buying house advise needed

winniewy · 13 May 2006 at 11:16AM

hi everybody, i hope someone can give me some advise on buying (or not to buy) our first house.

basically, I and my boyfriend family are all from Hong Kong, I am staying in England because my bf's sister is still in uni and my boyfriend was asked to stay and take care of her, so we both staying.(her sister will be finishing after 2 years) After this year, we no longer a student, so we need to rent the house privatly, it will cost us around 650 pound to rent a house.

But then, my bf's family start thinking about buying a house, my bf's family is able to pay for the deposit, and then we can pay for the mortgage ourselves, we have already quote for the mortgage, which is around 700pounds a month.

The problem now started! Me and my bf still haven't think of settle down in england, as we are still young and my family are all in Hong Kong. But then my bf's sister, who is going out with a guy for 3 month, have already thinking of moving out of the house with her bf after she has finished uni and rent another flat or house. That's mean after 2 years, there will be no one living in the house. So we might have to let it or sell it.

Do you guys think we should buy the house for only 2 years and then sell it or let it? Is it worth 'invest' a house for 2 years?

I am really sorry with my poor english. If anyone can help will be appreciated.

Mrs_Optimist · 13 May 2006 at 4:14PM

By the sounds of things no-one is going to want to live in the house long-term so I would just rent. The market is unstable at moment and I wouldn't be surprised if there is a downturn in house prices. You will also forego the added expense of stamp duty, solictors fees (for both buying and selling) and interest on any mortgage even if you only have it for 2 years. If you were planning on staying longterm my opinion may differ but as it stands I would just rent.

movieman · 13 May 2006 at 5:51PM

Do you guys think we should buy the house for only 2 years and then sell it or let it? Is it worth 'invest' a house for 2 years?

Only if you're convinced that there will be a significant rise in house prices in that time. Otherwise you'll be paying maintenance, stamp duty, solicitors' fees and lots of other costs that you wouldn't pay when renting for no benefit... and if prices drop, you'll lose thousands.

IMHO buying a house to live in for two years usually only makes financial sense in the early stages of a housing bubble. If prices are stable you lose in fees, if they're dropping you lose even more.

Bf109 · 13 May 2006 at 6:51PM

Its not worth buying somewhere for only 2 years.

If its less than £250,000 then you are looking at £5,000 costs. If its over then you are looking at paying £10,000.

Why not find a place to rent for £850 per month instead?

winniewy · 14 May 2006 at 12:35AM

thanks for all of your advise.

basically i am living in an area that with loads of student population and I can see the houses are gone quickly after they went onto the market(with a good location, houses usually gone in 2 weeks). That's why we thinking the housing market in our area is quite good.

And this is why we are stuggling with making decision.

buying house advise needed

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