Nationwide and Halifax both publish house price data each month. House prices are falling fast. I'd suggest you rent somewhere and watch the data. After a few months of ~no falls then look to buy. Not while prices are falling as much as 2% a month. Remember 2% off a £120,000 flat is £2,400!! Do you even earn £2,400 a month? Not a nice amount to be losing.
Rent or wait and buy - house ?
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Caporegime
[TW]Fox;13102485 said:
What rubbish.
Besides, if you rent sensibly then its more than worthwhile compared to buying your own place.
We are about to move into a 3 bed detached house (with garage) in a good location (shops, links and schools) all for the small sum of £800 a month.
We can then save the additional money that would be spent on a mortgage, in total it should be worth as much (if not more) than the equity in a property (if we had bought one).
Renting - getting a better house than you can afford to buy, being with the one that you love.
I don't get your point - while "waiting and waiting" one saves the amount that you would have been paying on the mortgage and the interest you would be been paying the bank minus the rent. Currently rent can be less than the interest so each month you are able to save more than you would be paying off the mortgage. Your net worth is increasing each month. If prices stay the same then you are getting richer and eventually can buy (with smaller mortgage) if prices fall then your money goes further. This idea only comes unstuck when prices start to rise - at which point you buy.
![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
The guy wants to buy at some point, as he stated in his OP. I was simply musing that it might be better to not rent for a year or two and instead save the equivilent cash towards a house deposit. That way you are paying neither interest nor rent and are acruing capital.
Soldato
I would wait, live at home and then buy. I'm looking to buy my first flat in central London next autumn, prices should be the lowest around that time and i'm also tired of paying £700pcm to live in someone elses flat.
Caporegime
[TW]Fox;13103313 said:
1 or 2 years isnt a lifetime as you first put.
Man of Honour
Sorry, my post wasn't particularly clear last night. This is completely true - but during this time you don't have a house to live in(the OP seems to be being advised to keep living at home rather than renting)
and you are still at home with your parents. If I still lived with my Mother, one of us would be dead by now
If renting is a viable proposition in your area (it can vary massively with location) then yes, at the moment it would be a sensible idea.
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Your better of living at home saving as much money as you can, times are going to get very hard for the next 2-3 years. Property prices are NOT going to rise for at least 10 years, 3-5 year drop in prices. at the same time rents are dropping as there is too many properties out there against demand, which itself is going to push the prices even down and making landlords compete pushing a few into repos. So save up progress up the career ladder and save as much as you can.
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Buy a house, and you'll immediately have it drop in price on a monthly basis, for anything between 12-18-36+ months. This will either wipe out your entire deposit and leave you no better off than someone who rented the whole time and then bought, or it will put you in negative equity almost instantly.
.... Plus, you have the added risk of being made redundant, and unable to make the payments on your massive 25-30 year debt.
The smart money rents and waits.
.... Plus, you have the added risk of being made redundant, and unable to make the payments on your massive 25-30 year debt.
The smart money rents and waits.
