Rising cost of living - if you're single - are you considering whether to buy a house or flat now?

SandyN21

Took redundancy and early retirement nearly 3 years ago.  Then got divorced so had to sell our north London 4bed/2bath family house in March and I moved into a rented 2bed/2bath 910 sq ft first floor flat in Hertfordshire while searching for my 'forever home' in this county (cash purchase).

On average my electric consumption has been between 101kWh to 115kWh a month with bills ranging from £41 to £52 each month (hob and oven is electric). Gas is separate and from March to July was only £36 (combi boiler set on low just to heat water).  I'm on my own so have been fortunate to have such low bills...so with this in mind and what's about to happen this winter, I'm now looking to buy a 2bed flat with nice views that I can lock up and leave and not worry about when I start traveling again once this next major step in my life is over....as I have come to the conclusion that I don't need a house (and I definitely won't miss a garden).

jimpwarsop

In the medium to long term there is only one way prices are going.

IMHO

Sarah1Mitty2

Excellent timing on the house sale!

MovingForwards

I purchased a 2 bed flat with nice views and a private garden as the views meant more to me than having a house.

I've owned it, with a small (sub-prime) mortgage by most people's standards, for just over 2 years and in that time I've made it my home.

During the conveyancing process I worked numbers out for bills changing, mortgage rates increasing up to 15%, paying my own NI and the minimum income I would be able to take to cover outgoings. It also let me see I can retire early.

Recently, I left a job for a period of studying, stretching my final wages to last 3 months and considering having further study breaks in the future: all depends on exams, studies and workloads over the next few years.

I don't have enough in the bank to take 2 years out to finish my studies, if I did then it would be a no-brainer.

Provided you've planned well, you can make it work.

Woolsery

jimpwarsop said:

In the medium to long term there is only one way prices are going.

IMHO

I'm not sure what the 'medium term' is, but I believe being in negative equity for some years seriously damages lives. Holding out the prospect of some distant nirvana is what politicians do, before denying that they said such a thing or were mis-reported when things turn out differently!

We have inflation and energy prices at levels never experienced by most buyers and interest rates are creeping up, as they must to fight the challenge of a stronger dollar. Rents are also rising and all of this eats into the FTB market, the basis on which all else depends.

Many years ago I bought into a troubled market as a single person, though most people, including me, didn't perceive it as such at the time. I didn't know much about economics beyond what I'd learned for A level, but my natural caution caused me to leave some headroom against financial headwinds. Later, when interest rates went over 12% I was rather glad about that.

speakingofart

I bought a flat in 2018 as a single person and in April moved to a 2 bed house. Yes, living costs will be more expensive, but no lockdown lover will ever, ever be able to ban me from sitting in the sun whilst they loll in their garden on furlough again. I’ll stand on a street corner to pay the bills if I have to. 1000% worth it.

SandyN21

speakingofart said:

I bought a flat in 2018 as a single person and in April moved to a 2 bed house. Yes, living costs will be more expensive, but no lockdown lover will ever, ever be able to ban me from sitting in the sun whilst they loll in their garden on furlough again. I’ll stand on a street corner to pay the bills if I have to. 1000% worth it.

I'd taken redundancy/early retirement in November 2019 so was at home during lockdown.  During that time not once did I sit in my garden (and it was just over 90ft long) - instead I went on long walks that were allowed at the time and got addicted to doing 1000 pieces jigsaw puzzles.  That's the reason a house with a garden is not what I want.  A first floor flat with a balcony and nice views and interesting areas to walk is on my wishlist.

Norman_Castle

Would you continue to rent while traveling? If so household bills will be the same.

SandyN21

Norman_Castle said:

Would you continue to rent while traveling? If so household bills will be the same.

I've signed a 12 months tenancy agreement so I'm hoping to put an offer on a flat by end Sept/beginning Oct (viewing number 21 tomorrow)

Sarah1Mitty2

Woolsery said:

jimpwarsop said:

In the medium to long term there is only one way prices are going.

IMHO

I'm not sure what the 'medium term' is, but I believe being in negative equity for some years seriously damages lives. Holding out the prospect of some distant nirvana is what politicians do, before denying that they said such a thing or were mis-reported when things turn out differently!

We have inflation and energy prices at levels never experienced by most buyers and interest rates are creeping up, as they must to fight the challenge of a stronger dollar. Rents are also rising and all of this eats into the FTB market, the basis on which all else depends.

Many years ago I bought into a troubled market as a single person, though most people, including me, didn't perceive it as such at the time. I didn't know much about economics beyond what I'd learned for A level, but my natural caution caused me to leave some headroom against financial headwinds. Later, when interest rates went over 12% I was rather glad about that.

I would love 12% on my savings pot, that would be absolutely great!