(When) did you buy a house?

[pigeonn]

I'm an ECR and have just landed a research intensive 3 year post-doc in a city about 3.5 hours from where I have been happily settled and renting for a few years. I'm itching to buy a house (somewhere/anywhere!!) after years of living off a lowly stipend and academic contract jobs as I finally have a secure income. I keep being told it's not worth it for a 3 year job because I don't know where the next job will take me, but I just keep thinking about my long-term security and what a home would afford me in the long run.

It just made me curious how did others approach home-ownership as an ECR if this was something you were interested in?

Pretty lost and confused atm!

Three years is a long time. If you can afford to buy, then do it. You can always sell if you have to move or rent it out.

Thanks @Rocknrollstar I'm on the same page, but I've had a lot of scare-mongering about the costs/fees of selling up to buy somewhere else (up to £35k 'down the drain' apparently which I think is nonsense as surely it's not that much to sell a home right?!).

I don't want to be paying off someone else's mortgage anymore, especially as I'm getting older. But I know the downsides of an academic career mean moving around a lot in the first few years so not sure whether to just lump it and keep saving hard until I land a permanent job... I know others have left academia to start a family or get on the housing ladder, but I do want to give it a shot.

If you can afford it and I recommend doing stress testing to cover rates etc then go for it. I bought my first place a flat on a bit of a whim aged 32, lived in it 3 years before moving to my new house, probably best decision I've made

I bought my first tiny house on a 5 year Teaching Fellow contract, in a really expensive city where interest rates went up to 15% at one point. It was tricky at times - I was teaching 8 hours a week, plus doing my PhD, and also teaching adult ed classes for money two nights a week to renovate (the house had no hearing & a boiler you had to light each time for hot water!)

I had a lodger, and then when I got another fixed-term contract after my 5 years in the first one, I rented it out to friends.

It means you'll always have something to hang on to. If you want to put down roots, do it!!

It's really helpful to hear other people's experiences - I feel like none of my academic friends talk about this!! @Margo2023 did you buy your house in the same city you bought your flat or did you move, and was that for work?

I feel like I'm trying to look into a crystal ball when it comes to deciding what to do, haha

@YellowAsteroid wow, that's some serious grafting - you sound amazing and I'm really glad it worked out for you! Renting to friends/postgraduate students is also something I'd consider in the event of moving, but do wonder whether it would be a headache - how did you find it?

Bought a tiny cheap house when DH and I were both on short term post doc contracts, one the basis that it would do for 3-5 years. Still there 13 years and several kids later (both profs now). Need an extension...

Seriously, if the three year contract enables you to buy and it will make you happy, do it. You could rent it out of you need to move.

The 35k people are talking about would include a big lump of stamp duty. Plus as a seller you pay the estate agent a chunk. Selling and buying a new one is a lot more expensive than just buying as a first time buyer. still, that number is about right for a 600k house which i guess is not what you are looking at.

We bought a little flat at the end of my phd, but we were fairly sure we'd go back to that city long term. DP stayed in the flat while I did house shares in various post doc cities. The mortgage was small so it was ok when i was between jobs. It's a tiny flat so we feel very rich now we're both back in the same city!

@MotherOfCrocodiles that's really helpful - thanks for explaining. And I'm definitely not looking at anything in the 600k region(!). Sorry for being naïve, but would you use the equity built up in the house to pay for those costs?

@StamppotAndGravy really glad it worked out for you and your partner!

What was behind your decision-making in staying in your PhD city? I'm also looking at where I did my PhD as I feel it's somewhere I'd like to retire, but it's not great for academic job prospects...

How you pay for those costs when you move depends- I suppose most people will have some equity in the house they are selling, and also are increasing their mortgage as people tend to move to bigger houses as their income increases. So you just factor in into how much you borrow for the new house. If you bought at your max budget and then sold again quickly with no additional equity, i suppose this would become a problem.

Stamp duty is much lower for cheaper houses as it goes us in steps, and estate agents fees are a % of sale price.

@pigeonn same city but if I would have been looking to move I don't think that would have put me off. 3 years is a solid amount of time and as you say better to be paying towards your own place

It generally takes around 5 years to amortize the costs of buying. The solicitor’s costs are a very small proportion of the costs of buying. The largest cost will be stamp duty but I think it’s not applicable below 250k ?

My first house cost around £30k but that was 30 years ago and it was tiny, with very basic facilities - no real bathroom!

I borrowed the maximum I could on a salary of around £8k. That’s why I did a lot of their teaching so I could do renovations. No partner - it’s always only been me so my housing security is vital to me.

@YellowAsteroid I get it - I've learnt so much from MN about being financially independent as a woman when it comes to housing, so it's definitely playing a role in my decision-making in terms of long-term security for myself.

I've always seen a house as a home first and foremost, but am also trying to think practically about it as an asset, so I'm getting used to the idea of maybe renting it out if I needed to move for work which is not something I'd ever thought I'd do!

@MotherOfCrocodiles thank you for explaining, that's really helpful and makes it seem less scary/doable!

It's always been the place that felt like home. I didn't make it in academia in the end (or rather, covid was the final straw and I couldn't face moving for yet another postdoc with no guarantee of a job anywhere) The city is medium sized and doing well so there were plenty of other job options, plus it's commutable to 3 other decent cities, including the capital (I'm not in the UK)

I bought a flat on my second postdoc. I got. Tenured post at that same uni so we lived there 10 happy years before moving on a house

I bought during my ECR years. Pros are getting onto housing ladder, stability etc. Cons were that I had a very long commute to the next job which was a bit soul destroying and hard going for relationships. Selling would not have been an option - way market was going, expense of selling as no equity in house after only a few years of paying mortgage (early days were mainly paying off interest) - and not in a good rental area as could only afford a cheap first time buyer ex-council house. Would do it again but only in an area where there are lots of potential future employers nearby and where renting out is a safe option.

I agree with Pepperama. I would be reluctant to commit to an area that doesn't give you a few job options even when on a perm contract. In the current climate, I don't think I'd commit to a house on a 3 year contract unless you'd be easily able to rent if you had to move.

I guess I did it the other way round, I bought early on (during PhD as I did it a little later on than some) but this meant I was really restricted in where I could look and that I had to make a sideways move. I wasn't prepared to keep moving to get a career in my original subject area. So I guess it's a question of how important that is Vs putting down roots.

Thanks so much @CrumbleTots and @Pepperama - sometimes I get carried away thinking about all the potential pros, and it's really helpful to keep sight of some of the risks.

One of the cities I'm looking at has two universities and the rental market is insanely competitive (it never used to be like this, but has become so over Covid). So it means I'd be in a good position for finding a postgraduate student renter or young couple if I needed to move and rent it out. The other side of increased demand in the area means that rents have become ridiculous, both in trying to even secure viewings for a property and the prices, so I've effectively been priced out of the city unless I buy!! It's seems to be the same situation in the other city I'm looking at, with buying cheaper and easier than renting given how much demand there is and the lack of decent rentals. Having said that, it might be cheaper to buy in the short run, but not in the long run as your experience highlights, so lots to think about @CrumbleTots...