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Would we be crazy to double our rent?

19 replies

Dreamhouseorstay · 02/02/2023 18:29

I currently rent a 3 bed property in a nice area for £800. (We’re in a cheap area). Current landlord is very hands off - has lots of properties, hasn’t asked to increase rent, whenever we’ve had an issue it has been quickly sorted. His parents manage the property for him and have told me they think he’d be happy to sell it to me if I wanted to buy it in the future, and he’s very happy with me/has no plans to sell or swap tenants. (Obviously this could be untrue/could change especially with interest rates rising).

Reasons we’re considering a move - there are some sad memories here for me with my ex partner - though there are some happy memories too - my daughter was born here at home. I like the idea of a fresh start and a place that has only ever been “ours”. Our other major concern is storage. Part of the problem is that I admittedly need to declutter, but we are currently filling every cupboard/wardrobe etc. DP has a lot of stuff in a storage unit - furniture but also books/tech/clothes - and I can’t see where it could physically go in this house. We do have a garage which is currently packed full of old furniture which is due to go next week which will help. It would probably be doable if we both drastically decluttered/and or dealt with all the cupboards being packed full etc. DP has also got a new job starting next month which is fully remote with the exception of the occasional meeting. I am setting up a business which I will also be running from home. I’m currently using the box room as a dressing room/office - so one of us could work there and the other in the dining room. We would like to have another child in the next couple of years, and once they’re old enough to have their own room we could use the box room as a nursery for them but would then have no office. I’d be on maternity but this would mean him working in the dining room next to the living room which would be very difficult with a young child and newborn around.

With my partners new job, his income will increase. We have been looking at new places to rent and it’s so hard to know what to do.

Ideally we’d like a 4 bed - room to grow and a space we could use as an office. These start at around £1200 around here. There are a couple at this price point - all in quite soulless/new build village type places but great location for us in terms of nursery/future school/work. We’d have more bedrooms but they are newer properties than our current one so possibly smaller rooms. We haven’t been looking for very long but don’t love any of the ones we’ve seen.

The spanner in the works - we’ve seen a gorgeous house. Only 3 bedrooms, but all a good size (current house is 2 double bedrooms and a box). The house is bigger, finished to an excellent standard, really beautiful. The selling point though is the location - right in the middle of a town that we adore. We’d be walking distance to a good train station, loads of restaurants/cafes/baby groups, a huge gorgeous park with a play area, a leisure centre. Lots of lovely independent shops, local events etc on. Loads of excellent schools in walking distance. I absolutely love the idea of being able to walk straight into town. I remember driving down this street when I was younger and thinking I would love to live there. Parking/traffic can be difficult which is one of the reasons we don’t go there as often as we’d like - but the property comes with private parking spaces which would be a huge bonus. Basically - it’s our dream home, and we’d probably never be able to buy one as nice/as central. The big downside is the rent is double what we’re currently paying, and about £400 more than other 4 bed properties in different areas.

We live 5 minutes drive from a (different) town center at the moment - so near lots of amenities, but have nothing in walking distance except a co-op so the idea of this kind of lifestyle is very appealing. Properties right in town like this don’t seem to come up very often. We could also wait for a 4 bed to come up in one of the residential areas near the town, which would probably be about £1300, which would be lovely but without the appeal of walking straight in etc.

Logically, it seems stupid to throw so much money at a rental property, and my head says we should stay where we are or rent something bigger but closer to the £1200 mark. My heart thinks why not just go for it? The council tax would also be more expensive than where we are, as would heating I think as the EPC is not brilliant. We aren’t on the property ladder, but with DP’s new job and my business hopefully picking up soon we will have a lot more disposable income. Obviously the less we spend on rent, the more we can put towards a deposit. We could comfortably afford to stay here, save for a deposit, and still go on nice holidays/have treats etc. We would still be able to afford a holiday etc in the dream house, but obviously would have less disposable income. Equally with maternity leave etc - we wouldn’t have to worry either way but would be less tight if we stayed here. We have 5k saved so far, so we are still quite a way off a deposit for something comparable to where we are now/bigger. DP has been working really hard, and this new job is a huge achievement. He also loves the idea of the dream house/location but part of me thinks we should stay where we are and enjoy some really nice holidays/enjoy a better lifestyle while saving. I don’t want him to feel he’s worked so hard but we still don’t have much more disposable income because our bills are much higher.

So would you

A) stay where we are, declutter/deal with less storage, save as much as we can to hopefully buy in the next few years

B) stay where we are, declutter, save but save less and enjoy a nicer lifestyle - holidays/experiences etc.

C) rent one of the bigger houses at £1200
D) rent the dream house and accept that saving will take longer/we will have less disposable income?

Any advice appreciated, and apologies for the hugely long post - I’m a worrier/over thinker as is DP. We’re both usually very risk averse, but this house and the way of life we imagine there is really turning our head!

OP posts:
DontTouchMePlease · 02/02/2023 18:48

A p) so I could save like mad for a deposit to buy own home. It seems crazy to increase rent so much to be paying someone else’s mortgage off.

