Buy or stay in HA?

Doozergirl

There are other options to buying now and renting forever.   You could wait until you have a larger deposit and a smaller mortgage, or even no mortgage 

I'd agree with the others who appreciate that a secure tenancy with the HA is very different to a private tenancy.  It isn't a no-brainer to own when you do have security.  

What does £1400 a month buy you?  Is it  genuinely worth £750 a month?  

Why aren't you choosing to buy your current house at the discount?  

KxMx

silvercar said:

housebuyer143 said:

dimbo61 said:

I read in the paper today that you need £625,000 to rent in your old age.
Owing your own home is the very best place to be when you do hope to retire.
You may get pay rises, your kids may get jobs and help out by paying board, you might get an inheritance.
If you can please buy your home.

Where on earth did you read that? At £650 a month they could rent it for 80 years! 

Rents will increase over time. How will you fund the rent in retirement?

Really difficult to choose between buying and a secure rental. If you worry about mortgage payments now, will you worry about rent in retirement? Always the option to downsize when the kids have left home if you own your own property, whereas giving up a secure tenancy isn’t advised.

You can downsize when living in social housing too! 
Some councils/HA's even have incentive schemes to make it as easy as possible. 

kelslayer

Thanks all,

appreciate your thoughts. 

The house we live in is under a rural scheme which makes our home exempt to to sale.

We live in the Suffolk where house a half decent 3 bed semi starts around £260k. 

Th house we are buying started at £280 and after a reduction in price and further negotiation we got it for £260k

Just come back from weekend away with just the hubby and talked a lot. He wants to buy the house.  I’ve done more maths, we have a loan than finishes in 3 years and hope to use that against the mortgage. Which means the mortgage will be paid by the time he’s 69.

he’s just got a £1700 pay rise and mine should increase by £5k once my exams are finally done. So we have a little wriggle room for life.

it’s still late in life, but that’s where we are I guess!! 

wish us luck!! :-)

thank you

Yellowsub2000

Why buy in a falling market? You know it will be worth less later.

where is the bottom going to be? I don’t know but moving home with Charlie thinks five year bear market and 50% real term crash by then

silvercar

Yellowsub2000 said:

Why buy in a falling market? You know it will be worth less later.

where is the bottom going to be? I don’t know but moving home with Charlie thinks five year bear market and 50% real term crash by then

Charlie has been eating too much chocolate!

Dustyevsky

Yellowsub2000 said:

Why buy in a falling market? You know it will be worth less later.

It's not just the value of property that can fall y'know. That money stuff is losing value rapidly at present, and who's to know when it will, perhaps, turn into funny stuff called a CBDC? You can't live in one of those either!

twoLou

kelslayer said:

Thanks all,

Just come back from weekend away with just the hubby and talked a lot. He wants to buy the house.  I’ve done more maths, we have a loan than finishes in 3 years and hope to use that against the mortgage. Which means the mortgage will be paid by the time he’s 69.

he’s just got a £1700 pay rise and mine should increase by £5k once my exams are finally done. So we have a little wriggle room for life.

it’s still late in life, but that’s where we are I guess!! 

wish us luck!! :-)

thank you

I’m glad you have come to a decision that is right for you and the very best of luck with everything.

freesha

So your monthly payments will *more than double*? For no more (really) security than you have? I'd stay where you are.

sheramber

What pension provision do you have?

Would it be better to pay into a pension to provide income in your old age?

State pension alone doesn't go far.

kelslayer

sheramber said:

What pension provision do you have?

Would it be better to pay into a pension to provide income in your old age?

State pension alone doesn't go far.

We just have our occupational pensions, and I have a small SIPP.

Urgh….. why is this so difficult.

Once I qualify hopefully next year and then pay off an existing loan we would have potentially £1500 surplus income (also allowing for our monthly ‘playpot’ that we have now.

so we either put that into a house or savings/pension.

1500 x 12 x 22 years = £396k
we have no idea about investing!

If we didn’t but we would have this nest egg but still be renting. But in HA.

we can do what ever we like to the house in terms of decoration. We just can’t alter it I don’t think.

gosh we really need to make a decision before the solicitor wants us to sign contracts :-(