or housing association property.  Also, in retirement its better to be mortgage and rent free depending on your pension planning of course.

I think you still have time to make that decision and if you are in no hurry to leave your current rental, then just keep an eye on the market and start viewing any that takes your interest; see where that takes you.  

Paulm1978

Thanks for all you’re comments of course buying long term is best as there’s nothing out there to get the return of owning your own property 
but the market at the moment is mad over bidding ect gone within a few days 
yes it will slow up after stamp duty
holiday finish’s but I can not see it not still going up 
I either stay put see what happens with the market in the hope it doesn’t get out of my reach or stay renting 
enjoy the money I have over time and when time comes get a council old persons bungalow like my mum has and pays about £8pw 
I guess it depends what type of life you want in your old age