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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

to never buy a home?

120 replies

rosesareredvioletsarepurple · 18/02/2014 19:51

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?

OP posts:
Sad51 · 18/02/2014 21:23

Velvetspoon Where in zone 6 can you buy 3 bedroom properties for £200k?

Even in Dartford which just falls out of zone 6, you would struggle to find a 3 bed at this price.

We are stuck much further out in Kent. Unable to move into the London/Kent borders. We need at least £80k to have a house at the standard of our current one which is by no means grand.

Original poster
rosesareredvioletsarepurple · 18/02/2014 21:27

Random, nice idea but they're not together so we'd need two!

Zone six three beds in need of work our side of London are £350k

OP posts:
expatinscotland · 18/02/2014 21:31

YANBU.

And you are not alone.

winterlace · 18/02/2014 21:32

I sympathise OP, we own a 2 bed flat and the mortgage is crippling.

We will move out when DC1 starts school and rent somewhere whilst renting ours out.

velvetspoon · 18/02/2014 21:39

sad51 Essex - lots in Havering borough for under £200k, some as low as £175-180k. I grew up around there, it's not as nice as Kent admittedly but it's a fair bit cheaper!

RandomMess · 18/02/2014 21:41

You'll have to come out in live in the grotty areas of Surrey with me I'm afraid!!! You would probably afford a studio flat ok.

Anniegoestotown · 18/02/2014 21:50

I think you will find that help to buy is for any homes not just new builds up to £600000.

Freyalright · 18/02/2014 22:04

Can't you but a flat or house somewhere else. Maybe not to your full budget and rent it out. If the rent pretty much covers the mortgage then you will be able to stay renting in London, whilst building up equity. It may only cost you a 100 or so extra per month and you can get on the ladder.

persimmon · 18/02/2014 22:07

We moved from London mainly because of house prices, about 12 years ago. We both applied for jobs elsewhere and moved when one of us got one. we moved to Oxfordshire which is actually more expensive than London but let's not dwell on that
Relocating is a big upheaval but you're young. I'd do it if i were you.

SnowBells · 18/02/2014 22:09

Mid-30s here and we're only ever going to afford a home due to parents' help from both sides (one covering the deposit, the other covering part of the stamp duty).

We are saving to (1) pay lawyer fees, and (2) pay moving costs.

SiLs are getting similar help.

SnowBells · 18/02/2014 22:10

OP - move out of London. Find different jobs.

I know when I lived in London, I could not imagine to be away from the big city. But now that I am… I 'm loving it.

Huntzberger · 18/02/2014 22:45

Presumably the rent for pensioner's homes will need to be covered by housing benefit when they are no longer working, which makes it a problem for society, not just individuals, if a large percentage of a generation is unable to buy and is saddled with enormous rents instead.

I currently live and work in London, but will need to move out soon to be able to buy somewhere to live. I work for the government, in a job which requires two degrees and about 10 years experience - I understand that we have to lower our expectations and move out, but I don't think it's unreasonable to think I should be paid enough to be able to afford to buy a small family home in the same city where my office is!

grumpyoldbat · 18/02/2014 23:32

I'll never be able to buy. I can't get a mortgage due to previously losing everything. I'm also blacklisted for even longer than I should be thanks to a mobile phone company continuing to bill after assuring me the cancellation had gone through. It went to debt collectors etc as I'd moved etc.

We have no savings atm, we're still paying legal aid fees from when xh dragged me through the court and still paying off the debts from the period when I lost everything so will be some time before we can save properly (at least 2 years). Then based on current prices it will take 7 years to save a deposit.

To top it off my pension fund I've been diligently paying into is as good as worthless. If I ever become too old or infirm to work then i plan suicide as i can't bare the thought of freezing and/or starving to death on the streets.

I worry about dds and worry that I'll never be able to help them financially.

Original poster
rosesareredvioletsarepurple · 18/02/2014 23:50

Freya - don't you need at least a 25% deposit for a buy to let? Even a flat in the grottiest area would require a £25k deposit. And wouldn't we then be contributing to the housing crisis...?

OP posts:
Original poster
rosesareredvioletsarepurple · 18/02/2014 23:51

Maybe our problem is that we value our careers, networks, community, family and friends over property ownership. I 'm surprised so many others don't.

Whatever we do we must keep saving for now at least.

OP posts:
Joysmum · 19/02/2014 00:38

There's no need to move away to be able to afford to buy in a cheaper part of the country to get on the housing ladder and then rent it out.

