Delays in house purchase and getting cold feet - looking for help weighing up options

nicknameless

Brie said:

T120R said:

I’m also not getting younger so waiting is reducing my potential mortgage term.

Mortgage terms can go right up until you're 70.  Don't ask me how I know.

But home ownership isn't for everyone.  Lots of Europeans never own a home but happily rent.  And owning your own place can be expensive - again - don't ask me how I know!!

75 in actual fact.

TripleH

I admit we didn't love our house when we bought it but as we live here and make it our own we have grown to love it.

I do think people can be obsessed with having to fall in love with a property but there is the question as to whether they love the house itself or the dream to previous owner is selling you when you look round.

If you love a house before you move in, your expectations may only have 1 direction to go in.

TBagpuss

It's true that a lot of europeans rent but also true that in many countries tenants have a lot more security than they do here , so it's not a like-for-like comparison.

I'd also take the view that you don't need to love / fall in love with the place you buy. I think there are some advantages to not doing so, as it can mean that you don't pay as much attention as you should to any negative points! 

I think you may well find that once you move in, and begin to be able to put your own stamp on it, even if it is in small, low costs ways such as decorating, you can make it feel more like your home.

T120R

Thanks for the further replies.

I think it’s the lack of flexibility that worries me and the constraints of a 5-year fixed term. The neighbours to the property (terraced) are also a popular AirBnB so I’m imagining all manner of noises regularly. Or what if there’s a huge structural problem right after I move in… or I suddenly need to move for a job etc etc

Natural concerns I guess when I’ve rented for so long and moved approximately once a year but I appreciate the above will always be concerns and I just need to take the plunge if I want to actually own a property. 

SarahB16

Reading your recent reply above and your concerns of course I can only speak for myself but based on the further information you have provided I definitely would not buy the house as I don't think it's suitable for you.  The AirBnB is not a positive but it's the lack of being able to rent out a bedroom too in this house as well.   

I definitely think you need to buy a house and sooner rather than later because you do not want to be throwing money away renting in your late thirties however I hear your concerns regarding losing the freedom to move for a different job, etc.  You do need to build up capital/equity in a house which can be used as a larger deposit on your next home.   

Therefore, in my opinion, as I said yesterday buy a house with at least two decent sized bedrooms and definitely rent out one room.  If for whatever reason you need to move due to work you could then rent out your bedroom and you could rent somewhere else, i.e. you would have two tenants in your house.  The key, of course, is finding a good tenant(s) that you can trust in your house whilst you're away if that situation arose.  Some mortgage companies are OK with this and others not so so up to you what you tell your mortgage company.  Ideally you want to be living in your house but you would have the flexibility to rent out two rooms.  You can't stay renting forever because you think you may need to move for a different job.     

You refer to the constraints of a 5-year fixed term but you really do not wish to have to sell your house within 5  years due to all the various costs, stamp duty, legal fees, etc.  However, if you really needed to sell the house you were living in you could.    

Please think to the future and picture yourself in your ideal home.  You will achieve this quickest by renting out a room in your home and sharing some of the bills and if you do need to move away for a job you won't need to sell your house as you could have two tenants in it paying rent to you whilst you rent somewhere nearer to your new job (not that you are looking for a new job but this covers that scenario).    

elsien

SarahB16 said:

I think you've got a decision to make and if I were in your shoes I'd go with option B.  

.........................
I wouldn't sign a 12 month contract.  I'd contact your landlord and suggest a six month contract and just be honest about your situation.  You sound like you've been a decent tenant and hopefully they'll agree to this.  

I do hope you give your contact details to your landlord/the owner of your home so in case they ever did decide to sell that they would contact you and set up an alert on Rightmove which would include the home you currently live in.  

Of course, you don't have to do either. Not signing a new tenancy just means that the old one rolls over on a month by month basis. Which may suit you or may not, it's just one more option to add to the mix. 

donutandbeer

We are in the process of buying a small two bedroom mid-terraced house. We do not “love” the house but it has its charm, and it’s a good price/value. Like you, we are a bit short to afford what we “love”, so in the end with the interest rate rising we opted for a house with a lower price tag but with the potential to put in a small rear extension, which we will want to do as soon as we have enough money, hopefully in the next 3 years.

We certainly don’t see this as our forever home, even eventually with the rear extension (which we will want to have it done nicely). We are a bit younger (close to 30), and it’s hard to tell where we will want to be in 10 years. I think not thinking of it as the forever home definitely helps - we knew that from the start when we were viewing houses. 

That being said, your salary is a lot higher than us (we are two people on one single school teacher salary). You certainly can afford to wait to see if/where you want to buy, even if that might not be the most financially sensible option. I would say it’s hard to believe that the interest rate will come down from the current craziness in the next 5 years.

T120R

Really appreciate the comments and these perspectives are exactly what I was hoping for by posting.

I think I will wait it out for a while. I’m incredibly fortunate in that I can continue to save a decent sum while renting. Admittedly the last couple of years have added to my discomfort over the changing nature of things. My industry (like many) is still working out what a hybrid office/home model looks like and if this or a future employer decides we are needed in the office three days a week rather than once in a while I’d prefer to be a little closer to London.

I’m not hoping to find the perfect house but this definitely doesn’t feel like the right one. 

The rolling tenancy is also a good option as my Landlord’s have so far been very much open to that idea and have stated they have no plans to move back in (they live abroad) anytime soon so it’s as stable as a rental can be for now.

Again, many thanks for the replies.

hannahcolobus

If you bought this and then got cold feet, there’s possibly an option of getting a consent to let from your lender and going back in to rented yourself? I know that brings with it a bit of a headache in terms of essentially owning a rental etc. But, very understandably, you’re worried about being burnt again and stuck to something long term so if this didn’t work out you might have that option as a back up?

I can see why you’re a bit conflicted though and I think a lot of people would be in your situation! 

kimwp

I don't think you have to love a house to buy it, but you definitely should like some things about it - even if nothing goes wrong, it still needs maintenance. I only bought because it seemed a sensible thing to do and while (seven years later) I still would rather have been in rented, I don't regret it because financially it was sensible and there are things about the house that I liked and have come to love - the light in the back and loft bedrooms, how peaceful it is, the layout of the kitchen. If it was just a financial decision and I didn't like where I lived the whole time, coming home would have been miserable.