Not sure if I want to buy a house, anyone else decided not to?

[Drumstick38]

I earn minimum wage, though I am currently applying for higher paid roles.
I have zero debt apart from student loans which is good, and about £1700 in savings.
I can't see how I could ever afford a deposit, as well as all the associated fees. I'm in Greater Manchester and having to look in Bolton, Wigan, Rochdale etc. As everything else is much more expensive.

Aside from this, I think the responsibility of paying a mortgage would be too much for me. I've already lost money this week due to having Covid and having to isolate, I'd be too worried about losing my job or something and not being able to pay.

The repair and maintenance costs are a factor too of buying a house.

I like the flexibility of renting, I don't have any pets and I like that more responsibility falls on the landlord.

The thing that people seem concerned about is in retirement age, and whether people can afford to keep renting, but surely there must be solutions?

Anyone else in a similar situation?

This is interesting...

www.lendingstream.co.uk/blog/real-cost-buying-vs-renting-uk/

We bought our house over ten years ago for £260k. It is now worth just under £500k.

By an unexpected stroke of luck, we have managed to pay our mortgage off. If we were still paying it would be £750 per month. Have just checked Rightmove and a very similar property down the road is up for rent for £1400 per month. It's not in such a good position as us and has a much smaller garden so potentially ours would rent for slightly more.

I got on the property ladder in my 30s. I feel like I managed to get on before it was too late. I really wish I had made a start earlier. If I had my time again I would get on ASAP and buy a small place in the best area I could afford. It's daunting at the start but gets much easier with time. I couldn't imagine renting now never knowing if and when the rent would go up and the lack of security. One of my friends rents and she and her elderly mother in her 80s had to move twice in the space of a couple of years because the landlord decided to sell. It caused them lots of stress and unexpected costs.

The people who mention cringing aren't cringing at your personal circumstances OP.

They are saying, they are bothered when they think of how much of their own hard earned money they spent on rent. That is absolutely nothing to do with you and your circumstances. I'm not sure why you're offended.

In other countries like Germany, it is quite normal to rent and almost everyone does rent.

Legislation around renting and renter's rights themselves are better though.

I am renting currently in social housing. For the future of this country I really hope there will be a big expansion of social housing and feel that more people will need it.

I have googled average rents for two bedrooms in our area and private renting is twice what we pay.

It is a social enterprise and therefore money is ploughed back into the community, to fund things like support schemes to get people into work and projects to tackle loneliness in the community.

I feel the attitude of a lot of people is changing now towards renting, as it did towards claiming benefits.

I feel this is a good thing. So many people with mortgages and without have suffered hardships and some financial devestation with covid, getting ill, being made homeless, losing their jobs and houses. The clientele of a food bank has changed in the past year, now i understand they are more frequently vistited by those in work.

Through all the despair perhaps this change is a good thing, because it may bring an understanding that poverty and hardship can happen to anyone.

As they say 'the door to poverty is wide and the exit is small'.

I'd never buy a house in this country. I don't see the point. I'm going to enjoy myself while young and do all the travelling I can which I wouldn't be able to if I was scrimping and saving for a deposit. After all I could drop dead tomorrow.
My parents have owned houses all my life then they hit retirement age and started renting too as its less hassle and upkeep.

Many wealthy people do not need to worry about such things. Many poor people cannot contemplate it as it's out ofcreach for them

I will have enough in the bank to actually buy any of the houses we have looked at renting but once you are old and not in f/t employment we might as well be back in the 60s when you had signs saying No Blacks, No Irish, No Dogs except the sign would say No Old People, No Pets.

Meruem

Yes you can get help with your mortgage, or at least the interest part after I think 6 months. I know we were claiming it for a while as we were on UC as we all lost our jobs because of the first lockdown.
That’s another thing you have to watch out for when you get older.
The age of retirement might be late 60s but when you get in your early 60s or even late 50s you can kiss goodbye to any sort of full time employment (unless you happen to know someone in an organisation who can pull a few strings)

I think whilst you are relatively young and in work and everything is going great then renting is also a perfectly good choice to make but as soon as you start to age and something goes wrong then you could end up homeless and on the streets.