Obviously look into your finances and get advice about whether you'd qualify for a buy to let mortgage. If you do, the research into the best parts if the country to buy in the first instance to cover your costs, but most importantly in an area you think will appreciate the most in value. Then rent it out and sell it on to appreciate a growth in your savings that is vastly more attractive than the interest you'd earn having it in the bank.

Can you tell I'm a property investor Wink i too have chosen, not to make me money each month, but to make me money upon selling. Choose wisely, do your homework but do buy to get on the ladder if you can, despite not being able to live in it yourselves.

Original poster
rosesareredvioletsarepurple · 19/02/2014 10:06

Thanks Joysmum.

How do you ever know if any area with appreciate in value?

OP posts:
Sad51 · 19/02/2014 10:51

Velvet Thanks. I will have a look on the property websites.

needtobediscreet · 19/02/2014 11:35

My story is similar to bingowings. I previously worked in a v London-centric sector but we managed to relocate to another - cheaper - city as DH got an internal transfer and I had just been made
redundant but got a similar job - same role and sector as my old job - in the new city. Lower pay for me and less promotion opportunities for us both as we no longer work in HQs but worth it for overall
quality of life especially now we have kids. We do miss our friends in London but some of them are now relocating to other cities for similar reasons.

needtobediscreet · 19/02/2014 11:38

Roses - if your DP works in the City, look at places on the overground / Thameslink? That should open up some cheaper options whether in
London, or even in Bedfordshire.

NoArmaniNoPunani · 19/02/2014 11:39

I used to live on London but couldn't afford to buy there. I'm now on the south coast in a 3 bed semi which cost £160k. Train to London takes 1.5 hours

ViviPru · 19/02/2014 11:51

Refreshing post MoreBeta

The sooner people in the UK get over the myth of the property ladder and allure of being a 'homeowner' and renting is seen as a sensible and in many cases preferable, the better IMO. Besides, the banks own most mortgage-holder's homes for the majority of their lives.

There are many practical and feasible ways to strive for security in old age and home ownership is just one of them.

We need to move towards the northern European model of commonplace secure tenure in quality rental property.

We couldn't get a mortgage on an equivalent house to the one we we rent as when we moved here, we were both SE, with DH only having a no published accounts.

We choose to rent still rather than plough our money into another property as all of our ongoing investment is currently in our businesses, which at present makes much more financial sense for a better return in the long-term than were we to buy a house.

Renting our home is a pragmatic solution, we get to live in our most desired village in a house that suits our needs perfectly and is maintained by someone else.

So in answer to your original question, YANBU to never own a home but YABU to feel a bit sad about it.

MoreBeta · 19/02/2014 12:14

"Renting our home is a pragmatic solution, we get to live in our most desired village in a house that suits our needs perfectly and is maintained by someone else."

Absolutely.

People always forget the costs of owning a home like insurance and maintaining it. Now I own a home I can see the bills going out every month. I wasn't under any illusion about this but it always Shock me that people say rent is 'dead money'. Surely paying interest on a mortgage owned by a bank and then doing it up and maintaining the property and insuring it are all 'dead money' spends.

I have had people in my house renovating it since last June.

Three people upstairs right now. Two are building a shower room and 1 installing bedroom furniture. The week before last I had a man built a bathroom. Still got a basement to convert, the whole house repainting and loads of other bits and pieces. Its our forever house but I am not assuming it will go up in value and I am counting the cost spent now as saving on future 'rent'.

If we had not had children still living at home we would have bought a sheltered accommodation flat and then travelled while we still are fit enough to do so.

Original poster
rosesareredvioletsarepurple · 19/02/2014 12:34

I wish our landlord properly maintained our flat! I need to send him an email about various bits that need doing. From what his maintenance man says though he doesn't do anything with any of his properties. Just has them, takes the rent and spends his millions having a lovely time. All properties registered abroad of course...

Oh well our rent could be worse!

Thanks for the comments on the pros of renting.

OP posts:
Seminyak · 19/02/2014 12:41

Whaaaaat, where the fuck do you live!!!! (I see that you live in London, but am :-O at the cost of this new build!) Recently bought our 2 bed flat in zone 3 London for £275k!!!! We did look at new build blocks of flats, out in Morden and up in Hendon, both not as nice areas as where we are now and MUCH more expensive. And these new flats are tiny and pokey. Don't do it!
We were also looking in Wandsworth but the cheapest flats we were shown were horrid prefab types and started at £350k ish. Move area if you can and you'll get way more for your money, as we did.