Be happier or prioritise getting on the ladder?

[FedUp135]

This is so hard because there’s no right answer! My mum is telling me to leave it and save; my siblings are telling me to live life for the present and do what makes me happy.

My boyfriend and I (29) currently pay £1,100 for a tiny one-bed flat, and we’ve just viewed an amazing house for £1,595. It’s a massive upgrade.. two proper bedrooms, two bathrooms, a garden, loads of space, storage, etc. We absolutely loved it.

We can afford the higher rent, but obviously it would mean saving much less.

We were set on staying in the flat and buying, but atm we only have around £6k saved between, so we’re not exactly close to buying yet.

It would also give us space to think about starting a family… but we may not afford it! 😂

I’m wondering whether we should bite the bullet, rent somewhere we actually love for the next few years and accept that buying will be pushed back, or stay in our current tiny flat and prioritise getting a deposit together.

Basically: quality of life now vs getting on the property ladder sooner.

What would you do?

(I can’t explain how small our flat is. It’s essentially just a 3 room studio. And we have a cat!)

I strongly recommend staying in the small flat & saving to buy a property

I also recommend paying into a work place pension

If the difference between a lovely house and a tiny flat is £500, there must be somewhere better for £100-200 that won't quash your ability to save surely?

3 years to buy sounds doable. Maybe less if you save like mad. You'll settle as renters if you choose the house, you may never buy. Would you be ok with that? What about old age?

@FedUp135 the rent increase is £495. Just save this per month for 2 years. With the £6k you have already, you’ll have £17880 in just 24 months.

Then you move into a bigger property which is yours to enjoy for however long you want.

Don’t rent long term if you don’t have to, you’re just paying someone else’s mortgage when you could be paying your own in just 2 years time.

OP, your future selves are going to be so thrilled when you start looking for a little house of your own. Stay put, stay focused, the time will pass anyway and one day you will either get there or know that you could have got there.
Good Luck x

Play the long game.

Stay in the flat, the rental market is littered with people who rented more than they can afford to buy, never saved didn’t want to downgrade and never got on the ladder.

if you can afford 50o a month more on rent, then the increase in council tax and utilities you can save more than 400 a month

So in another couple of years you'll have that if you keep the money you would have spent on the extra rent as savings (12k over 2 years)

Are you saving 400 a month each, or between you? If between you, how will you manage the extra rent in any case?

Whats your income in total and outgoings like travel/bills?

@FedUp135 I would listen to your mum, ‘older and wiser’ and will always want what’s best for you long term.

Also life gets way more expensive when kids come along op. So you’d basically be in rented for ever.

stay, save as much as you can, you can clearly afford more than 400, then buy and have kids.

Also your rent will increase , potentially each year . As will your council tax. Your utilities will be a lot more expensive.

your mum is right, your future self will thank you. Do what your siblings suggest and you will looo back and regret it.

Stay where you are and save the extra £500 a month. You don’t need more space yet and you’ll be in a good position if you can buy in a couple of years.

It’s a very personal decision op, one only you and your dp can make.

I lived in an unheated bedsit with a shared bathroom 😫 for two years so I could save a deposit. It was grim but got me where I wanted to be sooner. For me it was worth it.

You have to decide your priorities between you.

100pc stay and save more than you currently are

Also team mum.

All the PPs have raised excellent points around childcare fees, landlords raising rents, higher costs in a bigger rental etc. How would you manage all of that, realistically?

I would do exactly the opposite to what your sisters are suggesting and really knuckle down for the next few years and save as much as possible.

If you can consider the more expensive flat and increased costs you aren't maximising what you could be saving right now. Check if youre eligible for any government top ups on your savings through LISAs etc.

It's so hard to save to move.

I stayed in a social housing small cottage for 8 years whilst saving to buy. I wanted to buy so badly.

And I did! You can get there quicker than you think if you stay in the flat.

Deposit. Sorry. I know how it feels to see a place that is perfect for you.
It'll never be YOURS, though.

Stay in the flat. Look at what you’re spending on and try to save more every month towards the deposit. You won’t regret it !!

If you’re currently only saving £400 a month then surely it’s obvious you can’t afford it. Stay put and save for your future.

I spent two years living in a 20msq studio and I am typing this from my three bed house today which I bought with the deposit I saved in this time. If you are saving 400 per month between you, then you will be saving zero in the new place so you are basically "happy now" until the very next rent increase and then what?

What would happen if the rent goes up on the new place?

If you’re looking to get on the housing ladder you should never spend more than you need to on property that’s not yours. You have £6k. Focus all your energies on getting another £10k together - that’s only a year and a half in this new place - but for that year and a half you’re paying off someone else’s mortgage, a big chunk of which you don’t need to do. You could be on the housing ladder in a year and a half.

I can't believe you even need to ask.
No one is going to tell you to rent the 2 bed place when the increase is more than you save.

The ! Implies its crazzzzy money....

Without even cutting back....
You have 6k already and as it is you can save about 6k pa so in 2 more years you'd have the deposit.

However...If you put it into LISA (you can each put 4k max in per year) youd have it even sooner with rhe 25% top up.
Thats without even making cutbacks...

Ie. Your 6k this automatically becomes £7.5k...

Stay where you are and put a big push on saving. You will thank yourself in two years time

Save save save! Do you want to be in your 30’s with kids in a rental which you could be turfed out of the next month? My kids are 9 & 10 and they already have a house fund!