Turn on thread page Beta

How are we ever supposed to be able to afford to buy a home? watch

    • #1
    • Thread Starter
    #1

    I live in the south, specifically Bournemouth in Dorset. It's expensive here in comparison to wages and it stresses me out thinking of the future.

    I have my whole family here and I want to raise a family here and I don't want to have to move far away as I'm very close with my parents. My boyfriend and I have been together for 3.5 years and obviously, we are serious about our future. I've just enrolled to study with the OU part-time, so I'm going to be in education for the next 5-6 years. However, I still want to create a family.

    I've looked into shared ownership schemes, but even in my local area, a 25% share is about £100,000 and we don't have anywhere near the deposit we need to be able to apply for this. My parents can't help us out and my boyfriends family are from Eastern-Europe, so they're not able to help out either. Does anyone else share these issues? I just want to moan and have a bit of a rant.
    • Community Assistant
    Offline

    19
    ReputationRep:
    Community Assistant
    I agree with you that house prices are a bit steep.
    Im looking into house prices at the moment, and have put it off for another year (or best part of a year) while i save a bit more. And thats with me being a complete tight wad (im naturally tight anyway).
    A word of advice though- dont go for a shared ownership scheme, they are a bit rubbish.
    Offline

    12
    ReputationRep:
    I live in London. Some old man who is a friend of my father's keeps advising me to buy a property with a buy-to-let mortgage. Then to rent it out to pay for the mortgage. House prices have risen way higher than wages have leaving a lot of us in this position that the youth of today can't afford housing. So yeah everyone has this issue
    Offline

    20
    ReputationRep:
    (Original post by Anonymous)
    I live in the south, specifically Bournemouth in Dorset. It's expensive here in comparison to wages and it stresses me out thinking of the future.

    I have my whole family here and I want to raise a family here and I don't want to have to move far away as I'm very close with my parents. My boyfriend and I have been together for 3.5 years and obviously, we are serious about our future. I've just enrolled to study with the OU part-time, so I'm going to be in education for the next 5-6 years. However, I still want to create a family.

    I've looked into shared ownership schemes, but even in my local area, a 25% share is about £100,000 and we don't have anywhere near the deposit we need to be able to apply for this. My parents can't help us out and my boyfriends family are from Eastern-Europe, so they're not able to help out either. Does anyone else share these issues? I just want to moan and have a bit of a rant.
    I'm afraid this is all about choices, and realistic ones. The fact of the matter is that unless you have plenty of money saved or from relatives, you simply can't afford to live in an expensive area like Dorset as a first-time buyer. Added to this, you've said you've just enrolled in a part-time degree and you want to start a family. This just isn't compatible with buying a house at the moment. It seems unfair, but it's just how it is.

    I'd agree with Emma:-) - shared ownership is best avoided if at all possible.
    • #1
    • Thread Starter
    #1

    (Original post by Reality Check)
    I'm afraid this is all about choices, and realistic ones. The fact of the matter is that unless you have plenty of money saved or from relatives, you simply can't afford to live in an expensive area like Dorset as a first-time buyer. Added to this, you've said you've just enrolled in a part-time degree and you want to start a family. This just isn't compatible with buying a house at the moment. It seems unfair, but it's just how it is.

    I'd agree with Emma:-) - shared ownership is best avoided if at all possible.
    I haven't done too much research into shared ownership, but what other schemes would you recommend? My mum says that rent to buy is also a bit of a con, so I feel like I'm running out of options...
    Online

    21
    ReputationRep:
    (Original post by Reality Check)
    I'm afraid this is all about choices, and realistic ones. The fact of the matter is that unless you have plenty of money saved or from relatives, you simply can't afford to live in an expensive area like Dorset as a first-time buyer. Added to this, you've said you've just enrolled in a part-time degree and you want to start a family. This just isn't compatible with buying a house at the moment. It seems unfair, but it's just how it is.

    I'd agree with Emma:-) - shared ownership is best avoided if at all possible.
    True. My Sky engineer was telling me the other day that his grandma has died and left him and his wife an 8 -bedroom house with a condition that he lives in it and doesn’t sell it. Not many like that around.
    i hate living in social housing, but have a large 2-bed semi, so lucky I suppose when I see how young people can’t get near the property ladder. My Housing Association does shared ownership and it’s a disaster.
    Offline

    20
    ReputationRep:
    (Original post by Anonymous)
    I haven't done too much research into shared ownership, but what other schemes would you recommend? My mum says that rent to buy is also a bit of a con, so I feel like I'm running out of options...
    Help to buy equity loan is probably your best bet. It's only available on new-build properties and the builder has to be participating in the scheme. However, you only need to raise a much smaller deposit of 5%; the rest of the deposit (up to 20%, making a maximum deposit of 25%) is provided by way of a government loan (note, loan, not gift). It's a way of being able to get onto the property ladder with a very small deposit. For instance, an average £250,000 starter home would only require a deposit of £12,500 and no stamp duty to pay.

