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live at home and save VS move out and rent

Discussion in 'Personal' started by anon1369, Aug 14, 2011.

  1. You're in your early 20's and living at home due to unemployment. Now you have got a job secured you have 2 options
    1) Move out and rent somewhere to live with your partner.
    2) Stay at home until you have saved up a deposit for a house.
    <u>What would you do?</u>
    I am keen to do option 1 because I have only been back at home for 1 year and really miss my independence and having my own place. However some friends and family think it is silly to 'throw money away renting' and think staying at home to save money for a deposit on a house is a more sensible option.
    However nowadays you need between a 10 and 20% deposit (if not more) and that is without all the additional fees on top, alongside having money for furniture, decorating etc etc. I imagine it would take about 3 years to save this much money and I really do not want to be 27 and still living at home!
     
  2. You're in your early 20's and living at home due to unemployment. Now you have got a job secured you have 2 options
    1) Move out and rent somewhere to live with your partner.
    2) Stay at home until you have saved up a deposit for a house.
    <u>What would you do?</u>
    I am keen to do option 1 because I have only been back at home for 1 year and really miss my independence and having my own place. However some friends and family think it is silly to 'throw money away renting' and think staying at home to save money for a deposit on a house is a more sensible option.
    However nowadays you need between a 10 and 20% deposit (if not more) and that is without all the additional fees on top, alongside having money for furniture, decorating etc etc. I imagine it would take about 3 years to save this much money and I really do not want to be 27 and still living at home!
     
  3. My son and his girlfriend moved in with us for 18 months while they saved for a deposit. Quite a few of his friends do too, but only those (a) whose parents have a house big enough to absorb them and (b) who have managed to make themselves pleasant enough to be accepted as lodgers. They were exemplary guests (can your own son be a guest?) but it was joy all round when they found a place they could afford.
    My other son is still living at home because he plain old can't afford to move out. Even a room in a student house round here is &pound;70 a week, bills not included. He is however saving all the time he's here and when he (finally) manages to get a job that pays a bit more, he will be able to rent for at least a few years using his savings, or should a miracle occur, a mortgage on a modest establishment.
    Do you think you and your good lady, and your parents, will all be able to live together in peace and harmony? [​IMG]
    You will be guests, remember, and it will be your parents' house.
     
  4. Eva_Smith

    Eva_Smith Established commenter

    It really depends on your relationship with your parents and what you prioritise.

    I only speak for my personal opinion, but I would move out and rent with your boyfriend for several reasons. First, better to rent together first before taking the plunge and buying; what if you discover you're incompatible? Second, I couldn't live with my mother - we get along, but at a safe distance. Third, I'm far too independent; I need my own space that I can decorate at I like and my own kitchen where I can cook to my heart's content.
    That said, I was lucky enough to get a mortgage back when 100% mortgages were offered. I bought my place by myself and my boyfriend moved in back in January. We're actually considering letting my flat and renting ourselves a bigger place for the two of us; the one bedroom flat is a bit small for the both of us.
    My point, I know renting can seem bad, but the housing market isn't going to improve any time soon and you should just do whatever's best for you right now.
     
  5. lillipad

    lillipad New commenter

    Hi I was in a similar position to you. I lived at home while I was jobless, and as you probably all know by now, my boyfriend works away an awful lot so moving in with him wasn't an option. In the end I took the plunge and rent a great little flat on my own now. I wouldn't change it for the world! And when the time is right, my boyfriend will move in with me and we will rent together, before we even think about buying!

    Do it! Time to break freeee!
     
  6. ilovesooty

    ilovesooty Lead commenter

    So do I.

    My niece moved back home after university. She couldn't find employment in her field and is working at ASDA, where she worked on and off while doing her degree, so she can't afford to rent her own place. My sister can't wait for her to move out and things are pretty tense. I really don't think adults should be imposing on their parents for any longer than absolutely necessary.
     
  7. dogcat

    dogcat New commenter

    If you can stay at home then do so. I am currently with my bf's parents, have been since Jan when I moved city and got a job near him.
    There are times when I crave my independence and I did look into renting, that said there are now 95% mortgages available and I am currently now looking to buy my own place. I would not have ever stayed longer than 18 months, as I would feel wrong doing that no matter how nice they are.
    Where I live renting is almost the same cost as my mortgage will be, and if I did move out and rent I would be able to save next to nothing towards a house. For you that would be different as you would be splitting the rent between two of you.
    I do think renting together first is important, but as you have already lived together this is not so much of an issue. If you can I would say stay put, the more you save the better the interest rates you will get on your mortgage. I am going to be buying a house with less than 10K saved, and that includes my initial white goods etc. You can do it on a budget, if you have only just started a new job I would also wait and see how that goes before signing up to a rental contract for minimum 6 months. i woudl say give it until teh new year at least and then see how you feel, and in the meantime save, save, save!
     
  8. Thanks for the replies, it would seem the majority vote goes to move out!
    I am all for moving out as I can't wait to get my independence back but feel worried about money. I have made a spreadsheet of estimated expenses (using info from when we rented last year) and I could just about afford to keep us both on my wages if MrCC doesn't find another job straight away, although it would be a squeeze! Also as my job is in another city we may move there after MrCCs job ends here, depending on where he can get work (I drive, he doesn't).
    I would say I am quite realistic and sensible when it comes to things like this. It's quite amusing when I talk to my friends, because they really are living in cuckoo land. One friend is also a teacher and said she was planning on saving &pound;15k during her NQT year - it wasn't until I explained that our yearly take home pay is only 15k after all deductions that she realised this would be impossible. Some other friends also want to firstly buy a house together to let out and use all the 'profits' to provide a deposit for their own houses with their partners. In their opinion renting is a waste of money, but although I would love to own my own house I know this won't be possible for some time and I don't think they understand how difficult it is.
     
  9. Is there any point in moving when your future employment location is so uncertain?
     
  10. Therein lies another issue. I think we will wait a few months and see what happens as MrCCs job finishes in 3 months so might be best re-evaluating then. I can commute to school, however if he finds a job in the same city as the school then we will move cities. On the other hand if he gets another job at 'home' then we will have to take it from there.
     
  11. I've looked into this, I think the scheme is called FirstBuy (similar to HomeBuy). It is a good idea except it is only possible on certain approved houses which are all new builds. In my area the only approved 'estates' are in the same area where the 'riots' occured last week and we are not willing to live their. It's such a shame that there isn't a similar scheme for 'old' houses as we have seen an amazing house in an area we would love to live and it is very cheap due to the climate - but there is no chance we would be able to afford it.
     
  12. They are also a very big financial mistake to make CC so it is wise not to enter into one.
     
  13. Crowbob

    Crowbob Established commenter

    [​IMG]
     

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