Should I buy a home?

[Whatinthedoopla]

I used to live in London (and still work in London), but moved to Kent to be closer to family due to childcare. My partner and I want to stay here until we no longer need childcare, and have agreed to move away to somewhere we both want, maybe the Cotswolds. I desperately want to buy a home (I want to get on the property ladder) but my partner says that as we don't want to be here in he long term, there's no point in buying. Just to mention, we will probably be here for the next 4 years.

Is it worth buying?

I would say it’s worth it yes, lots of people move after less than 4 years. Buying means that every month you pay your mortgage & are building your equity as well as putting a roof over your heads rather than renting which just keeps a roof over your heads. If you have a deposit ready to go then you may as well start building your asset than spend another 4 years paying someone else’s.

Of course it is if your rent is more than £100pw

Yes buy. You will start building equity for your next move and avoid the instability of a landlord wanting to sell up. You also might end up staying longer than you planned to.

If your mortgage is less than your rent it’s worth buying. It’s also worth buying because when you’re renting, unless it’s social housing, you’re usually paying someone else’s mortgage anyway!

Depends what sort of house you are thinking of buying IMO.

One thing I would say is don't underestimate the time it takes to get a place the way you want it. In four years many people achieve relatively little, especially if they are working as well. So doer-upper is probably out of the equation.

Also I would bargain aggressively. No one knows where prices are going in the next 4 years. But if you buy at the best price possible it puts you in a much stronger position when you need to sell, especially if the market decides to take a dive.

Bear in mind a lot of people will tell you to buy. Because rising property prices are all they have ever known and recently housing has been a one way bet.

It's been about 30 years since we had a major housing crash, but it's worth taking on board the experiences of people from that era as well as those from people who believe house prices only ever go up.

Yes.Should buy

Absolutely

think of the value that it could increase by in 4 years plus you’re paying off a mortgage which gives you the equity not someone else. You then realise that equity as a deposit for the next home.

I feel a bit sorry for your family! They are going to provide childcare and as soon as you no longer require them you are up and leaving 🤔.

We bought our house 4 years ago and wouldn't be able to afford to buy it now. It's by no means a forever home but it gives the kids stability that we wouldn't get when renting and we decide when we move rather than waiting for a landlord to tell us they're selling. Plus, we're building equity for the next move or as a buffer is in case the market takes a downturn. If you have a deposit and you're paying more than £500 a month rent, I would look at buying for the next 4 years.

Buy if you can. It's highly unlikely you'll be financially worse off because you'll be gaining equity by paying your own mortgage off rather than the landlord's, and you'll have the advantage of housing security which you won't have while you're renting. Lots of landlords are either selling up because it’s difficult to make a profit theses days or hiking the rent to make it viable, so renting makes you vulnerable to both being asked for more rent and being asked to move (and inevitably paying more rent).
Also in your own place you have control over getting maintenance carried out properly and in a timely manner, so many horror stories around about landlords not fixing things and folks living without basic essentials working properly. You can also make changes to make the house your home without fear of losing your deposit or being charged for repairs / damage when you move out.

I think it depends. The process of buying and selling is hugely expensive (stamp duty, surveys, solicitors costs) and there are often repairs that cost a lot and add no or very little value to the property. If you have a deposit saved then Interest rates on savings are better than they’ve been for years and you would have a stronger position as buyers if not in a chain. If you’re able to rent fairly cheaply where you are and keep saving it might be the better option. Markets are so localised and it’s impossible to predict what will happen in the future.