I had posted earlier but unable to add to the thread, hence this new post. My apologies.
Well, Now the RRA is here. My situation is still the same. I have my savings and not working.
Back in UK after 4 months break. My landlord has done a superb job of renovating the flat in my absence, converting a 1 bedroom flat into almost 2 bedroom. I feared it may feel cramped - its compact but pretty good. All new fittings : carpets, paint, bathroom, kitchen. Looks like a new build.
Just thinking thru my options :
buy it from landlord, he’s happy to sell to me bypassing the estate agent - I wont be paying new build premium. Cons : it’s an old ex council block that looks depressing from outside, plus 2nd floor without lift. Some drug users but then I have lived here for ages. My concern is about resale value. Dont want to be stuck with something I just cant sell.
move out and buy something nice (freehold) and safe : Cons : Tie up a Lot of capital and pay CGT on index fund sale.
keep renting if landlords will rent to me. My landlord knows I’m not working but thinks I’ll have no problems renting if I want to. High street letting agent also opined the same today.
Unable to decide. Maybe let time decide for me : take one day at a time and see how it goes when I move out of this flat in December which I must. If unable to rent at all, go with Airbnb next year and then decide next course of action.
Thanks for listening. Appreciate any thoughts. But we have covered it earlier. But now RRA is actually the law and wanted to know any actual experiences / insight.
Don’t buy something you aren’t sure about. As you are reluctant to buy anyway because you don’t want to be tied down that argues against option 1 particularly and option 2 to a lesser extent. Ultimately everything will sell at the right price (be wary if there is external cladding)
I’d choose option 2 only if you are confident it would be easy to sell (or to rent out).if you find being committed to a place is not for you. Cost of purchase - as a first time buyer you won’t have stamp duty under 300k so it’s the costs of a solicitor and survey plus any costs for Furnishing and decorating a new place but you’ll save on rent. Probably pays for itself if you stay for say a year. But then takes time to sell as well if you.wanted too.
Option 3 - you may have to do that anyway. It’ll take you time looking before you find something you want to make an offer on
If you can afford it, renting uses up your capital so implies less future income/less of a buffer against future issues (medical costs and care in old age is expensive) but gives you more freedom now. A fourth option might be renting abroad if that’s still of interest. There’s certainly cheaper places than the UK to live.