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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Really not sure about buying a property

26 replies

Thedivinyls · 11/08/2022 08:15

My partner and I live in the city centre of Manchester (well 5 minutes' walk from it). We have a nice apartment, it's small but otherwise we're very happy with it.
We rent it, and every single utility bill is included, also internet, TV licence etc. We only pay council tax on top, so our total monthly spend including bills is about £450 each.
We would like to purchase a property eventually when we've saved enough, but with the costs rising so much, I wonder if we'd end up paying a lot higher even with a mortgage, because of skyrocketing electricity and gas bills.
We'd also have to move much further out too so would end up paying commuting costs.
Really not sure what to do, however it seems that in the UK you're screwed if you don't buy as you'll have to work into retirement and struggle and so on. (This seems to be the idea that's given on here a lot)

OP posts:
Original poster
Thedivinyls · 11/08/2022 08:15

So I wonder if we'd end up paying much higher than £450 each a month if we bought a place. Plus commuting costs. Both walk to work ATM.

OP posts:
LionessesRules · 11/08/2022 08:28

Why not look at an online "how much can I borrow" mortgage calculator online. That will give you an indication of where you might be able to buy and how much the mortgage repayments would be.

With the information you've given, noone can say how much you would be paying. You might, like round me, be able to pick up a 2 bed terrace in a reasonable area for just over 100k. Or you might be looking at 300k. That totally changes the maths.

Ducksinthebath · 11/08/2022 08:45

If things get worse financially for your landlord they might put the rent up or even sell up. If times get tough, wouldn't you rather be skint and paying your own mortgage than skint and paying someone else's? I appreciate it's a big decision and a lot of commitment but in your own place you can arrange things like a mortgage holiday if someone loses a job, take steps to limit energy use more than in rented and ultimately you are getting something out of it at the end.

Original poster
Thedivinyls · 11/08/2022 09:06

We rent through an agency in a big block of flats, and should have mentioned but the good thing is we signed to say that our rent can only increase by a maximum of 5% next year.
Yes you're right..I've had years of being skint and now finally comfortable, just don't want to go back to being skint again. I'm honestly really not bothered about owning my own place, I just feel like it's the 'thing' people should do..

OP posts:
Iamthewombat · 11/08/2022 09:11

I’d sit tight if I were you. Right now, renting makes better financial sense than buying. You have a pretty sweet deal, actually, with the 5% cap on rent increases and bills included. Plus, never underestimate the value of not having to commute. I am quite envious, I’d love to be able to walk into Manchester City centre.

When interest rates increase, prices will have to moderate and there will be more choice available. Wait until that happens.

Violettaa · 11/08/2022 09:13

Are you ever going to want a family?

If so, space and security will be massive factors in favour of buying. It will be easier to buy in future if your money is being used to build equity not pay rent, so you should factor that in if you need to.

If you don't plan on kids, staying in rented can be great, especially if you're building up enough pension to pay for it later on.

Original poster
Thedivinyls · 11/08/2022 09:19

Really not sure about a family. Honestly dislike this idea of having children therefore having to leave behind the city life and move far away to the suburbs.
At least not for a good few years anyway.
I just feel so much societal pressure to buy and I hate hearing that I'm 'throwing money down the drain' when I'm still paying to live in a nice apartment that I like. I just wish there wasn't such pressure to buy

OP posts:
Quitelikeit · 11/08/2022 09:27

You’ve not mentioned how much a property is though?

for example if you bought something for 250,000 your monthly repayments on that would be £1150

Original poster
Thedivinyls · 11/08/2022 09:29

We'd be looking at under 100k if possible

OP posts:
Notjustanymum · 11/08/2022 09:56

With the rate at which household bills are increasing at the moment, I would also recommend, as a PP has already said, to sit tight and see how the economy affects house prices.
When previous economic decline has occurred, house prices have fallen, leaving new homeowners in negative equity (look at the financial crisis of the late 1980’s as an example). Property prices soared during the pandemic and now they are way too high to sustain, and predicted to fall soon by many experts In lots of news reports…
If that happens, and you are then able to buy a property once prices have dipped you’ll be in a better financial position than if you buy now and your property devalues.

ecochiroptera · 11/08/2022 10:10

I would also advise you to wait. Not because I think there'll be a huge crash but just because your budget won't get you much if anything in all of Greater Manchester. So like you said, you'd have to move out a whole lot further (further than just the usual 'suburbs' probably), thus adding commuting cost and time. Things like time and the effect of a stressful commute on your life quality can't really be measured in money. Plus, your rental contract actually sounds really reasonable. I get that the pressure is on, but don't give in to it if it would leave you worse off.

