Would you spend more on rent?

[livadaki]

Currently rent with my partner. We live in London so it’s very expensive. Rent a 1 bed flat at the moment for 1,600, which is soon to be increased to 1,700. It’s small but we’ve made it nice. Really we want another bedroom as an office and so family can come and visit.

Our take home is 6,000pcm. We also want to save for investments. Would you move to a two bed for say 2,100 a month?

Our income is very likely to increase significantly in a couple of years, potentially to around 12,000 pcm

No I wouldn't want to spend that much on rent and would prefer to buy a 2 bed property, personally. If you intend to stay in London for a few years.

rent as cheap as you can, and save up to buy ASAP

Forget the posters telling you to buy without thinking about mortgage rates or where you get the deposit.

Absolutely you can spend £2,100 with £6,000 take home. That’s similar to me and DH and we’re in London renting a two-bed with small DC. It’s not easy for anyone at the moment but it’s worth it for a liveable home.

You will likely only use the spare room a few times a year if it is just for friends and family to visit. Renting an Airbnb or hotel nearby would be cheaper than paying for the extra room for all the time it’s not being used! I would save save save with the view to buying a two bed in the future (sorry, it’s boring but that would be the sensible option). Or move out of london and get a two bed for the same price as you are currently renting your 1 bed for

Well obviously you get the deposit from saving and by the time you have saved enough it is likely interest rates will have dropped down again. If you want to buy in the future then that is the road you have to go down, and starting saving asap is the only way most people can afford it.

There is the mindset that renting your whole life is less stress and gives you more flexibility. You don’t have to think about repair and upkeep, you can move without paying vast amounts in stamp duty. You’d have to do the maths and work out what you’d prefer to do long term, buy or rent.

British people are obsessed with owning their home. A reasonable deposit on a London 2-bed is going to be over £100,000. Most of the mortgage payments at current rates will be interest for years.

Rent somewhere you like living and enjoy life a bit, certainly until mortgage rates settle.

We aren’t looking to buy in London, as we may move overseas with work. So focussing on investments.

@Newbie887 makes a very valid point. I remember when, on Location Location Location, a first time buyer was adamant she needed two beds for friends and family to visit. Kirsty rightly pointed out that it wasn't the woman's job to provide accommodation for her family if it meant having to stretch her finances to the max or compromise on location. This always stuck with me.
I'd be saving hard for a deposit if that's where you think you are headed.
However, if you want to be flexible and don't intend to buy, then yes, barring any other debt you haven't revealed, then £2,100 should be affordable with your take home.

OP says she wants the extra room for an office when family aren’t there

Yes, absolutely. It's really important to be happy in your rental, if you are not, you may make rash decisions about your future because you want to get out of your home. I have had to do this THREE times in three years (through lack of choice in rentals).

I would even say spend a bit more and get a two bed garden flat as well. With your healthy future income, you can absolutely afford it.

Keep it under 33% of take-home, that's the ratio agents usually look for.