Renting a 1 bed flat/studio flat on net salary of just over £1000, doable?

hazyjo

Got2Save wrote: »

I haven't thought about a mortgage to be honest, just because it would require a lot of money for a down payment, and that would mean staying at home for god knows how long to save up, so would rather rent for the short term, then once my income increases, then i can start putting some money away into a separate savings account for a mortgage.

Just to clarify, I meant a deposit for renting. You won't get far without one... they may even require a guarantor (or 12 months up front if you've not got one).


Wishing you the best of luck


Jx

hazyjo

Probably wouldn't hurt to sit on a council's waiting list too... seeing as it's just you, there may be an option in the not too distant future. Obviously depends on demand/whereabouts you are.


Jx

Rosemary7391

I think you could do it, but I'd make sure to budget putting some money away in savings each month. Bear in mind that if you're renting, you might be asked to move after 6/12 months, so I'd aim to save at least the moving costs over that time period. If you don't end up moving then you've got the start of something, a deposit for a house or a car, so it's worth it in every scenario. Also means there is built in flexibility to your budget in case something is more expensive than you think.

[Deleted User]

Well done for posting on here and looking at budget.

But I am afraid there is one important thing missing. You think renting a flat is affordable, but agencies tend to have formulas i.e. how many times the rent you need to be earning before they'll consider you. The lowest figure I came up with locally was 26x annual earnings.

I'd advise phoning lettings agencies and finding out what earnings they would be looking for for flats renting at £425 a month.

You will need to save 6 weeks rent as deposit, and one month's rent in advance plus an agency's admin fees (which can vary - ask about this also) as well, and haven't started work yet. It might be best to wait for a while til you have earned a bit and gotten used to working again.

Got2Save

deannatrois wrote: »

Well done for posting on here and looking at budget.

But I am afraid there is one important thing missing. You think renting a flat is affordable, but agencies tend to have formulas i.e. how many times the rent you need to be earning before they'll consider you. The lowest figure I came up with locally was 26x annual earnings.

I'd advise phoning lettings agencies and finding out what earnings they would be looking for for flats renting at £425 a month.

You will need to save 6 weeks rent as deposit, and one month's rent in advance plus an agency's admin fees (which can vary - ask about this also) as well, and haven't started work yet. It might be best to wait for a while til you have earned a bit and gotten used to working again.

Hey, thank you for posting this. It was something I was wondering about. If renting my own place is not possible, I have been considering flat sharing for the short term. Ideally I would like to live on my own, but I also have to be prepared for a plan B in case it's not possible. Worst case scenario, I rent for 3-6 months after starting work, meanwhile saving up for my own place. I guess it's just a case of priorities and what makes financial sense for the time being.

Either way, I want to get out the family home as soon as a I can, not just for my own sanity lol, but also because I am reliant on lifts a lot because where I'm located is in the sticks a bit. Sometimes I walk to the village to get the bus into the main town, which takes about 30 mins, but in this weather it's really miserable. Moving closer to the main town is my aim because it makes getting to jobs so much easier and there's a myriad of public transport options which I don't have out here.

Got2Save

hazyjo wrote: »

Just to clarify, I meant a deposit for renting. You won't get far without one... they may even require a guarantor (or 12 months up front if you've not got one).


Wishing you the best of luck


Jx

Thank You. Yes, definitely something else to have a think about. It feels hard work to get a place to rent these days, so many hurdles to jump over, but mainly financial. Oh well, it is what it is, I don't let it get me down, just gotta keep grinding on and hope for the best.

Got2Save

Rosemary7391 wrote: »

I think you could do it, but I'd make sure to budget putting some money away in savings each month. Bear in mind that if you're renting, you might be asked to move after 6/12 months, so I'd aim to save at least the moving costs over that time period. If you don't end up moving then you've got the start of something, a deposit for a house or a car, so it's worth it in every scenario. Also means there is built in flexibility to your budget in case something is more expensive than you think.

Thank You, Rosemary. Yes, so much to think about. I honestly don't really have much of a life at the moment, so that's why for me getting my own place would be one of my goals achieved. My goals for the next 12 months is to just try earn money when and where I can, and as much as I can. I promised myself my new years resolution was to get a job, get my own place and pass my driving test. I do plan to make it all happen, but know it won't be easy. They say money doesn't make you happy, but it certainly makes life a whole lot easier and gives you options haha.

Rosemary7391

Got2Save wrote: »

Thank You, Rosemary. Yes, so much to think about. I honestly don't really have much of a life at the moment, so that's why for me getting my own place would be one of my goals achieved. My goals for the next 12 months is to just try earn money when and where I can, and as much as I can. I promised myself my new years resolution was to get a job, get my own place and pass my driving test. I do plan to make it all happen, but know it won't be easy. They say money doesn't make you happy, but it certainly makes life a whole lot easier and gives you options haha.

It sounds like you've a sensible outlook If you stick around you'll find plenty of tips. I recommend the old style board - they're really good at making things go further, especially food and cleaning wise, and they're a nice bunch. One step at a time!

[Deleted User]

I'm very sorry, but renting your own place AND paying for driving lessons (you will need some lessons even if a relative helps you with practice driving, plus there's the theory test to pay for) is going to be very difficult on the budget you have.

Sorry to keep posting negatively but its best you plan around the challenges and be aware of them.

Then there's a car to pay for, tax and insure. Might be difficult given your income predictions. Insurance will be high. You might have to decide on your own place OR driving lessons.

When I was 16 i moved out of the family home. I had to.., but it was decades before I got myself into a reasonable financial position as I was always robbing peter to pay paul, in spite of having at least 2 jobs (not well paid but average for my age). I'd recommend everyone on low earnings to wait until they earn more than enough to pay bills and cover the unexpected. Living alone with not enough money (or just enough) is very stressful and depressing. Not good for mental health!

FutureGirl

You will need to save a substantial amount to move in the first instance.

When I was looking to move (when I lived in south essex) we had to have an annual salary of 30 times the rent amount. So if the rent was £400pm, we'd need an annual salary of £12,000. So you should be able to afford (in the eyes of an agent) around £460 a month.

You need to factor in that you will need one months rent upfront (as you pay rent in advance). You will also need 1 - 2 months rent as a deposit. Mine was 1.5 months rent as a deposit.

You then also need money for referencing fee's and agency fee's - each agency is different in what they charge.

And don't forget money for things like pots, pans, plates etc etc.

For council tax you'll get a 25% discount if you live alone. A one bed flat where I used to live in South essex was band A, so would be £57pm with the single discount if paid over 12 months and not 10.

We rent a one bed flat and we pay £60 between gas & electric per month for 2 of us.

You need a TV licence if you watch live TV. So if you watch iPlayer etc on the laptop live, you'll need a TV license. If you only watch YouTube or netflix then you'll be OK.

Contents insurance will be less than £25pm, we only pay £12pm.

Our bills for our 1 bed flat come to £325pm not including food shopping (or rent of course).

I think it'd be a stretch on £14kpa, but not totally impossible.