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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

Is renting a complete waste of money?!

69 replies

shelly101x · 24/07/2022 19:01

I’m 25 and now living with my parents. I was living with my ex but we split up recently. Thing is, I really value my own space and really dream of living somewhere alone.

However in my area a decent 1 bedroom flat is at least £900/£1000 a month and then bills/food on top of that. It’s extortionate. However I am nowhere near ready to buy (I only have about 5k saved) and I don’t want to get in a relationship anytime soon, so buying/joining a mortgage is no option right now.
I earn about £2200 a month so I can afford it but I’d be saving next to nothing.

I just don’t know if it’s worth it or not…

OP posts:

Swizandswap · 24/07/2022 20:12

Yes it is, you are paying someone else's life or mortgage.

End of the day, if you have a mortgage, every payment is ownership of part of that property and a few more bricks that you own.

itswafflesgirl1010 · 24/07/2022 20:20

It depends if you could stay sane living with family. I couldn't do it long term so for me would rather pay the rent and hardly save. But if you can put up with it for a set period of time then at least you can save a bit more. What about asking a friend instead or finding a room mate to share the cost?

WinterMusings · 24/07/2022 20:20

ihavenocats · 24/07/2022 20:08

It's not a waste of money or "dead" money, that's just a notion but it's silly because of all the expenses we have in life, a place to live is the most essential. No one calls xbox games or junkfood "dead money", only rent.

Thing is a mortgage, especially now, is not the asset people assume it is, it's a liability. It's you signing papers that mean you now owe tens of thousands to a bank who can repossess your home if you fall behind.

I've never wanted to do that but if I did I would certainly not be doing it now before I know the cost implications on home owners with regards to the green new deal, net carbon reduction, and smart features. Also the energy bill increase, you can't not pay things in protest if you have assets to be seized by court action.

I'd want all that to be clear as day before I tied my income to my home security.

As for renting, private rent is not secure but it gives you a lot of time to be in crisis before you're homeless.

I relocated up north to get a place of my own and it was under £400 a month and it was bliss. If you can't do that why not stay at your parents' and claim overcrowding and get a council home that is cheap, permanent, and secure?

@shelly101x

some posters talk absolute rubbish.

Fe345fleur · 24/07/2022 20:31

I rented for years and but now (finally) own a home. My advice would be that unless you really really want to move out of your parents, stay and save up to buy. Once you are renting the rent and bills soon eat up any spare cash for a deposit. If you can and the parents can bear it for a bit, staying put for now is the best option financially.

WinterMusings · 24/07/2022 20:40

@shelly101x

you day you get on with your parents, but would prefer to live alone. That's completely understandable!! It's very rare not to feel like that & not to end up resenting the parent/child dynamic.

However, it's a great opportunity to get yourself on the housing ladder and it's so much better to know that no one can tell you to leave (unless you don't pay the mortgage & don't make an arrangement with them). It's cheaper than renting. Yes, the bank owns more of it than you for
a l o n g time, but you do build your capital to move someone here bigger/better in time. Unless you massively over pay for it, & stay there a whole, it will increase in value ( any dips will come right over a period of time).

renting is a necessity for some people, but when you have other options it really doesn't make sense (unless the other option involves abuse/misery of course.).

Hands up, I didn't always make the best decisions (or listen to people who tried to make me see sense😂) & I did move out to get my independence, but I'm saying what I think NOW not then!!

Another thing you have the opportunity to do, is try hard to shift the relationship with your parents to adult:adult.

if your parents are happy to have you, & they're decent oeople (if annoying in their own way 😂😂) then you'd be daft to pay rent anywhere when you could be saving it. Either enjoy being looked after/worried about, or be honest with them about how xyz. Upsets/annoys you and encourage them to do the same.

let us know how you get on 😀

Harveypuss · 24/07/2022 20:52

I don't think renting is a waste of money. A lot of people start out that way. One thing to consider is 'guardianship properties, which is a way of people with investment properties or second homes having a tenant in to look after it for a short or longer term. The rents are cheaper than standard market rents and often bills are included. My friend's graduate daughter is renting such a property in London whilst studying alongside her part-time job.

Look up "guardianship properties. There's several websites that cover London but not sure how nationwide it is. You have to register and supply evidence of income etc. Worth considering.

avocadotofu · 24/07/2022 20:57

Yes I absolutely think it is. In your situation why don't you stay with your parents and save that £1,000 instead otherwise it will be incredibly difficult to get on the ladder.

Ggu · 24/07/2022 21:04

Yes it is, you are paying someone else's life or mortgage.

Why does no one ever say this about going to the pub?

Ebonyhorse · 24/07/2022 21:05

Live at home and save like mad. You could save £25k in a couple of years.

Gloschick · 24/07/2022 21:12

You are saving so much on council tax, water, fuel, internet, food etc. This is a one off opportunity to build a nest egg so that you will be able to buy. If you don't do it now, then when will another opportunity arise? Would you have to rely on a new partner to provide a deposit? If your dream is to have your own place then this is how to achieve your dream. Short term (not much) pain for long term gain.

maryanne22 · 24/07/2022 21:32

TheOGCCL · 24/07/2022 21:34

I think it's always hard to feel you are going backwards but in your case renting would be a waste of money. Stick it out and save a deposit, future you will thank you.

