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

Fly_Baby

Hi, I have never posted a thread here but have been reading religiously - hope to find some advice here.

We are a family or four (kids are 5 and 1), moved down 6 years ago and have been renting since. We wanted to save for a decent deposit and were so looking forward to when we can afford to buy.

We moved to the current property 1.5 years ago and it's a very spacious and extremely conveniently located 1 double-bed flat. All beds easily fit into the bedroom with lots of room for more. It's minutes from my son's school, 15 min. walking to my husband's job and minutes to the town centre and train station, with a great park and a river right beside the house. We did realise when we were moving that it was going to be too small. But back then my husband was promised that when his contract expired he would get a permanent position. And then we would finally buy. So it was supposed to be a temporary accommodation for us.

What happened in reality is that my husband again got just a 1-year contract.

So where we find ourselves now.

We've saved £60,000 over 6 years, my husband makes 34 000 and I make about 12-15 000 (it varies). So we could afford to buy. But we can't buy because if my husband doesn't get a new contract we will be forced to move in 8 months' time - so what's the point. And I am not even sure if we can get a mortgage being on a temp contract (he's been with his employer 5 years now).

The obvious solution is to get a bigger rented flat/house. But where we live a 3-bed something starts at 1200 pcm. That's 60% of my husband's take home pay. :eek: The mortgage on such property would be much lower for us. I've taken a look at 2-bed flats/houses but they are really tiny and would be at about 1000 pcm. Plus I would have to drive my son to school, my husband would have to take a bus to work and all nice things like High street and riverside will be much further. We cannot rent from council (which would be cheaper) or get any help towards renting because we got too much in savings.

OK, so we could wait again. For what? I cannot help feeling ashamed because of living in such conditions as though we have no money, despite us both having good Uni postgrad degrees and managing to make money and save despite having children etc.

Sorry for a long post and sorry if I sounded confusing. Perhaps if somebody could just leave their opinion it would still help to take a fresh view of the situation.

lilac_lady

Why should you feel ashamed of living where you are now? In your situation, it's ideal accomodation and you're doing the best for your family. I'd wait and see what happens to your husband's job. Moving is expensive so you want to be sure before you do.

Fly_Baby

Thanks, lilac_lady.

I cannot help feeling awkward because that's not the way my peers live and my son's schoolmates live - and in general, anyone I know. I cannot ask his friend over to play because that friend would have his own room and my son doesn't. I would hate to have them view my son as some poor kid from a disadvantaged family.

I guess that will be the main reason - I hate looking as though I cannot afford to live in a nicer place. I can. But I don't want to spend 1200 plus (not to mention increased CT and bills) on something that isn't even my own, and plus get all inconveniences that I mentioned in the first post (need to drive son to school, my husband no longer able to walk to work as he doesn't drive etc).

Where did we go wrong in the first place to find ourselves in this situation?..

Doozergirl

Is there a reason that your husband can't learn to drive? Life in general is easier with a car unless you're in London. He could commute then if he has to change job.

How much would the right house cost to buy?

Chris2685

Of your joint income the £1200 pcm isn't really an odd amount to be paying out considering what you're earning. I think it is quite rare these days to be able to pay the rent/mortgage as less than 40% of your take home pay... If it were me I would pay the £1200 per month and have a better quality of living, but it is up to you of course...

I am assuming that because you are jointly on roughly 50k per year you are earning over £1000 a week gross. That's pretty damn good if you ask me...

Fly_Baby

Chris 2685, I guess you are right and our position is not bad at all financially. I would be comfortable if we paid about 1000 a month (that's what our mortgage would be like - I've done research). But the thing is my income is not guaranteed and I can get £1.5K one month and £400 the other month. So realistically we are relying on my husband's salary which is 2100 per month.

So rent is 1200, CT 150, water 40, gas/el - say, 50 (but probably more - it will be quite a jump from 1-bed to 3-bed), mobile, Internet, TV licence. Which leaves us with just about 650 per month for the four of us. And if I don't get paid in time (which happens) we will have to raid our savings just to make ends meet.

That's the kind of situation I would be willing to put up with if at least we knew that we are contributing towards our own home. But to send that much money down the drain just for the roof over our heads... Maybe I am wrong but I've never learnt to accept it.

Fly_Baby

I too thought that we were doing great considering that all along I had to find way to make money AND take care of the kids. But the rent prices are also doing great in our area! :-)

Fly_Baby

Doozegirl, I've been nagging (in a good way!) my nusband to learn to drive a long time. He doesn't want to. He says that he doesn't need it - we've always lived within walking distance of his job and when we go somewhere I will be driving.

The problem (well, another one) is that he doesn't see the problem in living where we live now. So he wouldn't do much (i.e. learn driving, pay a lot) for the sake of something that he doesn't deem as necessary. He does want to buy eventually but he wants to wait until he gets a permanent position or at least a long-term contract.

In our area, 3-bed houses start at 200K, and there are a lot of offers between 220 and 250. Of course there are 3-bed houses for 300-400 as well.

cupid_s

I too agree that on your joint income £1200 isn't too much to pay in rent.

You have 60k saved, so I imagine you get approx 200 pcm interest on this which can go towards the rent (remember if you buy somewhere you wont be getting this income). I would hold off buying for a while because prices are likely to drop and you could see a big chunk of that 60k eaten away by falling prices.

But I would just not worry about what people think (living where I do I soon got used to not caring what people think!). Do you think your children are missing out because of where you live? I know of lots of children who share rooms with siblings so your son’s friend wouldn’t necessarily have his own room, and if friends came around why couldn’t they just play in the family areas?

If you think your son needs his own room or your flat is too small then it is definately worth paying the extra to rent somewhere bigger. No point having all that money in the bank, and a high income if you are unhappy where you live.

Norma_Desmond

Hello Fly Baby; I can understand your frustration, but it does seem as if your husband's employers are rather 'holding you to ransom' over this.
Couldn't Hubby explain your family's situation to them? Surely you can't be expected to put your lives effectively on hold whilst they faff about with contracts?
Maybe even a hint that he's considering looking for another job might help push them in the right direction?
Good luck anyway!

Fly_Baby

Norma Desmond, thanks for wishing me luck!

My husband is having a staff review coming up and he PROMISED he would explain to his line manager that he has a family and wants to buy a house but that banks wouldn't lend to him on a short-term contract. Don't know if anything can be done but no harm asking. He's been with them 5 years after all.

I don't want to move anywhere, I love where we live so keep my hopes high.