We are fortunate to have the option of really cheap rent (just under 600pcm). Price is fixed and will not fluctuate for at least another two years. We have a lovely little home, everything’s recently refurbished and modern. Very much a 2 up 2 down home, the rooms aren’t huge but we have two bathrooms and a large garden.
We are on average incomes that, 5 years ago wouldve bought us a 3 bed home in a nice area but we were 18 then and in no position to buy obviously! We work in the same profession and incomes are similar to that of a teacher. If we were to buy the house we are in, the mortgage repayments at current interest rates would be about £1200-1300. Over double what we pay in rent! I cannot comprehend that. We could afford it, just, but we would have significantly less disposable income and not much to save with.
To buy the same size house now we’d have to compromise on area and move away from the suburb we are in. We feel secure and can relax where we are as crime is very low. Everyone looks out for each other and works hard, there’s a real community feel and schools and amenities locally are great.
We can keep renting at this price or pay 2x the amount if we bought an identical place and in doing so have hardly anything for fun/holidays- the things that make life fun- all just to pay off a mortgage so we will own a small property of this size in 35 years time. Forget a bigger terraced house or semi. And in and amongst the horrendous repayments we’d have a bill to foot if the boiler broke, or the oven packed in. What is our incentive to buy?
Other than, as time goes on we will need a larger house than this. It does work for now and we are space savvy. We’re hoping to TTC next year and could happily afford a child within our budget but if an additional 800 from the disposable income pool were to go on a mortgage, things would be so much tighter especially when maternity leave came to an end and extortionate childcare costs kick in.
Am I missing something really obvious or is the system just not designed to help FTBs anymore? I know compromises have to be made but believe if you’re working things should be easier than this!