Why does everybody think the solution is to go into rental when its so so expensive?

[Fiddledee]

In the process of selling our house but the rest of the chain looks shakey. Everybody says go into rental but have they realised how much renting costs? We have a lot of equity in our house and so our mortgage costs are relatively low given the space we live in. To rent a 3/4 bedroom house where we are looking costs £1700/£2000+ per month. To rent a similar house that we are looking to buy would be more than double that unsurprisingly. There are no cheaper areas to look at as we need to be near the schools.

If one more person says rent for a year I will....

Well, it is cheaper than the equivalent mortgage on (what I am guessing) are houses that cost more than #500k. It is also cheaper than paying what, in London and some parts of the South East, might be peak prices which many feel are bound to come down in the next few months. I agree if you are taking a very small mortgage to another house without significantly increasing it then you are probably worse off on paper but, if you factor in possible house price deflation, then it will be cheaper. A gamble though.

Hope your chain firms up a bit though.

I sold a few months ago and am now renting. It was a very good solution for us, puts us in an excellent position to buy and allows us to find the right house in our own time. I am no hurry to buy as house prices are falling. It sounds that it is not for you if you are in a rising market (somewhere in London?) and buyers are plentiful. Everybody is only saying it because it is an obvious solution for a lot of people!

I understand where you are coming from. We were in a similar position last year and people kept saying "just go into rented". We looked around and the cheapest 3 bed house in the area (again close enough to school) was £400 more a month than our mortgage. We, like you, have a large amount of equity in our house so our mortgage is relatively small. We couldn't afford the extra £400/month renting demanded.

We rented twice and the price falls and the extra negotiation power we had as we were no chain more than covered the rent.Have just moved in to a house which would have been about 335 in the boom we paid 240.Rental for 6 months was 8k

we definitely wouldn't be saving anything while we are paying rent as our current mortgage is half that of renting. If we rented what we wanted to buy it would more than my DH's take home pay.

Maybe prices will fall further or not at all. Luckily where we are selling the market has fallen but is starting to fall a bit where we are buying.

If house prices fall by more than you have paid out in rent then you will be no worse off.

Personally I would have liked to continue renting for another year or so to see what happens in the market. We were forced into buying in the end after we were given notice because there is literally nothing to rent within a 10 mile radius of our village - everyone else is renting and waiting too!!

Agree rentals have shot up in price - is definitely a landlords market where we are and properties are let agreed within hours.

Good luck with your chain

yup agree with you, renting is the same price as what we are looking at paying on the mortgage, plus you have to lay out a deposit and a month and a halfs rent outright...plus move, twice, if you are going to then buy. Plus put up with crap decorating and dodgy yards.

yawn.

I am praying our sale/purchase goes through so I don't ever have to move again. Ds and I have lived in 6 different properties since he was born and I am so tired of it.

But will you make up the difference by your monthly renatl income being more than the mortgage payment on your property that you rent out?

Expensive is relative.

Renting is cheaper in this market in many circumstances but not all.

Personally i chose to rent for a while, invest the funds in gold, silver and mining companies and wait to see what happens. If it carries on at the rate it's going at the moment i won't need a mortgage at all this time next year.

If you are not going to invest the released equity then just buy. Just bear in mind you are going to lose money on it in the next 1-3 years. Long term 7-30 you will probably make.