Buying A Home Or Private Renting? Which Is The Best Option?

Legacy_user · 15 May 2017 at 2:40PM

Hi Folks.
It's been a long time since I posted here but I thought I must as I have some decisions to make.

As some of you may know my mother died in November 2015 and left her house to me and my 2 sisters. My mum left a third of the house to the 3 of us.

The house was sold and I got my inheritace a few months ago in December 2016.
Which was 118k and as a result most of my benefits have been stopped.

Except for my DLA and my Contribution Based ESA(which has been cut down from Income Related ESA because of my Savings being over 16k to Contribution Based only.) Which gives me an income of £214 a week.
Which is £854 a month.

But because my Housing Benefit Has been stopped completely I now have to pay all of my rent for my 1 bedroom Flat which is with the Housing Association myself.
Which is £603 per calendar month. Which I am paying out of my DLA and ESA and I am using some of my savings to pay the bills and food.

My Council Tax benefit has also been stopped because of my savings but my Council told me I may qualify for Council Tax reduction Benefit again under the grounds of Severe Mental Impairment depending on the medical report from my GP.

But at the moment I am paying full CT myself but I don't mind as that is on £98 a month.

But my biggest expense is my rent which although my £854 a month paying the £603 a month. Because I put my benefits aside for this, that only leaves me with £240 a month and my Utility bills including my broadband, phone and Sky TV come to about £250 a month.

So of course I have to dip into my savings each month to cover my cost of living.

As you know I fought hard to get my inheritace and I want to try to make it last as long as possible.
And I also want to use it to make a new and better life for myself.

So I am thinking of moving up North to Liverpool where the rents are cheaper and because I have been there several times and like the area.

And I posted about that here:
http://forums.moneysavingexpert.com/showthread.php?t=5576755

But a some of the members were not very nice to me. Their comments were so negative.
And they locked my thread and this has made me very upset since.

Because despite me having mental Health problems I am perfectly capable of making my own decisions about what I do and don't want to do.

And as such it is my right and my life and I have the right to move if I want to.

And I will do what I want anyway no matter how many time you lock my threads. That is NOT going to stop me from moving if I want to.

Some things have changed since I last posted. I have now found an NHS GP. And I have been very lucky in that this new GP I have gives me time and lets me have double appointments for 20 minutes.And she has spent longer than that with me.

And my GP surgery always gives me appointments quite quickly. I have got an appointment within a week or 2. And the receptionists are also understanding towards my MH.

So I have been quite lucky there as it took me a while to find the right GP but now I have done. But despite this there are issues here in my area with my health trust that I am unhappy with.

My GP has refereed me back to my CMHT but they refuse to see me or take me back.

Someone from the CMHT phoned me ( I don't know who he was) and spoke to me briefly and then said he does not think I need their services.
And he told my GP this.
The CMHT said I do not meet the criteria for their support Services.
And the CMHT have decided this without even seeing me in person which is not right.
So I won't be getting a keyworker or a psychiatrist because my CMHT don't want to know me it seems.

I went back to my GP and told her this and she also is not very happy with my CMHT and has reffered me back again.
But they have still refused to take me back.

They did this before 2 years ago after I was discharged from my CMHT in 2014.
My old GP refereed me back to my CMHT twice and they refused to even see me. Saying I am not ill enough.
So they have done this to me before.

Also sometimes my Housing Association are slow to do repairs. And when the communal water pump goes I have had to stay in hotels because I and the other tenants have been without any water supply.
And often I am afraid to wash my hair in case the water goes of. As it does do every now and then because the contractors have not got to the bottom of what's causing the water pump to keep on breaking down.

And the outside roof gutter pipe keeps on leaking because the workers do not fix it properly.

I make a complaint and my HA sends them back again.
And they have been back here 6 times in the last few months but they still have not done the job properly.

And each time it leaks again I have to wait 2 or 3 months before they fix it again.

So because of all of this I am thinking about moving.
At first it was because of the money£603 I am paying but not so much now.

As I have found that private rents here in Liverpool,are around £450 or £500 per calendar month. Which is not much less than I pay now.
Only £150 or £100 less than my rent I pay here. So I am not going to save money in those terms.

I am now at the moment as I write this here in Liverpool and I am staying in a hotel.
I have been here up North for 2 weeks now since the 2nd May on Holiday.

