There’s no shame in living at home with parents if you find yourself needing to save a little money to take your next step on the property ladder. In fact, the last 12 months 120,000 Brits in their 20s and 30s have moved back home after a spell of independent living. If saving for a deposit is your main goal for the year, then this is probably a sensible move. But let’s look at the pros and cons of living at home; could it be a false economy?
Freedom vs healthy finances
Every family is different but more likely than not, if you do move back home you’ll need to consider the new rules. Your social life will suffer a little because you won’t be able to have people pop round as often, and you may find yourself inflicted with a curfew. Consider whether you can sacrifice your freedom, social life and work/life balance for the next year while you save. If you’re likely to argue with your parents, consider how this might affect your performance at work and whether it’s worth the hassle. Will moving back home affect your commute, making it longer and more expensive?
Renting isn’t always more expensive than a mortgage
The common misconception is that renting is more expensive than a mortgage – this isn’t always true. You never know what life may throw at you – job relocation or a growing family, with rentals you can change your property so simply and as often as you like, just hand in your notice and let the letting agents do the rest. Another perk to renting is that the landlords take responsibility for general maintenance of the property, including the boiler, roof and any possible damp problems.
It’s possible to cut costs when renting by moving to a less central location, but also consider sharing with other professionals. You may find you’re able to find a much more flexible space with a garden for less money than you would spend on a studio apartment in the city centre. If you have other friends looking to save money too, why not start looking at houses together?
Being creative with your first home can help you cover your mortgage
If you have long-term friends that you’d definitely consider renting with, would you consider buying with them? If you can’t afford a whole house to yourself, could you afford half, or a quarter? It’s not uncommon for pairs of couples to buy together to get on the property ladder.
You can also make some money back from your first home by using sites like AirBnB to raise some funds on days or weekends when you’re away, or you could consider taking in a lodger. If you’re a leaseholder, check the terms of your lease first.
Educate yourself about First-Time-Buyer Schemes
Before you hand in your notice and go back to your parents, research Shared Ownership Schemes (we have several Shared Ownership Developments on our books at Oakley), Equity Loans and Homebuyer Schemes. These are all designed to help first time buyers who are on a low income or only having small savings for a deposit. With a deposit as low as 5% of the property value you could still be well on your way to owning your first home. Brighton and Hove have very many new developments available under these schemes.
Should I stay, or should I go?
What choice will you make? Will you fly the nest and embrace your independence? Will you set yourself new savings goals, or will you be back home for Sunday dinner?
For more information about Shared Ownership Schemes in Brighton and Hove please contact our office on 01273 688881.
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