    It has caveats, of course. The loan does attract interest, albeit nominal and not for the first five years. New-build houses tend to be more expensive than second-hand ones and not all mortgage lenders provide Help to Buy loans or, where they do so, the maximum loan might be less than anticipated. Still, definitely worth a look. See here: https://www.helptobuy.gov.uk/equity-loan/equity-loans/

    Have you also taken out a Help to Buy ISA? If not, then you should.
    • #2
    #2

    I find a lot of people get caught up in the area where they want to buy their first home. Fact of the matter, sometimes it just isn't possible to live here you want to, even when you've been on the property ladder for several years. With the advances in transport links nowadays, I don't think living away from your parents would feel the same as 'being away'... I've never lived near any friends or family, and I've always lived quite far away from where I work, because I wanted to get on the property ladder. My friends who rent have a much better social life as they don't have the commute times I do, but they live with a constant worry that they don't have the same security that I already do. Indeed, once you start renting it becomes increasingly difficult to save for a deposit and mortgage, let alone with the cost of children on top.
    • #1
    • Thread Starter
    #1

    (Original post by Reality Check)
    Help to buy equity loan is probably your best bet. It's only available on new-build properties and the builder has to be participating in the scheme. However, you only need to raise a much smaller deposit of 5%; the rest of the deposit (up to 20%, making a maximum deposit of 25%) is provided by way of a government loan (note, loan, not gift). It's a way of being able to get onto the property ladder with a very small deposit. For instance, an average £250,000 starter home would only require a deposit of £12,500 and no stamp duty to pay.

    It has caveats, of course. The loan does attract interest, albeit nominal and not for the first five years. New-build houses tend to be more expensive than second-hand ones and not all mortgage lenders provide Help to Buy loans or, where they do so, the maximum loan might be less than anticipated. Still, definitely worth a look. See here: https://www.helptobuy.gov.uk/equity-loan/equity-loans/

    Have you also taken out a Help to Buy ISA? If not, then you should.
    I know the basics about Help to Buy ISA's in that you put money in and it gets matched when you intend to buy? Thinking about it, it may be an option to help with getting serious about saving. I'm good at saving, however I only have 1 generic bank account which I use for everything, so there's nothing stopping me splurging.
    Offline

    20
    ReputationRep:
    (Original post by Anonymous)
    I know the basics about Help to Buy ISA's in that you put money in and it gets matched when you intend to buy? Thinking about it, it may be an option to help with getting serious about saving. I'm good at saving, however I only have 1 generic bank account which I use for everything, so there's nothing stopping me splurging.
    Well, it's not matched £ for £. You can save a maximum £200 a month and the government will, once you buy a house, put 25% extra into your 'pot', up to a maximum bonus of £3,000.

    Saving really is the key here, yes. Definitely get serious with it if you want to get on the property ladder.
    • Section Leader
    • Very Important Poster
    • Peer Support Volunteers
    Online

    21
    ReputationRep:
    Section Leader
    Very Important Poster
    Peer Support Volunteers
    (Original post by Anonymous)
    I live in the south, specifically Bournemouth in Dorset. It's expensive here in comparison to wages and it stresses me out thinking of the future.

    I have my whole family here and I want to raise a family here and I don't want to have to move far away as I'm very close with my parents. My boyfriend and I have been together for 3.5 years and obviously, we are serious about our future. I've just enrolled to study with the OU part-time, so I'm going to be in education for the next 5-6 years. However, I still want to create a family.

    I've looked into shared ownership schemes, but even in my local area, a 25% share is about £100,000 and we don't have anywhere near the deposit we need to be able to apply for this. My parents can't help us out and my boyfriends family are from Eastern-Europe, so they're not able to help out either. Does anyone else share these issues? I just want to moan and have a bit of a rant.
    As others have suggested, get either a help to buy isa or a lifetime isa and look into the help to buy equity loan scheme (it's not for everyone though as you need to be certain you can make the payments in a few years time). Share ownership means you would end up having to go for leasehold rather than freehold which complicates things. Start saving asap, buying a house involves sacrifice so you may have to give up some/many luxuries to afford one and also do what you can to have a decent credit history and affordability rating, it's difficult to get but there are 5% mortgages out there.
    We bought a house in the north and we're pretty far away from our families but the job market wasn't great where we were from and although our house is a fixer upper (which we're still in the process of fixing), it's a sacrifice to make to have a 3 bed semi with a garden near great schools as our first home.There will be a fair few things you might want in a house but in many cases you can only really get what you need and focus on that, and if you watch location location location it might give you some inspiration on how moving a bit out of your area could get you something more affordable.
    Offline