The purpose of this visit was to go and visit some letting agencies to look at flats and talk about it with them.
So I can at least see what I would be letting myself in for if I moved to private rented.

But because I have had to keep moving from hotel to hotel.
Because every time I want to extend my stay the hotels I am at say they have not got any more rooms.

I have not had a chance to do anything or visit the letting agents. Because most of my time has been spent packing my things, checking out of the hotel. Then checking into another hotel,then moving to another hotel again.
So this visit to Liverpool is not going very well as I have been here in Liverpool for 2 weeks and I have not achieved anything.

But the reason why I am posting today is with my situation, that I cannot work and that I must l pay rent out of my inheritance. Because I won't get HB again unless my savings go bellow 16k which they won't for a very long time.

The question is would I be better off renting or buying a place?
I have seen 1 and 2 bedroom flats and also 2 bedrom houses for around 50k to 70k.

And I have been advised by both my Solicitor and EX-CMHT Social Worker. That if I am going to leave the HA I should use my capital to try to buy a property instead of renting with a private landlord. As at least that way I would have a secure home for life and would not have to worry about being evicted and being homeless.

Also as I have now got about £109k left in my savings. If I bought a place for 60k I will have about 50k left over and will still get my reduced benefits of £214 a week.

But I won't be paying any rent so that my £213 a week benefits would just go on bills not rent. So it won't eat up my inheritace so quickly.

And I will not have wait around for a HA or a landlord to do repairs. I can get them done myself.

Also I will be able to decorate.

My HA lets me decorate my flat and I have done.I have painted my HA flat peach and lemon and it looks lovely.

But I know that a lot of private landlords and letting agents don't allow you to paint or decorate. Which is one main reason why I have not left my HA flat for a private flat.

Also I know that my inheritace won't last forever and one day I wil have to go back on HB and full benefits when my inheritace runs out.

At least with my HA they won't kick me out when that happens. But a lot of private landlords and letting agents don't like DSS tenants. So when my money runs out and I have to go back on HB again, I could find myself homeless if my landlord throws me out.

That's why I have been advised by my Solicitor and my Hosing Officer at my HA to buy a place if I must leave the HA rather than go for private renting.

So any suggestions?
I have been here in a hotel in Liverpool for 2 weeks and I have not got anything done. Except spend money on hotels which I cannot do forever so I will have to go back home to my flat soon.

System · 15 May 2017 at 2:52PM

There is one comment by one form member that I want to respond to here.
This one:

http://forums.moneysavingexpert.com/showthread.php?t=5576755&page=2

kingfisherblue wrote:

The main concern, though, is that the OP seems to have little support. If she moves North, she will lose what support she does have. Health and Social Services are over stretched here, as they are in most places. It could take some time for the OP to sort out the support that she needs, and with such a reluctance to register with a GP, I suspect that it will be an even slower, more difficult process.

Well, how can I loose the support I have here in London when my CMHT are not giving me any support?

My CMHT have made it clear to both me and my GP that they won't take me back into their services. And they are not going to change their mind.

That's the truth. And if you don't believe me maybe you should come here and talk to them yourself. You don't know what my health trust is like, I do.

Norman_Castle · 15 May 2017 at 3:22PM

Getting an exchange or transfer to another HA flat could be cheaper and more secure than private renting with the possibility of rtb in the future.
Buying could be a good option for you if you can find the right property at a price you can afford.

Your 118k will be earning interest which will offset some of your outgoings.

pollyannaL · 15 May 2017 at 4:06PM

Hi,

If you do intend to move North, it would make sense to move into a rental property first and then suss the area out and make sure you like the area first before you commit to any house purchase.

I know you have a lot going on but you need to plan ahead a bit more - make sure you book into a hotel which can accommodate your dates, and spend a week at one hotel giving you time to speak with estate agents. Once you head back home there is no reason why they can't send you properties they have via email.

I think having your own property would give you security and stability. As long as you feel able to coordinate all your bills, paperwork etc. Even during times when your mental health is suffering. Do you have any family members who can do this to help you out when you are struggling?

Sorry if I overlooked this, but you do not say your diagnosis. Can you self-refer to third sector organisations in the community to get the support you need (counselling, group work, service user groups etc). There are LOTS of mental health services in the community, even if your CMHT cannot directly support you, they have a duty of care to provide you with alternative information and advice if you don't meet their criteria. Your local adults social services team can provide you with this info, doesn't have to be CMHT. You can always chat to MIND to work through some of your difficulties over the phone?

