Renting at 20? Good idea?Watch this thread
I presently have exactly £20k in my savings account and £6,130.99 in my current account (though that will go down a bit as my computer recently broke). Currently I live with my parents, have never lived alone and feel pretty anxious about this sorta thing, though I have been considering moving out recently due to lack of privacy/boundaries at home.
So I was basically wondering, is renting a one bedroom flat at this stage a good idea? I'm quite inexperienced with this sorta thing, but from what I've looked up the monthly costs I'd need to worry about are:
-Rent (possibly including/excluding bills??)
-Gas and electricity ("cost of living crisis" concerns)
-Phone and internet
Which would appear to leave around £300 a month of salary remaining, though I'm unsure how much I trust my calculations here. TV license was purposefully omitted, I do not need nor want it.
One of my main worries about renting is essentially a "lack of control" sort of deal (i.e. fear of landlord deciding they have other use for flat/being kicked out), though there are benefits to me in that it's a quicker process, massively cheaper deposits, no need to worry about maintenance stuff (i.e. issues with electricity). I'm not sure if buying a one bed flat would even be worth it, and I kinda don't feel ready for that yet (nor am I certain it'd be achievable).
This is very much still a preliminary thing; as of yet I've kept it to myself, still am not 100% sure if I *definitely* want to leave home, haven't actually looked at any flats etc. Since I don't really know what I'm doing here, I thought I'd see if more experienced people think it's a good idea.
however you’re 20 so you need to think about if you’re going to live in a certain area short-term or long-term.
because if you’re going to stay long term, its worth just buying a place rather than rent.
the energy crisis is a rising thing so its good to turn to renewables however there’s some more cheap energy sources so it’s likely prices will go down soon.
you also need to think if you’re going to be homesick or not if you’re going to leave home because homesickness can really affect you. it doesn’t affect my brother even though he lived in 2 other countries his entire life but he’s fine because he doesnt get homesick. but im different, even going on holiday makes me a bit homesick and thats holidays so you need to get everything wrapped around your head or on paper so you can really think about.
hope this helps!
Have you also considered a studio instead of a 1 bedroom or renting a room in a houseshare with other single professionals?
Earning around £28,000 a year but being left with around £300 a month after paying rent & bills is economic suicide.
As a general rule, try not to spend more than 40% of your annual income on rental accomodation- EVER.
A piece of advice from someone who has done so for many years.
I spent many years living off under £29 a week after paying London rent and bills, within 6 years I had amassed over £50k in credit card debt.
Learn from my mistakes.
Save up as much as you can and restrict debt levels to below 25% of your net annual pay.