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Deposit for 300k house? Watch

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    (Original post by SmashConcept)
    That is because nice houses in nice areas are expensive, and the chav capital of Hertfordshire is not exactly the trap capital of Detroit is it?? But I googled the place you mean and you can get 2 and 3 bed houses within 10 miles for ~200k. So not exactly hundreds of miles.

    Also the poster you replied to was full of **** anyway because basically nobody saves a 40% deposit. In fact even if you saved a 40% deposit it would probably be a better idea to buy a worse house with a 30% deposit and using the leftover money to improve its condition.
    They aren't nice houses and they certainly aren't in nice areas. I googled "Chav capital of Hertfordshire" to see what would come up. It says Ware... Ware is SO much nicer than Watford (the real capital)!

    (Original post by Rakas21)
    If we take an average post tax wage then the average person gets £1700 per month (based on £26k salary). Now for a single person living in Manchester or Leeds if they restrain themselves a bit it's fairly easy to live on about £1200 per month including rent so we can therefore assume they'll put £5 per year away which is £50k over a decade (near enough 40%).

    So it's possible and most people will be closer to 35 than 30 but it's not an impossible tax.
    And if you live in the South? 10 years is a long time, your 40% deposit may not be 40% after a decade.

    (Original post by Reue)
    20% each assuming you're buying with someone else.
    I better get looking then,
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    (Original post by Snufkin)
    And if you live in the South? 10 years is a long time, your 40% deposit may not be 40% after a decade.
    I live in the South. I saved 10% + fees while renting in 2.5 years.. so 20% would have been done in <5.
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    (Original post by Reue)
    I live in the South. I saved 10% + fees while renting in 2.5 years.. so 20% would have been done in <5.
    On what salary? The average salary after tax/NI for an NQT is just over £1300 a month. Minus student loan repayments, rent, food, general living expenses and travel what are you left with? Nothing probably.
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    (Original post by Snufkin)
    On what salary? The average salary after tax/NI for an NQT is just over £1300 a month. Minus student loan repayments, rent, food, general living expenses and travel what are you left with? Nothing probably.
    Now let's be clear; you said average graduate salary, not NQT. I believe the average graduate salary is higher than 1300pm.
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    (Original post by Reue)
    Now let's be clear; you said average graduate salary, not NQT. I believe the average graduate salary is higher than 1300pm.
    I thought the average graduate salary was around £21,000 pa? Is it not?
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    (Original post by Snufkin)
    I thought the average graduate salary was around £21,000 pa? Is it not?
    I believe it's more but can't really look properly from my phone. I thought it was about 26k? Even 21k is more than 1300 monthly net pay.
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    (Original post by Reue)
    I believe it's more but can't really look properly from my phone. I thought it was about 26k? Even 21k is more than 1300 monthly net pay.
    NQT pay (outside of London) is currently £22,244. After tax/NI that is roughly £1300 a month, I think?
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    Average grad starter salary is nearer £25k.

    Also you can reasonably expect above inflation increases in your salary (through incremental pay rises and promotions) every year through the majority of your working life. By the way, the best way to get a significant pay rise is to change employer (every 5 years or so is a good plan)

    And a key thing as Reue mentioned is to share the purchase with someone else. That makes it much more affordable for you both.

    And your first purchase doesn't need to be something for £300k...
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    (Original post by jneill)
    And your first purchase doesn't need to be something for £300k...
    See, people keep saying that... but for a half decent 1 bed flat, £300k is what you'll need to pay in London.
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    (Original post by TheGuyReturns)
    See, people keep saying that... but for a half decent 1 bed flat, £300k is what you'll need to pay in London.
    So buy with someone, or (just) outside London. Or a less decent place.

    It's not easy, but that's the situation in London. Also you would need a salary of approx £60k, at least, depending on the deposit/mortgage you are aiming for.

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    Maybe a narrow boat is the way to go. I wouldn't mind at all.
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    (Original post by Rakas21)
    If we take an average post tax wage then the average person gets £1700 per month (based on £26k salary). Now for a single person living in Manchester or Leeds if they restrain themselves a bit it's fairly easy to live on about £1200 per month including rent so we can therefore assume they'll put £5 per year away which is £50k over a decade (near enough 40%).

    So it's possible and most people will be closer to 35 than 30 but it's not an impossible tax.
    Except the average price rise per year is 11% so the price of the house has doubled in that decade.


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    It's all a big scam, pay to trap yourself forever. Might as well buy jail time.
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    (Original post by paul514)
    Except the average price rise per year is 11% so the price of the house has doubled in that decade.

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    It might have been 11% for a year or two post recession but recently the national average has been in single digits.
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    (Original post by Rakas21)
    If we take an average post tax wage then the average person gets £1700 per month (based on £26k salary). Now for a single person living in Manchester or Leeds if they restrain themselves a bit it's fairly easy to live on about £1200 per month including rent so we can therefore assume they'll put £5 per year away which is £50k over a decade (near enough 40%).

    So it's possible and most people will be closer to 35 than 30 but it's not an impossible tax.
    I'm assuming you mean £5k and not £5.

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    (Original post by Katty3)
    I'm assuming you mean £5k and not £5.

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    Yes.
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    (Original post by Snufkin)
    How the heck does anyone on an average graduate salary save a 40% deposit other than by living with their parents until they're 35?
    You don't. You simply get a 95% mortgage LTV. I have no idea where this insistence that you have to have a 40% deposit has come from. Do people only think about the investment potential of property these days? Personally I bought my house to live in. We took a hit during the last crash but it was no big deal because we could still afford the mortgage and intended to live there, not sell at a profit.
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    (Original post by Ronda Rousey)
    Government offering you a helping hand to be a wageslave for the rest of your life.

    How nice of them.
    If house prices were stable or declining, that would be true, but the long-term trend is relentlessly up at a greater rate than inflation, so in the long run, it would be illogical not to aspire to home ownership, the way things are in our distorted economy. Basically a house is like a money printing operation, especially in London and the South of England. The only trouble is, the entrenched middle and upper middle classes and the rich have hold of the presses and they aren't keen to let others into the printing room.
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    (Original post by TheGuyReturns)
    See, people keep saying that... but for a half decent 1 bed flat, £300k is what you'll need to pay in London.
    In outer London maybe. Prices are rising all the time and it would be more than that in many central areas, or at least, it will be hard work finding one. See Rightmove search for Islington set to a mile wide for example.
    http://www.rightmove.co.uk/property-...s=1.0&index=10

    There are more in areas further out, particularly SE London and far East/West.
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    (Original post by Rakas21)
    It might have been 11% for a year or two post recession but recently the national average has been in single digits.
    It's the average over 40 years


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