Buying a property post divorce - should I?

[Startingout2015]

My marriage broke up last summer and the marital home is sold pending completion (due 22nd Jan).

After splitting the proceeds of the equity between myself and ex husband I can expect to have £45k.

I am currently living back with parents and commuting quite a distance to get to work each day and am looking to move closer to work within the next few months.

I originally planned on renting for a while. Its an expensive area of the country to buy so my money wont get me far, and although I have a decent amount for a deposit, being single certainly makes the mortgage affordability calculator not so appealing.

Based on my current earnings, I can expect to be able to take out a mortgage of up to £155k. With my deposit and leaving some money left over for stamp duty/fees ect, i would be able to buy up to a value of £190k max.

I would love to own a place of my own, however, £190k is scraping the bottom of where I will be based and the surrounding areas for a large distance. It is likely to get me a small 1 bed flat or studio, in not the best of areas.

So my question is - Should I be considering buying at the bottom end of the market here? Or should I be ok to rent for a few years and see where life takes me. Maybe I will end up meeting someone new and buying with them down the line or maybe I will be better off investing my money elsewhere.

My main concern is I would buy a small apartment close to work and be happy short term but be wanting to move within a year into something bigger or nicer area. The marital home was a dream cottage in a gorgeous village and I wonder if I am going to end up looking back with sadness

[wowfudge]

In your position I would buy again, cut the commute and have my own space. Whatever you buy is likely to increase in value, potentially giving you a bigger future deposit on the next place more quickly than any interest you'll earn on savings. Would mortgage repayments be cheaper than rent? That gives you the ability to save more than if you were renting too. Have a look at the rate of house price inflation in your chosen area.

[mumblechum1]

I'd also buy something on the basis that the city place will increase probably at a faster pace than a suburban/country place. You can always sell and move out again in 5 years or when circs change.

[Wuffleflump]

If you're in an expensive area with restricted housing supply, renting won't be great fun either.

Landlords may chuck you out at short notice, agency fees will be high. In this area rentals can go before you have a chance to view, and landlords can afford to be picky and arbitrary.

The up-front costs could cover a number of the professional fees involved in purchasing!

I'd start looking at possible purchases. If you're not happy with what's available, you can always look for rentals later.

[lighteningirl]

Definitely buy and don't be fussy about area as those change pick somewhere that's good for your commute and if possible a house or share of free hold flat. I bought the smallest house ever in an awful area, cried when I moved in totally fine house I was bonkers after divorce and I love it esp now I have cleared my mortgage. My ex has a lovely big house still with £100k to pay off sucker