Time to buy a house.......

[Ciaran]

My advice is don't underestimate the closing costs of the house purchase and move. This is something that many first time (and later) buyers are prone to do in the excitement of it all.

Originally Posted by JAGG

Remember it is always better to buy,than rent. If you can afford it. Renting is like tossing money away. You are paying someone else for something you could be paying yourself for.

That's simply not true. Just as buying can have advantages over renting, renting can equally have advantages over buying. For a start, you have flexibility and not dependent upon a sale until you can move elsewhere and clearly not at risk of negative equity which is a very real and desperate situation for many people in the current environment (and, in certain locations, house prices will not reach their 2006 / 2007 levels for many years and, probably never if adjusted for inflation).

Also, although a renter pays rent, a buyer (unless they are a cash purchaser) pays interest on their borrowings. This is also "like tossing money away". Many people would be better off, financially, renting and saving the surplus amount that they would have made as a capital payment on a mortgage into another vehicle. Added to all this, of course, is the capital depreciation component of owning property.

Therefore, no, buying isn't always better than renting ...... it's important to be aware of the pros and cons of both options and decide in a clear, rational manner.