Should I Stay Or Should I Rent????

Rob50k

I'd love to know your thoughts on this.

everyone is expecting a downturn in house prices and the possibility of a ressesion etc. My wife and I have no kids just 4 guinea pigs, whilst we like where we live we are not massivly attatched to the house or immediate area. We have a mortgage settlement of £119K with around 20 years remaining we are 27 and 30 respectivley so still nearly young!

We have been contemplating selling up and renting for the next few years, we don't really need the 3 bed house etc and it is currently worth about £185-190K. The equity from the sale could clear all of our Debts and still leave a sizable wedge to invest/save. It would leave us with twice as much monthly disposable income and there for means more Hols, toys and fun and maybe more savings.

Then if kids come along or work elsewhere moving is easier and up or downsizing is poissible......

What do you good people think? good idea? bad idea? any pitfalls? anyone done it or planning the same thing?

Numbnutz_2

It would leave us with twice as much monthly disposable income and there for means more Hols, toys and fun and maybe more savings

Even after your rent ?

Debt_Free_Chick

On the plus side, you get to clear your debts. And this enables you to save for a deposit for a future house purchase.

On the negative side, the equity that would currently be the deposit on your next home is gone. And you are gambling on a downturn in the property market, in the area where you next buy. Despite all the pundits' views .... we simply don't know if this will definitely happen; defiinitely happen by x% and definitely happen in your target area.

In my area (always slow), there are fewer (not more) properties being marketed and no sign of a slowdown .....yet? Who knows?

Rob50k

"Even after your rent ?"

Yep!

Monthly we take home around £ 2700
so with local rent at around £650 pcm for a tidy appartment
Bills, food, tax cars, clothes and beer tokens etc at around £800 means even if we are really rubbish and let the budget slip big style on donuts and caviar we should still have at least £1k spare each month.

"Gambling on a downturn in the property market"

Yep again!
But sometimes you got to have a punt, we live in Eastleigh nr Winchester, local agent i spoke to said they are still busy but people are having to be a little more realistic with their expectations and give more considerations to offers below asking price than they were 12 months ago.... so it kind of looks like its is starting to happen.

Cheers for the replys

DGJsaver

Rob50k wrote: »

Yep!

Monthly we take home around £ 2700
so with local rent at around £650 pcm for a tidy appartment
Bills, food, tax cars, clothes and beer tokens etc at around £800 means even if we are really rubbish and let the budget slip big style on donuts and caviar we should still have at least £1k spare each month.

Fair play if you have that much disposable income

I cant help but think you could be planning things a bit better (money wise)

shelovestobuystuff

I have though about it myself so many times.Clearing off the debt and having more money for a better life style is off course desirable and seems entirely the most sensible move.When it comes down to it though I like the security I have here.I lived in rented accomodation for years and at one point was having to move every 6 months as the owners were all selling up,getting divorced,emigtating etc,etc,etc.I lived in 9 flats over 6 years most of which were sold from under us.I wouldnt want to risk that again.
I wouldnt like to move into a HA or council house either as you live where you are put rather than where you choose to live.

shelovestobuystuff

Why dont you just buy somewhere smaller rather than renting?Mortgage on a little flat wouldnt be any more expensive than the rent on one.

Rob50k

DGJsaver wrote: »

Fair play if you have that much disposable income

I cant help but think you could be planning things a bit better (money wise)

Quote of the century!! and the reason I'm on here.
I was made Redundant back in August and although I am working again now it really woke me up to what is really important plus i have had to accept a £9K drop in my salary, this has ment the debts which were slowly going away last year are now stagnant again

As for moving around every 6 months, well i say that wouldn't bother me now but its maybe something I won't know about unless we try it!

pinkshoes

Having rented for 10 years and finally got my own property, I would never go back into rented accomodation! Perhaps after owning your own place for a while, you forget why renting can be so carp! Here's some general reminders:

*Usually can't have pets
*Can't paint walls
*Have to ask to put picture hooks up (ANYTHING for the landlord to deduct from deposit)
*you have to pay for tenancy agreements through agents
*your rental contract might not get renewed
*the rent might go up 10% or more!
*The landlord might sell the house and you'll have to move
*If things go wrong you can often wait a while until they get sorted
*If carpets get damaged, you'll have to replace them rather than stick a big rug over them (as you can with your own!!)

I think I can count about 9 towns/cities and 15 different properties I've rented over 10 years.

Personally I wouldn't give up all the benefits of owning your own home for a gamble on property prices.