Would you rent for the experience?

CP26

I'm nearly 26 and through a change of circumstances have found myself living back with my parents. I've been here just over a year, we get on well, the rent is practically nothing and part of me is happy to stay.

However...I have just landed a permanent job in the next city over...about a 30 mile drive each way door to door. Plus I also have a boyfriend who lives in town just outside of the job city...so I can see my future revolving around this new location.

The salary for the job is ok, but I have a car on finance which makes the maths a bit tight. From my calculations I think a rent of £400 per month plus bills would be manageable, but not without a few risks (e.g. Not much left to build emergency savings). I have a £5k savings pot at the moment and no debt apart from the car (its 0% finance so don't really want to pay it off for the sake of it just yet).

There are some decent enough property rentals in my price band but I'm not sure if I should take the leap and just do it - I've never rented before.

I can stay at my parents no problems but they are starting a massive renovation and to be honest all the mess and disruption is starting to get to me. I also feel a bit too mothered and would like my independence back.

I'm already spending every weekend at my bf's place as we have no real privacy here, but moving in with him isn't an option right now. My brother is also due to be moving back in soon so it'll be even cosier.

Any advice on whether making leap and renting would be a decent move?

dimbo61

Have you looked at houseshare?
Easyroommamte, spare room, gumtree etc
Renting a flat/house of your own has many costs you may not have considered.
IE Rent, Gas, Electric,Water,Council Tax, Broadband,Home Phone, Insurance, Repairs, Furniture, Cleaning stuff, Hoover, Cooking stuff, The list goes on and on and on

ValHaller

CP26 wrote: »

Any advice on whether making leap and renting would be a decent move?

To me the question is not about whether, it is about when.

It depends on how long it will take to clear the car finance (would you need a car in the new location???). The time is not necessarily when you clear the finance but when you are confident that you could cover any monthly shortfall from your savings and still have a decent emergency fund and 'enough' savings left when you clear the car loan

CP26

Thanks for the reply.

I'm divorced so have all the items needed to set up a new home so that bit isn't a issue...I used to have a mortgage hence not having rented before so I'm aware of the bills that might crop up too.

It's more the head v heart argument I'm facing really.

I want to go it alone for a while but appreciate that it has financial risks as my salary isn't quite enough to put me particularly far into the 'comfortable' bracket. But the thought of staying with my parents for the foreseeable future isn't a comforting thought either really.

I don't want to do any kind of share arrangement as it would make more sense to stay with my parents and pay minimum rent. Plus I know what they're like...I can't say that about a stranger, or several of them.

G_M

You've got two issues.

The first, the maths, is easy. Calculate the costs of commuting/running the car, and compare against the costs of renting (I agree a house-share sounds sensible, and much cheaper). Could you get rid of the car if you rented near work/boyfriend? A bike is healthier and much cheaper!

The 2nd is personal: How much do you need your privacy/space? And to escape the renovation and brother? Howmuch would you value the time saved by living local to work? Would you miss your mum? The cooking? the washing?

Only you can answer that!

Lechop

There just found out 1146.80 a year that's including water and waste charges

if i calculated correct its £95.50?

CP26

ValHaller - from my calculations there shouldn't be any shortfall...just not a particularly decent amount that could be added to savings. Essentially I wouldn't be looking to deplete my savings unless absolutely necessary, but I would still want to have some cash left over to keep adding to the savings pot.

The finance has another 4 years...if I moved to the job city I wouldn't need the car M-F much, but its in my contract that I may need a car for work and I would also want to have the ease and freedom of getting places at weekends.

It feels like a bit of a catch 22 - leave and have to exercise a large amount of financial restraint but have my independence and own space, or stay at home and save plus have the option of a little carefree spending here and there with no concern. Another £5k on the salary and it wouldn't even be a question really I'd just go for it.

ca55ie

Have you considered renting a room? I know I couldn't cope with a move back in with my parents for more a week, maybe you could.
Sounds to me like you need your own space for a while just to re-group. But hey - at the end for the day it's up to you :j

ValHaller

OK, logically, right now you don't have any savings. What you call savings is actually a 'stooze' whereby you are borrowing low (0% ) and saving high. You won't have any savings until you can pay off your car finance in full - the savings will be the amount in excess.

As you are at the moment, you can add significantly to your stooze and I suggest you stay at the Hotel of Mum and Dad until you have stoozed every last penny of your car loan outstanding at that particular moment.

At that point, your car loan is effectively finished - which will be well before the 4 years - you will effectively be free of the loan because you have a stooze to cover it.

So that means that you can move to the city and start converting your stooze to savings. If your car loan is £250/month and you only have £150 spare in that first month, you pay £250 from your stooze and put £150 back in. So even though you still have a car loan, you will be able to put real money to savings - and the savings will be more real as savings than the stooze you currently have.

YoungBusinessman

Bare in mind you save on fuel if you move closer to your work. Council tax payments get diveded up by 10 and paid accordingly with a 2 month break. I would go for it, the freedom alone makes it worthwhile. Living with parents is a big no no for me, once you are out, dont go back.