Was in a similar position. I decided it Would be better to relocate and have a chance of buying again than continue paying rent. Especially now that the councils will soon be charging market value for their properties, that will make rents even higher as more council tenants move out of social housing and into the private market.
Apartment Prepping
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Was in a similar position. I decided it Would be better to relocate and have a chance of buying again than continue paying rent. Especially now that the councils will soon be charging market value for their properties, that will make rents even higher as more council tenants move out of social housing and into the private market.
We're getting off easy on rent here..paying $250.00 a month in rent.plus utilities.
In some parts of the UK rents for ordinary houses in parts of London and the SE are now $4000 A MONTH thats just for a standard 3 bedroom house.
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I can assure you that my first couple of houses were not where I wanted to live either.
My first house was built in the '40's and was only 836 sq ft on a small lot in town. The sale of that house in 5 years enabled me to buy a new home that was double the size and on a 1/4 acre lot. Still not where I wanted to live. It took a couple more home purchases before I was able to buy where I wanted to be. Each sale always bought the next place or two. It was never easy. At the beginning I worked every bit of overtime I could get, did without vacations and made lots of sacrifices in order to keep moving up. I always liked getting rents checks from my tenets, they helped me buy additional propertys.
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average rents in my location are £500-£600 per month, I have been told you need a 30% deposit these days to buy a house, even on an average "starter" home that's nearly £50, 000, that's beyond a lot of people.
Dont they have owners that are willing to finance? What about distressed properties? I'm talking run down, needs lots of work kind of places that the bank wants to unload quickly.
there are some houses in the midlands(which is why I mentioned it), places like Birmingham I think, where in the past the council have sold houses for as little as £1, but they are pretty run down, will take a lot of money to repair/renovate, their only "back to backs"- no garden just a small yard and a back alley, and you have to agree to live in them yourself for several years, not resell or rent out, and that was some time ago I haven't seen any mention of this recently.
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I'm not sure what the average price of a home is in my area but I've seen homes selling in town for as little as $25,000. At this price they need some repairs and updating, but with a little work in a couple of years you could double your money on them, or use it for a rental. I think a down of 25-30% sounds about right, depending on the seller. There's always a house somewhere that almost anyone can afford to buy. The last place I sold I got 25% down and I'm carrying the note at 6% interest. That payment covers all of my expenses. My daughter was renting a house in town at $600/month.
I mentioned this in another thread somewhere. Right out of high school one guy I knew bought a place for about twenty thousand. It was a small, run down ugly little place in a not so nice or safe neighborhood. It was valued so low that he didn't have to pay property tax. Most laughed at him, but he only had to pay a couple hundred a month to live somewhere. He put up a fence, got a couple large dogs, and worked hard at paying extra each month. I think he was out of debt in four years or so. He then spent most of his money on important things, like fishing and surfing. Again, most laughed at him. Now that I'm a lot older, and a little wiser, I think he was much smarter than most. He spent most of his time doing things he liked to do instead of 'keeping up with the Joneses'.
the only house I ever owned was a 3 bed terraced house in a city suburb, it cost £3, 800 back in the early 70s, we put down a deposit of £2,000(I was doing a lot of overtime in the telephone exchange back then) and our mortgage payments were £10 per month, my average take home pay with overtime was £20 per week. I lost that house in the first divorce in the 80s.
Offspring saw a mortgage advisor a few weeks ago. He's been advised a 10% deposit is fine, but he could go as small as 5% , however he wants as big a deposit as possible so that he doesn't need such a large mortgage. His plan is to overpay the mortgage while we continue to save for another year or so, then use the equity in his house to finance a small property for me. We had also discussed adding a granny annexe, but that would mean him being stuck in his first property until I die, which may not be what he wants or I would be happy with.
The most useless advice to an apartment prepper is to buy a house. That is like saying to someone lost in the woods, "Get found"
People ask for advice for where they are at now, not where they will be at 10, 20, 30 years from now. Come on, the guy is going to school, he will have all the expense of school and what he learns in prepping with that apartment will help him even if he does buy a house after he gets a full time job without the distraction of school.
In an apartment, you don't want a ton of survival goods and no money in the bank; you will end up selling all those toys in order to pay your rent when you lose your job. First (and everyone should do this) prepare for a job loss, cut needless expenses and save as much as you can. If you are in a year to year lease always keep an eye on cheaper apartments in your area as you may save $100 or more per month by moving (be careful, ask the neighbors how often the rent is raised as you may exceed that savings in a year or two if your current place raised the rent 5 years ago but the new place does it every year).
People everywhere should take care of their health so I often leave that out; but if your insurance covers eye glasses and dental then get your teeth fixed and buy new glasses as soon as your insurance allows because your next job may not have an insurance plan.
Apartment preppers are basically preparing for short term emergencies so don't bother storing any 'live off the land' gear if you don't have the space for it. Get good battery sipping flashlights, headlamps, lanterns. Big Buddy heater can be used indoors. If you have oil heat and electrical power then an electrical heater can cover your heating needs if the furnace goes down but the electrical is still on.
People ask for advice for where they are at now, not where they will be at 10, 20, 30 years from now. Come on, the guy is going to school, he will have all the expense of school and what he learns in prepping with that apartment will help him even if he does buy a house after he gets a full time job without the distraction of school.
In an apartment, you don't want a ton of survival goods and no money in the bank; you will end up selling all those toys in order to pay your rent when you lose your job. First (and everyone should do this) prepare for a job loss, cut needless expenses and save as much as you can. If you are in a year to year lease always keep an eye on cheaper apartments in your area as you may save $100 or more per month by moving (be careful, ask the neighbors how often the rent is raised as you may exceed that savings in a year or two if your current place raised the rent 5 years ago but the new place does it every year).
People everywhere should take care of their health so I often leave that out; but if your insurance covers eye glasses and dental then get your teeth fixed and buy new glasses as soon as your insurance allows because your next job may not have an insurance plan.
Apartment preppers are basically preparing for short term emergencies so don't bother storing any 'live off the land' gear if you don't have the space for it. Get good battery sipping flashlights, headlamps, lanterns. Big Buddy heater can be used indoors. If you have oil heat and electrical power then an electrical heater can cover your heating needs if the furnace goes down but the electrical is still on.
Im trying to talk the wife into buying a peace of ground were i grew up .. land is really cheap i think she is mostly against me wanting to live in a camper on it while we build lol .. but i think it would be fun as hell! I miss being able to piss off my front porch!!! lol for that matter i miss being able to shoot a gun from my porch!
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I stand behind my "useless" advice to any apartment dweller to save up and buy a house or land. Take it or leave it. Owning your own place is definitely part of prepping. I used to own a lot of rental properties and couldn't understand why someone would send me money every month instead of buying their own place. I can see renting only for a very short term. Anyone who can afford to pay rent can afford to buy a house. At least that's the way it is in the US. If one job doesn't provide enough income, then get two jobs. If your unskilled, learn a trade. If home prices are too high where you are, move to where home prices are lower. Buy a fixer upper.
But what do I know. I've only been buying and selling real estate for over 40 years.
