Any point buying my own home when I pay £250 Rent month
- Thread starter jasonsony735
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He asked for opinions he's getting them, from what he's said he doesn't save any money.
I can't exactly preach as I've not been as hot on saving as I should be but it's mental to not be saving any money especially when in a position to do so like the OP.
Just because everyone else is doing it or in this case isn't doesn't make it a good idea.
Soldato
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Who is even talking about retirement? Having zero in the bank for a rainy day is nothing but a bad idea. What if he loses his job? What if his brother gets sick of him and kicks him out? What if his car breaks down etc etc. In any scenario he is going to be screwed. All because of YOLO attitude.
Im not saying, "STOP HAVING FUN IMMEDIATELY, SELL ALL YOUR POSSESSIONS AND SAVE EVERY PENNY YOU CAN!!11" im just saying cut back on the silly things and stick something into a savings account each month.
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Associate
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What if you bought a house then rented it out?
You need a much bigger deposit, usually 25%
I'm 23 and also pay £250 a month rent to my parents. I can't actually afford to rent anywhere local at the moment.
Average price around here for 1 bed flat is like £700 a month. I currently put £500 a month into savings, so to move out I would have to stop saving completely and then would barely be able to scrape enough money along for food etc, and I wouldn't be able to save any spare cash for if something goes wrong with my car for example.
Average price around here for 1 bed flat is like £700 a month. I currently put £500 a month into savings, so to move out I would have to stop saving completely and then would barely be able to scrape enough money along for food etc, and I wouldn't be able to save any spare cash for if something goes wrong with my car for example.
... Sounds like you need to move upt' north
Honestly wish i could move back home, although i would have to pay the rent as the parents are both ill and on benefits and ill be the independent lodger in the house
Your doing the right thing though. Our flat is £500 a month for 2 bedrooms. Although with our wages we can only save £200 a month. Between us!
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... Sounds like you need to move upt' north
It's only cheap because no-one wants to live there.
... Sounds like you need to move upt' north
Honestly wish i could move back home, although i would have to pay the rent as the parents are both ill and on benefits and ill be the independent lodger in the house
Yeah South London/Surrey prices are killer
Yet its probably one of the most honest/sensible posts in the thread
Hey, I don't disagree. Sometimes the cold harsh truth is the best medicine!
Soldato
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Hey I calls em like I sees em 
I agree with the harshness tbf, the almost bragging nature of the OP about biggest room in the house, top of the range tv's, and holidays etc. is almost an attempt at a reason to say, "my life is not all bad", which to be fair, the OP's life isn't too bad, he's paying next to nothing to live somewhere and has nice possessions to show for it, but it still boils down to and pales in comparison to; you're 30 years old, living in your brothers house, earning 15k p.a.
In the grand scheme of things some say renting is dead money, some say mortgages are dead money, but at 30 you shouldn't really be more fussed bout a mexican holiday, or having a GTX 780 in your rig etc. as your major thoughts. Priority should be to either put yourself in a better financial situation and save money, or vice versa. As mentioned, what happens if you and your brothers fall out? He decides to sell up and move? Or just wants you to leave because he wants to start a family? They're all things that could happen in a relative quick ammount of time, and provision for if/when those happen should be key.
In the grand scheme of things some say renting is dead money, some say mortgages are dead money, but at 30 you shouldn't really be more fussed bout a mexican holiday, or having a GTX 780 in your rig etc. as your major thoughts. Priority should be to either put yourself in a better financial situation and save money, or vice versa. As mentioned, what happens if you and your brothers fall out? He decides to sell up and move? Or just wants you to leave because he wants to start a family? They're all things that could happen in a relative quick ammount of time, and provision for if/when those happen should be key.
Soldato
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Theres no choice anyway unless you have a deposit ready.
If you are ever going to get a house then nows the time unless you anticipate moving elsewhere; lowest rates ever known and gov is actually paying most of peoples deposits
Personally I'd recommend people get a fixed rate long term and I believe it will be the best investment people ever make, because rent is deductible from any costs (in comparison)
Its close to a no brainer for anyone who has savings to use it this way. As said the OP's brother is likely the smarter of the two and better off long term, even with the nice rent given
If you are ever going to get a house then nows the time unless you anticipate moving elsewhere; lowest rates ever known and gov is actually paying most of peoples deposits
mortgage interest is only a waste on the part which exceeds inflation. So we got 3% rpi or whatever and lets say you have an awful rate of 4.5% to pay, really this is super cheap for the ability to buy.
Personally I'd recommend people get a fixed rate long term and I believe it will be the best investment people ever make, because rent is deductible from any costs (in comparison)
Its close to a no brainer for anyone who has savings to use it this way. As said the OP's brother is likely the smarter of the two and better off long term, even with the nice rent given
Associate
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The phrase 'renting is dead money' is idiotic imo. it's not dead, it's paying for a service and depending on what stage you are at in your life can make far more sense than buying. Because I rent i've been able to relocate to where my work takes me relatively painlessly. If I had bought a house straight out of university and tied myself down to living in a medium town in the SE it's unlikely my career would have advanced as far as it has by now.
I really don't understand the UK obsession with owning your own home ASAP no matter what. In Germany for example it's perfectly normal to rent for your entire life - granted tenants have stronger rights over there than here.
I really don't understand the UK obsession with owning your own home ASAP no matter what. In Germany for example it's perfectly normal to rent for your entire life - granted tenants have stronger rights over there than here.
Yet its probably one of the most honest/sensible posts in the thread
As you mentioned it was harsh, but I agree with you that it is likely true.