[mischaell]

I am really struggling to decide whether to rent or to buy. There are many people saying I am throwing money down the toilet because I rent. But then I am scared that the UK property market might collapse.

Does anybody have any suggestions?

[pollypocket]

There are two ways of looking at it:
When you rent accommodation, if, at first, you fall in love with the place and decide to move in, you could grow to hate it for one reason or another (not so good neighbours etc..), and at least you know that after 6months you can move. You may find that the location which you thought ideal is not so because you may have changed jobs as an example. Then you can relocate quite easily.
When you buy a property, you look for different things. You look for location, condition and potential. When you take out a mortgage you must ensure that you get the right type of mortgage for you (the fixed ones usually offer good value), at least then you know your outgoings each month. Of course you will be responsible for all the maintenance on the property, as opposed to when renting, when this responsibility is taken away from you to a certain extent.
Good luck in whatever you decide.

[Philip]

In order to make your decision, you have to evaluate your situation. Is your life stable (such as life permits) regarding work and relationships. Buying a property is not a short-term proposition. There are heavy buying and selling costs to consider (which are only offset over time in a rising market) and property cannot always be sold quickly. Additionaly there are costs of insurance, maintenance and furniture etc.
Choosing to rent is the better option if your life is not settled. It allows you to change job / relocate relatively easily since a rental contract is for a short period. Should your relationship change, again there is relative flexibility on the accomodation front. Or maybe you want to live with your partner and really know them before entering into a financial agreement with them.
When you go on holiday, you would never dream of buying a car, you are quite happy to hire one. You stay in a rented room / villa etc; you don't buy, because you enjoy the flexibility !!

[la pon]

[Guest]

I think it is not a bad idea to rent. I I buy a house now it would not be to live in but to rent it.

[Guest]

I think it is not a bad idea to rent. If I buy a house now it will not be to live in but to rent it.

[brandy]

Hi, respectfully, look into building your own house or bungalow, you could build with the help of others for around 50% of the valuation price, thats 50% equity. If you sent me your personnal details, then ill sent you details. But "DON'T RENT" and "DON'T BUY" BUILD YOUR OWN, and in a location of your choice.

Do your research, and you will understand what i'm saying.

You would only require around 5% of the build and land price to start your project. THINK POSITIVE

Take Care

Brandy

[Paulie]

First, let's debunk the idea that renting is "just throwing money away". Sure, I don't like the idea of lining some (already rich) landlord's pocket, but if the property is good and you can afford it, then renting is a transparent transaction.

Buying, on the other hand - especially in today's over-inflated market - is actually less transparent. In fact, it's actually speculative. Moreover, even on today's low interest rates, the amount you pay back over 25 years will be DOUBLE what you borrowed.

So that's another form of "throwing money away". And when even a one-bedroom flat will set you back £200,000, that's £200,000 you borrow and a further £200,000 lining the pocket of (already rich) mortgage lender.

[Guest]

Before you buy I'd strongly suggest you read the forums on: www.HousePriceCrash.co.uk

This website debunks all the estate agent spin, economic forecasts, spurious house price data.

Simply www.HousePriceCrash.co.uk will save you a fortune.

[Guest]

see what the majority think...
house prices[/url]

[Gravity Winns]

Remember the choice for most people is to rent a house or rent some money (the mortgage). It doesn't happen that often but for those who have to borrow money to buy a house (ie most of us) it is now cheaper to rent than to buy. The reason is that house prices have become unsutainably high. 30% overvalued according to the OECD! Buy now and you will have a huge debt for a long time. Wait and you will be able to buy cheaper in real terms.

[Fifty/fifty]

Hi, buying is always best if you can. If you buy you're investing in your future, renting is investing in someone else's future. Owning a place gives you stability and control over your own life. Long term prices will always go up. There is a shortage of housing in the UK and a lot of demand with increasing immigration and single-person households. Interest rates are historically low, and show no signs of moving up very much - you can fix the whole life of your mortgage at 5% for 25 years if you want to. Banks wouldn't let you do that if they thought interest rates were going to move dramatically. I think the days of house prices going up at 20% a year have gone (thankfully), but equally I don't think they're going to collapse. People have been saying that for five years now, but it's wishful thinking.

[Falma Lalma]

buy buy buy! lets be honest, none of us wants to rent its a last resort. just gotta start saving that deposit, hmmmmmmm ....

[Guest]

rent rent rent...at least for the next couple of years. You'll get more for your money and hopefully have saved up a decent deposit.

[Guest]

I can afford to buy but choose not to just yet. I believe like many others that we are at the top of a global property bubble - just like the dot com bubble a few years ago.

I'm expecting a drop in value of at least 30% over the next 3 years. At which point I'll buy with a large deposit and have a considerably better life over the next 25 years.

No one will disagree - property is overvalued and a correction is due.

dont buy !!!

[Guest]

It's cheaper to rent right now which means you can save more so when you do buy in the future you'll afford a better place, even if house prices don't drop. Effectively your landlord is helping you to buy your future house.

[whatever]

Depends on your situation.

If you have a large deposit and a family that needs a home then YES.

If your single and young then NO.

Why on earth tie yourself down in a country that has rising unemployment, taxes, interest rates and energy prices ?

The reason house prices are low is because of low interest rates.
The reason behind low interest rates is 9/11 attacks.

The higher house prices go the more money the consumer has to spend of their equity on consumer goods. A house price is not real, only the debt is real.

[Bern]

If you dis-regard the emotional factors of owning v renting it comes down to this:

What costs you less:

The Rent

or

The INTEREST (note this exludes any repayments) on your mortgage (assume at least 5%)
+
The maintenance / insurance / service charge costs on your home
+
The costs of acquisition and sale (include stamp, legals and agents) which you will never get back.


Obviously there is the prospect that if you own the property you may get an increase in value but as it's a fluid market and you're just as likely to get a fall this should be discounted.

[caroline]

i'm fed up with lining my landlords pocket currently saving like mad and hoping to buy end of this year before prices get much higher.

[Guestx5]

Depends on your situation. How long do you plan to stay in the place (this a discussion on gumtree, most frequented by antipodeans etc..).

Remember there is an entry and exit cost, something you have to factor in of about 10% or so, stamp duty, legal, survenancy fees, mortgage fees, removalists, etc.. Likewise if your selling after a few years time and relocating to another country you have a major hassle. If your not staying in the place for at least 5-7 years you need to think about it carefully. Plus far more ongoing annual costs that you never had when renting.

Are you sure your lining the landlords pockets, or are they in fact subsidising you?

[Tidy Heidi]

Personally as someone intending to stay in London for the foreseeable future I'm planning on buying asap - the sooner you start paying that mortgage the sooner you'll own your own place outright. Agree it's not suitable for people here for the sort term though.

[Guest]

http://www.getmyhousepricecrash.co.uk

bumpity bump

[melon]

Don't even think about buying in this country!
You Aussie are going back to your own country eventually. aren't you?

[shanaz]

yeah buy it cos i did[/quote]

[Guest]

buying is a terrible idea in such an over inflated market.