Rent or Buy?

[NoelWatson]

BERGS2 said:

soxboy said:

For a £200k property you are looking at purchase costs of £2k stamp duty, £750 legals, £350 survey & £900 mortgage fee = say £4k. To sell in 18 months will pay 1.5% sales fee, £400 HIP, £750 legals = £4150, so without any mortgage payments thats over £8k.

If rent is £700 pcm that's a year's rent.

we were looking at a similar situation but moving to a £500k house -

when the stamp duty alone is at £15k it makes simple sense for us to rent for a year.

Yes - i know it will still need paying when we do buy, but as the OP point out in a stagnant/declining market its not like you're losing out on capital appreciation....

Plus we get to 'test drive' our area of choice..

looks like these quite a disparity between rental yields and mortgage payments where were looking too.....(Elmbridge, Surrey)

for example this place
was up at over £600k initially think it sold for just shy of £500k and is now available to rent at £1700.....

This disparity tends to shrink as you move upwards (at least in Weybridge - maybe not in Cobham). For example, a typical place worth around £850-900k is being marketed at 3500-4000pcm.


http://www.johndwood.co.uk/staging/utils/image_res...

[soxboy]

Jasandjules said:

Why would you want to move in 1-2 years?

I am confused (easily done) but isn't it better to live in the GF's flat for two years and save heavily (or keep an eye on the market and as soon as it starts to rise buy) OR live in the GFs house until the notice period of the tenants in your place is up then move into your place and save and/or buy when the market is right?

Indeed, all very valid points. These are however out of the window as we are dealing with a woman's logic.

[soxboy]

BERGS2 said:

[we were looking at a similar situation but moving to a £500k house -

when the stamp duty alone is at £15k it makes simple sense for us to rent for a year.

Yes - i know it will still need paying when we do buy, but as the OP point out in a stagnant/declining market its not like you're losing out on capital appreciation....

Plus we get to 'test drive' our area of choice..

looks like these quite a disparity between rental yields and mortgage payments where were looking too.....(Elmbridge, Surrey)

for example this place
was up at over £600k initially think it sold for just shy of £500k and is now available to rent at £1700.....

That's exactly what got me thinking. It was this place

On market for £399,500.

Edited by soxboy on Tuesday 17th March 13:08

[mechsympathy]

soxboy said:

For a £200k property you are looking at purchase costs of £2k stamp duty, £750 legals, £350 survey & £900 mortgage fee = say £4k. To sell in 18 months will pay 1.5% sales fee, £400 HIP, £750 legals = £4150, so without any mortgage payments thats over £8k.

If rent is £700 pcm that's a year's rent.

You haven't counted the potential loss in value or 18 months interest. The interest is going to be £10kish over 18 months.

I suspect she wants to nest...

[loafer123]

soxboy said:

Jasandjules said:

Why would you want to move in 1-2 years?

I am confused (easily done) but isn't it better to live in the GF's flat for two years and save heavily (or keep an eye on the market and as soon as it starts to rise buy) OR live in the GFs house until the notice period of the tenants in your place is up then move into your place and save and/or buy when the market is right?

Indeed, all very valid points. These are however out of the window as we are dealing with a woman's logic.

I refer you to my earlier answer.