Housing advice - to rent or buy?

moliver_93

Hi all, again I am writing on behalf of my parents. My mother works 3 days a week earning approx 1,100 per month, my father earning 500 per month, semi retired and due to retire within the next few months

They have sold their property for 600k, currently on an interest only mortgage of £270k so will come out with £330k.

Looking to buy a property worth around £300k with the ideal situation allowing them to keep their £30k savings.

Their buyer is being pushed by her buyer and there is no chain, I don't want them to risk losing this buyer - my question is should they look at a short term rental (dig into the savings/equity) to secure the sale and allow the house prices to drop or just try and buy something straight away?

Thanks in advance!

Annisele

I think there are too many variables to be giving advice. (And I also don't quite understand the scenario - how can there be no chain when there's a buyer's buyer involved?)

If the £600k and the £270k are accurate figures, they probably won't come out with as much as £330k once fees are taken into account (estate agents and conveyancers). The move itself will cost something - and moving twice will cost more, both in actual money and in hassle.

I'd generally have a preference for just moving the once. Whilst I do expect house prices to fall, I might be wrong about that - and if prices rise, your parents may end up stuck in rented with dwindling savings and unable to buy again.

How realistic is their hope to buy a property worth £300k? For example, if they're recently offered £300k on lots of properties and have consistently been outbid, then I'd suggest it's not realistic at the moment. On the other hand, if they've only just sold SSC and there are lots of properties on the market for £280k that they think would be fine, the plan is probably quite realistic.

dimbo61

Have your parents considered over 50/55 housing association properties and renting ?
My Dad sold his home and moved into a over 55,s flat in the town centre.
17 years later he is still happy in his home and has enjoyed a good standard of living and lots of holidays.