Shortsighted to TTC while still renting?

[Babydust00]

We are weighing up continuing to rent. We pay low rent for our small 2 bed (about 15% of our joint take home income). If we bought this house we’d be paying probs 700 more a month, ouch, not to mention anything bigger. We don’t live in London so prices should not be this way given we are on average salaries.
Have offer of deposit help but actually scared of buying given the best we could hope for with repayments would be 30% of our joint income, which doesn’t leave much room for enjoying life or a safety net if anything goes wrong
We are debating waiting out for rates to come down which they’re expected to next year and wondering if it’s as silly as people say to deliberately plan to start your family when you have not yet purchased your first house. We do want to be home owners at some point it’s a huge goal of ours. Is it still possible to do this whilst pregnant/ with a baby or toddler or would we be making life unnecessarily difficult for ourselves? I understand lenders factor in childcare costs but we’d be hoping for only 2, maximum 3 days a week and the government 30 free hours for 9 month+ would be coming in by the time we were ready for that

[caringcarer]

@Babydust00 that's why I think it is wiser to save up and buy in perhaps 18 months to 2 years when mortgage rates have come down a bit. Then fix for 5 years and after a year TTC. In that year you could save up to give you a fund for baby things. You can buy good quality pre used equipment and clothes. Just need a new car seat and mattress for moses basket/cot.

[SnackyOnassis]

@Babydust00

Ahhh that makes sense! Do you mind me asking what percent deposit you had?

Sure - we had 10% and that included a contribution from the developer - they really wanted to sell this house as it was the last one they needed to sell in this phase in order to be able to start building the next batch of houses. There are some pretty great offers out there if you're chain free and ready to go!

[Babydust00]

@SnackyOnassis

Sure - we had 10% and that included a contribution from the developer - they really wanted to sell this house as it was the last one they needed to sell in this phase in order to be able to start building the next batch of houses. There are some pretty great offers out there if you're chain free and ready to go!

That sounds great.

[WeightoftheWorld]

I think I'd go for it, cos by the sounds of things you COULD buy now and still would be able to when baby comes, you just don't think it would be the best decision right now. So you still have some financial security behind you despite renting.

We were renting when we had our first child and we've only very recently become homeowners and we have two of them now. But sort of similar to you, we knew we had some financial/housing security behind us and we knew we could realistically become homeowners within a few years.

[Babydust00]

@WeightoftheWorld

I think I'd go for it, cos by the sounds of things you COULD buy now and still would be able to when baby comes, you just don't think it would be the best decision right now. So you still have some financial security behind you despite renting.

We were renting when we had our first child and we've only very recently become homeowners and we have two of them now. But sort of similar to you, we knew we had some financial/housing security behind us and we knew we could realistically become homeowners within a few years.

Thanks so much. We could afford it and have the deposit money for when we need to, it just makes more sense to me to be renting cheaply now when we need the money rather than chucking it at interest, we would be paying so much more if we bought right now and I don’t think I’d feel the benefit of security because we’re housing association at the moment anyway so we’re pretty guaranteed to be able to stay here as long as we need and rent can’t climb too much.
Congratulations on your house x

[Babydust00]

Sometimes I think I overthink this stuff too much too

[Babydust00]

@maryberryslayers

Babies don't really care if you rent or own...

If you can afford a child, without relying solely on the state, then have one.

Lots of people will never own, they still have children.

Times have changed since the 50's when it was meet, marry, house, children. Just do what you want and makes you happy.

That’s true too. Never thought of it from their perspective

[Unexpectedlysinglemum]

It will be easier to get a mortgage now than it will be when you're on mat leave or paying childcare fees and have to declare having a dependent. If you like your area and will want to stay there for next few years you should buy if you can. You can get a long mortgage period up to 40 years to reduce repayments

[Babydust00]

@Unexpectedlysinglemum

It will be easier to get a mortgage now than it will be when you're on mat leave or paying childcare fees and have to declare having a dependent. If you like your area and will want to stay there for next few years you should buy if you can. You can get a long mortgage period up to 40 years to reduce repayments

I did wonder about how lenders would see mat leave

[SummerSimmer]

I would 100% buy a property first.

