To buy or not to buy?

snacksarecompulsory

Hi, I earn a modest income and am lucky enough to rent a decent sized house in a nice place via a housing association.  No quibbles there.  I have an inheritance quietly sitting earning me a small amount of extra income.  I'm at a point where I figure I need to do something about this money.  I retire in about 10yrs, never been in a position to be able to buy a house prior to this.  The money could potentially buy a very modest home in a different area (high costs here) outright and I would save the money I pay on rent.  However, there is a lot of safety surrounding being in a housing association house, with repairs covered, I've also lived here a very long time and have connections and a job tied to the area.  I literally cannot decide what is best.  Health for me and partner may be an issue long term and I am the only one earning so it all falls to me.  Need some more experienced people than me to guide me here.
Also, my current earnings are so modest that taking on a small mortgage is out of the question - it's buy outright or not at all.  Thoughts please?  TIA.

Keep_pedalling

It sounds like you are happy and secure where you are. In your shoes I think I would stay put and use at least some of your inheritance to boost your retirement income.

El_Torro

If you were renting privately, with the associated risks and potential rent increases that go along with it, I would say it's in your best interest to buy. However since you are in social housing your situation might be different. 

If your rent is reasonable, and unlikely to increase above inflation, then it may be best to stay where you are. Bearing in mind that the rent will need to be paid until you both die. 

Are you both well covered for future provision? Do you both (or at least you) have decent pensions? Will the rent be covered if one of you lives a lot longer than the other?

Ultimately if you are happy with the house you live in now and buying would move you to a less desirable house, why move?

lincroft1710

To buy or not to buy that is the question.

Whether its nobler to remain happy in the state of HA renting, with no repair worries, friends nearby and have a not outrageous fortune on which to fall back. Or take the plunge into a possible sea of troubles,and fly to others we know not of. To grunt and sweat under a weary life with repair costs soaring, such is home ownership. 

Spidermidge

Can you not buy the house your in under right to buy.

Albermarle

Normally the big problem with renting when you get older is insecurity. In other words the landlord might boot you out at some point and you have to go searching for somewhere to live when you are in your 70's or 80's. 
If you think this is unlikely due to it being a HA property, then this takes away some of the issue about renting.

 I earn a modest income

Any possibility to improve that ?

Hoenir

When you retire would you consider moving to a cheaper area? 

SarahB16

snacksarecompulsory said:

Hi, I earn a modest income and am lucky enough to rent a decent sized house in a nice place via a housing association.  No quibbles there.  I have an inheritance quietly sitting earning me a small amount of extra income.  I'm at a point where I figure I need to do something about this money.  I retire in about 10yrs, never been in a position to be able to buy a house prior to this.  The money could potentially buy a very modest home in a different area (high costs here) outright and I would save the money I pay on rent.  However, there is a lot of safety surrounding being in a housing association house, with repairs covered, I've also lived here a very long time and have connections and a job tied to the area.  I literally cannot decide what is best.  Health for me and partner may be an issue long term and I am the only one earning so it all falls to me.  Need some more experienced people than me to guide me here.
Also, my current earnings are so modest that taking on a small mortgage is out of the question - it's buy outright or not at all.  Thoughts please?  TIA.

Based on the information you have shared to date my current thinking is you may very well be better staying renting from the housing association.  

If, in the future, the stairs were to be difficult for you and you wished the housing association to place you in more suitable accommodation do they have quite a lot of suitable accommodation in the area?  This would be another factor in favour of staying with the housing association.  

I'm not sure whose name the housing association house is in, i.e. just your name or you and your partner's name?  I'm not quite sure what the situation will be for your partner though if you were to pass before your partner.   

If you do decide to continue to rent from the housing association I would check you can continue to afford the rent but I  presume if not you would just downsize to smaller accommodation offered by the housing association.  They will know accommodating you/helping you move will free up a house so they will look to accommodate you quite quickly I would think as soon as suitable accommodation was available for you.  

You say your earnings are modest and perhaps in retirement you may get help with your housing costs.  I wouldn't take on the purchase of a house with only modest earnings as you run the risk that you would not be able to fund the cost of repairs.  

In summary, whilst I would normally suggest buying I do think in your circumstances considering the above it may be that continuing to rent would be the better option for you and having friends/connections nearby as you get older is something quite often overlooked as a consideration and is even more important as you get older. 

Bigphil1474

Might be worth looking into the ins and outs of care home fees for you or your partner (for later in life). Having a lot of savings will have an impact, but so does owning a house. However, if you were a home owner, I believe you can retain the property if only one person ends up in care and its discounted for fees purposes, whereas savings wouldn't be. As I say, worth having a look into just in case.

snacksarecompulsory

Spidermidge said:

Can you not buy the house your in under right to buy.

No, unfortunately, would be beyond my current savings too

snacksarecompulsory

Albermarle said:

Normally the big problem with renting when you get older is insecurity. In other words the landlord might boot you out at some point and you have to go searching for somewhere to live when you are in your 70's or 80's. 
If you think this is unlikely due to it being a HA property, then this takes away some of the issue about renting.

 I earn a modest income

Any possibility to improve that ?

No, income likely to stay the same for a bit