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How the heck do people my age and younger afford to buy houses?! Watch

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    It does annoy me when I hear people say that it isn't expensive to buy a house because you can just buy somewhere cheap up north. Around 25 million people live in southern England, they can't all move up there!

    (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.
    But not everyone can live at home. I certainly won't be able to. It doesn't matter how frugal you are, if half your income is spent on rent every month then you're unlikely to be able to save a big enough deposit to buy. And of course, the longer it takes you to save, the more expensive houses become.

    (Original post by Alfissti)
    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.
    And people who work in Oxfordshire that don't have a wealthy family member willing to sell them a cheap house? How will they afford it if even you only just managed to afford 1/3 of market value?
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    (Original post by ChaoticButterfly)
    I know someone who is 22 and about a year after graution has a house...

    They live in North West, so houses are cheaper, she has a good grad job in some programming and software development role, skills that I guess are in demand and there is actually an industry for. So will have a good income and she has a boyfriend so two incomes.

    She has also bought a second hand Audi :facepalm:
    Damn, I'm doing the wrong degree I think
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    By making sacrifices.

    I agree with Reue . You need to reevaluate your budget and priorities. Because being unable to even keep a grand saved shows something is not right with your budget and you should be lowering your cost of living where possible. This often requires sacrifices, as I said above.
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    (Original post by Snufkin)

    And people who work in Oxfordshire that don't have a wealthy family member willing to sell them a cheap house? How will they afford it if even you only just managed to afford 1/3 of market value?
    Where do you get the idea that it takes 1 person's income to be able to fully afford a house in Oxfordshire?

    in any case there are many types of homes you could buy for under 200k in Oxfordshire, sure it may be a flat or a really small.

    Saving up for the deposit? Got to make some sacrifices, perhaps might want to reevaluate your current living arrangements, living with parents or with a partner could help. Holidays, nights out and shopping at Waitrose isn't a necessity.
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    (Original post by Snufkin)
    But not everyone can live at home. I certainly won't be able to. It doesn't matter how frugal you are, if half your income is spent on rent every month then you're unlikely to be able to save a big enough deposit to buy. And of course, the longer it takes you to save, the more expensive houses become.



    And people who work in Oxfordshire that don't have a wealthy family member willing to sell them a cheap house? How will they afford it if even you only just managed to afford 1/3 of market value?
    Minimum wage for 21-24 is just over £1k a month. Double that up for house sharing with a partner/friend.

    You're suggesting that people are:

    1. Paying 1k a month in rent alone and couldnt possibly find anywhere nearby to live for less?
    2. Unable to save any sort of deposit from the other 1k a month they have after rent?

    Granted, I'm not in Oxfordshire.. but I am 1 county away and closer to London. I know of many young people who are working low paid jobs yet still saving up for and buying their first properties. I've yet to see anyone who works full time and lives with their partner who would be unable to save for a house in a reasonable timespan unless it was through self-inflicted expenditure.
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    Well I'm 19 woke 15hours a week on £7.50 an hour and have £4K in savings. The key is to createb a budget you can live on. And save From.

    Making some guesses here 1peraon minimum wage.

    40 hours a week on £7.50 a hour is £300 a week.

    Spend 110£ a week on rent leaves £190

    £40 for gas, electricity, water, and a basic internet package
    £35 a week for foodbudget

    £15 for over spending

    £100 into savings

    Also like many have said government help to buy isa
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    Another things is will really try to save money or just be lazy about it. When I go shopping I go to 3 different shops because it works out £8 cheaper and a friend of mine picks receipts up at asda for the free vouchers.

    If you buy baked beans don't go Heinz go for a basics brand like branstons which is much cheaper.

    If you buy a loaf of bread buy a sainsburys basics loaf for 50p rather thank a bigger brand for more money.
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    (Original post by Reue)
    Minimum wage for 21-24 is just over £1k a month. Double that up for house sharing with a partner/friend.

    You're suggesting that people are:

    1. Paying 1k a month in rent alone and couldnt possibly find anywhere nearby to live for less?
    2. Unable to save any sort of deposit from the other 1k a month they have after rent?

    Granted, I'm not in Oxfordshire.. but I am 1 county away and closer to London. I know of many young people who are working low paid jobs yet still saving up for and buying their first properties. I've yet to see anyone who works full time and lives with their partner who would be unable to save for a house in a reasonable timespan unless it was through self-inflicted expenditure.
    I only mentioned Oxfordshire because that's where Alfissti said he bought his house. I live in Hertfordshire where prices are even higher, I have no idea how I will ever be able to buy in my home town (which isn't even a nice town)!

    Let's not double that figure, not everyone wants to move to the other side of the country just to buy a house, and not everyone has found their life partner by their mid-20s. If you are single and living in the South East saving a deposit is really hard, maybe even impossible. An NQT take home monthly salary is about £1300. According to Zoopla, the cheapest 1 bed flat in my town is £750 pcm. Once you take off basic living expenses and travel costs, there is almost nothing left to save.
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    (Original post by Snufkin)
    I only mentioned Oxfordshire because that's where Alfissti said he bought his house. I live in Hertfordshire where prices are even higher, I have no idea how I will ever be able to buy in my home town (which isn't even a nice town)!

