want to buy but may rent first

mrtaylor272

i have a decent deposit of 160k and im looking between 200-300k for a small house or flat with garden.
i am quite fussy and specific about areas so its a waiting game for one to appear. 
so i thought i would also look at renting but this has shocked me. 
i earn 26k which means a sensible rent would be under 1k a month. 1 beds in this town are often 1-1300 a month. 
wirh renting i have no advantage over someone 20 years younger earning the same. 
all i could offer is 6 months up front if that would help.
any thoughts?

diystarter7

Hello OP
Thhe only choice I see unless you want to throw away your money is to buy. However, prices may fall, fall a little or poss fall by about 20/30k but could remain stable or even rise a bit especially in nice area as you want where supply is short and demand is good.

So staying on rental at about 1300 a month is 15600 of wasted money IMO.
Where do you live atm?
Even when one appears it may be beyond your price.
Mortgages have come down slightly and I'm guess after next weeks budget, the price of property may fall a little as most people will have less in their pockets and inflation to remain high

1300 a month  to rent plus bills - the place you buy I guess you aim to stay there for at least 7/10 years, so based on that go for it, even one that initially may not feel 100%. Make it your own place. Price fluctuations after you buy but longer term you will be miles better of IMO

Your choice and good luck

MovingForwards

Not sure where you're currently living, but if it's the family home then keep saving and find the place you want to buy. 

With that money in the bank, I wouldn't want to be renting.

jj_43

Why do you feel you need to offer 6 months up front. You have £160 k in the bank. What advantages do young people have when renting on the same salary?

mrtaylor272

would the estate agent consider what i have in the bank, i thought they went by income?
i live in Reading, and want to buy somewhere along the rail line to oxford such as tilehurst pangbourne or as far as cholsey. so i dont have to rely on a car forever. 

LegallyLandlord

I’m a landlord and I would definitely consider someone’s assets. 

The rule of thumb is salary should be 2.5x the rent, to show affordability. Letting agents do tend to take a tick box approach, but landlords can look at the wider picture. 

I’d look at Openrent where landlords advertise direct, without letting agents. That way you’ll have the chance of explaining to a landlord about your situation 

eddddy

mrtaylor272 said:

i am quite fussy and specific about areas so its a waiting game for one to appear. 
so i thought i would also look at renting but this has shocked me. 

Would renting help you?

Generally, landlords want you to sign a 12 month AST - so if a desirable property appears in the next 10 months or so, you probably wouldn't be able to go for it. (Unless you could negotiate an early termination - which might not be possible and/or might be expensive.)

mrtaylor272

i think most ast's allow a break at 6 months.
im gaining 300 a month in interest just with instant savings so no hurry to buy.
i notice most for rent are unfurnished which is a little harder having to bring in furniture then move it after.
also i notice carpets are popular again, prefer wood floor tbh.

IslandLife

Where do you live now?

I'd suggest staying put and keep looking for a place that matches your criteria. You mention being quite fussy, you may benefit from prioritising your criteria, so you can compromise more effectively. Nothing is perfect.

mrtaylor272

parents but im desperate to get out now!!! wasnt meant to stay there this long. 

diystarter7

mrtaylor272 said:

parents but im desperate to get out now!!! wasnt meant to stay there this long. 

Stay a bit longer and save your self thousands if not tens of thousands but only you know how eager you are to move out.
Take care.