It doesn’t matter how much you have saved, if you aren’t in f/t employment then you are looking at a tent or if you can drive, we contemplated a caravan.

People who want security but don't care about investment should look into shared ownership. I believe that's what it's for. A few £1000 for a 25% share in some areas.

Who knows what the benefit system will be like when you hit retirement age which is almost 40 years away.

Benefits are a last resort for people. It adds a further intrusive layer of control over your life. Have you ever seen the sort of huge probing forms that have to be filled out or dealt with the benefits people? I did once in my life and very short term and the people who helped me were really nice but my goodness the hours on the phone and the questions, it made me feel pretty bad.

The getting ill that people have mentioned, that’s what happened to me. A serious illness leading to a disability at almost 50 meant the end of my career.

I did rent in my twenties and had really decent Landlords but even the really nice ones may at some point need their property back. Renting is stressful. Especially if anyone has dc and you need to find a new house near their school.

A few £1000 for the deposit, obviously. There's the mortgage on that %. I haven't slept.

@Auntienumber8

Who knows what the benefit system will be like when you hit retirement age which is almost 40 years away.

Benefits are a last resort for people. It adds a further intrusive layer of control over your life. Have you ever seen the sort of huge probing forms that have to be filled out or dealt with the benefits people? I did once in my life and very short term and the people who helped me were really nice but my goodness the hours on the phone and the questions, it made me feel pretty bad.

The getting ill that people have mentioned, that’s what happened to me. A serious illness leading to a disability at almost 50 meant the end of my career.

I did rent in my twenties and had really decent Landlords but even the really nice ones may at some point need their property back. Renting is stressful. Especially if anyone has dc and you need to find a new house near their school.

At the rate we’re going (ageing population + more SEN needs) counting on benefits isn’t a good idea...

@arithanaggerton

People who want security but don't care about investment should look into shared ownership. I believe that's what it's for. A few £1000 for a 25% share in some areas.

In some areas you can get whole house for few thousand deposit, which OP can gind around there. Doer upper most likely a bit, but absolutely doable.

I rented for 10 years & moved more than 10 times

Buying was the right decision for me

I am mortgage free now

Potentially, I could be mortgage free for 40+ more years

House prices are continually rising as are rental properties and actually in many areas paying a mortgage monthly is cheaper than if it was rented.
I don't want to be worried about paying my rent in old age and I don't like the thought of not having any control over where I live as with renting if they decide to sell or want their property back you have to move.
I like the security of owning.

@SchrodingersImmigrant

Very true. Getting on the property ladder is still quite doable in some areas, but I think you have to get on with it in your early 20s. As soon as you're working FT basically. I know a few people in their 20s from very working class backgrounds, never went to uni, who managed to buy terraces buy working full-time in call centre type roles and saving, saving, saving.

I get annoyed by the saying "It's impossible to get on the property ladder". Yes it's much, much harder than it should be. But for some people, it is possible if they really want it. I think some people just write off the idea without ever looking in to it, assuming they can't do it when actually they could pull it off.

@arithanaggerton yeah. It is still doable around here. But. I still think OP should wait untill she feels comfortable with the idea and knows she has money for care for the property.
There is no set timeline😁
It may be easier at some point, but that doesn't mean waiting is bad. Just so OP doesn't feel pressured

And yeah. I did calculations with some people who thought they will never buy and it turned out they actually could @arithanaggerton I think it's the south centering on these debates with all the news doing "people can't afford to buy because house is 300k".

@SchrodingersImmigrant

And yeah. I did calculations with some people who thought they will never buy and it turned out they actually could *@arithanaggerton* I think it's the south centering on these debates with all the news doing "people can't afford to buy because house is 300k".

Yes, it’s very difficult in places like London (although flats have become somewhat cheaper) ... but people mean a house with a reasonable commute etc I suppose. Also with flats you have maintenance fees ...

