To rent or save to buy?

Papagus_2

Hi. We’re looking for some advice, we are a family of 5 and currently rent a 3 bed house (3rd is a box room) with one bathroom. Thanks to promotion we are now able to save a reasonable amount with the view to buying something to help our kids in the future, but we are so squished that everyday living is becoming increasingly difficult. We’ve looked at larger properties to rent, but this will eliminate the chance to save. What would be the best thing to do? Family comfort and space now or a more secure financial future for our kids? Has anyone dealt with this kind of situation?
Thanks.

Cakeguts

Don't buy a house on the basis that they will inherit it. The chances are that all the equity in the house will be spent paying for your care when you are older.


Only buy it if it improves your lifestyle now and you can easily afford it.

[Deleted User]

I would always say buy. Mortgage payments are generally cheaper than rent and eventually will be paid off, so you have the pleasure of living mortgage free in the future.

BUT, how long would it take you to save up enough for a deposit to buy the house you need?
Would you and your family be happy putting up with the cramped space for that amount of time?

Nobody on here can answer that for you.

akira181

Going about it from an inheritance perspective when you're still alive and kicking is the wrong approach, IMO. When they get to working age, they'll have to look after themselves at some point, it's part of growing up. It's not like you're going to give them the house and live on the street when they reach a certain age. Plus, when you're old and retired, living mortgage free is quite important I think.

How long will it take to save a deposit? If you've managed to make your current situation work, can you make it work long enough to save for a deposit? Are any of the children at an age where they may be leaving for university soon?

A mortgage is quite often cheaper than renting so you'll be able to continue saving money after buying for university fees or whatever, although some of it should be kept aside for maintenance and repairs. You'll need to do the maths to see if you can make it work but I'd always advocate for buying over renting if you don't need the flexibility to relocate whenever you feel like it.