To rent or to buy?

ian-83

ian-83

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Ian
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I am soon to be living on my own due a failure/breakdown of my marriage. Mutual decision by us both as things have gone stale and neither of us are happy anymore. We have tried to fix things but nothing seems to work.

So therefore I am looking for a place to live (currently live in a council rented property which the OH lived in before I met her). I also live in Cambridge which isn't helping the situation as house prices around here are expensive unless you move away from the city some distance.

I've found a few rental properties I like which I can happily afford to pay monthly for. My other option is to look into buying. I'd prefer not to use the help to buy scheme as it seems to have a few negatives of or when you want to move which ties it all in to the original developer/scheme owners.

Would I be stupid to try to get a mortgage with a 5% deposit? Or should I rent and save up to get a bigger deposit? Say 10-15%?
Just looking on money supermarket a 5% deposit one with fixed interest rate works out cheaper than renting but after the fixed period goes up higher.

Any thoughts?
 
The thing about renting is that you're paying the landlord's mortgage. I know of what I speak as until a few years ago I was a landlord. In my opinion, if you can possibly afford to buy something: do so. Big BUT though: don't be tempted to take on a mortgage that you won't be able to service if things go wrong. Also been there and done that. It wasn't fun.
 
Why pay someone else's mortgage when you can pay your own.
I live within easy reach of Cambridge via the guided bus, not that cheap, but less than Cambridge city prices
 
Personally I would buy, having never rented, but my parents did and my daughter does, seems like money down the drain. However at present I would wait until after the next budget to see what wonderful give aways the new PM will use to buy votes, that is unless he's out before he gets the chance to have a budget and we have a general election this year as the new Govt won't have to bribe anyone for maybe 4 years.
 
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rent for 6 to 12 months no biggie see what happens
 
I live near Cambridge too, can you look at villages outside like Bar Hill/Northstowe? I would always look to buy if you can afford it. Prices may dip if we get a no deal brexit but Cambridge prices did hold up well after last recession.
 
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If you are accepted for a mortgage then buy. This is in the long term the best option by far.
 
Well I have been having a better look at what's about to buy and anything that looks worth buying/investing in is more than what I can raise 5% deposit for so for now it looks like renting is going to be my only option for now.
 
ian-83 said:
Just looking on money supermarket a 5% deposit one with fixed interest rate works out cheaper than renting but after the fixed period goes up higher.
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If you can't afford the higher rate then don't do it. It's unlikely a bank would lend you the money anyway. They use a notional rate for their calculations which is what rates _could_ get to and it's way higher than the headline rate.

Mr Bump said:
rent for 6 to 12 months no biggie see what happens
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Unless property prices rise 10% in the period. Then you've paid 12 months' rent and can no longer afford the house you thought you could. I mean, prices could also go down..... (Have just done this exact thing - been renting for nearly 2 years and now bought. Would have been a lot cheaper to buy 2 years ago.)
 
Have you thought of house sharing. Rent will be much cheaper and the money saved can go towards your deposit for a mortgage.
 
Borrow more deposit from family?

Renting is nice and easy, I don't agree with others who say renting is paying landlord's mortgage. Renting is much easier, there's less STUFF that is your responsibility. Anything wrong just call the landlord.

Buying can be cheaper per month with current mortgage rates, if you have a reasonable sized deposit. But my experience is that, keeping a house in top notch state is a lot of work.
Room need repainting? you have to do it. Water getting into the kitchen cabinet? Tap leaking? Shower cubical leaking? you have to fix it. (if you haven't worked out, water gives me a headache. I'm fine with anything electrical, love working on electrical and electronics)

Not to say it's a bad thing, it's just more to it than "paying the landlord's mortgage".
 
When this happened to me I bought a motorhome. It cost me £20,000 to buy it, no more than a car to run it, I never used campsites, so never had to pay to stop.

I loved it so much, I lived in it for nearly four years and when I sold it, I got £18,500 for it. Now that's what I call cheap accommodation; £1,500 for nearly four years works out at just £7.21 a week. This enabled me to save like crazy and I ended up buying my next house in cash. :D
 
Sky said:
When this happened to me I bought a motorhome. It cost me £20,000 to buy it, no more than a car to run it, I never used campsites, so never had to pay to stop.

I loved it so much, I lived in it for nearly four years and when I sold it, I got £18,500 for it. Now that's what I call cheap accommodation; £1,500 for nearly four years works out at just £7.21 a week. This enabled me to save like crazy and I ended up buying my next house in cash. :D
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That really is thinking outside the box and I commend you for doing that rather than "borrowing" from family.
 
At this point in time with your situation I would not think it is wise to buy and commit to anything. Maybe a move out of town to give you an entirely different perspective would be best. After all, you may then, in time work out your issues with your marriage and appreciate it all the more. Separation can be a good thing by separating lots of things from the usual in your life. Best to find yourself right now rather than find a place to continue as you are.
 
Sky said:
When this happened to me I bought a motorhome. It cost me £20,000 to buy it, no more than a car to run it, I never used campsites, so never had to pay to stop.

I loved it so much, I lived in it for nearly four years and when I sold it, I got £18,500 for it. Now that's what I call cheap accommodation; £1,500 for nearly four years works out at just £7.21 a week. This enabled me to save like crazy and I ended up buying my next house in cash. :D
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But, you won't have a permanent address then? How do you deal with mailings, votes, bank, etc... ??
 
Sky said:
When this happened to me I bought a motorhome. It cost me £20,000 to buy it, no more than a car to run it, I never used campsites, so never had to pay to stop.

I loved it so much, I lived in it for nearly four years and when I sold it, I got £18,500 for it. Now that's what I call cheap accommodation; £1,500 for nearly four years works out at just £7.21 a week. This enabled me to save like crazy and I ended up buying my next house in cash. :D
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Where did you park it?
 
Rent!
Easier to move home.( imagine if after a short time you get new neighbours ...from hell!)
No / very little maintenance costs to residence as they are mostly stood by landlord.
Possibly easier to obtain financial aid should severe difficulties arise.

I speak purely from experience of owning property and renting like what I have returned to doing.
I no longer live in the uk so my opinions based on when I did live there may have less significance now ( relating mainly to the last comment about financial aid.)
Nonetheless I would never buy again.
 
ian-83 said:
I am soon to be living on my own due a failure/breakdown of my marriage. Mutual decision by us both as things have gone stale and neither of us are happy anymore. We have tried to fix things but nothing seems to work.

---

Any thoughts?
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I'm sorry your marriage is failing.

So rent or buy...? Mmmm, I'm thinking, mmmm, got it!

Unless you got a full-time job in where you live, why not...

TRAVEL!

After your divorce, you'll be free. Why not think about travel somewhere for a week or two, go and take travel-style photographs? You never know, travelling may give you some ideas about buying or renting a home, sometimes people get an inspiration from somewhere else, from doing something different.

Buy does mean it is yours, so if you but you'll be responsible for your own repairs, and you'll be stuck in the same location for years to come until you sell the house and move.

Rent does mean you can stay for many months, pack up, move to another location and live there for many months, plus repairs will have to be done by the landlord. Rent also means you could move around Cambridgeshire, maybe even Lincolnshire, Norfolk, Suffolk, etc., living for in a different location for a year or two, then move to a new location, until you found a town you fell in love with and want to stay.
 
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