To live in a tent instead of buying my first home

[Mushroomlady]

Would love someone to give my head a wobble.

Female, single, child-free, full time job on an average wage, currently renting a spacious flat from lovely private landlord in posh area. Rent is low & I'm happy, but like most ppl I'm stuck in the trap of working to pay for a roof over my head.

I've saved and saved and saved and finally have a small deposit to buy a house or flat. Went to view one last week which was perfect, but when I did the calculations I started questioning whether it's really a good idea.

I'd still be working to pay the mortgage which won't be much less than my current rent. House requires redecorating and furnishing which is more expense. My rented flat is pre-furnished. As well as decorating I would have to spend thousands as I don't own any of my own furniture or household items.

The thought of spending all this money and amassing all this 'stuff' while having to work to pay for it all and being trapped paying a mortgage for the next 30 years is v depressing. I could Airbnb the spare room once it's in a presentable condition, but that's not guaranteed income.

A friend has offered for me to live on their land in Wales in a yurt (large insulated tent) w/ wood burner, rent free in exchange for help growing veggies, etc. Would have access to be own toilet and hot shower in the house as well as WiFi and indoor office space. Wood for fuel would be provided. Work will let me work remotely and part time. Winters could be spent indoors and/or could stay at my parents house which they would love. I'm very outdoorsy, love nature and wildlife, gardening, etc. I also love writing which I don't have time for alongside my job.

Would I be mad to forgo home ownership for yurt living for a few years, go part time and do more of what I love? Could still keep saving.
So as not to drip feed, parents own property so there's a chance I will inherit something before I retire though don't want to make that assumption in case they decide to leave it to a donkey sanctuary.
Wwyd?

1. Buy the house you fool
2. Keep renting
3. Live in the yurt

Yurt
When you're child free I think it's the perfect time to do all of the things that could either be amazing or a huge mistake!

Not sure if it's helpful, but if I'm struggling to make a decision I usually just think of the worst case scenario and it's usually not that bad. So, to me, the worst case scenario of living in a yurt wouldn't be that bad, so I'd do it!

A year of yurt sounds fun. Can I suggest compressed hours rather than part time? (Eg 5 days work over 4). I. think being part time and remote makes you very vulnerable to redundancy and sidelined for interesting projects. Also no doubt you’ll want to buy for yourself at some point and a big deposit makes a lot of difference..

Depending on how old I was, my heart would say yurt but my head would always say buy.

You said that you'll be spending the next 30 years paying off a mortgage, but unless you are extremely lucky, or in some cases unlucky, this is what the the majority of the population, who can afford to, do. Albeit it was 25 years when I took out a mortgage.

The future might bring someone to share such a responsibility with. You could sell your place, they could sell theirs, and you could buy together, reducing the term.

I would hate to get to retirement age and still be worrying about paying rent. I'm gambling that I might make it to retirement, who knows, but I want some security if I do.

I would keep the rented place going whilst I lived in the yurt a month and see if I wanted to live in it longer. If I really like it then I could give my notice to the landlord. Where will you store all your belongings let us know how you get on.

I would also take your friend up on their offer for a period. It sounds like bliss.

Can you buy the house, rent it out, pay for the mortgage with the rent, and live in the yurt ?

I'm just a bit worried about all the costs involved in buying a property and renting it out. I also think I need 25% deposit for a buy to let mortgage, which isn't likely given house prices. What if the roof or boiler needs repairing? I do agree that it's good to get onto the property ladder while I have the chance, but I am not rolling in money - it would be a real stretch. This is the quandary!
To whoever asked if bank of mum and dad would contribute, the answer to that is sadly no.

I just watched a YouTube video about a woman living in a yurt on a friend's land in exchange for work. Looked pretty dreamy, but obviously hard work too. Lots of chop wood, carry water.. but close to nature at least. It would be an experience.

I would try the yurt for 6 months and then reevaluate. Nothing is set in stone, you could try the yurt, save up some money and end up buying something next year right? Starting a Tik Tok & Insta about your adventures at your yurt would be a great idea! You should get a little doggie yurt companion too if you don't already have one :)

I second this

Put your all into buying the flat and redecorating it. Then, if the lifestyle appeals, AirBnB it out for a summer and live in the yurt.

