Can we afford to rent??!!

Melissa177

Yes - plus I think that it would be tough for a couple to live in a studio flat IMHO.

Good luck whatever you decide. Any opportunity of generating extra income elsewhere? (ie, freelance work?)

scrummy_mummy_2

Just as a guide, when I take on new tenants and they ask if they can afford to rent the house (they mean will they be passed as earning enough) take the proposed monthly rental amount and multiply it by 30.
If you and your partner earn that amount between you, you will aproved as being able to pay...the bills you personally pay are considered your problem on affordability grounds and so are not asked about when you are scored.
So...if you are looking to rent at £625 per month, you would need to be earning a joint income of £18,750 to be credit scored as being able to afford it.....
Whether you can actually pay the rent comes down to you to cut back your bills/life!

mrkenneth

Freelance work could be considered an option...

take the proposed monthly rental amount and multiply it by 30.

Thanks for this post, can I ask the significance of the number 30?

scrummy_mummy_2

It's what the agency I use to credit check and reference prospective tenants use as (one of) their 'affordability' criteria.
If a single tenant applies to rent and their annual salary does not meet the 30times the monthly rental criteria...they would not be allowed to rent on their own, and would need another tenant applicant to rent with them, or a guarantor.
I use MARAS.

Gorgeous_George

Spend your money on holidays and having fun together. Save regularly and propose, get married, buy a house etc., if and when you feel the time is right.

I don't know what will happen to house prices/rents over the next three years but I do know that I couldn't and wouldn't buy at today's prices.

Life is only a race if that's what you make it.



GG

Melissa177

Okay, completely wild idea: if property is relatively cheap in Cornwall (http://www.findaproperty.com/searchresults.aspx?edid=00&salerent=0&regionid=071&allareas=1 ), would it be possible for you to buy on a 100% mortgage?

Perhaps you could scrape together enough money to do this?

I reckon a mortgage on an 80K property would be a lot less than 625, and you would have an asset at the end.

This is a big step, but it might work.

litaus

horace wrote: »

Even an elaborate picture frame made from Ebony, Walnut or Rosewood will not disguise the fact that your hard earned Degree`s are absolutely worthless.

How do you know that? Did I miss the post that said what the degree was in?

A 1st in Mathematics will easily get you a starting salary of £50k.

roses

When I first graduated, I was earning £20k. I lived in a shared house paying £300 plus bills (£125/month)and I had £500 left in savings each month if that is any help to you for budgeting. I didn't have any debts to pay & I went out once every 2 weeks & I ate very well.

So on a combined salary of £24k, yes I think it is do-able if the outgoings you have listed are exactly what you have written & you have no debts to pay.

helping_hubby

litaus wrote: »

How do you know that? Did I miss the post that said what the degree was in?

A 1st in Mathematics will easily get you a starting salary of £50k.

I'd like to know how easy it is to get a starting salarly of £50k? I have mates with a 1st in Maths, working in London and on maybe £28k and we graduated in 2002. It's been a struggle getting a job for all of us. I don't think it's easy at all.

Anyway, I would suggest posting your SOA on the debt free wannabe board. They might be able to help with your budget and make sure it's detailed enough too.

I can totally understand why you'd want to rent. If it did go pear shaped and you felt you couldn't afford it, would you be able to go back to living with parents? If so, it's worth a go I think.

mrkenneth

When I first graduated, I was earning £20k. I lived in a shared house paying £300 plus bills (£125/month)and I had £500 left in savings each month if that is any help to you for budgeting. I didn't have any debts to pay & I went out once every 2 weeks & I ate very well.

So on a combined salary of £24k, yes I think it is do-able if the outgoings you have listed are exactly what you have written & you have no debts to pay.

Thanks Roses that is the sort of post I have been looking for, just looking people who have managed on similar budgets. The way I am starting to look at it is try it for six months and see if we can afford it.