Too small housing association or private rent

[user1461609321]

Hi everyone

Just wanted to canvass views on whether it would be better to privately rent a 2 bed flat in a slightly nicer area for £1200 per month or to stay in 1 bed housing association flat which costs £720 a month but in a busier and not as nice but close to work and school area?

I earn ok but the cheaper option obviously allows me to be less stressed about money so can afford yearly holiday etc and have no landlord stress

Trying to save for a shared ownership property but saving seems to be a slow and long term thing

I have 2 children of opposite gender , married but currently sleeping on fold out bed, or occasionally co sleeping with kids who are primarily age

Scared of losing security of housing association place, but also feel current flat is too small and as though life is 'on hold' as I know that this is not our forever home eg can't seem to muster desire to buy or replace new furniture etc

So question is what would you do?

Yay! Well bloody done. You’re amazing!!

Fantastic news!! 💐💐💐💐

Brilliant news! Did you ever talk to a mortgage broker? Definitely the next step, and keep saving, the bigger deposit you have, the better off you will be!

Fantastic news. Make sure you keep on saving until you find the right property then you will have funds for legal fees and to decorate/carpet the new place.

Thanks everyone for the support, it has been quite a journey and I will keep on saving as it's become a part of me now, and as some of you have advised you need more than a basic deposit and will need money for fees etc

Yes I am speaking to two brokers at the moment, and at the same time looking into the right to Aquire scheme for the current property

I have been so keen to just move for so long but realise that I need to be more strategic in any moves I make to ensure a better financial future for my family

This is brilliant progress OP you've gotten the so quickly, yes you'll need a bit more for fees etc, but keep saving and think about all of the lovely furniture etc you can buy for your new home, which you'll own a piece of! It's a good way of getting onto the property ladder, cheaper than private rent and over time you'll see a rise in equity even if you don't up your share. What a fantastic achievement for you and your family

In my local authority natural overcrowding is not given priority for housing.

If anyone is interested in my tips for saving, not saying I'm an expert or anything ...

1. Visualise what you want eg new house, phone etc before you even start saving, this is so you have a concrete goal of something tangible

I'm saying this because I used to try to save in a vague way, eg having many options for what the money could be used for, but then whenever I felt in need eg wanted new clothes, or something for the house or other emergency came up, I would use the money as it had no specific purpose..., and then be back to square 1!

1. Get a specific amount in mind that you will need to save for that thing. Look online for example to get a sense of how much it would cost. It doesn't have to be the most expensive version, but more the average cost

1. Divide the item cost in half. That is your mid way point, and you may then feel that this is more realistic to you. Bear in mind by the time you're at the mid way point, you can reflect on how far you've come

1. Open or allocate a specific bank account for the above savings, which can't be easily accessed eg savings book with a branch only in the town centre.

This will avoid you easily transferring the money out/ using it for the wrong purposes as the time needed to go and physically get the money out is off putting and offers you reflective space, of 'is this thing I now want to use the money for worth delaying my dream?'

The savings account should however easily allow you to transfer funds from your main account to it for ease

1. Don't lend the money to people who ask for it as you may struggle to get it back, in fact don't tell people the amount you have in savings as some will subconsciously think that they can just ask you to bail them out!

Get a timeframe for when you would ideally like to purchase this item eg 6 months a year or whatever, then divide the figure by how many months you have until that time, to give you an idea of what you will need to aim to save per month

1. Budget budget budget!!! Sit down with a paper and pen and calculator whenever you have ANY cash and consider what portion COULD potentially go into savings after essentials are met to meet the above target

Remember life will throw curve balls so you may not always save the same amounts planned, but I think it helps to manage expectations to have the guide figure in mind when faced with a choice to spend money

So.... rent, bills, car costs,costs for kids minimum holding money of say £20-30 a week, AND savings all need to feature in your budget, some may even have a minimal emergency fund also to prevent dipping into savings

1. Transfer allocated savings money immediately out of your main account to savings account so the money is not physically in your main account to spend

1. Review amount spent in savings monthly for encouragement

1. The good old chestnut of taking lunch in to work works as every penny counts, or use your holding money if that's how you choose to spend it,

10. Take out the holding money in cash so you have a physical representation of the money decreasing in your wallet as you spend

11. Download your online banking app and become obsessive about checking it, eg first thing in the morning, after spending more than £5 and last thing at night, this avoids you being overdrawn and you generally know to the nearest £5 how much is in your account at any given time

12. Don't make any impulse purchases of clothes, books etc always have a cooling off period, you can even ask most shops to put the item in reserve for you for a couple of days, then check online to see if you can get it cheaper, if not and you really still want it and can afford it, (without compromising your savings and other financial commitments) then buy it!

13. May not work for everyone but at the start, I looked on Pinterest for savings quotes for inspiration and used as phone screen saver, this was a constant reminder of what I was trying to achieve

Whew..... sorry long read I know! If I can think of anything else I will let you know later

Does anyone else have any tips or views on the above?

Your saving tips are ace op. So glad you've reacted your target.
Congrats!!!!

Is the plan to buy your current home?

Just read your thread OP and you’re amazing! Well done for so many savings in such a short time and thanks for your inspirational saving tips!

You have completely changed your outlook on money, a year ago no way would you have considered buying your 1 bed and staying several more years!

Well done, keep saving !

Thanks everyone

Forgotmycoat yes the plan is now to stay put as financially this makes more sense although the 4 of us will be in a 1 bed flat for a couple more years at least!!!

This is subject to getting the approval under the Right to Aquire scheme.

If I don't get the approval, I will instead progress the shared ownership option of a 2 bed flat but now hoping that the right to Aquire option will work out!!!

Sometimes feel judged for where we live and quite embarrassed but the building itself is well maintained and my neighbours are friendly, so that helps, but at times I reflect, and think of me as a little girl imagining me living in a 2 bed semi as standard in a residential street, but as an adult, I realise that you have to 'pay the price' and ' go through the process' for anything of value that you want, and trust me people......this has been hard, especially when you don't have any financial help from anywhere and have to practically do it yourself.

I am however grateful for the ability to save and sympathise with those who struggle to do this

I hope that when my children are older, that I can guide and support them to get on the property ladder in a way I didn't have

I now realise the importance of a good credit score, and this amongst other things in order to achieve social mobility

Well done on your savings.

In the meantime make an appointment with your MP regarding overcrowding.

And I don't want to rain on your parade but I'd definitely wait until after Brexit and its effects before getting into shared ownership.

Hi Moredoll i will definitely wait until after brexit re shared ownership, stupid question I know but when will we expect to hear the outcome?

That I don't know.

We have been considering S.O. but older, wiser friends are saying wait until at least next summer to see what's happening.

Re the overcrowding a letter from your MP to the H.A. will help push things along.