4 ms·

I'm in southern England. I have no idea what to do. House prices are insane. I have a sizeable deposit (20-25%) but I would still need a large mortgage. I want

I'm in southern England. I have no idea what to do. House prices are insane. I have a sizeable deposit (20-25%) but I would still need a large mortgage. I want to buy because I know rent is going to through the roof as this tiny island becomes more and more populated. However, I don't want to be tied to a job/location. Commuting to London for work is always an option but it comes at a cost of £350-450/mo in travel. Not to mention the time involved. I want the flexibility of renting but I also want a paid-off house when I'm in my 40s/50s. AFAIK most mortgages (non buy-to-let) do not permit letting out your property, so I'd need to re-mortgage to do that.

g8oz 13y ago
The Economist's house price index for the U.K in 1990 was 628, in 2013 it was 2042. That is a 325% increase. Between 1990 and 2013 the Compound Annual Growth Rate (CAGR) of the S&P 500 market stock index was 9.46%, yielding an 875% return. My advice: rent and be a fanatic about investing the difference in the mortgage payment for a property exactly equivalent to what you'd been thinking about buying. Over the long time horizon you're planning for you should be all right.
- switch007 13y ago
  the mortgage payment would be at least £200 less each month because of my large deposit. interesting stats though, thanks.