    Let's not double that figure, not everyone wants to move to the other side of the country just to buy a house, and not everyone has found their life partner by their mid-20s. If you are single and living in the South East saving a deposit is really hard, maybe even impossible. An NQT take home monthly salary is about £1300. According to Zoopla, the cheapest 1 bed flat in my town is £750 pcm. Once you take off basic living expenses and travel costs, there is almost nothing left to save.
    If they've not found their life partner by mid-20s perhaps they shouldn't yet be buying and effectivly locking themselves into a specific location?

    What about buying with a friend instead?

    All you've come back with is why some might not want to adapt their life to afford a house...
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    (Original post by Snufkin)
    I only mentioned Oxfordshire because that's where Alfissti said he bought his house. I live in Hertfordshire where prices are even higher, I have no idea how I will ever be able to buy in my home town (which isn't even a nice town)!

    Let's not double that figure, not everyone wants to move to the other side of the country just to buy a house, and not everyone has found their life partner by their mid-20s. If you are single and living in the South East saving a deposit is really hard, maybe even impossible. An NQT take home monthly salary is about £1300. According to Zoopla, the cheapest 1 bed flat in my town is £750 pcm. Once you take off basic living expenses and travel costs, there is almost nothing left to save.
    I know this is hypothetical anyway but couldn't you houseshare? I wouldn't be able to afford a place by myself either but I can rent a 3 bedroom terraced house with 2 others quite easily.*
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    my daddy

    nah but even if my dad hadn't helped me, with what I save from my job at 20 I could have bought a house by now with help to buy. I do live in the north east though so its cheap as chips
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    (Original post by Reue)
    If they've not found their life partner by mid-20s perhaps they shouldn't yet be buying and effectivly locking themselves into a specific location?

    What about buying with a friend instead?

    All you've come back with is why some might not want to adapt their life to afford a house...
    Maybe you're right, but the longer they put off buying the bigger the deposit they will need. You can't wait for ever; sooner or later prices will outstrip your savings potential.

    Buying with a friend is an option, but I don't think it should be assumed that everyone can do this. Very few of my friends are even thinking about buying at the moment and almost none have started saving. Not very wise perhaps, but that's how it is.

    Moving hundreds of miles from home is not a reasonable change to have to make simply in order to save a deposit or buy somewhere.

    (Original post by LavenderBlueSky88)
    I know this is hypothetical anyway but couldn't you houseshare? I wouldn't be able to afford a place by myself either but I can rent a 3 bedroom terraced house with 2 others quite easily.*
    Yes, that is possible. I believe the cheapest house share in my town is just over £500 pcm, so a little cheaper than renting a flat.
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    (Original post by Snufkin)
    * * Yes, that is possible. I believe the cheapest house share in my town is just over £500 pcm, so a little cheaper than renting a flat.
    Jesus! I just went on spare room and the cheapest in my town is £175pcm (a single room *in a rough area but still....)
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    (Original post by LavenderBlueSky88)
    Jesus! I just went on spare room and the cheapest in my town is £175pcm (a single room *in a rough area but still....)
    Jesus that's cheap!

    The place I just signed for is £280pcm and that was one of the 3 cheapest I could find.

    Edit: oh wait mine is with bills included, but actually even still quite cheap as bills in a house share should not be costing £100 a month (which is about the price difference between my place and the one you found).
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    (Original post by Alfissti)
    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.
    Yeah, if you have a relative who will sell you it at 1/3 value...

    Seriously, I know what your views are like but that's something even for you.
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    (Original post by SophieSmall)
    Jesus that's cheap!

    The place I just signed for is £280pcm and that was one of the 3 cheapest I could find.

    Edit: oh wait mine is with bills included, but actually even still quite cheap as bills in a house share should not be costing £100 a month (which is about the price difference between my place and the one you found).
    yeah realistically most places are more expensive where I live. My house now is £265 not including bills or council tax so not quite so cheap! Still pretty good though!*
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    So, the younger generation won't afford houses in London?
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    (Original post by Blackstarr)
    So, the younger generation won't afford houses in London?
    Probably not. But the younger generation are also very mobile. If owning a house it top of your priority, why would you hang about in London? If people are prepared to move half way around the world to better their lives, moving from London to one of the other great cities of Britain like Birmingham, Leeds, Manchester, Cardiff or Glasgow isn't much of a sacrifice.

    I still smile to myself at the thought that I bought a 4 bed house in a leafy suburb of Stockport for less than £250k especially when I see couples on Location, Location, Location raving about 1 bed basement apartments in sh1tty areas of London for double that money.
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    (Original post by LavenderBlueSky88)
    Jesus! I just went on spare room and the cheapest in my town is £175pcm (a single room *in a rough area but still....)
    Where do you live so I can move there immediately.
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    drugs...lots and lots of drugs..
 
 
 
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