Is buying a property a good financial decision in my situation?

Rainbow15

I'm in a situation that I'd like an objective viewpoint on!

I'm mid-twenties, on a decent salary (NHS band 7), and I've saved up enough money by living in shared housing for years to put down a deposit on my own property. I am also getting a bit fed up of house sharing, and think I would be generally happier if I had my own space (which I can afford to do!). I've had enough to buy for a while but I was on a temporary contract at work, now I've got a permanent job I've got a much better chance of getting a mortgage offer.

The dilemma I've got it that last summer, I met someone. My plan to buy a house, which I had before meeting my partner, has prompted a discussion about our future. We've both said that we would like to live together within the next year potentially. But he already owns a property, which he's invested a lot of money and time in improving, and still has things he'd like to do with it.

He said that obviously there is nothing stopping me from still looking to buy my own property if that's what I'd like to do (and I would probably look in the area where he lives as it's affordable with good transport links and a nice community feel), but he's given me the offer of moving into his place for a while and then we can look for somewhere bigger together eventually, with the money from his house sale and my savings. He's said that as long as I contributed to bills & food etc., he wouldn't ask for anything towards the mortgage. This wouldn't be happening imminently, but within the next six months to a year. I already spend a lot of time there as he lives alone & I'm sharing, and I feel more comfortable there than in my own house.

I'm now not sure what to do. We've been together for eight months, but are both aware that this isn't a huge amount of time. I want to do what makes the most sense to me financially. I was really excited about buying my own place, but I don't know if it would be a good move if I only plan to stay in it for potentially 2-3 years at the most, especially with the potential impact of Brexit. A friend said I could always rent it out later, but then I'd have used my savings to buy it in the first place (a big chunk of which is in a Lifetime ISA) so it could take me a while to save for another deposit.

Any thoughts on this would be much appreciated! Thank you

Comms69

Rainbow15 wrote: »

I'm in a situation that I'd like an objective viewpoint on!

I'm mid-twenties, on a decent salary (NHS band 7), and I've saved up enough money by living in shared housing for years to put down a deposit on my own property. I am also getting a bit fed up of house sharing, and think I would be generally happier if I had my own space (which I can afford to do!). I've had enough to buy for a while but I was on a temporary contract at work, now I've got a permanent job I've got a much better chance of getting a mortgage offer.

The dilemma I've got it that last summer, I met someone. My plan to buy a house, which I had before meeting my partner, has prompted a discussion about our future. We've both said that we would like to live together within the next year potentially. But he already owns a property, which he's invested a lot of money and time in improving, and still has things he'd like to do with it.

He said that obviously there is nothing stopping me from still looking to buy my own property if that's what I'd like to do (and I would probably look in the area where he lives as it's affordable with good transport links and a nice community feel), but he's given me the offer of moving into his place for a while and then we can look for somewhere bigger together eventually, with the money from his house sale and my savings. He's said that as long as I contributed to bills & food etc., he wouldn't ask for anything towards the mortgage. This wouldn't be happening imminently, but within the next six months to a year. I already spend a lot of time there as he lives alone & I'm sharing, and I feel more comfortable there than in my own house.

I'm now not sure what to do. We've been together for eight months, but are both aware that this isn't a huge amount of time. I want to do what makes the most sense to me financially. I was really excited about buying my own place, but I don't know if it would be a good move if I only plan to stay in it for potentially 2-3 years at the most, especially with the potential impact of Brexit. A friend said I could always rent it out later, but then I'd have used my savings to buy it in the first place so it could take me a while to save for another deposit.

Any thoughts on this would be much appreciated! Thank you

More of a relationship question than anything else.


If you're planning on living together anyway there's no reason to not have a dry run

hazyjo

I would do exactly what he suggests - move in with him later when the time is right, pay half bills (not mortgage), and build up your deposit and buy 50/50 together when the time's right. Let him enjoy his property for a while. No need to rush to buy together until you're both 100% sure.


I think it would just muddy the waters for you to buy your own property now.

