Hi Guys,
Age old question here and one that's been asked multiple times, but I'm after opinions in my situation.
I live on my own, am 26 and currently renting, and amlooking to buy my first house (2 bed semi) in the near future. I've actually already put down reservation fee, mortgage valuations, searches etc on a new build property and would be using the help to buy scheme (equity loan).
I'm now having doubts due to the long term commitment and location, so am considering pulling out of the sale, cutting my losses (expect >£1k solicitor bill) and moving somewhere closer to town and remaining renting (flat).
My considerations:
Commute:
Where I work is in an expensive area, which I cannot afford to buy. However, I can afford to rent closer by although it is expensive (750+/m). Buying, I would be looking at an increased commute of 15-40mins per day, so a minimum of 2.5hrs extra sat in the car each day, which I despise.
Location:
Buying - on outskirts of town, not able to walk to local amenities, residential area
Renting - towards center of town, able to walk into town, local restaurants, shops, bars etc.
As I'm on my own and would make the most out of waking to local cafe's etc, meeting up with people, renting wins this one hands down.
Flexibility:
I have a stable job, however have always wanted to work abroad if the opportunity comes up.
Using HTB means that if the opportunity came up I wouldn't be able to sublet unless I could prove the move was temporary & could not afford to in parallel pay the mortgage, and even though it is unclear if it would be approved.
Being in early career I have moved around a fair amount (longest I've stayed in one house is 1.5yrs in the last 4 years since uni). Doing the maths, it would take 3.5yrs of living in the mortgaged house to break even in expenditure vs renting if I were to move at that point.
Control:
I would like to buy and have a place of my own, be able to decorate and have the freedom associated with owning property.
Long term / equity:
A lot of people I've spoken to have said that it is best to get on to the ladder as early as possible to start building up equity. Obviously renting will not let me achieve this.
Brexit:
Who knows what will happen to house prices (2018 forecasting lowest inflation in house prices in years)
Money:
Mortgage would be ~£500/m vs £750-800/m renting, however I would have additional costs due to the commute, insurance, etc to think about, plus in year 5 interest kicks in on on the help to buy loan.
If I were to buy, I should be able to save enough to remortgage healthily and take on the HTB loan into the mortgage at the 5 year point.
I'm leaning towards pulling out due to the lack of flexibility & location, and though I would struggle to save due to the cost of renting, try and build up 10-15% deposit to buy without HTB in a few years time and after the unknowns of housing market changes.
However, I have the opportunity to buy now and get onto the ladder early...
Opinions?
Age old question here and one that's been asked multiple times, but I'm after opinions in my situation.
I live on my own, am 26 and currently renting, and amlooking to buy my first house (2 bed semi) in the near future. I've actually already put down reservation fee, mortgage valuations, searches etc on a new build property and would be using the help to buy scheme (equity loan).
I'm now having doubts due to the long term commitment and location, so am considering pulling out of the sale, cutting my losses (expect >£1k solicitor bill) and moving somewhere closer to town and remaining renting (flat).
My considerations:
Commute:
Where I work is in an expensive area, which I cannot afford to buy. However, I can afford to rent closer by although it is expensive (750+/m). Buying, I would be looking at an increased commute of 15-40mins per day, so a minimum of 2.5hrs extra sat in the car each day, which I despise.
Location:
Buying - on outskirts of town, not able to walk to local amenities, residential area
Renting - towards center of town, able to walk into town, local restaurants, shops, bars etc.
As I'm on my own and would make the most out of waking to local cafe's etc, meeting up with people, renting wins this one hands down.
Flexibility:
I have a stable job, however have always wanted to work abroad if the opportunity comes up.
Using HTB means that if the opportunity came up I wouldn't be able to sublet unless I could prove the move was temporary & could not afford to in parallel pay the mortgage, and even though it is unclear if it would be approved.
Being in early career I have moved around a fair amount (longest I've stayed in one house is 1.5yrs in the last 4 years since uni). Doing the maths, it would take 3.5yrs of living in the mortgaged house to break even in expenditure vs renting if I were to move at that point.
Control:
I would like to buy and have a place of my own, be able to decorate and have the freedom associated with owning property.
Long term / equity:
A lot of people I've spoken to have said that it is best to get on to the ladder as early as possible to start building up equity. Obviously renting will not let me achieve this.
Brexit:
Who knows what will happen to house prices (2018 forecasting lowest inflation in house prices in years)
Money:
Mortgage would be ~£500/m vs £750-800/m renting, however I would have additional costs due to the commute, insurance, etc to think about, plus in year 5 interest kicks in on on the help to buy loan.
If I were to buy, I should be able to save enough to remortgage healthily and take on the HTB loan into the mortgage at the 5 year point.
I'm leaning towards pulling out due to the lack of flexibility & location, and though I would struggle to save due to the cost of renting, try and build up 10-15% deposit to buy without HTB in a few years time and after the unknowns of housing market changes.
However, I have the opportunity to buy now and get onto the ladder early...
Opinions?
