Live with "toxic" parents in order to BUY or RENT, save then BUY?!

ambitiouspanda

ReadingTim wrote: »

Well, you've managed 20+ years with these "toxic" parents, so a couple more can't really kill you can it?!? That said, moving back home can be difficult if you've lived away, for example at university, so I can sympathise.

However, part of the hopelessness you may feel at the situation might be because you can't see a way out - if you grit your teeth and remind yourself that it's only for a set period of time, it'll soon be over - just make sure you don't spend what you're supposed to be saving on going out, to avoid being at home with your mum & dad in the evenings!

thank you!! but do you think a 1 bedroom flat or studio is a good investment (in london etc...?) at 23-25 years old?

Pixie5740

You keep talking about an investment but first and foremost you would be buying a home. Whether a buying a lease for either a 1 bedroom property or a studio is a good investment is another matter altogether.

hazyjo

ambitiouspanda wrote: »

thank you!! but do you think a 1 bedroom flat or studio is a good investment (in london etc...?) at 23-25 years old?

London is a big place which differs greatly from street to street, let alone postcode. If you got a studio in a popular pricey area, it may be okay. If you're buying a studio in a grotty part/street just to get 'on the ladder', I would keep saving.


Studios can suffer greatly in a recession or dip in the market. Smaller ones were hard to mortgage, and people always usually to buy as big as they can afford when it comes to the choice of a studio or 1/2 bed flat.


If you are thinking of it as an investment, a studio will not increase as much as say a 1 or 2 bed flat. If you intend to trade up once your salary increases, don't forget that the 1/2 bed flats will have risen even more. It may be false economy buying small/cheap now.


It's mainly about location. Sounds like you need to do a lot of research into where you want to buy before even thinking about buying.


Jx

teddysmum

If your 'toxic' parents read this thread, you won't be allowed to sponge off them.

ReadingTim

ambitiouspanda wrote: »

thank you!! but do you think a 1 bedroom flat or studio is a good investment (in london etc...?) at 23-25 years old?

If it's an escape from your toxic parents you're after, what does it matter whether it makes money or not? - it's an "investment" in your emotional well-being.

If you're simply looking to make money, your parents' toxicity/whether you've simply fallen out with mummy and daddy is neither here nor there...

AdrianC

Ignoring the overdraft pay-off, take-home of that much is getting close to £40k salary. I presume that, with an income so much higher than the £25k national average, you are contributing towards the costs of the home your "toxic", "narcissistic" parents are providing for you?

Yet your figures don't seem to include an amount for that. Perhaps you should include that, as it'll make a big difference to the relative cost of moving out.

I'm also quite surprised that, with that much disposable income, you have an overdraft at all.

HappyMJ

ambitiouspanda wrote: »

I have worked out that after all my tax, overdraft, NI etc is deducted I should have:
£2356 for expenses if I were to live with my parents. The aim is to buy my own place (flat) but at 23 with a narcissistic mother and travelling (work) father I am really considering the options of renting in London for peace of mind.

I was thinking about living at home until Septemeber to get a feel for the commute into the city but I don't know if I can wait.

However, if stay at home with my parents I can save £1500 x 5 (August to December 2016) + the following 1 year or 2 for a deposit in a flat. Not necessarily in inner London.. outskirts etc.

But if I rent, £800 will go to rent, leaving me with little to nothing to save towards a deposit. My finance brain in saying stick it out -- you'll be out the house 6am, back by 8-9pm. You'll hardly have to deal with them. But, I know how toxic my parents can be and have been!

I am only 23 and I want to start life upwards!

I moved out at 21 when I was earning slightly higher than the minimum wage. You're on significantly more than that. You don't need to buy a property. Renting a property isn't that much more expensive than owning a property so I would just rent. All you need to rent is the deposit, fees and first months rent. You could use your overdraft for that and pay it off in just a few months.

My advice...move out. The freedom that gives you is invaluable.

When I did purchase a property I was about 27, earning much more and bought myself a 3 bedroom semi detached house. My "forever" home. A home to bring up a family in. A home I would and will never sell. It's now too big for us so I've let it out and we now rent a 2 bedroom flat.

Kevie192

To be blunt, it's a little unrealistic for someone with your wage to expect to be able to buy a property in London.

For me, being happy is the most important thing. I'd move out and rent rather than stay at home and be miserable whilst chasing a dream that may well turn out to be unachievable.

stokesley

teddysmum wrote: »

If your 'toxic' parents read this thread, you won't be allowed to sponge off them.

Still no sign of the thread saying "toxic son/daughter wants to move back in...":rotfl:

hazyjo

You need to play around with some mortgage calculators. See what you can get. The O/D will reduce what they will lend you (even if you intend to pay it off. It has to be gone). You need to work out what deposit they'll take. I am guessing an absolute min of 5%, but that will mean a higher rate of interest. 10/20%+ deposit should reduce that. Don't forget purchase costs too. Stamp duty alone will be up to £4k for something at £200,000. Plus solicitors, man & van(?), survey/valuation, mortgage fees, not to mention furniture/appliances if needed, etc... It can get pricey.


Rent cheap or house share for a while. You should still be able to save.


Your salary isn't unreasonable, it's the lack of deposit, the overdraft, and the fact you've not saved anything despite being on a very good wage. Is the debt Uni loans?


Jx