How the heck do people my age and younger afford to buy houses?!
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Original post by Reue
If you're unable to achieve what you want by doing what you're currently doing.. why wouldnt you try changing something?
surely choosing a similarly paid but non-car-requiring job would be more sensible?
Original post by LavenderBlueSky88
surely choosing a similarly paid but non-car-requiring job would be more sensible?
that is literally what he said... try changing something
well @LavenderBlueSky88
they save money
they have businesses or side incomes (passive or not)
they don't have other expensive stuff
they save money
they have businesses or side incomes (passive or not)
they don't have other expensive stuff
Original post by LavenderBlueSky88
This week 3 of my Facebook friends have posted the nauseating "finally got my keys" status. They're all between the ages of 24 and 27, I know none of them earn more than £25k and the houses they've bought look pretty decent. How in gods name have they done it? I'll be lucky to be on the property ladder by the time I'm 40 - I have absolutely no savings, very little chance of family inheritance, no rich boyfriend. sigh.*
If your username gives away your year of birth, we are the same age.
I can see you're disheartened and know why. Now - snap out of your self pity and do something about it.
I am fortunate enough to own my own place. To most people, it has seemed easy. However, the reality is a took a really dreadful residential job for nearly six years, got paid minimum wage and worked 35 hour weeks in addition to a Bachelors and then a Masters degree. I saved everything and finally have enough to do what I'm doing.
Some people do work really bloody hard and keep it quiet. Others may have Trust Funds or some such.
However, remember that Help to Buy does exist and will be helpful. A 90% Mortgage is terrifying, but if you're that desperate, there's always a way. Your first property doesn't have to be perfect.
Top tip: If you do get somewhere and it has two bedrooms, consider getting a lodger. Great source of income.
(edited 7 years ago)
Mummy and Daddy
Its almost always the way, that or some inheritence or fund. Saving for a deposit plus all the fees associated with, plus furniture etc etc is a mission unless you really do cut back on your life.
Things are much easier if you have a partner who works
Recent help to buy scheme is the only way most single earners without help will buy a first time property these days, unless you live at home for a number of years.
and location is important, 5% for a house down in plymouth is about 5k, or 10k for a 4 bed terraced.
London has increased their help to buy recently to a 40% loan, but securing a mortgage for a high value property may be difficult.
Source: I am a doctor on 45k
Its almost always the way, that or some inheritence or fund. Saving for a deposit plus all the fees associated with, plus furniture etc etc is a mission unless you really do cut back on your life.
Things are much easier if you have a partner who works
Recent help to buy scheme is the only way most single earners without help will buy a first time property these days, unless you live at home for a number of years.
and location is important, 5% for a house down in plymouth is about 5k, or 10k for a 4 bed terraced.
London has increased their help to buy recently to a 40% loan, but securing a mortgage for a high value property may be difficult.
Source: I am a doctor on 45k
They have high paid jobs, get parents/grandparents/relatives to help them or they use help to buy schemes
Posted from TSR Mobile
Posted from TSR Mobile
My first grad job only paid 23k. Lived at home, didn't spend much money at all. Had about 10k of savings from previous jobs and freelancing Software from age 16 to Graduation, bought my first house at 22. So I suppose my biggest tip would be to just keep your costs and expenditures down. Probably easy to say in my case, but even among the 3 other graduates that I started working with, who had to rent, 2 have also bought their own homes within 3 years of saving. I don't see what's so hard. Oh and if you can, don't drive, it really eats into your saving potential.
(edited 7 years ago)
Original post by LavenderBlueSky88
I can't afford to save that much! I've been full time employed for almost 2 years and the most I was ever able to save was £1000 and then I had to spend it on a rather large car repair*
How much do you earn? It's either that or you spend too much. 1k is pretty low tbh.
How I managed to afford my first house at age 23?
While I bought it at 1/3 off the market value due to my late granddad selling it to me, it was still by no means cheap to buy, it was similar in price to a house in the North but being in Oxfordshire.
How was it done?
- Car? I received one from the company and didn't buy another one despite really liking cars.
-Holidays? I usually brought the kids to somewhere in UK or Sweden only.
-Nights out? I limited myself to going out once per month and max 2 drinks. If I went out more than that I always opted to be the designated driver.
-Going out to eat? I ate breakfast at home, brought lunch from home unless I knew I could claim it and dinner always ate at home. Only went out to eat when it was a special occasion.
Finally it boiled down to this, each month on pay day I removed 25% of my income and placed it in a separate account, I went on the basis that the remaining 75% was all the income I had so that's what we lived and managed on.