GiltEdges · 11/08/2022 10:14

Thedivinyls · 11/08/2022 09:29

We'd be looking at under 100k if possible

Is it even possible to buy a property for under £100k anywhere near Manchester? How far would you be looking to commute?

Personally in your shoes I’d be looking to stay put.

BMW6 · 11/08/2022 10:15

Sit tight and save as much as you can. Reassess the situation yearly.

Amazongirl9 · 11/08/2022 10:16

It sounds like you have an amazing deal so maybe enjoy it whilst it lasts. When it's no longer so good for you that might be a better time to consider other options.

MereDintofPandiculation · 11/08/2022 10:27

Thedivinyls · 11/08/2022 08:15

So I wonder if we'd end up paying much higher than £450 each a month if we bought a place. Plus commuting costs. Both walk to work ATM.

Rents will increase as mortgages go up, because your landlord will want to cover his mortgage repayments

Original poster
Thedivinyls · 11/08/2022 10:28

Yes it will, at least for next year though it can only increase by a max of 5%

OP posts:
MereDintofPandiculation · 11/08/2022 10:28

MereDintofPandiculation · 11/08/2022 10:27

Rents will increase as mortgages go up, because your landlord will want to cover his mortgage repayments

Show quote history

But it does sound as if waiting till you come to the end of your deal might be worth considering

SarahProblem · 11/08/2022 10:33

I'm from the same area. You have a fantastic deal maybe keep that and save up a big deposit so when you do buy, you move it's to your 'dream' home should such a thing exist.

We bought in a Manchester suburb as a result of saving up in lockdown and have some regrets - mostly missing the city centre living.

maskersanonymous · 11/08/2022 10:36

It sounds like you are in a good position where you are... and property is likely to go down at least in the short term so perhaps stay where you are for a couple of years and buy when the market is lower. If you are given notice at any point that would be a good time to buy too if its unlikely you will get a similar deal again. However, bear in mind you may struggle to get a mortgage in the future, not just because it might be harder to get one, but also because you never know how your life with unfold e.g. losing your job (one or both of you), illness, disability etc.

CravenRaven · 11/08/2022 10:38

The other thing to consider is that property (when you own it) always needs more money than rent and bills. There is always something that needs fixing or upgrading, refreshing or replacing. So whatever you budget for everyday bills, do also think about how you will need ££ on top of that for maintenance and decorating. How much will very much depend on the age of the property, how new or modern you like your stuff to be and how much handy you are with doing some jobs yourself.

CravenRaven · 11/08/2022 10:38

...but the security of owning your own place is also pretty great (imo).

Minimalme · 11/08/2022 10:40

I think people who recently stretched to buy a place or upsize will struggle in the next two years because of rising interest and energy rates.

We have built up equity in our home but have been financially struggling since became a ft carer for my middle child three years ago.

We are selling up and moving to rented next week. Our plan is to use some of the equity to supplement our costs for the next two years and see where we want to be from then on.

In your situation I would stay put.

averythinline · 11/08/2022 10:41

I would stay where you are for this year but increase priority on saving whilst you have such a good deal... isa's etc......to give yourself options if things change...you maybe able to afford more in the future with more savings/increase in income ....

ILikeHotWaterBottles · 11/08/2022 10:53

100k for a house in or near Manchester? Is that even possible without it being a dump?

yoshiblue · 11/08/2022 11:01

I initially was going to say buy until I saw your budget. You won't be moving to nice Manchester suburbs but probably much further out - Bolton, Bury, Rochdale max even then in a questionable part of it.

I'd stay out for now and save as much as you can. Although it won't be an option for our children, our generation are likely to be the last of the great homeowners. Investing in a home that you can then live in for free once the mortgage is paid off is priceless.