Renting a House

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If you want independence stay at home and save for as long as possible!

Or sell the car and buy a place?

Meet someone and move in together? Most common option!

My now wife and I were dating (7 years ago) and wanted to move in together, instead of renting we bit the bullet and bought a place. Worked out well and now moved to a bigger house, been married two years and got a beautiful daughter.

Not sure on your personal life and age and don't want to pry but it's expensive for one to do it alone and have all the perks unless your wages are terrific

[MartynVRS]

As I've said if I sell the car it wouldn't be worth selling as for one I'd still have to buy a reliable replacement and to do that would be the same money again. In the ideal scenario I'd have 20k sitting in an account somewhere and I could buy a house. But unfortunately I don't. If the job was near where I live now then I'd stay at home.

 

I have been saving so no one can make out like I haven't been. Because of work I have no social life left. I haven't drunk alcohol for almost a year. I've had no time to do any hobbies this year so there's no spend there. My only "fun" is driving to and from work and my spend depends on how heavy I am with my right foot.

[cheezemonkhai]

20k sat in account isn't even half of what you need as a deposit these days.

[TheWanderer]

I've been saving 20 years and have just about managed to get to that level, only to find it's not enough and now I'm too old to get a mortgage. 

[littleade]

I don't think there's an easy answer here. Rent and all you end up doing is paying someone else's mortgage for them and it's unlikely you'll be able to save enough on your own to be able to buy later on, but you also need to have some 'me' time too which because of your work and travelling your not getting any. Is part ownership with a housing association an option to at least get your foot on the ladder? As said above meeting a partner who also has a full time job and moving in together makes things a lot easier (financially)

[Dr Zoidberg]

20k sat in account isn't even half of what you need as a deposit these days.

Depends where you are. That could be a 10% deposit on a 4 bed house by me.

[foxyvixen]

Good luck, its hard setting up initially, I was lucky rented for a couple of years and then bought my first house on my own in 2002. Wouldn't like to try and start out now, things are so expensive

[Huskoda]

Yeah, how much depends where you are. Ooop Norf 10K is all you need as a 5% deposit for a 4 bed detached house on the Help to Buy scheme.

[MartynVRS]

Round here 10% is enough, 5% if it's a new build. £20k could get me a house around £200k but then mortgage would be silly. Thete's plenty of houses between £100 - £150k which would be fine. £20k was a figure that if I got to for a deposit then I'd be happy. Wouldn't want to buy with everything financially on the limit.

[cheezemonkhai]

Depends where you are. That could be a 10% deposit on a 4 bed house by me.

 

You're not wrong but 10% lands you with a high rate of interest on the mortgage.

Compare the rate on a 10% to a 20% deposit or a 20% to a 25% deposit and you find that your monthly payments are much higher with only a 10% deposit.

 

Effectively you get priced out by the affordability criteria.

 

Also don't forget that you need 1% or more for stamp duty and all your legal fees too, so that will eat into your 20k.

[Evil Miyagi]

You don't pay stamp duty if you buy below the threshold... I've just bought a 3-bed extended semi with a 12.5k deposit and got payments lower than I can rent a house of similar size for...

 

But, and this is a big BUT, I massively under estimated additional costs involved in the buying process  solicitors, surveys, life insurance (mortgage requirement), house insurance....  AND to cap it all, they want it paying before you complete on the property...

 

EM

[Dr Zoidberg]

You're not wrong but 10% lands you with a high rate of interest on the mortgage.

Compare the rate on a 10% to a 20% deposit or a 20% to a 25% deposit and you find that your monthly payments are much higher with only a 10% deposit.

 

Effectively you get priced out by the affordability criteria.

 

Also don't forget that you need 1% or more for stamp duty and all your legal fees too, so that will eat into your 20k.

 

True enough, and that's not what I'd suggest a first time buyer goes for anyway.