AdrianC

Mid-twenties, newish relationship, currently living in a shared rental...

Just move in.
If it doesn't work out, you can move out again into rented easily.
If it does, then you can start to think eventually about up-sizing together.

I have absolutely no idea what "NHS band 7" means in terms of salary, and we have no idea what prices are like in whichever part of the country you're in. If you're playing the brexit-futures guessing game, then good luck to you. I hope your crystal ball is well-polished.

The one thing that is certain is that becoming an "accidental landlord" carries a high risk of regret. Only start a residential letting business if you really want to, in full knowledge of the realities and legal responsibilities you would be taking on.

hazyjo

AdrianC wrote: »

The one thing that is certain is that becoming an "accidental landlord" carries a high risk of regret. Only start a residential letting business if you really want to, in full knowledge of the realities and legal responsibilities you would be taking on.

Also, if you have tenants in, they could be in there for at least 6 months, maybe nearer 12. If it doesn't work out, he'd stay put, whereas you'd have to rent until you could get the tenants out. That itself comes with risk - if they don't pay, you'd be paying for that and a rental.

Crashy_Time

hazyjo wrote: »

Also, if you have tenants in, they could be in there for at least 6 months, maybe nearer 12. If it doesn't work out, he'd stay put, whereas you'd have to rent until you could get the tenants out. That itself comes with risk - if they don't pay, you'd be paying for that and a rental.

Surprising the numbers that have been willing to take that risk though?

Rainbow15

AdrianC wrote: »

Mid-twenties, newish relationship, currently living in a shared rental...

Just move in.
If it doesn't work out, you can move out again into rented easily.
If it does, then you can start to think eventually about up-sizing together.

I have absolutely no idea what "NHS band 7" means in terms of salary, and we have no idea what prices are like in whichever part of the country you're in. If you're playing the brexit-futures guessing game, then good luck to you. I hope your crystal ball is well-polished.

The one thing that is certain is that becoming an "accidental landlord" carries a high risk of regret. Only start a residential letting business if you really want to, in full knowledge of the realities and legal responsibilities you would be taking on.

Band 7 in the NHS starts at £33,222 a year (he's on the same).

Doing some research, the impression I get is that it might be worth holding off buying property to see what happens in the property market after Brexit (although who knows when that might be the way things are going), unless you plan to stay where you are for the long term (5 years +).

hazyjo wrote: »

Also, if you have tenants in, they could be in there for at least 6 months, maybe nearer 12. If it doesn't work out, he'd stay put, whereas you'd have to rent until you could get the tenants out. That itself comes with risk - if they don't pay, you'd be paying for that and a rental.

If I were to buy my own place, I wouldn't move out of it unless we were buying somewhere together. But given the amount of time we spend together it probably does make sense for me to move in with him. My savings won't go anywhere unless I want them to, and I can keep adding to them.

These replies have been very helpful so far, so thank you!

agrinnall

AdrianC wrote: »

I have absolutely no idea what "NHS band 7" means in terms of salary...

For future reference (although these are 2017 figures).


https://www.rcn.org.uk/employment-and-pay/nhs-pay-scales-2017-18


Band 7 is actually pretty good money for someone in their mid-20s, around £32K - £42K.

dimbo61

" If you want to get to know me come and live with me "
This was a much used quote from my Gran.
So if your both happy to move in together then do that.
Set your self a time scale !
12/18 months to find out if your happy in your relationship and want to buy somewhere together.
A family home !
Keep saving each month and only go 50/50 on the bills like food, household items and bills.
100% council tax instead of 75% is really the only main extra cost.
The broadband, TV licence, gas and electric will be pretty much the same !

hazyjo

Crashy_Time wrote: »

Surprising the numbers that have been willing to take that risk though?

Lots of naïve trusting people out there.


I, on the other hand, am a complete cynical suspicious negative pessimistic realistic biatch lol :laugh:

lew_1987

I would suggest perhaps wait for the relationship to develop a bit more and see how it goes, while looking at houses yourself and seeing what you find. As others have said, moving in together will tell you if it's going to be right long-term