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What would you do? Would you buy a house now, or wait... in these circumstances?
It's quite complex but will try to keep it simple. Partner and I are effectively retired, both late 50s, neither have private pensions or any incomes other than from savings interest and we don't own any property at the moment. Will be entitled to state pensions as and when.
We currently rent, having sold two houses about 2 years ago. The interest on our savings - (about £750k all easy access) is just under £30k and enough to cover rent on a basic victorian conversion flat in the south east and leave us enough to cover all bills if we're very frugal.
So, we have no capital growth and are probably chipping away at it gradually.
We had intended to buy a house nearer to London after selling our other homes but the housing market pushed the houses we wanted up out of our budget and the lack of stock has meant we haven't found many alternatives.
We'd like to buy a place and embark on new self-employed careers (creative and low incomes) but don't know whether to buy now or wait and see if prices fall.
We can't get on with our new occupations where we live at the moment because of space restrictions so life is pretty much on hold while we wait/decide - which is difficult at our ages.
We've seen a nice house at £525 (the going rate in the area we'd like to live in) which would save our rent but also more than halve our remaining income from savings.
We've always thought we would give these new alternative careers about 5 years and if they don't work we'll sell up and downsize - get some sort of paid employment if we can.
But with the housing market as it is, we're worried if we spend £525k now, we might lose 10% in value immediately and in 5 years possibly only be back at £525k when we need to sell.
What would you do?
Would you carry on renting and hope prices come down next year? Of course, our landlord could choose to sell at any point.
Or buy at £525k and hope for the best?
Or something else?
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