Is renting a complete waste of money?!

[shelly101x]

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…

Well it sort of is a waste, but for many it's their only choice! If you are completely desperate to move, you could look into shared ownership but if not, I'd stay right where you are and save, save, save.

I've done both.
Had no choice but to leave a mortgaged house and now I rent.
To be honest I prefer renting. So far I've had a broken boiler and leaking washing machine that flooded the kitchen. So new washer and flooring in the kitchen.
None of which cost me a penny because I rent. If I still lived in my mortgaged house I would have the spare cash to replace.
So in my circumstances renting is ideal

It would be cheaper to flatshare a two or three bed and split bills. With renting you don't have same maintenance costs as owning.

Renting is fine when you’re young but what do you do in old age? I’m in London, one of my mum’s friends is paying £1400 a month rent and is nearly 70, she’s exhausted and wants to retire but can’t.

If you're over state pension age, you're entitled to help with housing costs if you rent and don't have £16k in savings @Ebonyhorse

Has your DMs friend done a benefit check to see what help she'd be entitled to if she did stop working?

She'll have her state pension, workplace pension(?) and likely some benefits on top.

If it's not enough, she needs to think about whether she can move somewhere less expensive because on the surface it looks like she's continuing to work to pay to live in an expensive location, so if she really wants to stop work, she probably can, but she might not be able to afford to continue to live where she does.

This!

Quite simply going to the pub is a choice, needing some where to live is not. 🙄

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?

😂😂😂😂😂

I’d knuckle down and hardcore save for 18 months and live with parents. If you want your own space it’s fine to rent, but you can’t moan in 2 years time that you still aren’t in a position to buy. The middle ground would be to rent in a house share and maybe have room mates who are less intrusive than family but you’d be there for a little longer.

That was my worry. I see some advantages of renting but what about long term.

Sorry I'm struggling to understand where you are coming from with this post. If your washer breaks and ruins your floor this would usually come under contents insurance which you should have as both a renter and home owner. Landlords will usually cover Buildings insurance which is different. Many rentals are not furnished also so the cost will be on the renter, in these circumstances.

Also with boilers etc. are cover with boiler and central heating cover is only like £5-7 a month hardly anything to boast about not having to pay any more.

You’ll never be able to save as much as you are able to living at home and working. Suck it up now and you’ll be so happy you did when you buy your first place.

Don't rent if you don't need to. In your situation (and age) I'd work my day job, save like mad and probably get an evening job in a pub/cinema/restaurant to 1. get that deposit quicker and 2. get away from my parents of an evening!

Which is fine in the interim when we are younger and not rich and I do know a mortgage is initially interest only. But your rent payment could pay for that boiler or floor several times over. Though sadly lots do not have any choice which I understand.

However this is just my situation. I know rent is more expensive elsewhere.

House 200k mortgage.

Mortgage( 3.5 percent ) could be cheaper.
£1000 pcm. Total repayment circa £300k. At the end of 25 years. I am 100k down but maybe not as the house price will have increased. Now my £1000 is my own to spend.

Renting in same street. £800 pcm. Over 25 year period, not accounting for price increase, thats £240k. At the end of 25 years I am 240k down and I need to still pay rent.

I understand its a privilege so if you can then buy op.

When i graduated I moved home, worked full time and had a second job in a restaurant (tips are a great addition if you work somewhere that attracts them).
Saved like mad for two years and bought a flat.

No, its not a waste of money. BUT. Do you want to move out?

Sometimes the independence in itself justifies paying rent.

If you are happy at home and committed to saving, I would be throwing as much as I could into a savings account now with a clear goal in mind.

I would be doing some serious saving and I mean serious as in right back to bare minimum to spend so I could save as much as possible. I was in your situation and I was on £1800 and I saved £1500 a month. Leaving me £300 to cover rent (£100) phone (£20) and gym (£20) and rest for whatever spending. Meant I was only living with my parents max 2yrs and had enough to also buy furniture without having to save up. So stay for 1-3yrs or however long it takes to save up what you need including some basic furniture and appliances because this is the best time and only time you'll be able to save so much money.

The more you save the quicker it'll be so save hard

I chose to rent and get repairs dealt with by someone else rather than buy leaving no money to do anything to the house but then I am nearing retirement. Pros and cons either way

Stay at home until you have a deposit. If you really want your own place.