to never buy a home?

[rosesareredvioletsarepurple]

Some new flats are going on sale soon near (ish) where we live that are eligible for the help to buy scheme. They start at £350,000 for a one bedroom. Even with help to buy that's £18,000 for the deposit and then about ten grand for stamp duty (I think I've got that right?)

I'm in my early 30s and would like children so it seems silly to get a one bed when a two bed would be more suitable long term. But maybe I'm being spoilt thinking we need two bedrooms.

Either way, £30,000 is still not going to happen. Even if we can scrimp and save for years, we couldn't save if we had children (I've looked and nursery fees here are £1200+ per month)

All my friends are on the ladder but not one has done it alone. They've all been given or have inherited money. Even those who think they've done it alone have in reality lived rent and bill free for years saving them thousands per year. Never been an option for us.

My parents think we're wrong for renting but don't understand how difficult it is (my parents bought a four bed detached home in a lovely area in their 20s and did it entirely alone).

AIBU to never own a home and to feel a bit sad about it?

[Anniegoestotown]

Select and all those who are under the misconception that HTB is only available on new builds, HTB is available on any property up to the value of 600k anywhere in the UK and has been for several months.

Op you must rent one of the most expensive if not the most expensive 1 bed flat that isn't a new build in Wembley. If you really wanted to save money and quit moaning that you will never be able to afford to buy why don't you move to a cheaper flat to start with.

If I was in your position I would be looking at buying a 1 bed place under the HTB scheme, cost under £130k in Wembly. If you got it down to 125k then there would be no stamp duty. then instead of the 30k you say you would have to save you would only have to come up with £6250 for the deposit and none existent SD and your mortgage would be under £400 per month. Sell it in under 5 years and then you will have enough of a deposit to afford a 2 or 3 bed place.

[Lilly20again]

Ten years ago in my mid twenties I decided I needed to buy. I left the uber trendy and expensive area I rented in and bought a shoebox, in a much cheaper area.
Still a nice place to live but not trendy at all and a much longer commute (1.5 hours door to door). I lived on very little money to pay the mortgage. slept on a mattress for a few years, stole loo roll, didn't go out very much, ate beans a lot

I met my DH and we both sold our homes and we are in house number 4 now. I think it's still possible but you may need to move/ do work to houses. It's harder than it was ten years ago for sure.

Renting is just a bit scary long term, better rights for tenents is the only way to resolve it, capped rents would help. Can't see that happening though.

No way on this earth I would spend that OP, move areas, leave London.

[AnneElliott]

Have a look at Barnehurst OP if you want cheaper housing. Zone 5/6 and 2 bed houses can be got for £200k. They are not in great areas though. Erith could also be a possibility?

[whois]

Google guardian interactive map rental prices at each London Underground stop

Takes you to a map and you click on the tube line, input if you want to rent or buy and number of bedrooms and it shows you a graph of property prices by stop along the line.

Very interesting I think, but then I like maps!

[rosesareredvioletsarepurple]

Probably not as much as we should needto. Only just in a position to save at all though really so we're are starting to save now.

[whois]

Ok so out East is the wrong direction for you, but the point stands if you don't mind compromising on trendy and fun location there are pockets of affordability. Not entirely sure how 'naice' those affordability pockets are though!

Anyway, owning isn't all it's cracked up to be and if you're struggling to save and don't think you could afford a mortgage now then it's a good idea to stick renting. Rates have been super low for ages but it wasn't too many years ago they were 7%+ which would cripple a lot of people now.

[SelectAUserName]

I am renting without the prospect of ever being able to afford to buy. My parents insist I will inherit their house (I'm an only child) but I assume it will ultimately go on care costs so am not relying on that. Most of the time I'm okay with it; we can afford to rent a better house than we could afford to buy (our new house is in a wonderful location and would cost around £300k to buy) but I do worry about life after retirement. I have occupational pension schemes but nothing that is going to bring in megabucks.

