Continue to rent flat or house share to save for mortgage?

[Stratos]

Hi all,

Just thinking about the future and would like to know if anyone else has been in this situation. I have been renting a flat for the past two years now and ideally want to be in a position to get a mortgage.

Has anyone given up your own space in favor of a house share for sake of a mortgage deposit?

Thanks for any advice in advance!

 

[zegna]

House share is the norm in London.. I've got my own place and would find it difficult to downgrade to a house share again. Luckily I have zero interesting buying into the London ponzi scheme so I'm not bothered about a deposit.

 

[MrMoonX]

Going from your own place back to sharing would be like living with your parents again. I can't think of many thing more horrible than a house share

 

[Jokester]

Are you able to save at all at the moment and is your job likely to lead to promotion and an increase in income in the future?

 

[Stratos]

Yeah, im able to save but just not the amount that i feel would be worthy of a deposit. I do see promotions in the future, but its just the time scale it would take with my current outgoings on running my flat to raise a decent deposit.

 

[Mynight]

How long would it take you to reach say £30k?

10% is still the minimum for a mortgage isn't it?

Depending on length of time you might find prices have decreased somewhat and will be able to afford your own place without having to sacrifice your own space in the meantime.

Then again the house prices may continue to increase .

Do you have any idea what size house you'd want to go for? And price wise?

 

[PMKeates]

Depending on length of time you might find prices have decreased somewhat and will be able to afford your own place

hahahahahahaha

@OP, unless you have issues living with people and/or are anti-social, then sharing sounds like an ideal way to save for a deposit if you don't have other earning potential.

 

[Mynight]

hahahahahahaha

Wishful thinking? .

I assume house prices are rising due to the amount of buyers looking and the lack of properties. If all these building sites go ahead would it not be possible that the properties will lower the value?

 

[Sharlaw]

I'm 33 and never lived on my own. That's the dream.

Been flat sharing since leaving home at 18 and am finally in a situation where I can start saving for a mortgage. But with things as they are, I could barely get a mortgage enough for a small flat, even with a half decent deposit. It's not easy and it's damned hard to get anywhere these days. But don't lose sight of where you're looking to get to, and eventually you'll get there.

 

[PMKeates]

I'm not sure that betting against house price rises is a good idea

 

[PMKeates]

Been flat sharing since leaving home at 18 and am finally in a situation where I can start saving for a mortgage. But with things as they are, I could barely get a mortgage enough for a small flat, even with a half decent deposit. It's not easy and it's damned hard to get anywhere these days. But don't lose sight of where you're looking to get to, and eventually you'll get there.

Have you looked in to shared ownership and Help to Buy?

Broadly speaking, you are better off buying than renting.

 

[Mynight]

Yeah ok going by that house share looks to be the best bet .

Apologies appears I'm living in my own naive little world .

 

[Sharlaw]

Have you looked in to shared ownership and Right to Buy?

Broadly speaking, you are betting off buying than renting.

Yeah, certainly want to get there, but didn't want to even consider it without a good wad of cash to start off with. Should be good in the next year or so, I have a number in mind that I want to start off with. Then will look at what's available at the time. Things can change so fast it's not really worth spending too long going into details until you're pretty much ready to go.

 

[zegna]

I'm not sure that betting against house price rises is a good idea

You can't use a graph like that to predict what's going to happen with prices - a hell of a lot has changed since the 50s!

Debt is cheap and the whole world is addicted to it.. I've given up on a house market correction.

Just consider what happened in 2008, and absolutely nothing happened to the London market, it's utterly insane.

I'm planning on moving out of London when I buy and living with the fact I will need to commute. Only saving grace is that working from home is becoming more and more acceptable in my sector, which means it's not all bad commuting 3 days a week.

 

[Buffman]

Depends if you'd save much more in a house share or if it would take many years more living in your own tbh.

Eg for me personally I'd rent a flat a year longer while saving up, rather than stay in a flat(or house) share and be able to buy a year earlier.

I however in my circumstances am moving to Cambridge into a house share which will be a bit different from renting my own place with gf at uni!

 

[RedvGreen]

You can't use a graph like that to predict what's going to happen with prices - a hell of a lot has changed since the 50s!

Debt is cheap and the whole world is addicted to it.. I've given up on a house market correction.

Just consider what happened in 2008, and absolutely nothing happened to the London market, it's utterly insane.

I'm planning on moving out of London when I buy and living with the fact I will need to commute. Only saving grace is that working from home is becoming more and more acceptable in my sector, which means it's not all bad commuting 3 days a week.

What sector is that?

I'm probably going to have to move away to work, so whilst the salary can be double what i'm currently on, the cost of rental is more than the (monthly) cost of a mortgage. Not including other expenses (service charge etc).

Sadly I lack any funds for the deposit for a mortgage so i'd be entering into the vicious circle of rental-due-to-no-deposit, yet low-savings-due-to-high-rental.

I'd hate sharing with anyone who wasn't a gf - some people leave everything in a right mess, toilets, kitchen, pee in the shower. Plus potential risk of theft/damage to your property.

 

[PMKeates]

Sadly I lack any funds for the deposit for a mortgage so i'd be entering into the vicious circle of rental-due-to-no-deposit, yet low-savings-due-to-high-rental.

With Help to Buy deposits can be small e.g. 5%. Where are you thinking of buying?

 

[zipp0r]

house shares are a nightmare. you end up lumped with selfish, inconsiderate, noisy, dirty bumholes.
only do it if it is a last resort. alternatively, rent out your spare room, so when you find out that your flat mate is a bumhole you can kick them out.

 

[zegna]

house shares are a nightmare. you end up lumped with selfish, inconsiderate, noisy, dirty bumholes.
only do it if it is a last resort. alternatively, rent out your spare room, so when you find out that your flat mate is a bumhole you can kick them out.

Option 3 is to rent out a 2-bed, and find someone to sub-let the spare room.

Happens a lot in London and is a good way to avoid having to move into a random house. Most landlords turn a blind eye..

 

[delta0]

You can't use a graph like that to predict what's going to happen with prices - a hell of a lot has changed since the 50s!

Debt is cheap and the whole world is addicted to it.. I've given up on a house market correction.

Just consider what happened in 2008, and absolutely nothing happened to the London market, it's utterly insane.

I'm planning on moving out of London when I buy and living with the fact I will need to commute. Only saving grace is that working from home is becoming more and more acceptable in my sector, which means it's not all bad commuting 3 days a week.

That and the graph is missing nearly two years of data which shows it heading on an upward trajectory.