To buy or to rent? That is the question.

Hi all,

I just arrived in Aberdeen, Scotland on a spousal visa. We're currently staying with my husband's parents while I job hunt, but we're anxious to move out. There's always someone in, so privacy is quite limited! 

However, here in Aberdeen rents are quite steep and buying is fairly cheap. We're wondering if anyone has any advice on which would be better. We'd probably only be able to put 5k down on a 90k flat, though we could ask our parents to lend us a bit extra that we could pay them back if that would help interest rates. Would we be able to get a fixed-rate mortgage?

Or, would it be better to spend 500-600 per month on rent for awhile and then buy later? I know none of you are (most likely) estate agents, but we're trying to get a general idea.

When you moved to the UK, how long after until you bought a place? Do you wish you had rented for a longer/shorter period of time?

Thank you!

Hi StaticSplit,

Without knowing more of your financial details, and your status within the UK long term, it's going to be more difficult to buy in the current and certainly forseeable future in terms of the economy. I'll assume your husband is working full time and is British.

The availability of easy to get mortgages is long over. Nowadays, pretty much all lenders will require a 25% deposit, so you'd be looking to put down around £22500 on a 90K flat/house . Add in the associated fees for solicitors, agent fees, surveys etc and budget 1-3K on top of that. 5K simply won't be enough. There is 'talk' of economic betterment at the moment, which is good, however there are also murmurings of a second 'fall' thats imminent as well - if that is what happens, no one knows. So if things do get better, no 2nd fall, then more mortgages over the coming years should be launched back into the marketplace. 100% mortgages will take more time to appear again, and prbably when they do, will be very much more stringently assessed. I'd think it'd be the same for 5% and maybe even 10% downpayment mortgages too.

I definitley suggest looking out and searching for independant mortgage brokers who might have products avaialbe which better suit you and your needs and situation. There should be some in your area/town or city and they'll look futher into what is around, and your situation more closely.

Fixed rate mortgages are available, and tied to the above, depending on how much you can put down will determine what kind of fixed rate deal you'll get and for how long.

Lastly, you're question on is it better to buy now or pay rent for now and buy later..   this is the 64 million pound question ! the answer to which is 'if you can afford to buy now, then do so' - that statement blanket covers everything to do with your life, your partner, your lifestyles, your finances and your ambitions! and leading to it, only you will know the answers to begin to evaluate everything concerned!

There are more aspects to all of this, just the above is a high level response to you.

Cheers, DtM! West London & Slough UK!

I'd probably rent for now just to get out of the in-law's house that much sooner!

Thank you, Dennis the Menace! This was exactly the information I was looking for.

I think it's much safer to rent now and save up money to buy. I wasn't sure how easy it was to buy here. My husband is working full-time, but I'm still searching for employment. Once we are both working full-time, we should be able to save for an apartment quicker.

Back in the US my mother fell prey to a predatory loan for a house she could not afford, so I think it's better to wait and ensure I purchase something I can afford.

I'd rent until you've been around long enough to know exactly where you want to be. It's taken me 7 or 8 years (I lose track!) to figure out exactly where within a decent radius of both of our jobs where I think I'd be happiest.

I'd probably say buy if you can, especially before you have any children!

We're in the midst of what is hopefully our last move for a loooonnnggg time with three young children in tow and it's a nightmare.

I feel you. I'm 21 and I've moved 16 times in my life so far...I'm pretty anxious to stay in the same place for a significant chunk of time!

I'd rent until you've been around long enough to know exactly where you want to be. It's taken me 7 or 8 years (I lose track!) to figure out exactly where within a decent radius of both of our jobs where I think I'd be happiest.

This! My husband and I wanted to buy a place before I moved over, but because I refused to buy a place I hadn't seen (they look much nicer in the photographs most of the time), and because we never found a place we (I) liked while I was visiting, it just didn't happen. Then, when my daughter and I finally moved over, we were so desperate to buy a place as soon as possible that we snatched up the first place we really loved. We got lucky - our place is fabulous - but now that I've been here just a little bit longer I think I would have gone for something in a quieter area of town if I had the chance to do it all over again.

It definitely helps to really know the area.

My hubby and I are planning to rent at first because:  1) as Jewlz stated, it will get us out of his parent's house a lot sooner, and 2) we won't have any furniture and definitely not enough money to stock up an entire house full...renting a furnished house allows us to buy things gradually and hopefully by the time we're ready to buy a house, we'll have enough furniture to stock it up.  We also aren't 100% sure that we're going to stay in the UK forever.  It might be for 1 year, maybe 3-4 years, maybe 10, it might be forever...I'm hesitant to buy a house without knowing what the economy will be like if/when we want to move back to the US and need to sell it.

I feel you. I'm 21 and I've moved 16 times in my life so far...I'm pretty anxious to stay in the same place for a significant chunk of time!

I'm 38 and in the past 20 years I've moved 19 times.  This will be the 20th.

It's starting to get way old.

I bet. You can't ever actually settle down, accumulate the little knicknacks you want...infuriating!

I now work for a law firm that deals in property,  so at some point I'm going to pounce on a solicitor and ask for his advice on what we should do. Our sister-in-law's dad has a place we can rent from which will be 800 per month including council tax, which is a bit steep but much cheaper than other apartments of a similar size/in a similar part of town.

It's depressing though, because we don't really have family members who can lend us money to help get a place. We have to save up very slowly and it looks like we'll be saving for a good decade before we can buy a place.