Cost of buying a flat versus renting

orangeslimes

I have a stable job earning around £25000 a year, and I currently live in a shared rented flat. However I am a bit tired of sharing and want to get my own place- maybe not immediately but in a year's time or so.

I'm trying to work out how much it will cost to buy somewhere versus renting. I currently pay around £375 per month for rent, with bills it is probably £550 or so.
However if I was to rent a flat by myself I would be looking at at least £500 in rent alone (more for somewhere that is actually nice), and the bills wouldn't be split so I think it would be much more expensive.

I'm thinking therefore that it might actually be cheaper to buy somewhere. I can probably get £20,000 or so together for a deposit, and there are flats about for £100,000ish that I think would be a reasonable budget for my salary (although there are really nice flats for £150,000 to £200,000 so maybe I should save up for longer?)

Just wondering if anyone has any advice though on how much it is likely to cost, as the idea of buying somewhere is really scary. I don't want to end up spending every month worrying about having enough to buy things.

Mrs_pbradley936

orangeslimes wrote: »

I have a stable job earning around £25000 a year, and I currently live in a shared rented flat. However I am a bit tired of sharing and want to get my own place- maybe not immediately but in a year's time or so.

I'm trying to work out how much it will cost to buy somewhere versus renting. I currently pay around £375 per month for rent, with bills it is probably £550 or so.
However if I was to rent a flat by myself I would be looking at at least £500 in rent alone (more for somewhere that is actually nice), and the bills wouldn't be split so I think it would be much more expensive.

I'm thinking therefore that it might actually be cheaper to buy somewhere. I can probably get £20,000 or so together for a deposit, and there are flats about for £100,000ish that I think would be a reasonable budget for my salary (although there are really nice flats for £150,000 to £200,000 so maybe I should save up for longer?)

Just wondering if anyone has any advice though on how much it is likely to cost, as the idea of buying somewhere is really scary. I don't want to end up spending every month worrying about having enough to buy things.

If you do not mind sharing you could always buy a two bed flat and let your flatmate pay a sizable bit towards your mortgage.

pinkshoes

An £80k mortgage would b about 450 pounds per month repayment over 25 years.

Google "mortgage calculator".

Buy a 2 bed as it's far more versatile for the future should you want guests/girlfriend/kids/lodger etc...

orangeslimes

Thanks. I wouldn't really want a lodger, but it would be good to have enough space to make that an option to fall back on, however I think I would be hard pushed to find a 2 bedroom flat where I am looking without having more money.

dimbo61

Another vote for a 2 bed flat!
Easier to sell if you have 2 bedrooms, better still if one is en-suite and separate bathroom.
You can use the rent-a-room scheme to rent out the second bedroom and get £4250 a year TAX FREE or £354 a month.
£20K means over 15% deposit and you should get £100K mortgage as only 4X income
Would you be happy with a £100K mortgage ?
This would give you a total budget of £120K

orangeslimes

dimbo61 wrote: »

Another vote for a 2 bed flat!
Easier to sell if you have 2 bedrooms, better still if one is en-suite and separate bathroom.
You can use the rent-a-room scheme to rent out the second bedroom and get £4250 a year TAX FREE or £354 a month.
£20K means over 15% deposit and you should get £100K mortgage as only 4X income
Would you be happy with a £100K mortgage ?
This would give you a total budget of £120K

Yes I would prefer two bedrooms but I think I would need more like £150k
And I don't really want a lodger because part of the reason I am thinking of buying would be because I am fed up of sharing a flat. My current flatmate is a very nice guy but I want my own space.
Maybe I should save up for longer for somewhere nicer though.

SG27

Don't forget to add on maintenance costs and ground rent on top of the mortgage payments when comparing renting to buying.

There is a news piece current saving that renting is cheaper than buying but for some reason they ignore maintenance!? Since we moved I to our house in February we have spent about £600 and the house had been newly refurbished so we wasnt expecting this!