FelicityFlops · 24/07/2022 21:42

It very much depends on your circumstances.
Friends of mine had a large mortgage-free house which they made over to their children about 8 years ago and now rent. Makes sense. Inheritance tax planning, plus not having to worry about maintenance, repairs etc., but this is very much dependent on the country we live in. Also, now at 67 and 77 the house and garden would be too much for them.
I rented for years, but bought my house and have been mortgage-free for 6 years, however cannot find builders etc. to fix the house, so I am probably going to lose when I decide to sell as it is in such a state.
We are not in the UK, so the situation is very different.
If the UK could get its act together and make renting fair and reasonable for both parties it would be a game changer, sadly I do not think this is going to happen.

Skoolsout · 24/07/2022 21:49

I’d stay at home and save like crazy, perhaps £1200 to £1500 per month for a year or so and then reassess.

tiggergoesbounce · 24/07/2022 21:58

With you being in a good position where you are able to go back home, this is the best time to save as much as you possibly can for as long as you can stay at home.

Concentrate on working towards a deposit, the opportunity to save while privately renting fron what i can see is impossible. Take advantage of this opportunity.

hoping2021 · 24/07/2022 22:07

Stay at home, save like mad and then buy! This is your time and you are blessed with a family that don’t mind you staying at home…. Use this chance. Xx

BalloonsAndWhistles · 25/07/2022 06:41

Stay with your parents and save like mad. If you go and rent a house share, you’ll be renting with strangers for even longer. Just save like mad and it’ll be for a shorter amount of time, seems simple to me.

Darbs76 · 25/07/2022 06:43

Stay with family and save as much as you can for now - ready to buy a property. Many rent (including myself in the past) as they have no choice, can’t get a mortgage

FindingMeno · 25/07/2022 06:49

A plus side I find to renting is that I just make a phone call for any problems.
I don't need to worry about boiler replacement or repairs in general which is quite freeing.
It also gives you more flexibility with where and how you live.
Different horses for different courses.

pinkfondu · 25/07/2022 06:54

Save the money you would spend on renting somewhere and stay put. It will be worth it. You'll never have the opportunity to save like this if you move out.

MushMonster · 25/07/2022 06:54

Stay with your parents and save for your own home. Do not buy anything too expensive. The mortgage should be around a third of your income, not half.

Tinkerblonde1 · 25/07/2022 06:56

I have been in your situation and had to move back in with my parents after I splt with my daughters Dad.

I remember writing a similar post on Money saving expert a few years ago.

I stayed there nearly 4 years but I am currently typing from my own home. I thought I would only ever be able to afford a 2 bed terrace with a yard but I actually have a 3 bed semi with a huge garden thanks to those 4 years and my parents.

At the time it felt like a life time. But it actually passed surprisingly quickly. Some days it felt like I wasn't getting anywhere and I was constantly looking at rentals on Right move. My parents are lovely people but my Mother can be controlling and often undermined me with my child which was hard. Other times it was great as I had a live in baby sitter and it allowed me to progress in my career. I think we had about 6 major arguments which we laugh about now.
It was hard not being able to cook when I wanted and the lack of fridge space. Loada of other niggles. Like 500 questions a day. Even my daughter said at age 6. Grandma and Grandpa ask so many questions.

If I had to do it again,I would absolutely think I made the right choice. Looking at the house I have now and security for my daughter. I would save more in hindsight as I wasted a lot on takeaways and a few breaks away. My parents are amazing and I am grateful to them.
If I rented I would probably be in debt. Not have enough money for any treats and not be able to decorate how I have.
Definitely grit your teeth and dig in. Unless of course as a pp says there is any abuse but that doesn't seem like the case.

Tumbleweed101 · 25/07/2022 06:59

I rent a council property so the rent is reasonable, the tenancy is secure and I get repairs on the bigger and structural stuff done by the council.

In my situation I don’t consider renting dead money. I’ve never been in a position to buy as my income level is too low and I am a single parent.

Private rental is a different thing. I think it’s considered dead money because of the lack of security around the tenancy. You are never able to feel like you can make it a long term home.

In your situation you need to balance independence against the chance to save. Personally I think you need to start life at some point away from home. My adult daughter is staying with me to save but is getting frustrated at the lack of private space for her and her boyfriend without me and her siblings having our own things to do in the house.

sjxoxo · 25/07/2022 07:00

In your situation I’d stay at home as long as possible and work like a dog to save a deposit. Don’t throw your money down the drain for some indépendance now; because if you get stuck renting long term because you don’t have a deposit it will be the opposite of freedom. Think long term & save save save xxx

BarbaraofSeville · 25/07/2022 07:20

Renting a 'decent 1 bed flat' in your circumstances is a luxury and only you can decide whether it's worth the money to you. If you want to live alone would a studio in a slightly cheaper area cost significantly less? Bills would be lower too.

Or you could plan to stay with your parents for a couple of years and save like mad, with your current savings, LISA bonus and interest, you could see your deposit grow to nearly 10 times what it is now and you'd be in a great position to buy.

Due to worries about inflation and rising interest rates etc it's probably a bad time to buy right now. If there was a property price downturn, you'd literally see your hard saved deposit evaporate and you could even be in negative equity, but once prices have stabilised at a lower level, you'd be in a really good position to buy.

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