You can stick under the stamp duty threshold and still find plenty of perfectly acceptable houses where your £20k deposit would leave you with a £470 a month mortgage.

http://www.rightmove.co.uk/property-for-sale/property-44096443.html

[OldJackyBoy]

Does the company who you work for not offer a lodging allowance or is this only available to contractors?

[DanGum]

Depends where you are. That could be a 10% deposit on a 4 bed house by me.

+1 I'm 23 and I just put down 10% deposit. 15k . I've saved an extra 8k for fees and tarting up the house when I eventually move in lol.

To the OP , I feel for you as you are in a dilemma , I honestly think you should consider selling the car and buy a diesel. I was doing fair few miles a day with my old super charged type r and it was costing me a fortune on fuel. I sold it and bought a Fabia mk1 Vrs and even though I do miss the honda I have managed to save up enough for a house deposit since. A lot of my mates rent and one of them rents a room out off a mate and it's literally just paying off his mortgage .

[octimark]

If you do have some savings to use as a deposit you can usually buy something and pay less than you would in rent for the same property. At the rental figures you have suggested (sub £500 a month) I'm certain you could buy something and be financially better off. Maybe not by much but obviously long term you have an asset that is yours.

 

Another option is to ask around at work. Someone may have a room their willing to rent out or maybe someone is in the same position as you and you could rent/buy something together?

[dazz600]

Quite simply,you have to move out

Mainly for the sake of an extra hours sleep

A 3am getup sounds tiring

What I would do.....

Rent somewhere close by work that is fully furnished so you've nothing to buy

This way you get a feel for the independence and if anything goes wrong you can move back home with no house/furniture to sell

While renting if you can get a deposit saved (and only you know this) do that and wait until a house for sale comes on the market that you really want

With no chain you can get in there first

And if the vrs makes ya happy,keep it

Lower fuel costs would help pay your other bills

Just for comparison £20k up here would be very useful.terraced houses start at 40k!

Edited 12 July, 2014 by dazz600

[matt_theforce]

Until you find something to rent, have you thought about B&B's for a couple of nights a week or even looking at student accomodation now they're all on holiday or a bedsit?

 

We've quite a few people who live 150-200 miles from work and they use all sorts of different accomodation to keep the costs down to a minimum, we even have a guy who brings a tent in the summer to camp in and a caravan for the winter months!

[MartynVRS]

Until you find something to rent, have you thought about B&B's for a couple of nights a week or even looking at student accomodation now they're all on holiday or a bedsit?

 

We've quite a few people who live 150-200 miles from work and they use all sorts of different accomodation to keep the costs down to a minimum, we even have a guy who brings a tent in the summer to camp in and a caravan for the winter months!

 

Initially work paid for B&B's for me while the factory was being setup. It's an option I could do that myself, even if it's a cheap caravan site in the week.

[Huskoda]

That's another option, buy a caravan and park it in works car park

[Evil Miyagi]

Or even better, buy a static caravan and get it sited near by?

 

Maybe, chip in with the parents so they can use it as a "holiday" retreat?

[nickguzzi]

The student accomodation may be a good idea if there is a uni near where you work. Just a quick peek at the Leicester one. Cheapest one I noticed was £60pw, loads less than £100. There are student blocks where you get all in, includes wifi, for not much more.

Just the first on google http://www.accommodationforstudents.com/leicester.asp

This is just until you get sorted right?

[gadgetman]

Wont they want proof of enrollment in a course?

[skodanorman]

For reference you can expect your oil bill to be around £1200 a year unless you join a syndicate at which point it drops considerably.

What about a room share?

[MartynVRS]

Not overly keen on sharing. I did consider the student accomodation initally but I remember mates places back in my Uni days and it wasn't great. I'd be lucky if I'd get any sleep and especially with an early start, although that is starting to change. Today I'm in work at 6am and will be trying over the next few weeks to get it to 7 or even 8am.

[J306TD]

Is it natural gas or LPG?

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