Do I rent now or wait to buy?

thrashx

Hi all,
Im 22 years old and have been in full-time employment 6 months. I still live with my parents but I'm looking to move out at some point, hopefully soon but I'm trying to think long term and not rush into anything.

So i've been looking at whats on the market and could rent a studio flat in a very nice area for about £595pcm which seems to be a good rate for the areas I'm looking in. However, I could buy a studio in flat in the same block for about £90,000.

So im kinda looking at what would be best? Are there gonna be any benefits to renting immediately and hoping to build up enough to save a deposit? I personally am trying to clear up some debt and stay with my parents until I have a decent deposit and go from there, however, my girlfriend doesn't really understand money and is having a hard time keeping patience when I say its probably gonna be a year or so.

I will undoubtedly be paying out more money per month if I was to rent so in terms of saving up for a deposit at least ill be out of my parents already so it wouldnt be too bad if it did take longer. Whilst living with my parents I dont want to be in the same financial situation as I am now in a years time.

So, any advice?

Thanks in advance.

hcb42

Personally I wouldnt buy a studio flat.

however buying in principle seems better option, if you have deposit and are buying it in full.

PasturesNew

Red flags for me: aged 22, thinking of buying a studio in a block where others are rented out (might end up being the only owner occupier in a hell hole), flakey gf who 'doesn't understand money', still have debts anyway.

My advice would be to wait 3-5 years to buy.... not because prices won't be rising, but due to the bigger risk you're taking with the compatibility of you and your gf in the longer-term.

Pixie5740

Don't go linking your finances to an ejeet who "doesn't understand money." How much has she managed to save so far?

I'd also stay clear of studio flats. Especially if you'll be the only owner in the block. Sometimes landlords are reluctant to pay for repairs and maintenance in communal areas and you'll probably end up with a high turnover of neighbours. How much is a 1 bedroom flat in the same area?

Since you have debts then in your shoes I would continue living at home until the debts are repaid and you can think about saving for a deposit.

thrashx

Thanks for the replies. I wouldn't be looking to buy a studio flat there, more a house in a completely different area. Obviously the problem is going to be the deposit regardless though.

My girlfriend hasn't managed to save anything so far and neither have I really, I think she just has a set idea of what she wants to have by a certain age and it looks as though a nice detached house in a leafy suburb wont be possible any time soon! We've been together 5 years, I don't think compatibility will be an issue

I don't really want to buy an apartment, it just seems they're more available to rent then houses, the studio i'm looking at is right by a major train station, has a private automatic car park in a brand new block of apartments with bars, restaurants, etc. so I hope there wouldn't be too many issues.

Pixie5740

I think you really need to sit down and have a talk with your girlfriend. Be realistic about what you will both be able to afford and how you're going to get there i.e. how much you'll need to save each month.

If the block of flats is brand new then there can be snagging issues. Also, if the flats aren't let out quickly then some landlords drop their standards and start letting to any old Tom, !!!!!! or Harry.

DD265

We are you 5 years into the future.

We went to the bank to see what kind of mortgage we might be able to get based on our incomes/outgoings. It would've bought us a nice flat or a naff house and the repayments would've been surprisingly high (although I can't remember the exact figure). There was the risk of interest rates going up which would have the potential to make life very tricky.

We thought about buying a flat and renting it out later but that seems like a lot of hassle and as I work approx 2 hours away from where we live currently, we didn't really want to be tied into the area (OH is job hunting).

The final decision was that we would rent, but that we wouldn't rush into finding the property. We have found one, and move in on Friday, but we were willing to give it until September (been looking since February) before "settling" for something less than we wanted.

I think we made the right decision. Yes it'll take longer to save up a deposit but we'll be happy living together whilst we save.

rexmedorum

I'd always suggest renting first, see if you like the area and if you get along living together (if that's what you wanted). Also you are trying to "clear up some debts" which is an issue when buying (you need a deposit).

And finally as some others said I wouldn't buy a studio, yo may find yourself wanting to move to something bigger fairly soon.

dirty_magic

When I was 22 I lived at home and was saving towards a deposit. We rented first to make sure we could live with each other, but I'd already got a big chunk of deposit saved first.

It's a lot harder to save when you have bills to pay, especially if you also have debts to clear, so I'd save for a year or 2 and go from there.