Costs of moving out. Morgage vs Rental, ect;

So heres where we're upto on 'other costs'

- Council tax £110 - Monthly
- Internet - £15 - Monthly
- Phone Line - £??? - Monthly
- TV Licence - £140 - Yearly
- House Insurance - £270? - Yearly
- Car Insurace - £900 - Yearly
- Road Tax - £140 - Yearly
- Electricity - £30 - Monthly
- Gas - £
- Water - £40 - Monthly
- Food - £150 - Monthly
- Mobile contract - £40 - Monthly
- Car Petrol - £40 - Weekly - £160 a month.
- Possible car repair costs - Unknown variable.

So we're at, thus far:
£545 monthly (not including phone line or gas).
AND
£1450 yearly.
PLUS
The cost of renting the place...
So based on renting costs around here, im looking at around £1100 a month! :eek:

So thats £14,650 a year. Asuming costs dont go up, or theres no unforseen mess ups!
 
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Yup, and that is assuming you never go anywhere other than work. :(

Sucks desn't it and I am up north.

I moved out on about 18k and it was tight, now I am on 25k it will be much more fun.
 
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We rent.
2 bed flat in Southampton £650pcm.
However to actually 'live' here - we have to put that amount in each to cover all bills.

I would love to buy - but even in a buyers Market, unless you can garuntee your job security (can anyone?) and that you won't want/need to move in the next 5 years, I would not risk it.
 
AcidHell2 said:
Last 4 years been renting when it would have been the same or cheaper to buy if i had a deposit.
800 for a 3 bed house is silly cheap.
we where paying 1100 for a 3 bed house in Bradley stoke. Currently pay £550 for 1 bed flat. Just before that was £2600 for a 6 bed house.
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I moved from Bradley Stoke in April, 750 for a 3 bed on the new build place behind Tesco. Front of house was along Brook way though so a bit noisy. Now in a 4 bed detached with garage in the Midlands for £795.

Bradley Stoke is pretty much guaranteed to be better to rent than buy, prices there are a bit nuts.
 
Jonnycoupe said:
Bradley Stoke is pretty much guaranteed to be better to rent than buy, prices there are a bit nuts.
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Bradley stoke is a nasty, nasty place to live in my opinon! I did it for a year (same area as you, Shepherds Walk) and hand on heart the only good thing about the area was that it was in walking distance of the office. There is nothing to do there at all, no kind of comunity or 'life'. The architecture is dull dull dull, the streets are full of chavs... The quality of the housing built in the late 80s and early 90s is shockingly bad. The stuff built since 2000 is better though. Even the DSL is bad with the area served by two exchanges, one a couple of miles to the North the other a couple of miles to the South.
 
I spent a while last year comparing the costs of owning vs. renting, and it worked out for a 100k flat in my area it was around 30% more expensive when comparing rent with mortgage repayments. Almost all of the bills you list will vary so it's pretty hard to get a decent figure. Also think about the cost of replacing white goods. It might seem like a nothing, but it isn't in my last place almost all of them failed (fridge, freezer and washing machine) all these where replaced by the land lord whereas obviously that's not the case when your the owner.

There are (apart from the obvious) benefits of owning, mainly access to secured funding, so if you want a car loan or personal loan the interest rates should be lower.

I'd say you should be very careful, in particular when considering you future earnings, don't think "I'll get the best I can afford" think "I'll get the best I can afford given a range of different situations occur",classic example is people including bonuses in their estimation of their annual income (that's not a smart thing to do).
 
I'm currently in my first 6 months of renting. Its harder work sometimes than you realise; as its so damned easy to let the washing build up! Anyway back on subject, I find it manageable on a takehome of about £1150.
Its me and my mate from my old work so we split costs, its a mostly gas powered place which sometimes brings issues especially heating at winter but it could be worse.

Place £600pm (small 2 bed terrace)
Water/Electricity/Gas - approx £100-200 P/M afaik (varies depending on current unit prices and usage)
Internet - £25
Line Rental - £12
Contents insurance - £10
Car Insurance - £100
Fuel - £60
Food - £100-150
Council Tax - £110

Before food/car, it tends to work out about £450-500 P/M each including water/gas/elec. After additional bills as we both use mobile phone contracts, we tend to find this ends up as about £700-850 P/M each, depending on what we eat etc.