Everyone can do it and so can you.
While I bought it at 1/3 off the market value due to my late granddad selling it to me, it was still by no means cheap to buy, it was similar in price to a house in the North but being in Oxfordshire.
How was it done?
- Car? I received one from the company and didn't buy another one despite really liking cars.
-Holidays? I usually brought the kids to somewhere in UK or Sweden only.
-Nights out? I limited myself to going out once per month and max 2 drinks. If I went out more than that I always opted to be the designated driver.
-Going out to eat? I ate breakfast at home, brought lunch from home unless I knew I could claim it and dinner always ate at home. Only went out to eat when it was a special occasion.
Finally it boiled down to this, each month on pay day I removed 25% of my income and placed it in a separate account, I went on the basis that the remaining 75% was all the income I had so that's what we lived and managed on.
Everyone can do it and so can you.
Original post by LavenderBlueSky88
This week 3 of my Facebook friends have posted the nauseating "finally got my keys" status. They're all between the ages of 24 and 27, I know none of them earn more than £25k and the houses they've bought look pretty decent. How in gods name have they done it? I'll be lucky to be on the property ladder by the time I'm 40 - I have absolutely no savings, very little chance of family inheritance, no rich boyfriend. sigh.*
You may have to emigrate to Australia or Canada..or even somewhere on the Continent God Forbid....
Personally looking to buy a property with my partner this year (both 25), but in the area of the midlands we live a half-decent 3 bed can be had for around 130k. Graduated 3 years ago (took a while to find anything stable), I have no uni debts due to paying them off already and have about 10k saved. My parents are giving me 10k towards the deposit, albeit if they didn't it would take another year or I'd have not paid off my course fees.
They either have rich relatives who give them a lot of money, or they just have no idea how to manage their finances, and they just take out massive loans that they'll never be able to repay. You'll know if it's the latter when they come grovelling at your door begging for spare cash in a few years. (there really are people who are that useless at managing money)
There's also the possibility that they're amazing at managing their money, and they successfuly keep a minimal spending policy, so that they can gather loads of savings. (Hey, I didn't say it was a likely possibility)
There's also the possibility that they're amazing at managing their money, and they successfuly keep a minimal spending policy, so that they can gather loads of savings. (Hey, I didn't say it was a likely possibility)
No point complaining about it.
We all know the housing market is screwed, and is a stacked deck against the youth.. I could make a huge post on how the numbers back this up comparing my generation to my parents and even grandparents, but its just not worth it, as its got to the point where there is a pretty universal acceptance of the problem.
Some may say that its better in some areas then others, but thats just a nice way of saying 'its not became quite as awful in some areas as others'
---
So the problem exists, now what are you going to do about it?
Most of the posters here have suggested exactly the right answer, which is to avoid the trap of high-cost of living causing an inability to save.
If you are serious in your desire to own a home, as I am, and like me you don't have rich family/friends/partner, then you must make every change you can to put yourself in a position where you can change your circumstances.
Either by A. getting more money
or more likey B. reducing spending
Cut your expenses drastically. Car? dont need it, try and get a job that does not need a car..
Renting a flat? get rid. Move in with family, suck it up until things are better. If you cant live at home due to work, find new work.
Holidays, nope. Expensive food/trips out, nope.
Budget correctly, and be harsh with the realities and you will be able to save. but not if you wont make sacrifices.
If you don't want to make sacrifices, then wait until you have a better job, and start saving then.
---
For me, I made a huge change to put myself in a better position to buy a house: I moved to china. I miss england and my family every day, but my earnings over here are higher then in england, and my cost of living is around 25% of what it was in england. Currently I am in a position to save over 20,000 each year, and will be returning to england next year with a sizeable deposit for a house. I could already have a house, but I am putting it off as I want to reduce the size of my borrowing.
Point is, all I want to do is go home, but I wont until I am ready.
I am not saying you need to move to china, but I am just using this as an example of the type of sacrifice many people our age need to make to be able to buy a house.
---
I am considering everything, self-builds, renovation, buying and then renting rooms, all options, and everyone should be.. We cannot fully control the circumstances of our generaion, but we can control our response to it, which right now means we need to do all we can and fight in any way to get a house, start a family, and live the adult life we want.
So create a plan, work out how you can earn more, spend less.. and start working towards your house.
If you dont think you can spend less, then you dont really want a house - as its always possible to cut back, just many are not prepared to make the level of sacrifice required.