AnotherJoe · 15 May 2017 at 4:10PM

Yep, as many advised beforehand try renting before buying to make sure you are OK with the area.

Also, is the option of a HA swap out of the question? I think you said it was but i dont recall why I'd have thought there were more people looking to move N to S than vice versa just because of job availability?

ReadingTim · 15 May 2017 at 4:20PM

Suggest anyone who's thinking of replying to this thread wades through the 3 pages of the OP's previous post (here) beforehand....they may then conclude their time could be more productively spent elsewhere....

Red-Squirrel_2 · 15 May 2017 at 4:29PM

If you have a HA property it would be a bad idea to give that up for the insecurity of private renting, and as a homeowner without much income how would you maintain the property?

That said, it doesn't really sound like you want advice, maybe just focus on your health until it is more stable before making any big decisions?

System · 15 May 2017 at 5:22PM

Well to tell you the truth I am not sure what I want to do. I am not sure if I want to move to private rented or not.
I did want to before but I am not so sure now.

Before I got my inheritance I knew that my HB would stop. And when I found out I would be paying £603 PCM I did not like it one little bit.

But when I found out the DWP were not stopping all of my benefits. Just my HB and CT. But still keeping me on my DLA and reduced my ESA.
I feel different about it.

As I thought the DWP would stop all of my ESA once my savings went over 16k but that's not the case.

It is only the Income Related Part of your ESA that stops when your savings go over 16k.

Not the Contribution Based Part.Which I did not know before I got my money but I do now.

Contribution Based ESA is not means tested by savings and neither is DLA.

Both the DLA and CTB ESA are based on you being unfit for work and your cared needs.

Though to get CTB ESA you have to have credited enough NI Contributions. And be in the Support Group. You can also get it if you are in the Work group but only for a year and then it stops.
But if you are in the Support Group which I am you will get it for as long as you remain in the Support group.

I asked the DWP how could I have paid enough NI Contributions if I have never worked?

The DWP explained to me that while I was in Severe Disablement(SDA) Allowance which I was before they moved me over to ESA a year and a half ago. The DWP credit NI Contributions to my account.

So if you were on Either SDA or Incompatibility Benefit, the DWP credit NI Contributions to you. So you do qualify for Contribution Based ESA.

But my ESA will still be reviewed periodically the same as my DLA will one day be reviewed for PIP. But as long as I am still unfit for work and still in the Support Group the DWP will continue to pay my CTB ESA.

See here for a better explanation than what I can give here:
[URL="://www.benefitsandwork.co.uk/employment-and-support-allowance/esa-glossary/1488-what-is-contribution-based-employment-and-support-allowance-esa"]://www.benefitsandwork.co.uk/employment-and-support-allowance/esa-glossary/1488-what-is-contribution-based-employment-and-support-allowance-esa[/URL]

But the Income related Part of my ESA has been stopped because of my savings but the DWP said that will be reinstated if my savings go bellow 16k.
As will my HA and CTB but that won't be for a very long time.

No I don't have 118k not now. I have 109k because I had to pay my Solicitors bill which was £4,500. Then I obviously spent some money on new furniture for my HA flat. And I had it decorated.

Then obviously I am using some of my money to live on. What I get from my reduced benefits dopes not cover both rent, bills and food.

The problem is also I canot lock my money away in a high interest account. Because the only high interest accounts the banks have is Bonds.
With which you cannot get to the money for 2 years.

And how can I lock my money away when I have to live on it?

So my money is just in an ordinary regular savings account.
As it is I have had to slit my money up and put half of it in one bank and the other half in another bank.

Because banks can only guarantee 85k of you savings. So I have had to split the money up and put some of it in another bank, so as not to be over the bank's limit.

Nationwide my Bank does have something called a Loyalty Saver which pays a higher interest. But has not restructions on withdrwal it is instant access like my regular savings account. So if I were to put my money in that I could draw money out whenever I wanted, it would not be locked away.

But the interest to that is only 0.75per cent. And my bank won't tell me how much interest I will get per year out of that. And neither will my other bank Halifax.

I asked my bank this:
If I were to put say 40k in a higher interest account how much interest would I get at the end of the year?

My Bank said: We can't tell you that.

