Would you rather

BunnieJ

Would you rather rent a cheaper/not as nice property and save money, or rent a bigger/nicer property that costs more money?

My OH and I currently rent a 2 bed flat in the city centre for £795 pcm which includes a parking space. It's a nice enough flat, big and has lots of storage/room for us to live comfortably. It's 5 mins walk from town/10 mins from my work and next to the bus stop. There are a few minor issues with mould/damp, but overall a decent place.

However, we really want to start saving money so that we can buy and most of our wages go on our rent. If we move slightly further out of town and maybe go down to a 1 bed we could be saving ourselves £100-£200 per month just on our rent. I know we might have to factor in commuting costs, but I'm quite happy to walk/bike and my partner already gets the bus to work so it's not a problem for him.

WWYD?

Thrugelmir

a less nice but cheaper property and save more money to buy

Aim to buy every time.

Annie1960

a less nice but cheaper property and save more money to buy

How long would it take you living in a cheaper flat to save enough for a deposit and buying costs?

If it's a few years or so, I would do it. If it would take ten years I might not. Also, how old are you?

If you're in your 20s, then yes, go for it. If you're in your 40s, probably not.

So for me it would depend on the whole picture.

BunnieJ

Annie1960 wrote: »

How long would it take you living in a cheaper flat to save enough for a deposit and buying costs?

If it's a few years or so, I would do it. If it would take ten years I might not. Also, how old are you?

If you're in your 20s, then yes, go for it. If you're in your 40s, probably not.

So for me it would depend on the whole picture.

We're in our twenties and this is our first flat together. We've both rented previously with housemates for uni etc. so have lived in some pretty awful student houses. Our parents have offered to help with a deposit, but we would like to save as much as we can ourselves. It's going to take a few years, but not that long if we stick to our budget.

Annie1960

a less nice but cheaper property and save more money to buy

Then I would go for it. Once you get to 40 you will hate to reduce the standard of your living quarters, but in your 20s it will be fine.

PlymouthMaid

a less nice but cheaper property and save more money to buy

If I was saving to buy and it was achievable then definitely the cheaper property.

BunnieJ

I've requested some details of flats to show my OH. They're around £650 pcm, so we would be saving £150 per month on rent. They don't look bad, they're just a lot smaller than our current flat.

PasturesNew

a less nice but cheaper property and save more money to buy

I always go with the cheapest/smallest place. Every pound in your pocket is better than being wasted.

I try to find the smallest/cheapest space in the best area possible - I won't compromise on security/location to the nth degree. So, a nice area/road, but smallest space possible.

As you say, you save on rent - and possibly council tax; you also save on heating and a few quid on insurance.

J_i_m

When I rented I went above my budget to secure a nice flat in a nice area. But it soon became a financial struggle.

I'd still pick that option over living in a deprived hole but the experience has brought the wider picture into focus for me and means that I now consider things which before didn't really occur to me, for example the distance of the commute into work (the bigger the commute the bigger cost) etc.

I'm currently living with the parents again to enable me to save up for a deposit on a place of my own, and my suggestion is that if living with a parent is not an option then at least accept their offer of help towards the deposit.

Wanting to 'earn it' yourself is admirable, but the market conditions are tricky, so if a relatively string free help is willing then it'd be sensible to gracefully accept.

It'd be useful to me if a parent could make a substantial contribution towards my deposit, but they're not in a position to. But the fact is that they are helping me save by letting me live here rent free.

When I do buy, I'm still aiming at having the nicest place in the best location that I can afford, but this time I'm going to factor in a much bigger financial safety net, so that I'll be living within my means and saving money for future needs instead of living to and beyond my means and saving nothing.

BunnieJ

I always go with the cheapest/smallest place. Every pound in your pocket is better than being wasted.

I try to find the smallest/cheapest space in the best area possible - I won't compromise on security/location to the nth degree. So, a nice area/road, but smallest space possible.

As you say, you save on rent - and possibly council tax; you also save on heating and a few quid on insurance.

You raise a very good point, however I'll have to take other costs such as commuting to work into consideration.

When I rented I went above my budget to secure a nice flat in a nice area. But it soon became a financial struggle.

I'd still pick that option over living in a deprived hole but the experience has brought the wider picture into focus for me and means that I now consider things which before didn't really occur to me, for example the distance of the commute into work (the bigger the commute the bigger cost) etc.

I'm currently living with the parents again to enable me to save up for a deposit on a place of my own, and my suggestion is that if living with a parent is not an option then at least accept their offer of help towards the deposit.

Wanting to 'earn it' yourself is admirable, but the market conditions are tricky, so if a relatively string free help is willing then it'd be sensible to gracefully accept.

It'd be useful to me if a parent could make a substantial contribution towards my deposit, but they're not in a position to. But the fact is that they are helping me save by letting me live here rent free.

When I do buy, I'm still aiming at having the nicest place in the best location that I can afford, but this time I'm going to factor in a much bigger financial safety net, so that I'll be living within my means and saving money for future needs instead of living to and beyond my means and saving nothing.

At the moment we're not "struggling" financially, we just don't really have any money to save after bills and personal expenses I'm open to the idea of our parents lending/gifting us money, but I know that my parents wouldn't just hand over a large sum of money without me proving that I can be responsible and save some money of my own first. Also, they don't really have the money to be giving it to me.

Unfortuately we live in a different part of the country to our parents, so renting atm is our only option. We had saved a little money before we moved in together, but that was soon spent with moving costs.

I showed my OH some of the properties I had requested details for, but they're all a pain for my OH to get to work from, so I think it's back to the search.

We're hoping if we can stick to a tighter budget, we won't have to move to a smaller place