First Time Buyers, looking to start family soon.Advice needed please

mickym

Hi All,

Thanks for all your feedback, its been very much appreciated!

You are correct, I rather than 'we' should have saved more (the 5k has come from my fiancee, who has done fantasticly on the saving front) and I am looking to now seriously clamp down on my monthly budget to add to our funds.

Although being together for 7 years, we havent been saving for the full duration, we have been enjoying what youth (going on many holidays etc) we have before settling down without getting into debt.

Now is the time to focus on our future, and for me to save as much as possible!

Any thoughts on the issue of going for a shared ownership/open market homebuy option?

rozeepozee

Coming at it from a completely different perspective: don't assume starting a family will be as costly as you think (and in my view it will certainly be less costly than buying now only to see your deposit lost - or more - as house prices fall). My first born is 16 months old and he's cost us hardly anything. We car booted and freecycled for most of our baby equipment and clothes, he was exclusively breast fed (so no food costs for the first seven months!) and then all his food is cooked from scratch in batches. You don't need half as much stuff as the baby shops try to sell you and really it's nursery fees and such that are the big expense. I'm a full time mum so they don't apply to us but even thought we are one wage down, there are loads of savings you can make if one parent can afford to stay at home. And check out what you'd be entitled to with Tax credits and such. I've been surprised how much help the goverment gives to working families.

You may need to tighten your purse strings but there's so much joy to be had in starting a family, I found I don't miss the expensive holidays, weekend away, fancy clothes, nights out etc. There's never the perfect time to start a family but I feel it's so sad when people put it off for financial reasons alone.

carolt

Seconded. Having children is wonderful, but I wouldn't put it off while you wait to save a deposit - at your rate of saving, you'll be long past child-bearing age! - or wait for prices to fall - that'll probably take another 4 or 5 years to bottom out.

Rent somewhere nice, in the catchment for good schools if possible, so you don't have to move. Two beds is a minimum.

Your salary sounds ample to rent on in most parts of the country.

With one child, returning to work part-time is easy; with 2 or more, it gets harder, I admit. But you should be able to assume 1.5 salaries rather than just 1.

Finally, don't even THINK :eek: about buying now - the world economic situation is so precarious at the moment, and the UK housing market particularly, that anything you buy will almost certainly plunge you into negative equity within months.

Rent, get on with your life, and buy in due course when prices have fallen so you can afford it without placing your family's financial future at great risk.

33 isn't old, but she'd be 34 by the time you had your first, if she got cracking now, presumably - and all risk factors for pregnancy go up considerably after 35. I had my last (third) baby at 35, and I did find it much tougher than my first, aged 29. If having children is a priority for you, then put that first - babies don't give a damn if their house is rented or 'owned' (ie huge mortgage so owned by the bank). But they do care if mum and dad are so stressed out by money, and working every hour to pay the mortgage, that they never see them...

Obviously, it has to be your priorities, but FWIW, as non-home-owning parent, I'd say put the family first - houses can always wait....

dfitps

I agree, find somewhere nice to rent, not too big so you can still save, but somewhere you like, and get on with starting the family stuff. 33 is not that old, but things like early miscarriages (which are a lot more routine than you think before you start having babies) take a few months each, then there's slightly reduced chance of conceiving due to age which creeps up on you through your 30s so it can take longer just to get pregnant - basically the whole process of having e.g. two kids can take more years than you think so the earlier start the more 'spare' years you've got in case of unexpected problems. (Of course now I've said that your OH will turn out to be someone who falls pregnant straight away every time she tries right up to the age of 45 and you'll end up with eight kids )

Anyway, we have a house but I wouldn't buy now if we hadn't already got one, at least not without a very high deposit and a mortgage small enough to be covered by only one of our salaries. These are scary economic times! And in your position I wouldn't spend years saving without multitasking and doing the family-starting at the same time - that's the more urgent thing. Babies don't have to have owner-occupier parents, they just need somewhere warm and clean and safe to live, and you can enjoy getting the 'proper family home' when they're older.

mickym

Ive always thought rent to be not that much cheaper than buying a place, hence the reason why we have focused on buying.

mariagti

mickym wrote: »

Ive always thought rent to be not that much cheaper than buying a place, hence the reason why we have focused on buying.

It will be cheaper in some ways like if anything needs replacing or servicing / repairing e.g. boiler, you dont have to worry!

jaype

Agree. If you leave it too late you might end up spending your deposit on IVF. Unpleasant thought but that's all too often life, sadly. Also, you never know how expensive babies are going to be and when only one person is working, at least you will know the landlord has responsibility for the broken central heating rather than you having to fork out. We've done very well in rented with small kids - financially it is actually more stable than owning as at least you know your monthly outgoings without any stressful shocks. Also - do your calculations. Where we are renting is about 2/3 of the price of buying.

mickym

Great feedback, thanks again.

So by renting how do you guys invest in your future?

I know with the current climate, looking to make a house an investment is probably a stupid idea, but when you are at retirement age, would not owning a house be an issue?

barnaby-bear

mickym wrote: »

Hi All,
Although being together for 7 years, we havent been saving for the full duration, we have been enjoying what youth (going on many holidays etc) we have before settling down without getting into debt.

There's that stage, then most people have traditionally spent a good few years scrimping to get a decent deposit together and a year or two to enjoy and set up home together.... don't underestimate the shock of moving in with someone nor the hassle of setting up home; at least renting you learn what you need from a house, what needs maintaining, can get bits of furniture / white goods together. Without the mortgage moving in together from home and starting a family immediately seems a bit of an all together IYKWIM

Alybea

I don't post very much but thought i should... bit of a lurker.
Myself and the Mr rent a house together - we're saving for a deposit whilst watching the market. We're 24 and 27 I love renting if something goes wrong its not my problem... the heating went mad for a few days i phoned someone who sorted it out for free and left me a note telling me how to fix it myself next time. the only downside is i can't have a cat.
Investing in your future isn't only about bricks and somewhere to live.
You've been together for 7 year without living together how do you know you wont kill each other? Being on holiday in the sun for a week isn't the same as having washing up to do, getting up to go to work, cooking dinner etc etc.
If you can't save earning £25k living at home what are you spending your ££ on???
Buying isn't just the house either, you need funds for, Fridge.freezer/sofa/dining table/TV/bed etc etc to furnish a house from scratch, as well as the moving fees.
I don't mean to sound harsh, but maybe either have a really good go at saving and then rent some where for a few months/year?