How much does it cost to run a home?

Blue_Elephant

Callie22 wrote: »

It might be worth trying to give up if you're looking to rent privately. Not trying to be preachy, but one of the first things a Letting Agency will ask you is the trinity of renting - namely, 'do you have kids, do you have pets, and do you smoke'. It the answer to any of these is yes then it can limit where you can rent - not good if you're on a limited budget. Not to mention the fact that if you lie and then smoke in a non-smoking place you risk losing some of your deposit.

hehe I am trying to quit, but to be honest I would never smoke in the house anyway, the smell of stale cigarettes is never pleasant, even to a smoker!! Add to that the cost of laundering curtains or repainting walls, its better simply not to bother.

ikkle87

You've also got all your food to buy, if it's not furnished you will need to buy furniture, you may need travel costs etc.

Do you have savings? At the end of each month in your current situation how much money do you have left?

marisco_2

I have a three bed detached house. These are my expenses per month

Gas and electric combined £57
Water £21
Council Tax £120
Home Insurance £26

I have lots of other expenses but they are more personal to me than generally what everyone needs to budget for. Those above are really the basics of running a home.

You need to factor in things like TV License which for me is £12.12 a month. Sky TV basic package is £19.50, without it we would get no reception at all. You may need to start paying for broadband connection and phone landlines, mobiles etc. If you dont live so locally to where you will be working what would your commuting costs be? Do you drive, look at your petrol costs.

It all depends really on what the rental charges are like where you are as to whether you feel you could afford it. Once you bite the bullet and go it alone you never look back. It is brilliant having your own place.

McKneff

Its no big deal these days ie renting against buying.

Renting - you pay your rent each month, secure in the knowledge if the roof leaks someone else has to pay for it, etc etc.

Buying - mortgage, buildings ins. The roof leaks, the leccy trips, the gas escapes, yo have to pay for it.

See what I mean.

VfM4meplse

Blue_Elephant wrote: »

I think part of the problem is that my parents think renting is money down the drain that could be used towards a mortgage, and as much as I see their POV, I wouldn't be in a position to buy for ages, but if I rent I wouldn't be able to buy for even longer, and at the moment don't even know where I would want to settle down! arg.

Decide whether your parents advice is right for you. If it is, find yourself a husband / wife and then move out - it's shrewd parents that say two salaries are better than one.

I looked for my first home for 4 years, my dad was supportive but my mum didn't really want me to leave home - she kept on telling me, and I quote: "It's a rat race". If I had bought earlier, I would be only very marginally better off than I am now.

marisco_2

McKneff wrote: »

Its no big deal these days ie renting against buying.

Renting - you pay your rent each month, secure in the knowledge if the roof leaks someone else has to pay for it, etc etc.

Buying - mortgage, buildings ins. The roof leaks, the leccy trips, the gas escapes, yo have to pay for it.

See what I mean.

Thats what you pay insurance for though, to cover accidental damage.

Renting isn't a bad idea. If you are new to an area you can really suss it out and decide where you want to live before commiting yourself to a property. It's also really flexible if you want to move regularly due to work commitments etc.

The economy will recover at some stage and if you invest in property with a mortgage you tend to see a good return on your money if you are in it for the long haul. Times have changed for the moment but I bought a property in 1999 by getting a mortgage for 120k and sold it 7 years later for 280k. In all that time we had a few things that needed sorting at the house. None of the repairs cost us anything over £500.

Someone who rented for that same period walked away with no profit at all and rental prices had also increased greatly as demand was so high thanks to reposessions etc.

Bluemeanie_2

If you can afford a place with a decent 2nd bedroom, you could get a lodger to help out.

onlyroz

Do your parents want you out? We have a friend who lived with his grandparents until his mid-thirties, and I know that after more than a decade they just wanted to get rid of him so they could have a bit more freedom and so they could move closer to their son. However, they would never have actually booted him out.

Blue_Elephant

marisco wrote: »

You need to factor in things like TV License which for me is £12.12 a month. Sky TV basic package is £19.50, without it we would get no reception at all. You may need to start paying for broadband connection and phone landlines, mobiles etc. If you dont live so locally to where you will be working what would your commuting costs be? Do you drive, look at your petrol costs.

It all depends really on what the rental charges are like where you are as to whether you feel you could afford it. Once you bite the bullet and go it alone you never look back. It is brilliant having your own place.

Thanks, all the figures are a great help I already pay for my own mobile, and I've added TV licence and B/band costs to my mock budget. I'm unlikely to need sky for reception reasons as I'm looking at quite urban areas, so I won't bother with that. I don't have a car currently as I live within walking distance to work. Really where I live would depend on new job location and hopefully I can find somewhere within easy walking/bike riding/public transport distance as I find the costs of running a car prohibitive. If I had kids etc it'd be different but I don't.

ikkle87 wrote: »

You've also got all your food to buy, if it's not furnished you will need to buy furniture, you may need travel costs etc.

Do you have savings? At the end of each month in your current situation how much money do you have left?

I have most of my salary left at the end of the month as now I have no debt my outgoings have reduced by a lot. Also I've been trying to stop smoking, and in the 6 weeks I managed I saved over £200!! :eek: so thats something I'll keep going on. All the savings are going straight into an ISA at the moment, though I am planning a "proper" holiday later in the year as I haven't had one in ages. All done in the MSE style of course If the place is unfurnished I will try to see if friends/family have stuff they want to get rid of, then try freecycle and then see how much I need.

marisco wrote: »

Thats what you pay insurance for though, to cover accidental damage.

Renting isn't a bad idea. If you are new to an area you can really suss it out and decide where you want to live before commiting yourself to a property. It's also really flexible if you want to move regularly due to work commitments etc.

The economy will recover at some stage and if you invest in property with a mortgage you tend to see a good return on your money if you are in it for the long haul. Times have changed for the moment but I bought a property in 1999 by getting a mortgage for 120k and sold it 7 years later for 280k. In all that time we had a few things that needed sorting at the house. None of the repairs cost us anything over £500.

Someone who rented for that same period walked away with no profit at all and rental prices had also increased greatly as demand was so high thanks to reposessions etc.

That's a really good point, I was thinking about this last night and realised that a houseshare initially wouldn't be such a bad idea as it's a good way to meet people and make friends. It also means I get more time to look for a proper place that I love and is within my budget, and therefore am less likely to come unstuck. It'd also give me time to decide how much I actually want to live in that area hehe

Blue_Elephant

Bluemeanie wrote: »

If you can afford a place with a decent 2nd bedroom, you could get a lodger to help out.

That's not a bad idea for when I buy a house, and I need a deposit first! but if I'm renting I might as well houseshare if I'm going to do that as it'll be less expensive.

onlyroz wrote: »

Do your parents want you out? We have a friend who lived with his grandparents until his mid-thirties, and I know that after more than a decade they just wanted to get rid of him so they could have a bit more freedom and so they could move closer to their son. However, they would never have actually booted him out.

No, thats part of the problem. If my parents had their way I'd live with them forever