I then asked how do I calculate how much interest I will get?

Their answer: Don't know.

I then asked: How do I calculate the interest? What do I divide or add by?

The Bank said: Don't know.

I asked can you just tell me, do I divide my savings by a year or what. Please tell me how do I calculate how much inteest I will get be it £100 a year or £500? How much?

My Bank said: I don't know.

So they won't tell me anything or how much money the interest is.
I cannot get it out of them.

I think it's their policy not to tell you. Which is stupid. Because it's my money so I have a right to know how much it is. Or they could at least tell me how to calculate the interest but they won't. My banks just won't.
The staff and customer services of the banks are just like robots.
If you ask them they won't tell you nothing.
Which is not very helpful.

I have been here in Liverpool for nearly 2 weeks since the 2nd May.
First I stayed in a hotel in Southport but I never got round to going to any letting agents.

Because I had only booked that hotel for a few days. But they could not extend my stay because they said they were full up. So I first went to Manchester for the weekend to chill out. Then I went back to Liverpool and booked another hotel in Birkenhead. But once I was there they said. they never had any more rooms for after the 4 days I had booked for.
So I had to move here to yet another hotel in Liverpool.
Which is were I am now.

But I still have not managed to get to a letting agent because I don't know my way around this city as I thought I did. So I don't even know where half of these letting agents are.

And it's raining today which makes it worse.

But I don't think it's just that I think I am having second thoughts about giving up my HA flat for a private rented. Because I know that first of all a lot of letting agents and landlords won't allow you to paint your flat in your own colors like I want to do.

Also as some members on here have said they can end your tenancy any time. Because they don't have to give you a lease every 6 months.

Also I know there is going to be a time in the future when my inheritance will eventually run out. Then I will have to go back on HB again when it does.

As you know a lot of landlords and letting agents don't like HB tenants. So there is the risk that they could throw me out when my money runs out and I have to go back on HB again.

Also if I get a 2 bedroom flat HB won't pay for that, they will only pay for a 1 bed, because I am on my own. So I will only have to move again when my inheritace runs out. Because HB won't pay for a 2 bed.
And even the rent for a 1 bedrom flat might not be covered by the LHA rate, so I might not get the full HB for that either.

Where as with a Council or HA flat all the rent is covered unless bills are included in the rent. Which in my case my water bill is but the shortfall is only minimal.

I used to get full HA and I only paid £29 a month for my water charges to my HA.

Now of course I don't get HB. I have to pay all of the £603 a month myself. But at least I am not paying a separate water bill as it is included in the rent. So that is something.

And oh- before I got my Inheritace I used to get £290 a week both Full ESA and DLA. And most of my rent and Council Tax paid.
I only paid £29 a month rent and £14 a month Council Tax.

Now I have to pay all of my rent and CT myself £603 per Calendar month. And full CT which is £98 a month.

And I now get £214 a week DLA and ESA(Contribution Based Only.)
Which I put aside to pay my rent with to my HA.

One more thing-My rent for my HA flat is £139 a week which is £603 per calendar month.

When I was on HB

HB paid my rent to my HA ever 4 weeks not per calendar month which was about £541 every 4 weeks.

I did ask my HA if I could pay my rent that way now, every 4 weeks instead of every calendar month.

Which would be cheaper at £541 a month instead of £603PCM.

But the housing officer did not advise it.

Because I pay my rent by direct debit which is taken from my bank account on the 10th of each month.

If I were to pay every 4 weeks my Housing Officer told me the direct debit would be coming out on different days each month.

For example one month it would be taken on the 5th and another it might be the 8th because there are 5 weeks in some months.

So my HA advised me to pay per calendar month and not every 4 weeks. Because then if I pay per Calendar month it would be taken on the same day and not on different days.

So I have taken my HA's advise and I pay per calendar month not every 4 weeks.
Although I think if I could have paid every 4 weeks it would have been cheaper at £541 instead of £603.

But my housing officer said whether I pay the rent which is £139 a week weekly or every 2 weeks , or every 4 weeks or per calendar month, I am stil paying the same money.

£139 a week-£603 per calendar month.

Which is true.

It's like paying your bills every 3 months or every month but you are still paying the same money.
Rent is the same thing.
It just seems like more because I am paying it in 1 lump sum every month instead paying it of every week.

