First Time Buyer doubts

Learpholl

stered wrote: »

Regarding rent being dead money, it would be foolish to say that if property prices in your area are still dropping. However, interest relief for persons who buy in 2012 is considerably greater than if they hold off until 2013.

You've obviously made the decision to buy this year as have I, however I completely understand peoples suggestions to hold off for another year or two which to be honest is probably right.

However, sometimes there is only so long you can rent a 2 bed apt for without wanting your own four walls and back garden, if someone see's the house they are looking for in an area that there's not many affordable houses for sale, should they not jump?

I genuinely find it laughable when people say rent is dead money and I know it most likely doesn't make complete financial sense but having waited the past 2 years to buy, I finally bit the bullet and purchased this month so I'm in a similar situation to yourself.

The house I got is exactly what we'd be looking to get for the past 2 years and approx. 40 viewings so I couldn't be happier with the decision now despite knowing it may not be the best move I make financially. However, the house is more than big enough to be our home for the rest of our lives and I've stress tested payments +3% and would be able to cope fine so thought I'd go for it.

I fully understand I may not feel the same way in another couple of years time though!

djimi

I suppose it depends on the situation. I would consider rent to be dead money if youre paying the same on rent as it would cost to buy a similar house, and the price of said house is assured not to fall. However, at the moment house prices are falling, and I dont see how it doesnt make sense to rent if the price of the house you are looking to buy will fall in price by more than the rent will cost in a 12 month period.

Its a bit different if you have found a house that you absolutely want; the price is good and the timing is right then by all means go for it. But the people who have this attitude that they have to buy a house, any house, rather than rent really need to do the sums again, because its not a great attitude to have; certainly until house prices bottom out.

Victor

Duckjob wrote: »

My cat's breath smells like cat-food :pac:

Constructive posts only please