If I were to rent a property or get a mortgage, how much would I need for bills?
I’m 18 (UK), with a full time job with a pretty good income. I have no major outgoings and as there is more to getting a mortgage/paying rent.. how much on average do bills cost monthly? And other necessities? I am toying with the idea of moving out should it be feasible.
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Tags: Getting A Mortgage, Outgoings, rent property
rent property | , 28 May 10
By La Comtesse De Whippet, May 28, 2010 @ 12:16 pm
It can be variable. Council tax will depend on the size and value of your home – anything from several hundred to several thousand pounds a year: you’d need to clarify the banding system in your area with your local council. Water is generally £200 – £300 per year. Gas and electricity will depend on the efficiency of your heating system, the amount of heating you use etc – in summer you might have a combined monthly electricity and gas bill of less than £20. In winter it may be upwards of £100. Then you have the phoneline (BT line £12 per month), broadband (from £10 per month). If you live in flat, you may have things such as service and maintainence charges you need to cover as well, although if renting these will usually be covered by your landlord or property manager.
Whether you can afford to move out is largely going to depend on average rental prices for your area, and what you see as a “pretty good income”. Money goes further in, say, Lancashire than it does in London and the South East for instance. You need to draw up some charts of all possible ingoings and outgoings and see how it fits together. If possible, ask other people what their bills come in as. Have a look at and and use your postcode to get an idea of how far rent goes in your area. Alternatively, have you considered living with flatmates in a shared house? it certainly cuts down on the bills whilst still giving you the opportunity to leave home.
A mortgage is a completely different animal. It comes with far more responsibilities and expenses than renting, all of which you need to be prepared for. Until you have some experience of actually living on your own, managing your bills and managing a home it’s probably not a good idea to throw yourself straight into the responsibilities of home ownership. At eighteen, you’re likely not ready to be committed to staying in the same place for at least five years, and not necessarily able to have a definite idea of where you might want to be in the longterm.
By Doctor Deth, May 31, 2010 @ 4:46 am
ask your parents – they pay those bills