Frustration of a market on a knife edge!

space_rider

How about staying at home for as long as you can bear and then buy 2 bedroom house and rent your spare room.

Griptool

mrstinchcombe wrote: »

Nice pad in a nice area, without mentioning the obvious clcihe of dead money (although I just have) the £725pcm would look a lot better in my pocket than a strangers.

Renting just puts the saving for a deposit back too much for me to consider it.

Apart from living with your folks, all types of housing bear a cost. Either rent, mortgage or money tied up in a non yielding asset.

When renting is cheaper than owning (rent to mortgage differential) the landlord is subsidising your living cost. It makes sense to rent.

When the market returns to the long term norm then its time to buy. Be aware the market crash started 6 months ago in the Bristol area this house would be marketed for £189500 in August 07.

mrstinchcombe

space_rider wrote: »

How about staying at home for as long as you can bear and then buy 2 bedroom house and rent your spare room.

Sounds the best option as there is no getting away from the fact renting would be dead money for me as I do have the option of staying at home and paying no rent and no mortgage interest!

Lotus-eater

House share its great, most of the time. But seriously its an experience you should really do, you can have a great time. I did it for several years before I bought and really enjoyed it. (spent alot on beer though)

mrstinchcombe

I do think Im a little old for the house share now, if I was going to do it I should have done it after uni when I was 21-24. 25 I should be buying my own place I feel

tomatopuree

OP I feel your pain. My wife and I are moving in the summer as I start as a solicitor in Sept and my wife starts as a teacher (I'm 25, she's 23), we've got a little bit of money saved up for a deposit but I have big debts from paying for my legal studies. We'd love to buy, we've been renting together for years. The depressing thing is that at the current interest rates it'd actually be cheaper for us to meet mortgage repayments than it would to rent, but really we've got no choice. The market is too volatile and we'd have to ruin our financial futures jumping in at the wrong time. Add in the fact we'd have to find a lender who'd give us money at the very beginning of our careers (unlikely in the current market).

All in all I'm really depressed that we're going to be paying off someone else's mortgage for the next couple of years instead of paying off our own.

T._x

I'm 26 and in a very similar situation. Although I own a house (it's rented out to a friend and I want to take it out of the equation), still live with my parents and recently have started feeling its time for my own space. People at my workplace always call me a sponger but my folks are awesome and my mother is never happier than when the house is full of people. Unless your folks are packing your bags I would hang off for a bit. Have a look around on a speculative basis see if anything comes up that seems reasonable, but I really wouldn't rent if you can help it.

Gorgeous_George

mrstinchcombe wrote: »

Sounds the best option as there is no getting away from the fact renting would be dead money for me as I do have the option of staying at home and paying no rent and no mortgage interest!

Somewhere along the line, self-respect plays a part.

Sponge off your parents who don't want you in their house or pay your own way. It's your choice.

I moved out at 16.

Renting is paying for somewhere to build your own nest. Yes, you can be better off by squatting at home.

GG

MrSafeGaz

I am in the same position although I am under no pressure from my parents to leave.

Buying now would be a little crazy given the current climate, so I am waiting 6-12 months to re-assess the situation. Renting does not even enter my head as a logical option. Complete waste of money, that money could be put towards a healthy deposit on a house when the market is a little more stable.

A mortgage can break you financially and if you are broken financially then that will have repercussions for many years to come. I would imagine that most parents of people our age and in our situation would understand the current climate and why it would be a bad idea to be flung into a mortgage.

From a financial perspective the only option is a very obvious one. Sit back, have a little patience and save up a nice big deposit and when the right time comes you will be in a very strong position to purchase a property.

bristol_pilot

mrstinchcombe wrote: »

Anyone else in a similar situation?

I was in the same situation as you in 1989 and I made the wrong choice - bought a 1 bedroom flat. It was actually quite a nice one, but it halved in value in 18 months and it then took 12 years to get back what I paid for it.

Learn from the mistakes of others - less pain, same gain.

IMO 25 is too old to be living with parents but not too old for a houseshare. It would not be a 'student' style houseshare, much better than that is available. Loads of people in Bristol and elsewhere share in their late 20s or early 30s. I have sharers in the flate above me and they are mid-30s. Whether you rent or buy, living with parents will always be cheaper...but not cool at all for a graduate aged over 25.