    5
    ReputationRep:
    My daughter jacked in University when the fees came in. Good job she did as she is now buying a flat and would have to pay back her loan as she is on a high salary. The flat is 20 mins from London.
    Posted on the TSR App. Download from Apple or Google Play
    • Community Assistant
    Offline

    19
    ReputationRep:
    Community Assistant
    (Original post by Reality Check)
    I'm afraid this is all about choices, and realistic ones. The fact of the matter is that unless you have plenty of money saved or from relatives, you simply can't afford to live in an expensive area like Dorset as a first-time buyer. Added to this, you've said you've just enrolled in a part-time degree and you want to start a family. This just isn't compatible with buying a house at the moment. It seems unfair, but it's just how it is.

    I'd agree with Emma:-) - shared ownership is best avoided if at all possible .

    Im glad im not the only one agrees about avoiding shared ownership.

    You dont (and probably never will) 100% own the property. You still have to pay rent on the % of the house you dont own. They are also only offered on a leasehold only basis. Need i go on.
    Offline

    20
    ReputationRep:
    (Original post by Emma:-))
    Im glad im not the only one agrees about avoiding shared ownership.

    You dont (and probably never will) 100% own the property. You still have to pay rent on the % of the house you dont own. They are also only offered on a leasehold only basis. Need i go on.
    Exactly. It's not 'ownership' really in any normal meaning of the word.

    Ooh, and congratulations on the CA - I'd always hoped you'd put yourself forward for it
    • Community Assistant
    Offline

    19
    ReputationRep:
    Community Assistant
    (Original post by Reality Check)
    Exactly. It's not 'ownership' really in any normal meaning of the word.

    Ooh, and congratulations on the CA - I'd always hoped you'd put yourself forward for it
    Exactly- it should be banned.

    And thanks. Im glad i went for it.
    Offline

    16
    Does it actually make financial sense to own your own house these days?

    https://www.independent.co.uk/news/b...-a7742721.html

    Best plan might be to wait for an extra-cold winter that frees up some housing.
    • #1
    • Thread Starter
    #1

    (Original post by AngeryPenguin)
    Does it actually make financial sense to own your own house these days?

    https://www.independent.co.uk/news/b...-a7742721.html

    Best plan might be to wait for an extra-cold winter that frees up some housing.
    I already rent with my partner and it's not something I want indefinitely. I want to be able to put a stamp on my own home and invest in, not making someone else's house better when we eventually move.

    Plus, I'd want a dog someday, however about 90% of the properties in my area restrict this and the other 10% are out of our budget.
    • TSR Support Team
    Offline

    21
    ReputationRep:
    TSR Support Team
    (Original post by Anonymous)
    I live in the south, specifically Bournemouth in Dorset. It's expensive here in comparison to wages and it stresses me out thinking of the future.

    I have my whole family here and I want to raise a family here and I don't want to have to move far away as I'm very close with my parents. My boyfriend and I have been together for 3.5 years and obviously, we are serious about our future. I've just enrolled to study with the OU part-time, so I'm going to be in education for the next 5-6 years. However, I still want to create a family.

    I've looked into shared ownership schemes, but even in my local area, a 25% share is about £100,000 and we don't have anywhere near the deposit we need to be able to apply for this. My parents can't help us out and my boyfriends family are from Eastern-Europe, so they're not able to help out either. Does anyone else share these issues? I just want to moan and have a bit of a rant.
    Maybe you should defer your degree until next year? From 2019 OU students should have access to maintenance loans, so theoretically you could take one out and save the money towards a deposit on a house. Obviously that is not the intended purpose of the loan and you will still need to repay the money... but it is something to consider. If you start studying this year then you won't be able to get the loan.

    As for me, I'm saving for a deposit but I don't expect to be in a position to buy for at least another five years, perhaps longer. I'm thinking of relocating from the home counties to Scotland, future job permitting. It's a bit cheaper there and the water is nicer.
    Offline

    20
    ReputationRep:
    (Original post by Snufkin)
    It's a bit cheaper there and the water is nicer.
    You'll save on soap.

    (and, finally, you became ST! Well done, friend )
    • TSR Support Team
    Offline

    21
    ReputationRep:
    TSR Support Team
    (Original post by Reality Check)
    You'll save on soap.

    (and, finally, you became ST! Well done, friend )
    Oh hey - yeah it was almost a year ago now, but thanks! Are you back for good? :beard:
 
 
 
Poll
Who is most responsible for your success at university
Useful resources

Groups associated with this forum:

View associated groups

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.