Would this be a good move, rent and then buy?

[AClassicTrenchcoat]

I hate fuss and bother. We are mortgage free, live in SE, want to move to Yorkshire. We are retiring soon. We have a few areas in mind but have not done any viewings because of the distance from where we are now. Work is hindering our plans too but that will soon be ending.

To make things easy we are thinking of selling this place but renting a small flat in the area we want to buy, and do our house hunting from there. It just feels easier.

Has anyone done this, do you recommend it and are there any pros and cons?

The obvious is the cost of renting - very expensive . But ok if you can afford it .

It is more expensive but it does allow you to really know if a place will be right for you - making a mistake and needing to move twice in a short time would also be expensive

I would rent. Cheaper than buying the wrong place.

Yes I think it’s a good idea

I think it’s a good idea too. The cost of renting for six or twelve months is a consideration, but it will really enable you to explore areas and decide where is best for you. The bonus is you’re a cash buyer.

Just be careful about staying out the market for too long. If you sell the house now, you could be buying in a different market- that could be a positive or a negative, no way of knowing!

Thanks, so blooming worrying and too many decisions to make!

Also helps whoever buys your house as it ‘breaks the chain’

DP and I would do this is we were moving and relocating at the same time, I think of the end pint as being the serious investment, both financially and emotionally and that renting as an interim, in order to get that end point right, is worth it. I would definitely set a time limit though as I can see how you could get into a paralysis by analysis position and keep holding out for “perfect” whilst spending money on rent.

I did this and rented for a year.
The interest I gained on my house funds sitting in various accounts and savings on not having to do home repairs practically paid for my rent.
I think it’s a brilliant idea especially as you don’t know the area.

It just feels cleaner. Off load my place, and be in a calmer place to buy by being where we want to buy and being ready to go.

Lots of canals in Yorkshire
You could buy a canal boat and live in that then sell it when you’ve found a house
It’s our plan anyway 😁

I would be too worried about not finding anywhere to buy and would feel very unsettled but that is just my personality.

I think it's a good idea. You can use the interest on the money from the sale of your property to pay the rent.

We did that when we relocated from SE to SW. It didn't eliminate all the stress but we had good landlords who were flexible in us extending our term after the first year (I know rules have changed so that may be less an issue now?).

It enabled us to buy a property and renovate it while empty. That in itself was "worth" it.

You do think about the cost of rent when you're paying £1K-2K every month, but we knew that it was always going to be for a limited period.

I don't think anyone needs worry about the property market suddenly moving away from them. Things don't work that fast. At present, few areas are seeing real increases in property value so a decent set of savings and investments will certainly keep your head above water.

Good luck and enjoy!

Before even committing to rent, go stay in an airbnb in the areas you're considering for week to get a feel for them. If you can WFH all the better.

Unless all the areas are close together, might be better.

I’m a bit late to this post but I’d say yes do this. It gives you time to find the right area. The interest from your sale proceeds will easily cover rent on a flat.

Its a great idea on so many levels. You will save overall by being in the best negotiation position as a buyer. You take so much stress and uncertainty out of the equation too.