Turn on thread page Beta

is this a good financial idea? watch

    • Thread Starter
    Offline

    0
    ReputationRep:
    Hi I am trying my hardest to spend as little as possible as I would like to be able to get on the property ladder earlier then most.
    I am a third year uni student.

    If I were to get a mortgage on say for example a 70,000 flat ( this price is higher the what flats sell for in the area I would like to live and buy), how much of a deposit would I need when I am in a position to buy, hopefully within 3 years

    I currently have some savings and will be spending like scrooge this year to increase my savings for when I do buy

    I currently live at home, so don't pay any rent and when I get a job I will still be living at home.
    I don't allow myself to have any unecessary luxuries, I do not drink or smoke and never buy new gadgets
    I pretty much live in the throws of poverty to try and save as much money as possible
    Offline

    0
    ReputationRep:
    If you graduate and get a job where you're earning about £20k post tax, you may as well wait 5-6 years, and buy it with savings with no need to mortgage, providing you don't spend too much of the money yourself.
    • Thread Starter
    Offline

    0
    ReputationRep:
    (Original post by DukeNewcomb)
    If you graduate and get a job where you're earning about £20k post tax, you may as well wait 5-6 years, and buy it with savings with no need to mortgage, providing you don't spend too much of the money yourself.
    I don't want to wait 5/6 years so that the prices can shoot up
    I would like to able to purchase with a 60-70% mortgage after being in employment for 18 months
    Offline

    0
    ReputationRep:
    Well it's your choice, but in the long run you'd make life a bit more difficult for yourself, because as soon as you purchase the property with a mortgage, I assume you'll move into it and become self-sufficient, meaning you're paying both bills and the mortgage. This means you'll be on a tighter financial strain but you may be happy with that as you're living in your own house. Depends on what you prefer.
    • Thread Starter
    Offline

    0
    ReputationRep:
    (Original post by DukeNewcomb)
    Well it's your choice, but in the long run you'd make life a bit more difficult for yourself, because as soon as you purchase the property with a mortgage, I assume you'll move into it and become self-sufficient, meaning you're paying both bills and the mortgage. This means you'll be on a tighter financial strain but you may be happy with that as you're living in your own house. Depends on what you prefer.

    I would not be living in it, I would be renting it out, I would use the rental money to pay the monthly mortgage payments as well as paying more money off the mortgage to reduce the amount owed and the time needed to pay it off.

    I would still be living at home and would only need to pay a small amount of rent
    Offline

    2
    ReputationRep:
    House prices are expected to gradually decline over the next decade. Why would you want to rush into that? Just wait and things will just keep getting cheaper in the forseeable future.
    • Thread Starter
    Offline

    0
    ReputationRep:
    (Original post by Jordan656)
    House prices are expected to gradually decline over the next decade. Why would you want to rush into that? Just wait and things will just keep getting cheaper in the forseeable future.

    I hope they do decline, it could be good for me, the area I want to buy is relatively cheap now, if it is to get cheaper then I will be very happy

    by the time I'm 30 I would like to be totally mortgage free ( I'm 20 now), there is a guy on my course who is 30 and still lives with his family, I don't want to get to his age and not be a home owner.( he has no assets and lives on a paycheck to paycheck existence)

    most of the people on my course blow all their money and have not even thought about buying a home or their retirement
    Offline

    2
    ReputationRep:
    Yes, but the value of your investment will fall, so it could be that by the time you are 30 you have paid £70k for a flat that is now worth £58k, having fallen in value every year.
    Offline

    1
    ReputationRep:
    im 20 i own a house which cost me 102k and is valued at 130-140k margin now i took out a mortgage but had to use a mortgage advisor i put down a substantial sum and mortgaged the rest due to the rates being so low nows a great time to buy, you can save a quite abit if you live within your means and are clever with your money but most banks require 20% deposit so for 70k youll need 14k which shouldnt be too hard, but interest rates are at 0.5% alot of properties on for sale especially at the bottom of the market and whenever theres uncertainty rental market shoots up!, currently now my mortgage is being paid and 240pcm left over for me to save for another one any questions quote me.
    Online

    21
    ReputationRep:
    It ultimately depends on what percentage the banks want, i would personally wait until i have 50% and have a 5 year mortgage.

    Realistically though, provided you have a decent credit rating you should be able to get one with £10K savings.

    House prices will not drop over the ten year period, we have a housing defecit and no real leglislation put in place to prevent another bubble, strong growth should return by 2013 (10% per annum +), perhaps as late as 2015 if the cuts dent confidence sufficiently.
 
 
 
The home of Results and Clearing

1,679

people online now

1,567,000

students helped last year
Poll
A-level students - how do you feel about your results?

The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

Write a reply...
Reply
Hide
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.