Private rent?

Emma624Emma624 Posts: 137

Hi

This isn’t really wedding related but always get help here. Anyone who is privately renting what is the plan? Or what will you do when retirement comes round?At the moment we are saving for a deposit (still live with mother in law). I feel my husband and I need our own space but because we live in London (and need to stay in area - MIL takes my daughter to school and picks her up whilst we’re at work) it’s too expensive. We have quite good jobs and are struggling. We don’t want to spend £300.000+ on a small 2 bed flat. I want to move out sooner and the only way we can do it is privately renting but what happens when retirement comes around and you can’t afford it any longer? I don’t think we can privately rent and save for a deposit. Any advice welcome.

Posts

  • KittyFiennesKittyFiennes Posts: 975 New bride

    As you say you have "good" jobs & you're living with family, I don't see a reason you shouldn't be able to save some money now & then also save some whilst renting.  It's pretty much the done thing.

    I'd work up a budget to see where you're spending and where you could save.  If you're eating out a lot, there's a place to cut costs. If you were planning to have a wedding, have a smaller registry office affair instead. No more holidays (or just small local ones) until you have your deposit.  There are loads of ways to save money on kids things (i.e. free activities only versus private lessons, preloved clothing, etc.)  Things like that can make a huge difference in your savings. 

    I have a sister and a coworkers who also both got part-time jobs in addition to their full-time jobs, and all of those monies earned go into a fund for the deposit. 

    It's not easy, but it can be done.

  • MrsCToBeeMrsCToBee Posts: 2,750 New bride

    Have you considered shared ownership? Or moving a fair distance out of London? You could then possibly cut your hours at work then to enable you to do school runs.

    We bought shared ownership to get out of private rented quicker.

    There are also other options for school runs - my childminder does them for a few local mums.

    No offence meant Kitty Fiennes as I know you aren't in the UK, but do you know how high London rents/house prices are? It's well over £1000 a month just to rent a small room in many areas. Friends of mine sold their 1 bedroom flat in  a London suburb and bought a 4 bedroom house in my town for the same price! I live 30 miles out of London and a VERY small 2 bedroom house here with no parking and a tiny garden is over £300k.

    I do agree though that saving while living with family is the best option - you must be able to save a fair whack if both on good salaries with minimal outgoings.

     

  • Emma624Emma624 Posts: 137

    Thanks for the replies. The problem is school does not cover our working hours - I work 9-6 and my husband works 10.30-9. Could not move out of London only to pay for childcare and the commute. I also could not afford a mortgage if I cut down hours. The 2 bed flats available are tiny. If we privately rent we can get a 3 bed so that my stepson also has a room. We have been saving - we saved for the wedding as well as our deposit and have a substantial amount but it’s not enough - also part buy part rent is normally on new builds and full ownership could be £500,000 upwards for 2 bed flats in London. The advice I really wanted was if we were to private rent - we really do have to move out soon - what happens when we retire and don’t own our own home?  

  • MrsPB2019MrsPB2019 Posts: 554 New bride

    H2B and I rent and I would love to buy but unfortunately it won’t happen. We’re in Sussex so a good chunk of our earnings goes on our rent and at the moment anything spare is going towards the wedding. I worry what will happen when we start a family as there’s no chance we can afford this rent on one salary considering my work only offers statutory maternity pay. But it’ll just be a case of we’ll cross that bridge when we get to it.

  • SadieeeSadieee Posts: 1,781 New bride

    My grandparents rent. However it's not in London so they could afford to keep renting their housr. You could just move to a smaller or cheaper rent when the time came or look to the council. 

  • Ali217Ali217 Posts: 62

    I want to buy eventually as I worry that a pension won’t be enough to cover rent nevermind anything else. I rented a flat 5 years ago for £600 which is now close to £900, needless to say we were priced out. I also don’t want to be 70 and lose my home because the landlord sells.

    The only advice I have is to look into help to buy ISAs, the government will give you up to £3000 towards buying (£6000 if your partner has one too). 

  • bella2015bella2015 Posts: 1,903 New bride

    Realistically I think your options are to stay put and save up more for a deposit, or look at cheaper areas. If you moved you could use a childminder which isn't necessarily going to cost as much as you think.

    When you retire there's the option of downsizing as I assume you wouldn't need as much space then, or need to stay in London.

  • Lucy266Lucy266 Posts: 176

    When you retire you may 

    -inherit

    -not need to live in London 

    - be able to downsize

    -the world will have gone to shit but the upside is that the London property market will no longer be massively inflated.  

    There are a lot of factors that will affect your retirement. If you want to be prepared look for a good pension /job with a good pension and a lifetime isa maybe?

  • I’m not entirely sure what the issue is? Maybe I’m missing the point? You’re concern is that you won’t be able to afford renting when you retire, but the whole point of retirement is that you no longer work. Surely without a job keeping you in London you could move elsewhere? You’re children will be all grown up by that point so unless you help out with grandchildren, you won’t have to think about the school run any longer. 

  • Issa19unionIssa19union Posts: 123 New bride

    I think it’s one of those ‘you can’t have your cake and eat it’ type things, you probably need to prioritise abit. If you are on a good wage your pension should be enough to cover private rent? Or at that point to move out of London which would probably be a better quality of life for you at that age anyway.. Also as others have said, it sounds like you could hold on a little while at your MIL and save for a deposit, moving just outside London really isnt that pricey for a commute hence why there are so many ‘London commuter towns’. We used to live in Kent and commute to London, wasn’t so bad and childcare is much cheaper out there.

  • MrsCToBeeMrsCToBee Posts: 2,750 New bride

    If you private rent and are on a pension you may receive housing benefit, would entirely depend on your incomings and outgoings. Plus of course system may have completely changed by then! 

    Issa is right - I live in a Kent commuter town, half my neighbours go to London everyday! In fact there is currently a huge exodus of people moving here from London. Plus of course there are jobs outside of London, I've never worked there because I don't want to.

    Basically your options are stay put and save or move somewhere cheaper, if as you say you don't want to pay a fortune to buy or rent a small flat. If you want to live in London, that is the reality.

  • Emma624Emma624 Posts: 137

    Thanks for all the replies. I didn’t even think about the obvious moving out of London when we are older. We have other issues that we can’t just move out of London we need to be near my stepson for example I wouldn’t think it’s fair that we see him less by moving away. 

  • SadieeeSadieee Posts: 1,781 New bride
    Emma624 wrote (see post):

    Thanks for all the replies. I didn’t even think about the obvious moving out of London when we are older. We have other issues that we can’t just move out of London we need to be near my stepson for example I wouldn’t think it’s fair that we see him less by moving away. 

    By the point if your retirement he may not even still be in London, he will be grown 

  • KittyFiennesKittyFiennes Posts: 975 New bride
    MrsCToBee wrote (see post):

    No offence meant Kitty Fiennes as I know you aren't in the UK, but do you know how high London rents/house prices are? It's well over £1000 a month just to rent a small room in many areas. Friends of mine sold their 1 bedroom flat in  a London suburb and bought a 4 bedroom house in my town for the same price! I live 30 miles out of London and a VERY small 2 bedroom house here with no parking and a tiny garden is over £300k.

    And my youngest sister is paying rent of $2200 right now, whilst paying off student loans.  That's about £1632/ month in rent.  My flat before I moved in w/ my OH was incredibly small, for the equiv of £630/ month, plus expenses.  Rents aren't cheaper in major cities here either...and we still save for homes.  If you have a "good" job, you should be able to rent and still live within a budget that allows you to save for the future.  You certainly don't want to live with relatives forever.

     

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