[Babydust00]

@SummerSimmer

I would 100% buy a property first.

Why is that?

[rwalker]

Interest rates are about normal now we got used to historical low rates thinking they were the norm

even if prices crash and you go into b negative equity chances are you would of paid that money in rent so effectively you’re no worse off and lost nothing

once you have kids and affordability of mortgage us looked at when you apply you might struggle

buy now conceive later

[Basilthymerosemary]

Buy the house first.
Mortgage will look at affordability- so outgoing every month, maternity pay, employment mode, etc etc. unfortunately dependents for the majority of middle incomes will potential reduce your affordability criteria.

[Babydust00]

@Basilthymerosemary

Buy the house first.
Mortgage will look at affordability- so outgoing every month, maternity pay, employment mode, etc etc. unfortunately dependents for the majority of middle incomes will potential reduce your affordability criteria.

Thank you

[Mummyof287]

We had our first child (now 6) in our first 2bed semi rental property, and our 2nd (now 1) in our current 3bed semi rental.Many people rent with children now...i think its abit snobby when people try to make out you have to buy a house before having kids....not everyone is that privelidged.

In some ways i do wish we had bought a house before we started renting, whilst we were both working full time and before we had all the monumental costs children bring as its proving difficult now (despite having a decent deposit from inheritance) due to our low income, as I am working part time and will be doing so for the foreseeable future, probably until DD2 is in school in afew years.We won't be able to afford to buy until I am working full time again (although this may be different to your situation)

But if we had bought a house I don't think we would have been able to afford to do so in the area we are in, which is a really nice village and neighbourhood with a good school.

Also, if and when we so buy, we will probably be paying double what we do now for a mortgage on a similar sized home, have no savings left as every penny will go into buying the house, have all the upkeep and ownership costs and might have to live in a different area which is less convenient for school, not such a nice area, plus we have really good neighbours.So sometimes I feel like just continuing to rent long term as it has alot of plusses!

Swings and roundabouts I guess, but renting isn't all bad.

[Babydust00]

@Mummyof287

We had our first child (now 6) in our first 2bed semi rental property, and our 2nd (now 1) in our current 3bed semi rental.Many people rent with children now...i think its abit snobby when people try to make out you have to buy a house before having kids....not everyone is that privelidged.

In some ways i do wish we had bought a house before we started renting, whilst we were both working full time and before we had all the monumental costs children bring as its proving difficult now (despite having a decent deposit from inheritance) due to our low income, as I am working part time and will be doing so for the foreseeable future, probably until DD2 is in school in afew years.We won't be able to afford to buy until I am working full time again (although this may be different to your situation)

But if we had bought a house I don't think we would have been able to afford to do so in the area we are in, which is a really nice village and neighbourhood with a good school.

Also, if and when we so buy, we will probably be paying double what we do now for a mortgage on a similar sized home, have no savings left as every penny will go into buying the house, have all the upkeep and ownership costs and might have to live in a different area which is less convenient for school, not such a nice area, plus we have really good neighbours.So sometimes I feel like just continuing to rent long term as it has alot of plusses!

Swings and roundabouts I guess, but renting isn't all bad.

Thank you for your insight! Renting sounds best in your position, it’s a shame when it comes to that though isn’t it for people in todays world! You’ve hit the nail on the head I think, a mortgage on the same house would cost us so much more… it would probably cost us what we’ll pay in nursery fees. We aren’t at that point yet but I do worry about it for obvious reasons. The bank owns your house till you’ve paid the mortgage off and I would be really sad to have such high repayments at the moment when most is just interest anyway. It’s a toughy for sure

[Babydust00]

@rwalker

Interest rates are about normal now we got used to historical low rates thinking they were the norm

even if prices crash and you go into b negative equity chances are you would of paid that money in rent so effectively you’re no worse off and lost nothing

once you have kids and affordability of mortgage us looked at when you apply you might struggle

buy now conceive later

Thank you, I understand it affects affordability

[Babydust00]

Thank you for all your advice everyone. We have decided to go for it anyway. We will never have housing this cheap again - ever - which will be so helpful over the course of maternity leave and reduced income