Yurt, no contest!

I live in a vehicle, next to a "construction" (not a yurt, though I'd love one!) in the back end of beyond. There are many people here living as you propose. (Not Wales!). Yes, it is hard work, fetching firewood, getting a veg garden established, sorting water, etc etc, but I'd live like this any day of the week vs dealing with mortgages etc. You can do all of that later, if you choose. I wouldn't swap my life for anything, however non-secure it seems to people who need envelopes with windows landing on their doormat every morning to feel "safe"! You will learn more about yourself, and upskill unbelievably living close to the land. It doesn't always play nice, but you will find resources within yourself you had no idea you could access. What have you to lose??!

I'd probably buy a property
for all those saying buy and rent out - be careful - do you have back up if you get a month without rent, shitty tenants that don't pay, or as suggested, a mortgage hike?
& be careful witht he exchange of services for rent thing - I had friends that did something similar, it was a disaster, nothing in writing at the outset, different expectations on both sides.

I live in South Wales and 2 women live in a yurt on farm land close by.
If I was young and had no kids I'd go for the yurt.

Buy a house whilst you are still mortgageable, rent it out unfurnished and use the income to pay the mortgage - then go live in the yurt knowing that you can always go back to your house ( and the rat race) if you choose and if you don’t choose to do that you are building equity for the future.

To think this is a better idea than a by which I think would be very risky. Risks including void periods, problem tenants not paying, time and costs relating to removal of problem tenants, repair bills, tax on rental income, not as lucrative as it used to be and don't think it will improve as tenants get more rights.

Re spending the next 30 years paying the mortgage, the extremely high inflation that we are experiencing now may mean that the debt is inflated away (though interest rates increasing are a worry so you should fix for as long as you can).

My MIL bought her house very cheaply but divorce meant she had to remortgage and extend her term so she is still paying her mortgage. However it is £300 mortgage for a house that would rent on the market for £3k (London). She earns below full time minimum wage but this is still affordable. The yurt might be ok in your 20s,30s and 40s but if you ever develop health problems, it might not be a viable way to live. However if you owned your place esp a flat with reasonable service charges, you would probably have a very small mortgage or no mortgage by then. My DH and I own a flat in London, it's £1k and service charges are £150. The market rent is £1600. ..

I would buy the flat and like pp said wait until you build enough equity in the flat to rent out and then stay in a yurt.

If you're 100% sure that you will be happy in the yurt for several years at least, then do that, and learn about investment (if you haven't already).

If you do go for the yurt, just don't leave the money sat in a regular current/ savings account. You will find you have less when you come to want it.

Haven’t read all the replies, and I bet someone else has already said this but I would buy the flat, rent it out and live in the yurt. Your mortgage will be higher as will be on a buy to let. When you are no longer into living in the yurt, move into the flat.
on a slightly different note re furnishing the flat, you don’t have to buy brand new and there are some real bargains to be had out there. We have a local Facebook group where people give away things for free, even sofas etc.

I'm now thinking it might be best to try the yurt option for a year, then revisit the buying option later. Who knows, the market might be in a better place and with any luck I will have saved a bit of money too

House prices are very unlikely to go down, but your money will go down in value (if it's not well invested). I don't think putting off the decision for a year will help you at all, practically or financially.

Buy the house

@cookiemonster2468 flat prices are not going to go up by much. My flat has only gone up by 50k since I bought it 3 years ago which is below inflation so not going up in real terms. That's fine for me as I will buy a bigger flat when I need more space so stagnant prices for flats help me; andi don't think capital appreciation is OP's priority either.

I wager OP will still be able to buy her flat in a year or two.. bigger problem if she never buys because while my flat value has not gone up by much, rents in London have exploded.

Yurt, have the adventure

Given you can work remotely, is there an option of buying a home in a different cheaper area? Either to have a smaller mortgage, or to get more for your money?

I also find the idea of spending 30 years working full time to pay off a mortgage for a flat fairly depressing.

But, I'd worry in the yurt about being so reliant on your friends - what you would do if you fell out or their circumstances changed.

Buy the house.

I'm in - pretty much - your position and have just bought, after buying a flat in September 2018. Maintenance has been a lot less than I was worried about, and the security and sheer pleasure of having my own place can't be underestimated.