You current LL also sounds great tbh. I’d ruthlessly declutter and then reassess.

WyldeSwan · 02/02/2023 18:50

If you are in a cheap area, presumably putting that extra £800+ a month towards a deposit would give you a decent deposit for your own home pretty quickly? I'd focus on that. The rental might be lovely, but the landlord might decide to sell in a year and you'd be back to square one.

I rented a nice enough, but small and a bit run down house to save as much as I could. Bwing able to buy and not being in the crazy rental market any longer made it totally worth it for me. But then I like the security of not living on the whim of a landlord, and that was my priority.

SweetSakura · 02/02/2023 18:54

A. Rent as cheap as you can and save up for a deposit.

£800x12= £9600 a year (and if sounds like you could possibly save more than that)

If you stay in the small house you will be able to buy your own place sooner.

elloelloellooooo · 02/02/2023 18:55

A

Save loads and then BUY your dream house which admittedly prob won't be the same one as u want to rent now but it sounds like if u stay put then u can afford to save shed loads and hubbys new pay rise etc u will buy a property within next 2-3 years if u really put ur mind to it

watchfulwishes · 02/02/2023 18:57

You would be very silly to increase both your costs and your housing insecurity.

Know when you have a good thing.

Option A with a tiny bit of option B.

Alphabet1spaghetti2 · 02/02/2023 19:00

A.
Declutter first and keep it that way whilst you save. (To buy a home or to use as a savings buffer) If you move to a bigger space, will you be tempted to take all the stuff with you or worse, attract more stuff to fill the available space, thus having bigger bills and still be no better off space wise…

AutumnLeaves5 · 02/02/2023 19:03

A. If you’re moving at some point (either to rent or buy) you don’t want to have to pack, move and unpack clutter. Having a ruthless clear out will give you a good view on how manageable it is to stay where you are whilst you save and make it easier to move.

Have you got a lifetime Isa for first time buyers? It will add 25% to savings of up to £4k a year. So if you can put £4k in before the end of March, it will be topped up to £5k and then you can do the same next tax year.

LadyJ2023 · 02/02/2023 19:07

Stay where you are and de clutter. Trust me we had 4 lil ones and just a 3 bed and you can make it work with many ideas for storage etc. Your also in the exact same position as us our landlords were a couple who have several houses no intentions to sell. All rented with long term tenants, rent very reasonable never been put up.Repairs were never a problem with them. Dont give it up till your really ready landlords like this are like gold dust. The 2 we had previously were not only higher rents there was always excuses when things went wrong and either never got done or excuses about being done. We literally after have just moved out because eventually the right house came up near my family.Until that happened we stayed put with the good landlord.

SweetSakura · 02/02/2023 19:10

landlords like this are like gold dust

I agree. Don't underestimate how much difference it makes to have a decent landlord who looks after their propertied rather than one who thinks being a landlord should never cost them a penny

TheCraicDealer · 02/02/2023 19:15

A). Honestly it sounds like a major part of the problem is the amount of “stuff” you have. The danger is you move to a larger more expensive house and just continue to accumulate stuff which you’re paying £££ in rent to accommodate. Ruthlessly declutter and reassess.

GoodbyeMrChips · 02/02/2023 19:29

Agree with pp - A and declutter. It seems crazy to lose a decent landlord and affordable rent when you are saving to buy and don’t have much in savings yet.

If you have a double bedroom, why do you need clothes in the box room? I would massively declutter everything. As for the storage unit - TBH, I take the view that if something hasn’t been used for a year, it is not needed.

You only have one child currently. When I had my second, she was in our bedroom for 18 months and then shared with her brother. She has her own room now - DS is in the smaller room. I WFH in our bedroom.

We have got rid of loads of books and all DVDs and CDs as we download films and music now. Clothes and toys are decluttered regularly. Paperwork is scanned and dumped and so on. We also have decent storage thanks to IKEA - love a Kallax unit. Then you can save - £800 per month in savings is 9600 per year, and it sounds like you can still have a good lifestyle.

watchfulwishes · 02/02/2023 19:32

People vastly overstate how much space they need IMO.

I am not saying it isn't lovely to have more space - we have been lucky enough to upsize - but you really don't need as much as you think.

We did years with 4 people in a very small 2-bed. You have to be careful, tidy and creative. Hoarding stuff costs a lot of money in space.

Dreamhouseorstay · 02/02/2023 21:27

Thank you all for your advice! I think you are definitely right - a part of me was hoping everyone would say go for the dream house, but the practical part of me knows you’re right.

Before this property I had only lived in student rentals and haven’t had much experience of landlords. I knew we had a good one, but didn’t realise how much of a rarity that is, and that combined with the rent here is something I would be very reluctant to leave behind. Our searches on Rightmove over the last few weeks have shown that as rents have increased, if we were to move we wouldn’t be able to find an equivalent property to here at the price we pay now.

