Buy or Rent in London?
May 15, 2012 7:47 AM Subscribe
We’ve found a decent flat in Rotherhithe, London. We’ve made an offer Monday. Owner has accepted. Yay? Suddenly we’re getting ice cold feet. Are we doing the right thing?
When we made the offer we didn’t think it would be accepted, as it was well under their asking price. When the agent called to congratulate us my first feeling was terror. But then, I hate change and am commitment-phobic. Husband ditto. We've offered 'subject to valuation, survey, and contract, so we have a little window to back out. Advices please!
-- I have an inheritance big enough that I can buy the place outright in cash, and still have a tidy sum left over
-- our rent keeps getting hiked every time our lease is up and its getting annoying
-- we´ve found a place we like that the owners are eager to sell for cash, they´ve accepted 15 grand less than the place is valued at
-- it would be a pretty easy place to rent out at a nice sum
--This is not our Forever Home as ultimately we’d like to move back to Canada.
-- we like the place we currently rent a lot
-- we don’t know how much longer we will be living in London. We keep saying 3 years; but we said 3 years 10 years ago.
-- trouble in Europe plus bank troubles equals worsening mortgage freeze thus it may be very hard to sell if we DO move in 3 years
-- stamp duty etc means the first year we pay as much in taxes and fees as we would have in rent
-- it’s just terrifying to put that much money in one thing. I would wind up with most of my assets in property as I also inherited property in Canada (brother currently inhabiting, will move at some point).
-- Currency fluctuations. Our money is in Canadian dollars, they’ve been higher against the pound. They’ve also been lower. Every fluctuation is adding or subtracting like 10,000 pounds from the equation.
-- London Housing Market. Whither? Is this a really dumb place to put our money right now?
-- Other things we could be doing with our money. We already have a lot in stock and a financial advisor. She’s well into our buying property but it’s a hobbyhorse of hers and she’s in Canada so not fully up on UK situations.
-- job situation. I freelance, sometimes I make a lot, sometimes I make a little. Husband's work either is very stable, OR he will be laid off in six months
We are in our early forties.
I know this is a nice problem to have, but it’s freaking me out.. should we buy?
Anonymised because my profile is connected to my name and I'm uncomfortable discussing money publicly..