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Rent or buy?
jamels2
Posts: 437 Forumite
Usually the answer would be obvious as I am not moving somewhere else for work and have no immediate plans to move away from where I live. To buy would make sense as I'm a single guy in my late 30s.
However, I already own one property with over half the mortgage paid off. It's currently let while I remain at my parents. I don't want to be here in my 40s so looking to move out soon.
I can hear you say move back into my flat I already own, however two reasons are stopping me. One the tenant really does not want to leave and pays the rent ok. And two I have no pension arrangement so it may be sensible to leave this property let as a pension.
So that leaves me two options to move out. Do I expand and buy another by taking say 25% equity out of the flat? I have already enquired about additional borrowing and this is possible. The downside is stamp duty premium.
The other option is just to rent by myself , I don't like the idea of paying full market rent but then I worked out I could rent for nearly a year and still only pay the same amount I'd have to pay in stamp duty if I bought property two.
I would welcome any thoughts on this situation. Thanks so much. James
However, I already own one property with over half the mortgage paid off. It's currently let while I remain at my parents. I don't want to be here in my 40s so looking to move out soon.
I can hear you say move back into my flat I already own, however two reasons are stopping me. One the tenant really does not want to leave and pays the rent ok. And two I have no pension arrangement so it may be sensible to leave this property let as a pension.
So that leaves me two options to move out. Do I expand and buy another by taking say 25% equity out of the flat? I have already enquired about additional borrowing and this is possible. The downside is stamp duty premium.
The other option is just to rent by myself , I don't like the idea of paying full market rent but then I worked out I could rent for nearly a year and still only pay the same amount I'd have to pay in stamp duty if I bought property two.
I would welcome any thoughts on this situation. Thanks so much. James
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Comments
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Did you know that if you click on your user name you can find all previous threads that you have created?
https://forums.moneysavingexpert.com/discussion/5708894/own-property-first-and-best-investment
https://forums.moneysavingexpert.com/discussion/5695400/house-or-flat-maisonette
https://forums.moneysavingexpert.com/discussion/5681843/paying-off-your-mortgage
https://forums.moneysavingexpert.com/discussion/5680057/let-to-rent
In all seriousness have you considered using some of your money to pay for CBT?0 -
You have to really crunch the numbers but if your tenant leaves and you sell the first property within 3 years you can reclaim the additional stamp duty back if that is all that is stopping you buying another place.
Based on a property of £200,000 then the additional duty is only £7500 - the value on the second property is likely to increase more than that anyway and you will be paying the capital down instead of paying for a rented property.
Up to you and whatever suits your budget and circumstances but at the moment with interest rates as low as they are, if you can afford to buy property then you should.
At least the OP came back on ONE of the four other treads....LOL0 -
Pixie why do you live in the past and not the now?0
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Have attempted to help in one of the previous threads so not really going to bother again for the OP, but just to avoid misinformation for any other readers:foxy-stoat wrote: »You have to really crunch the numbers but if your tenant leaves and you sell the first property within 3 years you can reclaim the additional stamp duty back if that is all that is stopping you buying another place. - No, you can only reclaiming if you're selling a prior main residence. As the OP is letting the property, he wouldn't get any refund.
L0 -
I don't live in the past hence why my life has moved on from 5 years ago whereas you continue to ask the same question over and over and over and over again. Why do you expect to receive difference answers? What is wrong with the answers you've had previously?0
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