FTB - Wanted to buy... but now considering renting...what do you guys think?

mickym

My gf and I have saved approx £8k to go towards buying a house.

We earn approx 40k a year as combined salary.

We both live at each others parents houses. We are 30 and 33 and are eager to get a place of our own to get on with our own lives and look to starting a family over the next few years.

Due to the current climate we are thinking of putting off buying for at least the year.
We have had the opportunity to get a shard ownership place...but the deals in place seem conveluted and not without their pit falls.

Now , in our region a decent (not too posh, just in an ok area) 2 bed flat/house goes for approx £600 per month. We have seen a 3 bed semi going for £650 a month, and its close by our travelling routes and nr the other halfs gym. Does this seem an excessive amount to pay for rent?

Now ive always been an advocate of buying over renting... but my mind is changing as if we were to get a mortgage we would be probably paying in the region of approx £1050 at least a month, and thats with interest rates staying firm.

Im thinking it would be good to get used to living as if we were paying a mortgage (pay the £650 rent and save the £400 at least a month and put it towards a bigger deposit)

Id really like to get your guys opinions on this... so all feedback appreciated.

Ive put in an appointment with the Estate Agent to give us a look around the rented property we have spotted so would appreciate also the important questions we need to ask.

Big Thanks!

saveallmymoney

Sounds like you've thought it through, renting seems the best option for you at the moment.

dwsjarcmcd

There is only 1 choice in my view, for the next 12 - 18 months....rent. Do as you suggest in your post and you will be in a very strong position to buy at that point. For the money you spend today, you could upgrade for the same money n the future.

Just as an aside, I have always bought houses, never rented, and done well in the process but if I was starting today, I would rent

David

embelliss

£650 seems resonable for 3 bed semi, but remember there will be bills on top of that. I currently rent a 3 bed terraced, at 550, and with bills added on it comes close to 900 a month.

mickym

thanks for all your feedback...keep it coming!

As for bills... thanks for giving us your experience on this. As we will be new to our own home im sure we will need to get used to the various bills to pay.

Not being nosey, but could you break that down so we could see a typical bill list.

Not being dumb here, just want to see if there are any we have missed?

As for the £650 rent... looking on rightmove there doesnt seem to be much of anything decent condition/ok area that is cheaper (based on 2 bed minimum)

I would probably be looking to work some of my week at home to cut my current petrol bill of £200 per month

That why I would like at least 2 bedrooms so one can be an office.

Are there any restricitions on renting and working from home? I am being employed rather than being self employed...however I wouldnt mind taking on extra freelance work to help with savings! ?

zebulon

did you actually ever lived together - I know it might feel almost the same, often at each others (parents) place etc...

but even if the climate was not what it wis now, i would fint it quite crazy to go buy something together really :eek:

but maybe you stayed together already as students etc...

but just a thought!

mickym

We have been together for 7 years now and are engaged.... hence the need to get a place.

Although it isnt the same, we spend pretty much every evening together as it is, so were used to our company and bad habits

I can see living together in our own place will make things much better to be honest...as the only problems we have is lack of space for all our stuff and lack of privacy/personal space.

zebulon

does you mum still do your washing and ironing though

Good luck with your soon to be new life

mickym

zebulon wrote: »

does you mum still do your washing and ironing though

dont rub it in!

haha

The missus would do the washing but not the ironing! lol

RichardDJ

Renting may be dead money but trying to buy now could be futile, I'm not saying don't do it but in reality having the flexibility associated with renting is probably your best bet for 6 months at least. Bear in mind at the moment houses are expensive and the cost of borrowing is expensive

I've not seen your question on bills answered so here you go..prices are rough estimates and should only be used for initial budgeting..

Rent 650 (don't forget the deposit normally 1 months rent plus credit check fees could be up to 50quid EACH)
Council tax 100pcm
Water 25
Sewage 10
Electric -20 pcm (if you have Economy 7 heating instead of gas central heating learn how to use it or can be expensive!)
Gas - average for the year of 30 pcm (offset electric and gas accordingly)
Phone ?
Broadband and or cable?
TV license - 20 pcm for first year then 10 pcm

My rough sums make that £845

Do your sums and allow +20%, certainky for the first 6 months anyway

wymondham

At Last! - a sensible 'first time buyer'. Doing 100% the right thing.:beer: