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To rent or buy?

(9 Posts)
Toomuchtea Fri 02-Nov-12 11:43:17

Message withdrawn at poster's request.

7to25 Fri 02-Nov-12 12:01:26

It makes no sense to buy for such a short time.
You would waste in stamp duty at least a few month's rent and being in Rented accommodation makes you "cash buyers" when you want to buy. the negatives would be if you had a mortgage you could port for up to a year.

CuddyMum Fri 02-Nov-12 13:34:41

Hi Toomuchtea! Definitely rent if it is only for 18 months. smile

Toomuchtea Fri 02-Nov-12 13:47:01

Message withdrawn at poster's request.

RCheshire Sat 03-Nov-12 08:46:35

We have been renting for a shade under 18 months now after selling our last place. Reasons for renting: a) houses we liked were comedy prices b) not much for sale that we did like and c) reduce the chain to maximise chance of our sale completing.

There are downsides of course - for us being unable to decorate the kids rooms, but you may have a more flexible landlord.

However your post does not cover the financials properly. People are so used to saying "renting is dead money" that they don't think it through. These are the +/- financials to consider:

- the cost of rent
- the application cost for the rental
+/- moving twice (you'd do that buying or renting in your circs)
+/- what you think will happen to house prices over 18 months (I think fall)
+ no stamp, legal and other buying costs
+ you spend less on household goods/decoration
+ no repairs
+ this is the big one people always forget: interest on the money you would be putting into a house, e.g. if buying outright at 400k, at 3% investment net return (my avg) you are getting £1000 a month in interest which you would not get if the money had been spent on a house.

crazyhead Sat 03-Nov-12 20:52:03

I'd rent (no point at all buying for 18 months, especially if we're talking above any of the stamp boundaries) but as soon as I was into rented I'd make an effort to work out what I was likely to want after those 18 months were up.

Basically, from a position of rented you could then keep an eye on the areas where you might want to buy your longer term home, just in case something good came up, and just in case you felt that prices were starting to rise in the area or whatever. Given how long it can take to buy, you might as well use the time to size up your options!

Toomuchtea Mon 05-Nov-12 10:00:15

Message withdrawn at poster's request.

EIizaDay Mon 05-Nov-12 11:34:23

You know that you would be absolutely nuts to buy for 18 months yeah?!

Toomuchtea Mon 05-Nov-12 14:19:11

Message withdrawn at poster's request.

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