Decent income, two kids - and living in a 1-bed flat - time to do something?

SandC · 26 September 2008 at 4:05PM

Well for one thing you should not feel ashamed. I bet your peers don't have £60k in savings and no debts! You are being so sensible and that's a good thing. It's because of peer pressure that people get into difficult situations with money in the first place.

As others have said, the £1200 rent is doable. Of course you will probably not be able to save as much as you have been doing. You have to assess whether your current situation is too uncomfortable to carry on for another year or so. So far as your son and having his friend round goes - that is something you are worrying about in other people's impressions and not something your son would even consider - unless someone made it a problem. If you know his friend's parents then surely you can suss out whether it's likely that this will be an issue. I'm sure it won't be and you are being a little over sensitive. Most people are far less bothered by material things than you think.

Why not continue as you are and keep your eye open for rental opportunities for somewhere you would really fancy for that £1200 and not just settle for something just because of the space it would give you? You can reassess the situation next time it came down to your husband's contract being given consideration.

I know it's hard, but please never worry about what other people think. It's usually far more of an issue for you than it is for them.

lilac_lady · 26 September 2008 at 4:09PM

I think you should be pleased that you're not in the position of some people who've overstretched themselves financially to have a bigger house. Probably some of the other parents are worried that they'll have to move because they can't afford their homes. Perhaps your son could have a couple of friends over on a Saturday when either you or your husband take the other children out for a few hours? That way they could have time to play without feeling crowded.

swingjune · 26 September 2008 at 4:23PM

You may pay higher council tax and other costs that goes with a bigger rental.

Read this post : http://forums.moneysavingexpert.com/showthread.html?t=1126491&highlight=just+to+put+a+roof+over+our+heads

neverdespairgirl · 26 September 2008 at 4:25PM

Fly_Baby wrote: »

I would hate to have them view my son as some poor kid from a disadvantaged family.

I think the crucial thing is how you and your family feel at home. Sod what anyone else thinks. If someone does think less of you for your home, it's a useful way of avoiding an idiot.

Congratulations on the savings!

swingjune · 26 September 2008 at 4:33PM

neverdespairgirl wrote: »

I think the crucial thing is how you and your family feel at home. Sod what anyone else thinks. If someone does think less of you for your home, it's a useful way of avoiding an idiot.

:T :T :T

Currently, we are living in a rundown cheap rental and driving a bone shaker but, we have 150k savings for our deposits on a house.

hethmar · 26 September 2008 at 5:05PM

June and Sand - Havent you both done brilliantly saving such large amounts. Well done.

Hang on a while and see how much houses are dropping before you decide to take the leap into ownership. You will both be in excellent positions - no chain, large deposits - to make the most of a buyers market.

Good luck.

PasturesNew · 26 September 2008 at 5:40PM

I sold my house last year and now live in a bedsit/studio that is tinier than many others. That gives me an extra £2k/year saved towards a house/whatever at some future point. If I rented a 1-bed place it'd cost me £100/month more, more council tax, more insurance, more heating. So there's no point!

A permanent contract doesn't guarantee a job any more than a contract does. It just means you can get a mortgage.

But now is not a good time to get a mortgage because you'll be able to get a bigger/better house for the same money in a year's time.

Just stay where you are, you've done the hard bit and got this far. Don't give up now.

penguine · 26 September 2008 at 6:46PM

We're in a similar position, we live in a 2 bed flat with a 5 year old, have a good combined salary and a good amount in savings. We were planning to buy this year, but seeing the way the market is going have decided to wait. Houses for rent in our area are about £1400, but prices are likely to go down next year as there will probably be more rental properties on the market from people who can't sell. If you really want to move into a house, you can also try offering less than the asking price on a rental.

But the important thing, I think, is not to compare your life to others' and feel that somehow you're not measuring up. You've made different choices and you should feel good about the fact that you have so much in savings. Though it may not always feel like it, you're in a more secure position than people with no savings who are struggling to make their mortgage payments, especially with the economy going the way it is now.

Edited to add: You should also count yourselves lucky that your personal circumstances have kept you from buying a house during the most inflated house price bubble in UK history!

airhostess · 26 September 2008 at 7:37PM

penguine wrote: »

Edited to add: You should also count yourselves lucky that your personal circumstances have kept you from buying a house during the most inflated house price bubble in UK history!

Can't agree more! You are in a fantastic position if you look at it really:

You love where you live now and the only thing you don't like is sleeping all in the same bedroom

You can earn around £350 interest a month on your £60k (Kaupthing Edge is the top paying savings act at the mo)

Get your husband to get more demanding at work and ask for a proper contract - not sure what industry he works in but after 6 years there's no excuse!!

Set up Rightmove alerts for the type of property you are looking for and use property snake to track falls in prices

Then once you have found your ideal place (at the right price!) you will be the perfect buyer: large deposit, and nothing to sell!

I bet lots of people wish they were in your position right now!

whitewing · 26 September 2008 at 7:52PM

The only real reason for being desperate to move seems to be that you are in a one-bed place, even though it's spacious. Is there any way to partition off a 'bedroom' for your children, eg using wardrobes down the centre, one side facing your sleeping area and one side facing your children's. Friends from school either will not notice or will think it's cool.

We had MIL living with us temporarily for 6 months which meant that DS was in with us. No one that I mentioned it in passing to actually cared. Most had been in similar circumstances themselves at some point. People are actually much nicer than we think. The occasional one is an idiot but who cares what they think.

I have a 30 year mortgage, and I would love to be able to save and buy mortgage-free.

Decent income, two kids - and living in a 1-bed flat - time to do something?

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