In our position, is it best to buy or rent?(12 Posts)
how much are you selling your house for? how much mortgage? how much do you think houses will go down in a year?
In 2005 we were in your position and thought it would be fine to rake a low offer, after all we'd be able to negotiate a discount on the house we would buy. Only that didn't happen and we ended up £100k down on the deal. That kind of loss will take us years to recover from. My advice is nor to sell until you have found a house to buy for a similar discount to the one you are accepting.
Why can't you stay where you are for another year?
Oh and people didn't seem to care a jot that we were chain free it certainly didn't get us any offers accepted over people in chains.
well, it is sure darn expensive to buy the wrong house in haste. you either spend years wishing it otherwise or you spend a fortune moving again.
You'd be amazed what is being done to prop up house prices, I know somebody has to blink first in this game but personally I wouldn't want it to be me.
I too think prices will be lower in a year. The cuts are just starting. The only thing keeping the housing market going are cash buyers and they must be running out soon.
I think if it's the only offer you've had in 18months you should bite their hand off (before they change their minds)
When you rent you aren't tied in forever. There may be a couple of months overlapping, while you give notice (e.g. first 6 months tied in then 2 months' notice afterwards) so could work out another £3000K lost.
We did that - we planned to move areas in January 2009 so put our house on the market in April 2008 expecting it to take 6 months or so to sell. We got an offer of 4% below the asking price within 2 weeks so decided to accept it and go into rented. Best decision we made. Sale went through really quickly, and we could take our time in finding another house to buy. We ended up renting for 2 years, only buying again in March 2010.
In terms of losing out financially, we didn't. House prices continued to drop in the area - we'd have lost between £10-£20k I think if we'd have held on to the old house until we bought again. OK, so we'd have been paying a mortgage throughout that time so we'd have been increasing the equity that way, but all in all, we probably came out slightly better off.
I disagree that it doesn't impact on your purchase - the houses that we were trying to buy were really sought after - there aren't very many reasonably priced family houses where we've moved to so when they do come up, they were snapped up - the fact that we were in rented and not part of a chain definitely made a difference (we had to go to sealed bids for our house). Most tenancies will be for 6 or 12 months and then you generally have to give 2 months notice - most purchases take that long to go through so you can co-ordinate the dates. We kept the rented house for a couple of weeks after we got the keys for the new house so we could do some emergency decorating in the new house (whilst still going home to sleep at the rental house) and also meant we didn't have to do the full move (with 3 children in tow) in one go.
I would definitely go for it but as always, there is a risk in whichever way you go. Good luck whatever you decide.
CristinaTheAstonishing If you've got a 6 month fixed term then you can move out on the last day of that fixed term without giving any notice at all (although it is polite to do so). Once that tenancy has gone periodic as a tenant you only have to give 1 months notice (landlord has to give you 2 months notice)
Join the discussion
Already registered? Log in with:
Please login first.