But then I still get my £213 a week DLA and CTB ESA which is £854 every 4 weeks if the DWP were paying it monthly which they don't.
I don't think the DWP ever pay montly benefit payments per calendar month but I could be wrong.

But that £854 a month I get from my benefits is being used by me to pay my rent. So I am not eating up as much of my inheritance as I thought I would have to.

System · 15 May 2017 at 6:11PM

Red-Squirrel wrote: »

If you have a HA property it would be a bad idea to give that up for the insecurity of private renting, and as a homeowner without much income how would you maintain the property?

That said, it doesn't really sound like you want advice, maybe just focus on your health until it is more stable before making any big decisions?

Yes that's why I am not keen on the idea of going into private rented.
Because I know I would not have a secure tenancy. And could find myself homeless or moving around from flat to flat if the landlord threw me out.

And I don't want that to happen.

Also I have painted my HA in my own colors lemon and peach in different rooms.

But most private landlords and letting agents won't let you paint.
Or if they do they want you to put it all back to how it was when you leave.
So it's not worth painting it if you have got to put it back.
So I would be stuck with magnolia or white walls which is standard practice with private landlords and letting agents.Which I won't be able to change and I would not like that.

Where as HA and Councils are more liberal minded and most HA will let you decorate as long as you don't paint it red or black ceiling or something like that!

But a lot of private landlords and letting agents won't let you paint. That's the main reason I did not move but it's not just that.
Thinking about it now I am starting to realize that much of what the members here said about private lettings is true.

I am staying at the Premir Inn and my last hotels I stayed in were all Premir Inns. Because I cannot go to a bed and breakfast because I don't like the landlady's. They want to go in your room all the time and I don't want that because I have money here.

That's why I am staying at Premir Inns for this reason and because I want a room with a bath not a shower.

Here in Premir Inns in other big hotels you don't have to have the cleaners in your room.
You stick the Do Not Disturb Sign on the door and they won't come in.
And they are better hotels unlike B&Bs which are not.

So yes this is costing me a lot of money to stay here. I have been staying at different premier Inns for the past 2 weeks.

And to be honest it is a waste of money as I have not done very much at all except go round the shops. I have not got round to going to any estate or letting agents.

And because I cannot cook here I have to go out to eat. So my time is spent on trying to find a restaurant or somewhere to eat that has got a table.
Before they close because I cannot cook here in my hotel.

At least in my flat I don't have to put up with all of this I can eat when I want and food is always there for me.
Where as here in the hotel it is not.

So my time is spent just getting to the cafe in time before they close(if you can get a table which is sometimes difficult because this city is very busy)or I don't get no supper.

So it is really a waste of time and money me being here as there is no time left to get anything done.
If you know what I mean.
And I don't even know my way around this city.

But I don't think it's just that-I think I don't want to get a private flat maybe that's it.

If you do intend to move North, it would make sense to move into a rental property first and then suss the area out and make sure you like the area first before you commit to any house purchase.

I know you have a lot going on but you need to plan ahead a bit more - make sure you book into a hotel which can accommodate your dates, and spend a week at one hotel giving you time to speak with estate agents. Once you head back home there is no reason why they can't send you properties they have via email.

I think having your own property would give you security and stability.

Yes I could do that at least then I would not be stuck with the restrictions of being in a hotel. So it would give me more time to look for what I wanted.

But then I would have to give up my HA flat and if I did not find a property to buy. I would be stuck in a rented flat where I might not have any security.
So I think it would be better if I could stay in my HA until I found something.

But as I only have 109k I am restricted to what I can buy.
Also there is the possibility that I might not find anything that is suitable for me or what I can afford.
In which case I will have to stay where I am in my Ha flat. But maybe that's not so bad.
As I have said I have changed since I got my inheritance and now I am actually here in Liverpool.
I am not sure if I want to move here or not.

leslieknope · 15 May 2017 at 6:47PM

http://www.houseexchange.org.uk/ look to see if you can exchange with someone up north that wants to move down here?

pollyannaL · 15 May 2017 at 7:02PM

ReadingTim wrote: »

Suggest anyone who's thinking of replying to this thread wades through the 3 pages of the OP's previous post (here) beforehand....they may then conclude their time could be more productively spent elsewhere....

oh yes, i see what you mean......

PLEASE READ BEFORE POSTING

Buying A Home Or Private Renting? Which Is The Best Option?

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