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need opinion on rent Vs Buy in UK
Posted: Mon May 10, 2010 8:35 pm
by srinivas74
Hey
If u r planning to stick around in Uk for atleast 4-5 years i would suggest go ahead and buy the property. Its no point paying the rented money into someone elses pocket and let me tell you, if you go for ur own house ur rent would be cheaper. Just 2 days back my friend bought a house in Cheltenham for 220K - the builder paid 10% deposit and he had to pay 5% deposit. His mortgage just the interest only comes to 500 quid, he was paying for 1 bed house rent was 650quid. Assume he stays here for 5 yrs and the property value may be 235k in 4-5 yrs it still is savings. In fact if u leave also u can rent it out. As long as the rent covers for the mortgage u shuld be fine. I wuld advise to go for a house now, bcos u can negotiate well, its the buyers market now. My friend got a brand new house from the builder and as i said the builder paid 22k plus solicitor fees etc. All appliances brand new in the house with a 3 yrs warranty.
I was also thinking like u cuple of years back, but bought a house later, I regret for not buying the moment i stepped in this country. I also have plans to R2I by 2012 or so.
Sri
need opinion on rent Vs Buy in UK
Posted: Wed May 12, 2010 10:36 am
by thota
Just buy without any hesitation.
I would recommend a flat rather than a house due to maintenance issues when you leave UK.
Buy a purpose built 1 or 2 bed flat close to city centre and train station. Remember all you are paying is just 20K, for which you will not get anything in Indian cities. Maintaining a flat is easy, just boiler, plumbing etc, this can be done through rental agency when you were not there.
need opinion on rent Vs Buy in UK
Posted: Wed May 12, 2010 2:59 pm
by punjabi
srinivas74;287212Hey
If u r planning to stick around in Uk for atleast 4-5 years i would suggest go ahead and buy the property. Its no point paying the rented money into someone elses pocket and let me tell you, if you go for ur own house ur rent would be cheaper. Just 2 days back my friend bought a house in Cheltenham for 220K - the builder paid 10% deposit and he had to pay 5% deposit. His mortgage just the interest only comes to 500 quid, he was paying for 1 bed house rent was 650quid. Assume he stays here for 5 yrs and the property value may be 235k in 4-5 yrs it still is savings. In fact if u leave also u can rent it out. As long as the rent covers for the mortgage u shuld be fine. I wuld advise to go for a house now, bcos u can negotiate well, its the buyers market now. My friend got a brand new house from the builder and as i said the builder paid 22k plus solicitor fees etc. All appliances brand new in the house with a 3 yrs warranty.
I was also thinking like u cuple of years back, but bought a house later, I regret for not buying the moment i stepped in this country. I also have plans to R2I by 2012 or so.
Sri
I am also looking to buy in cheltenham
Could you please share the name of the builder please. it sounds like a good deal
need opinion on rent Vs Buy in UK
Posted: Wed May 12, 2010 4:16 pm
by krivan1
Years back when I bought the house, I did the same calculation that my EMI matches with the Rent and bought one. As long as I stayed, there was no issue. My problem started when I moved on after 3.5 years to new job at new location. Anywhere in the world, guess finding a good tenant who takes care of the house in our absence is not an easy task. If you keep it empty, the house becomes rot. Equally worse is when you want to sell, you would find few buyers. The reasons could be umpteen from recession to proximity to schools. Over a period of time, with not able to sell the house, it became a liability and I had to compromise on the rent for good tenant and with lot of maintenance. Not a single month gone by where the tenant had not brought an issue. I am depending on the kindness of friend’s friends to manage the tasks. My final suggestion is to buy the house when you are sure that you are going to stay for next 15 years. 5-6 years is too short time to commit your life investment.
need opinion on rent Vs Buy in UK
Posted: Wed May 12, 2010 4:36 pm
by thota
My house has been let out for 3yrs without any issue and my intervension has almost nothing. I took few pre cautions 1.bought my house in a premium area 2. told the estate agent that no animals or children are allowed 3. Every 3 months house inspection etc. The good bet is invest into 1bed flat in a premium location to attract a professional Single or couple. Usually i avoid Asians as we have less higenic sense and also most guys sub let a room etc.
need opinion on rent Vs Buy in UK
Posted: Wed May 12, 2010 7:07 pm
by ind2uk
thanks all for the comments....
just to update you i live near Cambridge and in the past month the property market has picked up here...the builder earlier was ready to give a 2.5 BHK house without garage for around 170K with all appliances and flooring etc..now in the prices have gone up by 10K in past 4 weeks..the reason seems to be that old houses on the market are still at higher prices and so people are buying new built homes which are still cheaper as builder is giving deals...
unless prices come down again, i'm planning to rent for now..
need opinion on rent Vs Buy in UK
Posted: Mon May 17, 2010 5:42 pm
by srinivas74
hey
he bought it from George Wimpey
hope this helps...
how long u have been in cheltenham and where do u work...
S
need opinion on rent Vs Buy in UK
Posted: Mon May 17, 2010 5:42 pm
by srinivas74
punjabi;287796I am also looking to buy in cheltenham
Could you please share the name of the builder please. it sounds like a good deal
[INDENT]hey
he bought it from George Wimpey
hope this helps...
how long u have been in cheltenham and where do u work...
S [/INDENT]