Rent or buy? Expecting baby in June

Lola0161

Hi everyone, I’ve recently found out im pregnant and unsure whether to rent or buy. My partner and I are living with his parents at the moment, I have the funds for a 10% deposit however my money would be obliterated and we would have no money left for furnishings or much needed baby gear. I’m thinking that if we rent we can do this for maybe two years and build up our furnishings without having to dip into my money pot as the money we can save from now can go towards things we will need. Living with his parents isn’t an option with a new born. My mind can’t see the light for this solution so any advice would be appreciated! 

GDB2222

So, your partner has no funds of his own to put into the pot? You are planning to buy a home jointly with him?

Lola0161

I’ve always said that when I buy a property it will be my own as I’ve saved for 4 years for it. He also has bad credit so I wouldn’t want him on the mortgage anyway and we have only been together for 18months

Herzlos

Check out how much rent would be vs mortgage; you may not be able to save much doing it that way.

Renting would be better if you're planning on moving somewhere else before school starts though. Otherwise buying will give you more stability.

GDB2222

I’m very much an old fogey, so take my advice with a pinch of salt:-

It’s over six months until the baby is born. That’s loads of time to save up for all the baby gear and furnishings. You will be living with parents cheaply for most of the time, and obviously you will BOTH be cutting back ruthlessly on all expenditure.

I’d regard it as a test. If you can’t work jointly towards the goal of providing a home for your child now, how will you cope after the child is born?

Also, don’t go mad on furniture and baby gear. There’s loads of stuff secondhand. A newborn is just as happy in a cardboard box as in a cradle costing £1000 that will be outgrown in a few months.

Is this advice “bah humbug” from an overly frugal person or common sense from someone with practical grandparenting experience? A bit of both, really. So, pick what you want from it, and I hope that you have much joy from the new arrival!

lika_86

Lola0161 said:

I’ve always said that when I buy a property it will be my own as I’ve saved for 4 years for it. He also has bad credit so I wouldn’t want him on the mortgage anyway and we have only been together for 18months

Have you considered whether you might even be able to get a mortgage for the type of property you want? Is your salary alone sufficient? 

Your pregnancy is a complicating factor as mortgage lenders will likely take that into account and want to understand how you will be able sustain yourself during any maternity leave (particularly if the process of buying will leave you with no savings).

Personally I'd rent.

Lola0161

Thank you for your advice lika_86 and GDB2222, I can get a mortgage, I got approved in February for a house but turned it down as the house needed major repairs upon inspection. 

My partner and I are fully on the way of severe cut backs and savings, after advice from friends and family I will be purchasing second hand products as I’ve seen far too many new baby products not being used. 

I have just spoken to another mortgage advisor and explained the situation and he recommends a 5% mortgage deposit so I don’t diminish all of my savings 

Rumana03

Lola0161 said:

Thank you for your advice lika_86 and GDB2222, I can get a mortgage, I got approved in February for a house but turned it down as the house needed major repairs upon inspection. 

My partner and I are fully on the way of severe cut backs and savings, after advice from friends and family I will be purchasing second hand products as I’ve seen far too many new baby products not being used. 

I have just spoken to another mortgage advisor and explained the situation and he recommends a 5% mortgage deposit so I don’t diminish all of my savings 

To be honest you can easily buy the baby items without having to spend ridiculous amounts. The key is to shop during the sales. With both my kids, I just bought all the baby items during sales...I factored in what age they would be during summer, winter etc & purchased accordingly. You have boxing day sales coming up next month so it should be easy to pick up a lot of items then.
And Amazon sells tons of baby clothes on sale regularly. You just need to keep an eye out. Even the baby items can be bought cheaper on there sometimes.

Bluebell1000

If I was in your situation I'd probably go for renting, unless it would cost substantially more than a mortgage. If you buy a house and then have unexpected costs on top of the drop in income on maternity leave, it could leave you struggling. Also, house buying might 12 weeks if it goes smoothly, but if not (if you pull out of a purchase for example, or delays with paperwork) you could be moving in either heavily pregnant or with a newborn.

My son was born 9 months after we moved house, and it wasn't easy trying to do decorating and minor renovations while pregnant. Then we started an extension when I was pregnant with no.2 child, which despite assurances was not done before he was born...  I'd have told myself not to do either of those, in hindsight, but we managed 😅 So I'm not sure that I'm the best person to take notice of.

Congratulations, and good luck with whatever you decide.