Not perfect, but a hell of a lot less restrictive than having a Mortgage at the age of 21, and hopefully will be good in the long run for teaching respect for money, work taken to maintain a home etc :) Rental periods tend to be about 6months guaranteed at the moment, which can be renewed, typically using 1 months rent as deposit, so when I pull out of this will have £300 back providing I haven't caused undue damage to the property etc, which I can then put towards deposit for a new place or into a deposit on a mortgage. Would ideally live in a detached property though; Rock/Metal + Bass guitar player + sound vision hobbies = unhappy neighbours if not careful!
 
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These are my bills for a 1 bed flat

Bills Cost
Rent 550
BT 12.00
Nationwide loan 134.49
o2 24
SKY DIGITAL 32
TV LICENCE 27.9 (every other month)
Council Tax 80
Wessex Water 17
Npower 40
Lovefilm 15.99
 
+1 for renting.

I pay roughly (pcm):

Rent £250
Savings £250
Council Tax £50
Food & Disposables £50
Social £50
Petrol £40
Gym £35
Mobile £30
Car Insurance £30
Insurance £20
Electricity £15
Car Tax £12
Water £6
Internet £5
Phone £4
TV License £4

Total £851pcm/£10,212pa

Living in a two bed open plan apartment with two others (a couple) hence the fairly low bills as split between three (and we're fairly energy concious and never need the heating on).
 
Hatter The Mad said:
If I were you, I would rent for your first year. Here is why:

1) You are young, not much is certain (presumably).
2) The economy (and possibly) your income is not guaranteed.
3) Houses will be cheaper in a year.
4) Mortgages will be cheaper in a year.

Rent, build up some savings, spend a year watching the market.
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I agree with this :) Also means you can get used to things on your own like and also build up furniture etc that you will need for when you do own and not rent :)
 
Personally, I'd only consider buying if you think you are likely to be living in that property for a long time. This in turn implies that:

-You are in a stable long-term relationship (or plan on being a bachelor indefinitely)
-You have a good job and won't be considering changing it in the near future (unless you live in a big city with plenty of alternative jobs)
-You are reasonably confident that it's a 'good area' i.e. you won't have bought a house in a crime filled area with yobs hanging around in the street, rowdy neighbours etc.

Otherwise I'd be very wary of buying a property in a falling market. Mortgages are actually quite 'cheap' at the moment, in terms of the interest you pay, but with property falling in value that'd be more than offset. You typically pay more for buying a property compared to renting it too (in terms of solicitors fees, stamp duty, searches, arrangement fee, valuation etc etc).

In hindsight I wish I'd rented my first property rather than buying it. As I've got older, I've learnt that not all the advice given to me by my father is good advice :)
 
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As a landlord, depending on the area, for rental income you're looking for somewhere between 2-4% of the property value, then any appreciation in the property market tops you up to the level of a "reasonable" investment. E.g. a house in most areas worth around £250k will get rented for about £1k/month.

If you rent whilst settings aside the extra money you would have spent on the mortgage and place into a decent savings/investment scheme (FTSE tracker, perhaps) then you will historically such a fund performs at least as well as the housing market. A mortgage is just a mediocre enforced savings scheme, that's all.
 
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AcidHell2 said:
Last 4 years been renting when it would have been the same or cheaper to buy if i had a deposit.
800 for a 3 bed house is silly cheap.
we where paying 1100 for a 3 bed house in Bradley stoke. Currently pay £550 for 1 bed flat. Just before that was £2600 for a 6 bed house.
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ahh sadly broke, know the place well. emersons is a similar sort of new build town, but not as monotonous as bradley stoke.

cheaper as well, thankfully :D
 
Morba said:
ahh sadly broke, know the place well. emersons is a similar sort of new build town, but not as monotonous as bradley stoke.
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TBH I didn't mind it, apart from the distance and taxi cost back from town.
No where has a communal life left, apart from some villages. Although Somewhere like long well green is better at least they have shops and cinema etc.
Although redland was much better, but no way I can afford that again on my own.
 
yeah, we are liking being in Bromley Heath, its much older area and people around the place (our road alteast) are really nice. much more of a community spirit.

new places just dont have the same sort of people living there :/
 
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