It’s also very helpful to see that 800 x 12 - I hadn’t thought of it in that way, but it adds up quickly. The thought of saving say 35k feels so far off and I think is part of what’s tempting me to just rent - it feels like an impossible dream, but actually even that figure would be achievable relatively quickly, and we could obviously look at cheaper properties with lower deposits etc. I think we both feel nervous about the property market at the moment, but obviously by the time we have saved a deposit things may have changed significantly and will hopefully have settled!

I also agree that a big declutter is in order, and knowing what I’m like if I had a bigger house we would probably buy more things! The house itself isn’t cluttered looking, but every cupboard/drawer etc is crammed and it drives me crazy! I have been holding on to loads of baby clothes etc etc, some for a future baby, but I also have said to myself I’d eBay lots - but they’re still sitting in the garage, so I should probably just donate them. There’s probably 200+ items, and I don’t know if I’d ever get round to listing them all!

We have meaning to have a Declutter of the storage unit, and some things at DP’s parents house so I will make that a priority too. Ultimately if we could free up sufficient space in the garage etc. we could look to get rid of the storage unit which get rid of another expense.

I’ve also just had a look at the budget section on my banking app and realised there’s lots of areas I could cut back on, which is quite motivating. I spent over £200 on takeaways last month which makes me feel awful!!! I’m guilty of avoiding the supermarket and doing top up shops from the co-op via there which costs me a fortune! I also try and save money at the supermarket by buying less, then can’t be bothered to cook something from scratch because I haven’t bought any easy options so end up ordering a takeaway. So I think my first little saving/budgeting goal for myself is going to be no takeaways for February.

It’s a little sad to give up on the dream house but you’re all right in that it makes much more sense - and if we’re sensible we can own our own home which has been a lifelong goal of mine!

OP posts:
SweeSakura · 02/02/2023 21:47

£800 rent saved plus £200 saved on takeaways and you can save £1000 pcm so £12000 in a year! And that's before you look at trimming back in other areas.

I went without new clothes etc and scrimped for a couple of years to get house deposit together with a young DC and am so glad I did. Funny thing is we lived in the tiniest 1 bed house when renting and I still get nostalgic for it now (we bought a 3 bed then a 5 bed as family grew).

MaireadMcSweeney · 03/02/2023 07:56

The idea of a dream rented house doesn't exist. What if you move and get a section 21 notice in a year?
I rented my last house for 11 years until I was ready to buy. It was a shabby shithole in many ways but it was cheap and secure. That's always going to be the main priority with renting to be honest.

NellyBarney · 03/02/2023 08:54

MaireadMcSweeney · 03/02/2023 07:56

The idea of a dream rented house doesn't exist. What if you move and get a section 21 notice in a year?
I rented my last house for 11 years until I was ready to buy. It was a shabby shithole in many ways but it was cheap and secure. That's always going to be the main priority with renting to be honest.

Exactly this. Imagine you live there and pay all that extra money for your 'dream home', and then, what is certain likely, you get evicted in 3 years. In 3 years, you could have saved a 30/35k deposit just by saving the extra rent and council tax. But if you get evicted from a rental, you'll have nothing and (within only 2 months!) have to look very quickly for another rental and take what you can find.

JustKeepSlimming · 03/02/2023 09:16

I'd ask the landlord whether he has any bigger properties which might suit you. You know he's a good landlord, so even if the rent is more than you're currently paying, you know you'll get treated decently.

If he has anything that would work, great, as long as you're still saving to buy. If not, stay where you are and save save save.

Declutter as much as you can - be really ruthless. Sell stuff on FB or Gumtree or whatever. Look online for ideas to make your stuff smaller (eg you can save quite a bit of space by taking kids' games out of boxes, and putting the pieces in sandwich bags (have a storage box for the boards to live in, and then all the pieces in bags alongside)). Just reduce the amount of space you need as much as possible.

beachcitygirl · 03/02/2023 12:03

A

You would be batshit crazy to move.

You gave an issue with clutter - clearly. Sit yourself down with a cuppa &'watch the home edit on Netflix & feel motivated & then go for it.
Hire a skip & be ruthless.

Get rid of storage unit.

Get garage cleared

Get all your stuff on eBay, fb market place, gumtree etc - ever penny helps.

Get a first time buyers ISA

Set a savings target on your banking app.

Do a money makeover (both of you) on money saving expert.

Stop takeaways. Look at hello fresh or Gousto & especially the rapid menu's. It's saved me a fortune & the food is great, quick & easy

Do not allow yourself to buy anything new until you've dealt with your clutter.

You'll have a deposit in no time !

Meantime thank your lucky stars for a great landlord. They're like hens teeth.

latetothefisting · 03/02/2023 12:30

Agree with everyone else. £800x12, plus savings on higher ctax and energy bills, plus any other savings (£200 on takeaways a month is mad!), plus bonus money from a H2b isa x2 (as in you can both open one) - you could have a £35k deposit in less than 3 years!

If you don't have time to list all the stuff you have individually for ebay you could at least just do big lots e.g. "1 bag full of baby clothes" for a tenner etc. Or just take them all to one of those places that pays by the kg.

If you are both wfh and think you might want another child I think you'd very quickly grow out of a 3bed too -the size of the rooms isn't really relevant.

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