Moving out for the first time...

AdamMc90

Hello everyone - this is my first post, hope it is the correction section etc, apologies if not.

Basically, I need advice of moving out and guidance on how to do this. I've wanted to move out for a while and have looked around rightmove.co.uk and seen a good few properties that I would like to look into further. With a view to moving out towards the end of the year.

I currently earn £22.5k a year, with my 21st coming up in August, and a payrise (probably to £24/25k) expected around October time. I am also looking to move out with my cousin, who earns £16k a year.

My outgoings every month are currently:

Keep - £140 (will obviously go, when I move out!)
Gym - £31
Mobile Phone - £45
Bank - £12
Phone insurance - £10
Credit Card - I owe £1200, but I'm paying £100 off a month, and paying rest off with 21st money.
Cancer research - £2 (every little helps!)

Basically, what I'm after is what are the general costs of moving out. Such as gas, electricity, tv lisence, council tax etc. I've looked at properties at prices such as £700/£800 rent pcm, is that far above my means or appropriate?

I also work for BT so I will get broadband for £1 so that helps a little bit.

Any information would be helpful.

Thanks for your time,
Adam

PasturesNew

If you pay £400/month, then set aside £75 for your share of the household bills on top and also £50-60 for your share of the council tax. That'll leave you plenty to live on.

However, your flatmate will not be in the same financial position and will be struggling to have a life/do stuff, which can lead to issues if you're happy to leave taps running and the heating/lighting on and they're trying to penny-pinch as they can't afford their half the bills. Plus, you'll be wanting to drag them out down the pub and they can't afford it. So this might lead to you falling out as your lifestyles will differ significantly.

Also think about the commitment you're making. If they decide after 3 months it's no fun/they can't afford to go out and you're annoying them as you're always going out, then might just walk out - and you'd then be liable for the whole rent/bills.

DannyboyMidlands

Not what you want to hear but my advice would be don't. After a couple of years renting you'll probably want to buy somewhere but won't be able to raise a deposit because you'll have spent the last few years giving £400pcm to a landlord. Stick it out, save hard, buy somewhere and rent a spare room to your mate.

BitterAndTwisted

I think you'd be in danger of making a couple of huge mistakes regardless of how much or how little the rent might be:

Do not think about renting anywhere while you have over a grand in debt! You will need at least a grand for a deposit equivalent to a month's rent (maybe six weeks) and a month's rent in advance

Your cousin doesn't earn enough to be able to pay their way.

Any rental agreement which you sign will be for a minimum of six months. Should your cousin be unable or unwilling to pay their share of the rent and bills, the responsibility of the whole lot will fall to you.

As an experiment the pair of you should put away in savings a minimum of £600 a month out of your current earnings to prove that you can both easily afford it.

AdamMc90

Sorry for the late reply!

So approx. £600pcm would cover rent and bills you think?

I know sensibly I should save and buy a property but I'm not entirely sure I want to get into massive amount of debts just yet, I may go travelling first and then come back to work and then buy a property - renting being the ideal option for now because I need to move out (poor standard of living at home). I also have money in shares in BT, which have trebled as they stand, maturing in 2013 and 2014, if they where to mature today I'd be looking at around £15k-£20k so thats a massive chunk of a deposit for a house should I chose to buy in 3 years time.

I will also soon get on call allowance and call out payments so money will go up from that. So I could afford £600pcm, plus £100/£200 saving and then a bit of a social life on top! (around £200 as it stands now before pay rises).

So the main problem is whether my cousin could afford £600 pcm? IF so then you think £1200 would be enough to cover the both of us, rent and bills and food?


Thanks for all your help!!