What are the hidden costs in buying & renting?

piggeh

Just after some advice. Currently I live at home at my mums pretty much rent free (well, £110 per month), and with a net income of £1060. I'm thinking of moving out next year or possibly going in partly on a property to get me on the ladder (my mum would sell her existing place and put up the rest, possibly with one tenant sharing the new place).

However I'm slightly concerned about the hidden costs that would be incurred when buying - not only in initial fees, but also in day to day maintenance, running costs, etc, and want to make sure I cover all costs to make sure I can afford to do something. Things like council tax, gas bills, etc. I have no idea how much these would be! Would imagine they'd all add quite a bit to the monthly bills.

My other option would be to rent somewhere, but again I dont know what hidden costs you'd have. Really I'd much prefer to stay where I am (who wouldnt for £110 per month!), but I think I'm going to be pushed before I decide to jump, so trying to weigh up the options.

dolce_vita

Your income is £1060 per month and you are staying at the best hotel in the world for £110 per month?

You should be loaded.
Have you got any savings?

Unless you're not getting on with your mum, you should stay where you are, pay off your debt (that should only take a few months) and save as much as you can.

In a year or two when you have some money for a deposit and other costs, you will be in a better position and your money will go a lot further.

piggeh

My mum moved out 6 months ago and rented the other two rooms in our existing house, so I'm effectively housesharing, just a lot cheaper. However she keeps mentioning selling up and buying elsewhere with me buying a slice, so I think come the end of the existing housemates' tenancy, she may decide to sell. Just wondering what I can afford, what costs need covering etc, rather than overcommitting.

(Debt will be paid off by August 2008 at the latest fwiw)

sparvar

Why not pay off your debt and save as dolce vita says. If you wish to buy why not 'buy to let' or but somewhere with a few bedrooms and rent out the rooms you're not using, a friend of mine has done this recently and bought a 3 bedroom flat and he is nearly covering his mortgage having 2 lodgers, definately worth thinking about if you're keen to buy? Don't rush into property at the moment, prices appear to be stable so there is not such a rush to decide although the slowness of the market may give you a little more negociating power...