Is it good to rent before buying?

allisgood47 · 2023-04-26T16:14:38+00:00

My son is training to be a police officer at the moment he's on 33k. Hes 20 and recently left home . He's private renting at 1000 a month. If he rents for a few years does that help build his credit rating ? And then once he's earning more would it be better for him to look at buying

mindutopia · 26/04/2023 17:53

I guess the question is, could he afford to buy a house now that would meet his needs? Does he know what his credit rating is?

He will certainly need a good credit score to get a mortgage, so really depends on if he has one already. And if he has a sizeable deposit. I think very few single people on £33K could afford to buy in most parts of the UK without a significant deposit. If he's looked into what sort of mortgage he could get and has a deposit ready to go, definitely I would buy rather than rent.

flipent · 26/04/2023 17:55

Renting has no positive impact on credit rating and is not considered when you apply for a mortgage.

Crinkle77 · 26/04/2023 18:00

It might be worth getting a credit card to make a couple of small purchases each month then paying it off in full when the bill comes in. This shows he is reliable at paying and can build his credit worthiness.

OnlyFoolsnMothers · 26/04/2023 18:12

No benefits from renting - doesn’t appear on credit rating. I second the credit card suggestion.

Mueslikid · 26/04/2023 18:14

I would say the benefits of renting when you are early in your career are the lack of ties.

So if you spot a promotion in a city 200 miles away you can up sticks and just go for it. And then maybe move up again by going somewhere else. So maybe you can advance your career more quickly, then look to buy when you have reached a higher pay grade.

Living in different places will give ideas about where you might like to live when you do settle down.

Less point in buying a house if it isn’t in the place you want it to be (though you could always rent it out.)

MotherOfRatios · 26/04/2023 18:14

You can actually get renting added to your credit score I do.
But if he has a 10% deposit he's better buying and if he doesn't good luck trying to save and rent

https://www.creditladder.co.uk/

Original poster

allisgood47 · 26/04/2023 18:34

Thank you for replys. He's in London. He won't want to move out of London until he's completed his police training which is another couple of years.

Does not seem to be much that's positive about renting. I guess there's the no toes thing as someone above mentioned also experience of living alone psying rent bills etc . Seems wrong that renting does not help with credit score when it's such a larhe amount.

He has a credit card

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salto · 26/04/2023 19:05

Renting is usually a waste to be honest. If he can afford to buy and is sure he will or can stay in the same area for work, buying something small makes sense

Original poster

allisgood47 · 26/04/2023 19:09

salto · 26/04/2023 19:05

Renting is usually a waste to be honest. If he can afford to buy and is sure he will or can stay in the same area for work, buying something small makes sense

Hes just signed a contract to rent for a year. But also he does not really have any savings yet. So he would need to save. Also I don't think he

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Original poster

allisgood47 · 26/04/2023 19:10

Also I don't think he earns enough to buy in London just yet. And he will want to stay in London till at least he qualifies . (Pressed send to fast)

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NeonBoomerang · 26/04/2023 19:12

£33, 000 whilst he's training?!

HeidiUpTheMountain · 26/04/2023 19:22

You must be aware of London house prices - at that salary, and without any savings, he’s not going to be able to afford to buy. Are you proposing to give him a huge amount to use as a deposit?

Original poster

allisgood47 · 26/04/2023 19:30

HeidiUpTheMountain · 26/04/2023 19:22

You must be aware of London house prices - at that salary, and without any savings, he’s not going to be able to afford to buy. Are you proposing to give him a huge amount to use as a deposit?

No im thinking he could possibly buy in the future. When he's earning more and had Been able to save. Once he's qualified in another 2 years ge will earn more . I was just hoping there was something positive about renting in the mean time

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Original poster

allisgood47 · 26/04/2023 19:30

NeonBoomerang · 26/04/2023 19:12

£33, 000 whilst he's training?!

Yes 👍

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Lcb123 · 26/04/2023 19:37

I don’t think there’s any benefits to renting from a credit perspective but buying is a big commitment so he’d only want to buy when he knows where he wants to live longer term. No point buying if only short term, as you waste the benefits of being first time buyer (no/reduced stamp duty, L-ISA bonus). He could start a L-ISA to save for a deposit

Lcb123 · 26/04/2023 19:38

we rented because we moved around for jobs and also I wanted to live with now DH before buying, so we knew we’d be ok living together!

Original poster

allisgood47 · 26/04/2023 19:48

Lcb123 · 26/04/2023 19:37

I don’t think there’s any benefits to renting from a credit perspective but buying is a big commitment so he’d only want to buy when he knows where he wants to live longer term. No point buying if only short term, as you waste the benefits of being first time buyer (no/reduced stamp duty, L-ISA bonus). He could start a L-ISA to save for a deposit

That's a good idea . And yes maybe something for him later when he knows how he manages things.

I suppose there is a sort of positive side to it as in it gives him the experience of lining independently dealing with the bills and rent but without the worry of a mortgage.

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ssd · 26/04/2023 19:49

Ds in similar position, though not with police. Its difficult being in London, renting is ridiculous and saving for a deposit impossible. But they are young and getting experience. Renting is dead money but there's no alternative at this stage.

MotherOfRatios · 26/04/2023 19:58

allisgood47 · 26/04/2023 18:34

Thank you for replys. He's in London. He won't want to move out of London until he's completed his police training which is another couple of years.

Does not seem to be much that's positive about renting. I guess there's the no toes thing as someone above mentioned also experience of living alone psying rent bills etc . Seems wrong that renting does not help with credit score when it's such a larhe amount.

He has a credit card

renting has improved my credit score as I posted above the link it links your rent payments from your bank and boost your credit score. It has massively boost mine

Original poster

allisgood47 · 26/04/2023 20:09

MotherOfRatios · 26/04/2023 19:58

renting has improved my credit score as I posted above the link it links your rent payments from your bank and boost your credit score. It has massively boost mine

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Yes thank you so much . I sent it to my son. He's going to sort it out 😀

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MotherOfRatios · 26/04/2023 20:38

allisgood47 · 26/04/2023 20:09

Yes thank you so much . I sent it to my son. He's going to sort it out 😀

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But with London rents don't expect him to have a deposit anytime soon sadly

Original poster

allisgood47 · 26/04/2023 20:56

MotherOfRatios · 26/04/2023 20:38

But with London rents don't expect him to have a deposit anytime soon sadly

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Yeah I think he will rent for at least a couple of years and probably look into ot even he's earning better . At least he van buokd some credit. I think there are some special schemes for the police when buying as well.

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caringcarer · 26/04/2023 21:24

He won't be able to buy a house or even a flat in London with £33k. He needs to open a LISA. You pay in every month and the government adds money too. My son did this for every £4k he added the government added a further £1k so made £4k into £5k each year. Will he move out of London after he completes his training? If so he needs to be saving for a deposit.

Original poster

allisgood47 · 26/04/2023 21:31

caringcarer · 26/04/2023 21:24

He won't be able to buy a house or even a flat in London with £33k. He needs to open a LISA. You pay in every month and the government adds money too. My son did this for every £4k he added the government added a further £1k so made £4k into £5k each year. Will he move out of London after he completes his training? If so he needs to be saving for a deposit.

Yes I know he cant buy on 33k that's why he's renting for now.

Thank you I will tell him about LISA

With moving out of London I'm not sure if he did I don't think he would move far out possibly seven oaks or something like that . Hes only 20 in a coupe of years he may feel totally different

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