If anyone does want to buy within an hour's commute of central London, there are Help to Buy houses in parts of Northamptonshire just a few minutes' drive from stations on the East Midlands line which start at well under £200k for a 3-bed semi (Irthlingborough), needing a 5% deposit of under £10k, and slightly more expensive but still comparatively reasonable ones in Burton Latimer. It might not be everyone's dream location but it's a toe on the property ladder for those who really want to.

[Lulabellarama]

You could buy a 1 bed flat in Wembley for under 200k. It wouldnt be lovely but it would be a stepping stone.

We moved out to Sussex to buy a house, and it takes DH an hour to get to work still, much as it did when we lived in Ealing. But before we left we seriously considered a new build, 3 bed house in Hayes, which was about 270k.

[needtobediscreet]

genuine question - how much do you currently save each month and is it as much as you could? Only asking cos lots of people I knew in London - not assuming you're the same I should stress - moaned about not being able to save a decent deposit but still chose to rent in expensive, trendy areas, go on frequent holidays and city breaks and ate / drank out loads.

[rosesareredvioletsarepurple]

Ilford worth a look maybe. Would be 90 mins + by car or public transport for my work so it'd have to be a new job too at some point, anyway!

[McFox]

OP, it sounds like you'll be making the right decision to continue renting. We really agonised over this too.

If we were to buy we'd had to move quite far out of the city and taking the commute that my DH has into account, it would mean that his journey would likely go up from the current 4 hours to in the region of 5 hours+ per day. I just couldn't do that to him.

Sometimes owning isn't all its cracked up to be, and as long as you can build your savings while renting, it sounds like you'd be better off sticking for now.

[needtobediscreet]

A born and bred Londoner friend of mine had to move from her owned 1 bed flat in a trendy part of south London to a owned house in less-than-glam Romford when baby two
was on the way. It'll do for now is her reasoning.

[whois]

Can't type. Like where you live then stay put is what I was trying to type.

[rosesareredvioletsarepurple]

'Don't earn much if you can't afford a 95% mortgage.'

Oh, ok.

[whois]

And for £210k there is a nice looking 2 bed with balcony in the city view center ways block.

[whois]

So really the problem is you don't earn much if you couldn't afford the repayments on a 95% mortgage.

If you like where you love and aren't bothered by renting they stay out.

If you really want to by, move cheaper - Illford is cheap as chips and easy access to the wharf and city. Right move is showing 1/2 mile from station 2 bed for £135k. Obviously that's not a super nice flat, but home ownership is possible for you somewhere in london :-)

[Bearbehind]

Sorry, was typing last reply when you posted!

[allmycats]

My parents bought their house and now my father is a widower he is struggling to manage his home on his pension and savings. His friend rented all his life and spent every penny he had, result, friend is now in a council ground floor flat paid for by benefits. ?? who got it right ??

[Bearbehind]

Meant to add, if your current outgoings are at their highest (inc childcare) or incomings at their lowest (mat leave) or your career is just taking off and you can afford HTB then I can see it's beneficial as things will only improve.

You said you'd struggle to even save for a 5% deposit and the stamp duty now but it sounds like your financial situation will take a downturn (kids) and unless there is some pretty much guaranteed career progression to mitigate the downturn, it sounds like a recipe for disaster to me.

[rosesareredvioletsarepurple]

I think I agree Bear. I don't think we'll go for it

I've just seen a stat put out by Pricedout.org.uk

Since help to buy was introduced, prices rose 8 percent pricing out 6x the amount of people it has benefitted.

(40,000 used htb, 245,000 renters priced out)

Assume that's on top of everyone who was already priced out anyway

[Bearbehind]

I'm not sure HTB is a great option either. You would still need 5% deposit plus stamp duty and fees upfront and then interest would become payable on the 20% in 5 years, just when your childcare costs could potentially be at their highest or when you are on maternity leave.

It's a pretty scary long term option IMO, people are going to over stretch themselves now and be screwed in 5 years time.

[brettgirl2]

also if you say you want dc in the future then maybe wait to buy for now. Your priorities may change on what you want.

[brettgirl2]

yanbu to never buy but it's your choice. If you compromise you can buy in a different area. If the location is number 1 then that's your choice.

FWIW new build flats are rarely the best in terms of investment anyway.