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How much money should I save up before I move out? Watch

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    I'm in my 20s, employed in London. I'm lucky in one sense because I'm from London so get a very cheap place to stay at my family home. However, I'm so fed up that I'm considering moving out even though my living situation is perfect financially.

    I've saved up around 15k over the last 18 months post uni. How much more would it be wise to save up? I'd still like to continue living in London
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    Depends, how much more will your outgoings be?
    You're saving at a good rate. My answer would be to save enough for a house/flat deposit, or as close as possible. Yes, it may seem like a lot but once you start renting, it'll become difficult to save anything like you do now.
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    (Original post by NX172)
    Depends, how much more will your outgoings be?
    You're saving at a good rate. My answer would be to save enough for a house/flat deposit, or as close as possible. Yes, it may seem like a lot but once you start renting, it'll become difficult to save anything like you do now.
    That's at least 30k minimum? Probably more? I better stay put I guess... Ugh.
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    (Original post by yabbayabba)
    That's at least 30k minimum? Probably more? I better stay put I guess... Ugh.
    Not enough for London but a good start nonetheless. You'll thank your perseverance later.
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    How old are you OP? I assuming you finished uni at 21 and are 22/23.

    That is a very healthy amount of savings for someone your age and your very fortunate to be able to save that much in such a short space of time- think how much you could save by 25.

    It can be a pain living at home- but a PP is right, you are saving at a rate of £830 a month and it is unlikely you will be able to save that much if you are renting, even in a house share, at your age.

    It will be worth it in 2/3 years when you are in a position to buy your own house which will provide you with both an investment and a cheaper alternative (in some cases!) then renting.


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    (Original post by elephante)
    How old are you OP? I assuming you finished uni at 21 and are 22/23.

    That is a very healthy amount of savings for someone your age and your very fortunate to be able to save that much in such a short space of time- think how much you could save by 25.

    It can be a pain living at home- but a PP is right, you are saving at a rate of £830 a month and it is unlikely you will be able to save that much if you are renting, even in a house share, at your age.

    It will be worth it in 2/3 years when you are in a position to buy your own house which will provide you with both an investment and a cheaper alternative (in some cases!) then renting.


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    I agree
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    (Original post by yabbayabba)
    That's at least 30k minimum? Probably more? I better stay put I guess... Ugh.
    How important is it to you to own your own house?

    Assuming you earn enough money to cover rent you have more than enough to be able to afford to move out. If it will make you happier to do so, then it makes perfect sense.
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    It depends what you value more - saving and potentially having a deposit for a house, or freedom. I am in the same situation except my parents don't live in London, but a neighboring county so I have to commute in. I'm able to save around £1000+ a month at home, even with my extortionate travel costs, but more and more am thinking that my quality of life (long commute so have no time to myself, am exhausted all the time and not able to do the social things I want) is just not worth it. Especially considering the amount I'd need to save even for a deposit for a flat even on the outskirts of London, sometimes it seems like the hard work just isn't worth it! So I understand the feeling that despite it being worth it financially it doesn't seem worth it in other respects...


    (Original post by NX172)
    Not enough for London but a good start nonetheless. You'll thank your perseverance later.
    Out of interest, what would you consider to be enough for London? (I have a feeling I'm not going to like the answer haha!) I read recently that 90k is the average deposit for London, but I wonder what the variation is in terms of buying a small flat, living far from the centre etc. I would be happy living in places such as Essex or having a commute in if it meant I could afford a flat! I'm in a sector not traditionally paid well so am not able to save masses per year like those in finance/law for example and am not sure what my salary progression in the future might look like.

    OP - remember that if you save 30k, you might be able to buy with a friend or partner who could double your deposit or similar.
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    (Original post by roflcakes1)
    Out of interest, what would you consider to be enough for London? (I have a feeling I'm not going to like the answer haha!) I read recently that 90k is the average deposit for London, but I wonder what the variation is in terms of buying a small flat, living far from the centre etc. I would be happy living in places such as Essex or having a commute in if it meant I could afford a flat! I'm in a sector not traditionally paid well so am not able to save masses per year like those in finance/law for example and am not sure what my salary progression in the future might look like.
    It varies a lot but a 1 bed flat is 400-500k in a reasonable area (not too horrible a place yet not posh) or 350k for a more 'affordable' tiny flat in a further out or less desirable area.
    Given a single income of 50k with minimal expenses, you can borrow up to 220-240k. You'll need 130k~ deposit for said tiny flat. Most people end up buying slightly outside of London. I wouldn't bother unless you can save 1.5-2k a month and earning 50k+.
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    (Original post by NX172)
    Not enough for London but a good start nonetheless. You'll thank your perseverance later.
    That's a mantra I'm forever repeating to myself

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    (Original post by elephante)
    How old are you OP? I assuming you finished uni at 21 and are 22/23.

    That is a very healthy amount of savings for someone your age and your very fortunate to be able to save that much in such a short space of time- think how much you could save by 25.

    It can be a pain living at home- but a PP is right, you are saving at a rate of £830 a month and it is unlikely you will be able to save that much if you are renting, even in a house share, at your age.

    It will be worth it in 2/3 years when you are in a position to buy your own house which will provide you with both an investment and a cheaper alternative (in some cases!) then renting.


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    I'm 24, so no huge difference. I've had some bad experiences renting in the UK and abroad, so having a property of my own is definitely on my bucket list.

    Logically you're right, it's just at 24 nobody should really be forced to stay at home. But these are the times we live in...

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    (Original post by estel)
    How important is it to you to own your own house?

    Assuming you earn enough money to cover rent you have more than enough to be able to afford to move out. If it will make you happier to do so, then it makes perfect sense.
    In the short term not particularly as I don't expect to own anything in the next few years. But I don't want to be renting forever, so it's important long term

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    I'm saving for a house too
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    (Original post by mattymoo432)
    I'm saving for a house too
    Cool story bro
 
 
 
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