My parents own their own house and are retired on a small pension. They would be crippled financially if they had to pay rent. On their 3 bed detached they would need around £700 pcm in their area. Currently they both own and run cars and enjoy a reasonable standard of living.

I also don't get why you say it allows you financial freedom? Paying a mortgage is actually cheaper than renting. It's the deposit which is difficult for most people. Paying rent is paying the landlords mortgage, so why not pay your own and have something to show for it? Repairs and maintenance is not a major issue for most homeowners with a relatively new property.

@SchrodingersImmigrant

I've done the same, young relatives who I've shown the pricing of certain starter homes in our area and them being stunned that there's a 2 bed terraces going for £90k (which just need new flooring and wallpaper) because they were under the impression it was £200k for a 1 bed flat everywhere in the country. The media doesn't help either. They go on about how impossible it is. I think it may be a consequence of media still being focused on London and the SE, which is obviously a completely different kettle of fish.

OP has said herself there are areas within her own county where she could potentially buy but she has chosen not to go to those areas, which is completely her right. But theoretically, she could. Houses in the towns she mentions are dirt cheap.

In a lot of cases it's not impossible to get on the housing ladder, people just don't want to change areas. Or want a driveway, or won't consider a terrace. I'm not criticising that, I perfectly understand why, but looking at it from an objective point of view, that doesn't make getting on the ladder impossible.

The houses I'm on about aren't necessarily awful either. This house is lovely: www.rightmove.co.uk/properties/109096367#/

^That isn't my area, I'm West Mids, but I know Lancashire fairly well. People still manage it in my area.

We rent and have no intention currently of buying. We have decided that we will aim to buy when the DCs move out and we are downsizing, that way we can get more land for our money rather than needing lots of inside space. We breed birds and keep goats and sheep. Our landlords are great and we have the bird business here, the sheep and goat are in rented grazing down the road. It works for us as means we are able to afford a much bigger and nice house than we would if we bought and with DC already in the picture I'd hate to spend years saving up and them going without through most of their childhood. Ideally we would have bought a house before having DC but things don't always work out to a plan!!
We are rural and our landlord owns most of the houses in the surrounding villages so if we had to leave this one he would have others available.
I recently went back to uni and I enjoy knowing that even with a reduced income the living costs are fixed - no sudden surprise bills with boilers that need fixing or walls that need repairs. We love it here and will stay as long as we are able.

I response to posts about getting on the property ladder etc why is that important? I really struggle with this. We rent a 5 bed detached house with an acre of land. If we bought we would have to buy a starter home. Something small with limited outside space and gradually work our way up the ladder over the next few decades. Why do it that way and this emphasis on getting on the ladder when we can continue to rent our lovely house, while slowly saving up over the next 20 years and then go and buy an equally nice house.

Our in-laws sold a 4 bed semi which they had paid the mortgage off on and now rent. They are planning on moving down nearer to us when MIL retires and currently enjoy the flexibility of not being tied to a house sale in order to move. Their fear was that they would end up having to sell up to cover care home fees for themselves in older age or their parents so have used the money from the house sale wisely and invested the bulk of it for their retirement etc. They are very comfortable, certainly aren't struggling as their rent is affordable just the two of them.

The mortgage repayments on my house are significantly less than market rent. I've been here 10years. As the property has appreciated and rental costs have increased, my mortgage payments have stayed the same andivecreduced the debt. It's a no brainer for me

@arithanaggerton absolutely agree on everything you say. I know people on close to nmw who bought few years ago. Admittedly prices of houses are going up due to lockdowns (flats are falling tho), bit it's still doable and it's shame so many people believe it isn't because they are fed London and S prices. Shame.

And yes to the areas. Prices vary massively few miles. I know people who moan they can't afford house because they refuse to change postcode. I did and now I am "oh so luckyyyyy"🙄

And yeah. It may not be right time for OP and that's absolutely fine. We all ahve different nedds at different times.

Also the mortgage and bills won't be significantly lower than OP's current rent and bills