Stopping renting and getting on the property ladder

greencat_2

I would continue to rent and try to save as much as you can. Your rent sounds quite high - but it may be reasonable for the area. If you decide to negotiate for a 2 year contract with your landlord then try to get the rent down a bit too.

Advertised rent like house prices is a starting point for negotiation - and a lot of people are getting significant cuts due to plenty of supply.

Renting is not always dead money if:

a) It's cheaper than an Interest only mortgage
b) You plan to move about a bit (eg to get a better job)

Finally definately try to save. See any interest gained as helping to pay off your rent. By the end of the year I'll be the lucky position of having my entire rent paid for by the interest on my savings accounts.

Historically high house prices are unlikely to be with us forever but any levelling or reduction will probably be accompanied by the banks becoming a lot more cautious about lending. It makes sense to have somekind of deposit behind you.

lynzpower

Im unsure what you mean.

If you say that you fall between the 2 for shared ownership ie you just earn too much, unless IM mistaken, you guys must earn a fair wedge?

And you say your debt in increasing. This isnt going to help, especailly if you want to get savings on your best. Come and have a look on the DEbt free wannabee board, and there may be space in your budget for some cutbacks where we can find you some extra to save.

Good luck
Lynz
x

moosegirl

Our earnings are approx £25,000 with rent being £8,220 a year which is over a quarter of our income. A lot of the shared ownership schemes require you to have at least £3,000 savings, or be a keyworker (teacher, nurse). Other schemes are aimed at the unemployed or those on benefits. We are two unprofessional people. Really we have tried!

barnaby-bear

moosegirl wrote:

Our earnings are approx £25,000 with rent being £8,220 a year which is over a quarter of our income. A lot of the shared ownership schemes require you to have at least £3,000 savings, or be a keyworker (teacher, nurse). Other schemes are aimed at the unemployed or those on benefits. We are two unprofessional people. Really we have tried!

The problem is also that anyone already in HA/council housing gets priority as they will free up a unit for housing someone on housing needs list. So low income but in private less priority than high income already in council housing paying cheapo rent - fair eh! In our area allowed to earn up to £43k, but a 2-bed flat/house in a bad area is £200k so a couple wanting to plan a family (i.e. preparing for drop in income) may earn a fair whack at £45k but won't be eligible for SO.

moosegirl

Thanks to everyone who has posted a reply to my query-it really has helped. I have now done the budget plan so I'm more hopeful that we can control our spending. Thanks, this is a great website!