Struggling to pull the trigger

SPRichards

Hello,

I apologies if this would be better suited elsewhere. And that this may just come down to decision I need to make, but I could really use some perspective from anyone who may have had to make similar life decisions. And apologies if this gets a little long winded. I will attempt a tldr at the end.  

I'm struggling to pull the trigger on buying a home or not. Its not as simple as the usual pros and cons of renting vs buying. I've recently moved to Manchester for work, after my fully remote position was made redundant. My industry as a whole is going through a large correction, and this was the best option for me. I've been at this new job for 8 months now, but have worked alongside these same people on the past. So i'm happy enough with the job itself. But working remote before meant I was able to live near family, my parents, siblings, nieces and nephews; All of whom are now a 2 hour train ride away.

I had saved and was primed to buy a place in my home town when all the work troubles started. Putting those plans on hold. So now I'm renting a flat with one other person and as I've passed my probation and feel pretty happy at this company, I'm starting to make plans for the future.

I'm going back and forth on whether buying a house is a good idea. I wouldn't live in Manchester if it wasn't for the job, but it is a good job that pays well, and more importantly has some amount of immunity to the trouble plaguing my industry as a whole. I'm sure with time I would enjoy Manchester, or the surrounding areas at least, and be happy here. But not being around the family is a big drawback, and would mean frequent travel just to be involved. 

The last spanner is my slightly longer term goals, I plan to retire (if all goes well) in the next 4-5 years. Or at the very least change careers and work part time, maybe outside with little to no responsibilities. Maybe become that guy who gets to drive the train around the zoo (only half joking with that one). 

So to my mind I have a limited number of options:

1, Buy a house -

Pros: If things go well I'll have built some equity and If I do retire I can sell and buy something closer to home. And if things don't go well on the retirement front, hey, at least I've been building equity all this time. 

Cons: I currently share, and while I might be able to get a lodger, it wouldn't be nearly as easy as I wouldn't want to buy in the city, I wouldn't want a flat. If I buy a house it would be so I can have a garden and some space. There's also no guarantee I'll have someone in the spare room. So will generally cost more, especially with insurances, maintenance and other costs.


2, Continue to rent - 

Pros: Most likely cheaper, even with the rent not building equity. I currently pay £600 per month in rent. And then split utilities on top. You cannot get much of anything for close to that with mortgage rates the way they are atm. I'm generally pretty frugal and everything above my needs is saved. Flexibility, if my job does fall through, fine. I can just move (again).

Cons: Not really settling down, not my own space to decorate and do as a please. Missing out on locking in my costs. Might be cheaper currently to rent, but rents have been inflating rapidly in recent years. 


I'm probably missing a lot on this list, I have so many thoughts whizzing around my head trying to make the right decision. One more thing I will add is, I don't have a partner and never have, I'm not particularly that way inclined, as I imagine that would help many people make this decision.

Anyway, apologies for the long post, I hope I've provided enough context. I understand this is a life decision I need to make, but wanted to gauge how other people view these decisions. 

tldr:

Do I buy a house where I *might* not want to stay long term (5+ years). But get more space, freedom and lock in my costs, build a little equity along the way. 

Or continue to rent, enjoy lower costs, save more money, enjoy flexibility. But don't have my own space, at the whim of the rental market, and generally feel like I'm not making progress on imagined life checkboxes. 

Thanks all

FlorayG

have you owned your own place previously or always rented? I think the answer to this would affect any options. If you've never before owned a house you don't know how it 'feels' to own one

MikeJXE

A no brainer to me 

A good job but only for another 5 years before you retire, keep it up 

You would love to be near family and thats even more important when you retire so look for the perfect home there, stash the money away. 

I would definitely stick as I am and 5 years will fly by 

Sarahspangles

It’s a long time since I was in this position but there used to be a ‘rule of thumb’ that it wasn’t worth buying if you weren’t intending to stay somewhere for x years, because the frictional costs of buying and selling meant you would lose out. I don’t know what ‘x’ is, or if this still applies.

I do know I regret not going with my gut on several occasions when jobs or houses were considered.

