To be really nervous about buying a place of my own

[Boxalot]

Not a first time buyer, but I got screwed over nearly ten years ago as a first time buyer, won't go into the details but it's taken me this long to recoup my money and gather my tiny (8-9%) deposit.

I have seen a house in the area I've been renting in (love the area) after hunting for the right one for a year. It ticks all my boxes, has a north facing garden but the shade app seems to show a lot of sun in the garden through the spring and summer months. It's on a road with lots of social housing and the local estate agent I know says it's not the best street, but I've regularly walked up and down it and everyone seems lovely and it's all in good nick.

I'm scared of committing to this purchase though as I'd be buying on my own, my salary is good but what if I lose my job? It's also really stretching my budget so not only my deposit savings but my everyday savings will be completely depleted and my financial safety net will be gone.

Please tell me I am being unreasonable so I go ahead and start the buying process! I am so tired of giving rent money to my landlord every month and never progressing.

Personally when I was buying, I waited until it wouldn't effect my emergency savings/buffer. Yes I hated the 'wasted' rent for an extra year or so, but it was worth it for the peace of mind.

It's OK to be scared, it's a big move.
But think of all the upsides of owning - you can decorate according to your taste, you can buy the furniture you like, you can organise rooms your way.
Instead of paying a landlords mortgage you are paying your mortgage and, eventually, will own your home.

Over time all property appreciates so any worry about losing money is just a question of hanging in for a while.

Enjoy your home when you move in.

I forgot to add - I'm about to go on holiday, which will be a cheap one but I'm still unsure whether I should hold out until I feel more financially comfortable. It's just I am in my late 30s now, and worry I'll miss the boat when it comes to buying. House prices are rising steadily in my area and they don't often come up for sale.

How are the repayments compared to your rent? Will you be able to afford to start saving again immediately? Do you have any external safety net like things you could sell to cover the mortgage for a while if you did lose your job - or family who could help? The problem with waiting is that things go up in price and you might be in the same position in a year’s time.

The repayments are only slightly higher than my rent. I can easily start saving again. No family help - I'd be doing it completely on my own - but yes there are a few big items I could potentially sell.
Agree re: house price rises, I feel like I've been treading water with affordability over the last year or so. The prices are rising in line with how much I can save (about £500 a month).

Could you have a lodger if you needed it, eg is there a room that could work that way? Even if it’s not ideal (and actually my experience was that I enjoyed the company) but it could be a safety net and therefore less risky to buy. There are also risks with not buying eg landlord selling, putting up rent, not getting a mortgage when you’re older.

You can get insurance to cover the mortgage for a period; Accident Sickness Unemployment and Critical Illness. Since you need somewhere to live, the issue of no job is fairly similar with it without mortgage.

Make sure you've checked out immediate neighbours; late night or early morning noise. Good luck!

I’d go for it !

Long term it will be much better. If you wait until it doesn’t affect your safety net you may miss your chance as house prices continue to rise.
Will the mortgage be less monthly outlay than your rent ? If it is, you can start saving for your safety net again.

If it doesn’t work out, you can always sell up but I got my first home with no safety net and everything worked out fine. It was high stress as my first home but so worth it.

This is your chance to get on the housing ladder and you’ve found a house you like. You’ll be paying off your own mortgage, not someone else’s. Just go for it,OP !

This. You do need to be selective, but the tax free allowance for renting a room is IIRC about £7500.

A dd and SiL did it for a couple of years after moving to their current house.

Remember that when you buy a house, even with an extensive survey, it is likely you will find issues when you move in that needs fixing so I would be a bit concerned if you have no money left in your savings to deal with unexpected repairs/improvements.

My surveyor missed a lot of issues and I had to fix a lot of unexpected issues in the house in the first 3 months.

I bought on my own last year so had to cover all the costs myself.

I wrote about the whole saga on my blog with some tips for lone home buyers which might be helpful to you: https://greenmermaidcottage.blogspot.com/2024/10/home-not-so-sweet-home-tips-for-first.html

All very stressful but worth it in the end.

Just a warning, I would go for the very best area I could and if an estate agent said something like that about the street I wouldn't be buying in it.

I’m not sure I’d be stretching my budget and living with high financial stress for a property that even the agent has said is not in a good street. Don’t forget the extra costs that pop up when moving into a new property, always have a buffer to account for these expenses (ideally $5000).

I bought on my own so I get the stress and feelings of being alone and not being able to talk things through with someone else who is equally invested in the decision making - friends are great, but ultimately as a single person it’s all on you.

I think I’d hold off for a property that didn’t put you into financial stress from the very beginning and was in a better location.

I was sucked in by a lovely house in a not so good area. Not bad to start with, but it became worse over time.

I think I'd wait out for a better area and a few grand savings behind me to be honest.

Thanks all. The estate agent who implied it wasn't a great street was trying to get me to offer on a house on the other side of town 😅 I've looked carefully at the crime stats, they're fine. I've walked up and down the street at different times. I think I need to chat to the neighbour next and see what they're like.

What was wrong with the other house?

It was too expensive and I didn't like some of the rooms and garden.

Well, it is scary. It's a big commitment. It's not like you can give notice and shift yourself somewhere else. But, you can decide it's not the right house for you after all and put it back on the market after six months. Conveyancing is not fun whichever party you are, it's stressful because you have no control over what the other people involved do. But that's the same as renting, you have no say over the landlord, their agents, the neighbours. So you might as well go for it.

The only caveat I would suggest is buy in as nice an area as you can afford. Rough areas aren't worth the day-to-day significant impact on your quality of life. The house can be grand but the other people in the street do make a difference. My first house was in a rough area with feral kids roaming in gangs, it wasn't good. I moved to another house further along the main road and the difference was like night and day. But I didn't have a choice to start with, all you can do is either lump it or save up a bit longer.

Our first property ( a flat) wasn’t in the best area. It needed some renovations which we did over a few years while living in it.
We made quite a profit on it when we sold and were then able to move to a house in a better area.

Some risk is a good thing really otherwise you’ll stay renting.
And with renting there is also the real risk of the landlord telling you you need to move out because they’re selling/ want to live there etc.

I think you need to judge for yourself regarding the area, OP. You need to take into account that some people are snobs and what is unacceptable for them due to their pre conceived ideas is perfectly reasonable for others.
Do your own research and go from there.
Edit to add we never had any issues with it being in a street which was “ not the best”

This.

I haven't voted, as of course YANBU to be nervous about it - it is a huge commitment.
But I do think YWBU to not do it. You've obviously done lots of research and it makes no sense to be paying someone else's mortgage, when you could be paying your own.

As a pp suggested, if you are looking at a house, it presumably has at least one spare room, and you could get a lodger for a while to build up your savings more quickly as one option.

I’d agree. These aren’t easy times - there’s no point catastrophising that you’ll loose your job and never get another, because you’d never do anything - but I do think you need some sort of emergency pot.

I was fortunate to buy my own flat in my early 20s - and there was a house price crash, so I owned it for nine years and didn't build up any equity, but lots of friends ended up with negative equity. (1980s)
My second property has appreciated well - but living in London I am horrified by the number of friends and colleagues that have a never ending roundabout of short term rentals where they end up having to move every 6-12 months.
I'd do it for the security.

Thanks all. I'm going to go for it! The second bedroom is an ensuite so lodger is an option.