Is it possible to save to buy whilst renting?

johnny_storm

Of course its possible but being low earners you would only be saving a couple of thousand a year each. A few years back houses went up more each year than I could save, so what was the point?

In the above example, of £420 interest being lost. If after 5 years you come to sell, you would get half the money paid back. With renting its all gone.

daisiegg

Running_Horse wrote: »

Not everyone in that age group bought a first home for £500 with a 100% mortgage, only for the value to triple in three weeks.

Most of us know about saving up, going without, double digit interest rates, and even living with negative equity.

If someone chooses to ignore the experiences of everyone who has been in exactly the position they are facing, then that is their choice. But in my opinion it would be a little unwise.

My parents are in that age range and my mother always talks about when they bought their first house. They were 22, married, had me and were poor as church mice. My mum always uses the example that she literally couldn't afford to spend 20p on a cup of coffee at toddler group because they were scrimping so much to afford their tiny ex-council house. I don't think a lot of young people (me included!) really understand what it's like to save, save, save for something and go without in order to have it. We've grown up expecting everything on a plate.

hawk30

We rented for 7 years, starting on pretty low wages, and still managed to save loads. We had a 40% deposit when we finally bought. My in-laws used to moan about the amount we paid in rent, but I'd rather enjoy my life than be cooped up with his/my parents (all of which drive me potty after a few days).

FATBALLZ

daisiegg wrote: »

My parents are in that age range and my mother always talks about when they bought their first house. They were 22, married, had me and were poor as church mice. My mum always uses the example that she literally couldn't afford to spend 20p on a cup of coffee at toddler group because they were scrimping so much to afford their tiny ex-council house. I don't think a lot of young people (me included!) really understand what it's like to save, save, save for something and go without in order to have it. We've grown up expecting everything on a plate.

Then all she's doing is pointing out how much easier it was for her, a 20p cup of coffee means jack !!!! in the context of the £37k I had to save up to be able to move into my recently bought (ex-council) house. Clearly she knows nothing of what it's like to save over £600 a month (or whatever the equivalent was in her day) for over 5 years.

daisiegg

FATBALLZ wrote: »

Then all she's doing is pointing out how much easier it was for her, a 20p cup of coffee means jack !!!! in the context of the £37k I had to save up to be able to move into my recently bought (ex-council) house. Clearly she knows nothing of what it's like to save over £600 a month (or whatever the equivalent was in her day) for over 5 years.

Um, I think not having 20p to spare does 'mean jack'. I know lots of people who wouldn't even bother to pick a 20p piece up if they dropped it.

katebl

Hi OP, just thought I'd throw in my tuppence worth. OH and I have been renting a flat for 3 years now, and the goal is to one day have a house of our own. The flat is a little small for us now with all the stuff we've accumulated over the years but we would only end up renting a house at the moment (neither of us can seem to stop wasting money!) and I really don't want to waste all the time and money moving just to one day move again. If we had been more disciplined we could be in a far better position now, but such is life!

If you do choose to move out and rent, keep the goal in mind and don't get waylaid like we did! As time goes on (and prices are still silly - our flat is tiny but would be £170k to buy!) it seems further and further out of our reach but we live in hope. Set yourselves a target from the begininng and stick to it. Good luck!

moesasji

johnny_storm wrote: »

In the above example, of £420 interest being lost. If after 5 years you come to sell, you would get half the money paid back. With renting its all gone.

In stating this as a fact you of course realized that there is absolutely no guarantee that houses will be "worth" in 5 years what you pay now. A mistake that a lot of people have made around 2007 and are now stuck in negative equity, something that is easy to see when looking at topics on this board

gazfocus

Just thought I would give my 2p as well.

I think to save up for anything, you need to keep that goal in sight. Regardless of whether you stay with the inlaws or move to a rental property, you need to set yourselves targets and stick to them.

We've been renting for 2.5 years now and we've been saving for our wedding (which is next week ) but we've found it very difficult (partly because we've been paying such a high rent). However, we're now looking to do exactly the same as you. We are viewing houses that are about £250pcm cheaper than where we are now and the idea is to save that £250 per month towards a house deposit. We'll also be being very strict on what we spend our money on (i.e. no more eating out every week, etc) so we can save that money too. We're aiming to save £20k in 2 years and anything over that would be awesome.