SPRichards

FlorayG said:

have you owned your own place previously or always rented? I think the answer to this would affect any options. If you've never before owned a house you don't know how it 'feels' to own one

Hi, that is a good point. I have never owned a home before. I recently watched a video on this subject, and the perceived happiness owning your own home gives you isn't actually supported by data. All the added stresses of being responsible for anything going wrong. I did find that compelling, but maybe I'm looking for justifications for essentially choosing an outcome by staying the course - Effectively I'm choosing through inaction I suppose. 

Mark_d

If you were going to buy now, then buy in Manchester close to where you work do that you minimise the travel you need to do.  But since you're planning to move back 'home' in 5 years time then buying a place would mean a waste of conveyancing costs, legal expenses, stamp duty...unless your property wouldn't incur stamp duty.

Basically I think stamp duty would be what make the decision for you.

SPRichards

MikeJXE said:

A no brainer to me 

A good job but only for another 5 years before you retire, keep it up 

You would love to be near family and thats even more important when you retire so look for the perfect home there, stash the money away. 

I would definitely stick as I am and 5 years will fly by 

Thanks, yeah I feel like if I'm pressed and asked what it is I want, work not being in the picture, then I move 100% of the time. I suppose for me the trouble is if the 5 years needs to become 10. Have I wasted 5 years not building some equity, and not getting any house price growth.

But I'm asking for more than I need from a 'home'. They're not investments, but my mind does go there.
Thanks again for the reply

SPRichards

Sarahspangles said:

It’s a long time since I was in this position but there used to be a ‘rule of thumb’ that it wasn’t worth buying if you weren’t intending to stay somewhere for x years, because the frictional costs of buying and selling meant you would lose out. I don’t know what ‘x’ is, or if this still applies.

I do know I regret not going with my gut on several occasions when jobs or houses were considered.

Thanks, yeah I've read this two, about 5 years I think to recoup the costs involved. As a general rule. 

And I agree on the gut thing, It has served me well, my first job I took involved me climbing on a train to Edinburgh and living in a hostel for a month until my first paycheque, living in a room of 4 other bunk beds trying to sleep with my phone under my pillow for an alarm. But it kick started a career that has treated me well, and is the only reason I can even ponder buying a house or retiring so early. But my gut is twisted currently, too many variables. I think just talking through stuff helps. Just trying to put my jumbled thoughts into writing here has helped already.

SPRichards

Mark_d said:

If you were going to buy now, then buy in Manchester close to where you work do that you minimise the travel you need to do.  But since you're planning to move back 'home' in 5 years time then buying a place would mean a waste of conveyancing costs, legal expenses, stamp duty...unless your property wouldn't incur stamp duty.

Basically I think stamp duty would be what make the decision for you.

So I wouldn't need to pay any stamp duty, FTB and the property wouldn't exceed say £250k for my needs. I think my only concern with buying near where I work is I'd most likely need to buy a flat, or try to find something a reasonable walk way (I don't drive). Some of the nicer parts of Salford. But was most likely looking at having to commute somewhat, maybe Bolton, or even somewhere like Glossop would suit. I don't think I would want to own a flat, and the service charges on some of these flats around here are crazy

MikeJXE

SPRichards said:

MikeJXE said:

A no brainer to me 

A good job but only for another 5 years before you retire, keep it up 

You would love to be near family and thats even more important when you retire so look for the perfect home there, stash the money away. 

I would definitely stick as I am and 5 years will fly by 

Thanks, yeah I feel like if I'm pressed and asked what it is I want, work not being in the picture, then I move 100% of the time. I suppose for me the trouble is if the 5 years needs to become 10. Have I wasted 5 years not building some equity, and not getting any house price growth.

But I'm asking for more than I need from a 'home'. They're not investments, but my mind does go there.
Thanks again for the reply

I’m 83 years old, owned my own homes (10) since 1964, they all weren’t profitable (2008) interest rates as high as 17%. you can’t win all the time

I now live in rented, my 4th in 5 years but at last I have now found the perfect place 

If you are not rich and don’t need much like me 

You will find money isn’t everything and happiness outweighs the bank balance by a country mile 

FlorayG

I think if I were you I would buy but buy something keeping in mind resale possibility - in a popular area, good schools nearby etc. May not be exactly what YOU want, but easy to move on when you are ready
When you rent you rarely get exactly what you want, so you should be used to that part