From: Richard Faulkner 
Newsgroups: uk.finance
Subject: Re: Would renting be a good idea for me?
Date: Thu, 11 Dec 2003 21:32:28 +0000

In message <8ec82db63ba4f04fd0fcd3ac6768d76f@news.1usenet.com>, Alfi 
 writes
>I'm currently 23 and have about £20k of debt mainly from student loan, car
>loan and credit card, overdraft etc.  I currently have a house worth £110k
>and owe £62k.  Most of this profit has come out of nowhere in the last 2
>years.  I have been wondering about selling my house after christmas and
>using some of the profit to pay off all of the above leaving me with about
>£25k to put in a savings account.  Then I was thinking of renting for a
>while and seeing how the market goes and letting my credit rating clean
>itself up (as it is suffering from too many different finance agreements
>although no missed payments).  After 6 months or so I could re-buy using the
>25k as a deposit ands raising another £120k mortgage from my salary.
>
>Besides wasting money on rent for a while - what are the main drawbacks with
>this plan.  It is unlickely that house prices are going to shoot up if I
>just sit on my money and if they come down I will be able to buy more.
>
>

Where is your house?

If it is in Manchester, it could easily increase by £10/20K over the 
next 6 months or so.

Personally, I would advise you to never be without a house of your own. 
I sold mine in 1987 for £23K - by early 1988 when I was ready to buy 
another one, it had gone up to £45K. I vowed that I would never again be 
without a house - even in the bad times, because you never know when it 
is coming back.

Are you having trouble paying your debts? Or would it just be nice not 
to have them?


-- 
Richard Faulkner