We all know the housing market is screwed, and is a stacked deck against the youth.. I could make a huge post on how the numbers back this up comparing my generation to my parents and even grandparents, but its just not worth it, as its got to the point where there is a pretty universal acceptance of the problem.
Some may say that its better in some areas then others, but thats just a nice way of saying 'its not became quite as awful in some areas as others'
---
So the problem exists, now what are you going to do about it?
Most of the posters here have suggested exactly the right answer, which is to avoid the trap of high-cost of living causing an inability to save.
If you are serious in your desire to own a home, as I am, and like me you don't have rich family/friends/partner, then you must make every change you can to put yourself in a position where you can change your circumstances.
Either by A. getting more money
or more likey B. reducing spending
Cut your expenses drastically. Car? dont need it, try and get a job that does not need a car..
Renting a flat? get rid. Move in with family, suck it up until things are better. If you cant live at home due to work, find new work.
Holidays, nope. Expensive food/trips out, nope.
Budget correctly, and be harsh with the realities and you will be able to save. but not if you wont make sacrifices.
If you don't want to make sacrifices, then wait until you have a better job, and start saving then.
---
For me, I made a huge change to put myself in a better position to buy a house: I moved to china. I miss england and my family every day, but my earnings over here are higher then in england, and my cost of living is around 25% of what it was in england. Currently I am in a position to save over 20,000 each year, and will be returning to england next year with a sizeable deposit for a house. I could already have a house, but I am putting it off as I want to reduce the size of my borrowing.
Point is, all I want to do is go home, but I wont until I am ready.
I am not saying you need to move to china, but I am just using this as an example of the type of sacrifice many people our age need to make to be able to buy a house.
---
I am considering everything, self-builds, renovation, buying and then renting rooms, all options, and everyone should be.. We cannot fully control the circumstances of our generaion, but we can control our response to it, which right now means we need to do all we can and fight in any way to get a house, start a family, and live the adult life we want.
So create a plan, work out how you can earn more, spend less.. and start working towards your house.
If you dont think you can spend less, then you dont really want a house - as its always possible to cut back, just many are not prepared to make the level of sacrifice required.
Family, of course, for the deposit, do not be fooled to think otherwise. The rest is probably living with parents, saving almost the entire 25k you have mentioned and getting the mortgage.
Original post by NX172
My first grad job only paid 23k. Lived at home, didn't spend much money at all. Had about 10k of savings from previous jobs and freelancing Software from age 16 to Graduation, bought my first house at 22. So I suppose my biggest tip would be to just keep your costs and expenditures down. Probably easy to say in my case, but even among the 3 other graduates that I started working with, who had to rent, 2 have also bought their own homes within 3 years of saving. I don't see what's so hard. Oh and if you can, don't drive, it really eats into your saving potential.
I don't really see why people are so eager to drive (excluding people whose job involves using a vehicle).
P.S. What did you normally do in your first grad job?
Most people are pretty smart in my area and only go uni if they wanna do law or accountancy or some other good degree. They don't buy into all that middle class you must go to uni to be a success. Hard work and graft can get you a long way and I know people 22 who have got decent properties after leaving school at 16 and working damn hard. Many of these don't have the support network to fall back on at home anyway so it's either work or uni but if they went uni they would not club 4 days out of the week like many students do
Original post by Juichiro
I don't really see why people are so eager to drive (excluding people whose job involves using a vehicle).
P.S. What did you normally do in your first grad job?
P.S. What did you normally do in your first grad job?
There's a wide variety of reasons for wanting to drive, which I will not be exploring in this post. For people who see themselves driving at some point or would like to, the consensus is that generally the earlier you start driving, the more experience and no-claims you can build up. Personally I just loathe public transport.
My first grad job was as a Software Developer, creating and maintaining services for a cloud based retail management system.
I don't mean to be the nasty guy of TSR, but we have 5% deposit mortgages, if you don't have say 20k of savings by the time you're 30, you're doing something badly wrong.
Worst case scenario you and your partner pool 10k each, very realistic for most people.
Worst case scenario you and your partner pool 10k each, very realistic for most people.
Original post by NX172
My first grad job was as a Software Developer, creating and maintaining services for a cloud based retail management system.
My first grad job was as a Software Developer, creating and maintaining services for a cloud based retail management system.
Cool.
So you were not fixing bugs or any of that stuff entry level devs seem to be doing. Were you using Java or .NET's C#? Did any of your fellow classmates got a similar job as yours (I know you had been freelancing since you were 16)?Quick Reply
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