Buying a house by 25 - is what im currently doing ok + any tips!!

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Anonymous #1
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Im 19 and at uni living at home getting the max student loan (around 7.7k). I dont have to pay any rent/ make any dinners. I live close to campus so it doesn't cost much to get there. The only thing i spend money on is going out (usually only Fridays and Saturdays), clothes and a few cheap holidays a year. Last year i managed to save more than 5k ! I currently have a 7 year lifetime ISA which i'm putting 3k in each year, hoping to withdraw when im 25 and hopefully have enough money to put down a deposit for my first home!. Once i finish med school (23) i will start getting a decent income so im planning on opening a cash isa (since you can put up to 20k, but no clue how much i will have saved when i start working and having to pay bills, have a car etc) for 2 years till im 25.
Thats my plan. What do you think about it + any tips
please be brutally honest aha
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ajj2000
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depends where you live. If you fancy living in many areas of the north, the midlands or Wales you'll easily be able to buy a house by 25. Possibly not in a middle class area though.
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Anonymous #1
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(Original post by ajj2000)
depends where you live. If you fancy living in many areas of the north, the midlands or Wales you'll easily be able to buy a house by 25. Possibly not in a middle class area though.
yes im in east midlands and tbh im not bothered too much area... as long as there's not chavs or crackheads walking around 24/7 im good
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tinygirl96
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Have a full inspection report done.
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threeportdrift
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(Original post by Anonymous)
Im 19 and at uni living at home getting the max student loan (around 7.7k). I dont have to pay any rent/ make any dinners. I live close to campus so it doesn't cost much to get there. The only thing i spend money on is going out (usually only Fridays and Saturdays), clothes and a few cheap holidays a year. Last year i managed to save more than 5k ! I currently have a 7 year lifetime ISA which i'm putting 3k in each year, hoping to withdraw when im 25 and hopefully have enough money to put down a deposit for my first home!. Once i finish med school (23) i will start getting a decent income so im planning on opening a cash isa (since you can put up to 20k, but no clue how much i will have saved when i start working and having to pay bills, have a car etc) for 2 years till im 25.
Thats my plan. What do you think about it + any tips
please be brutally honest aha
You need a deposit, but that isn't the whole story, you still need to convince a bank that you can afford the mortgage. So you need to factor in a load of other options. Are you going to be working (presumably still a junior Doctor) in the area where you can live in the house? Will the necessary career moves allow you to stay in your house? If not, then you may be looking at a 'buy to let' mortgage, and as well as repayments (possibly covered by the rent) you have to pay your own rent wherever you are working. In other words, work out what is possible combining your career needs, likely salary and mortgages.
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Zarek
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You’re clearly doing the right things. Saving as much as you can in to a longer term investment designed to help 1st time buyers is good news. However I’m not clear where your savings income is coming from, if it’s the loan money it will need to be paid back and you will only make any net investment gain. Mind you at least you’re minimising debt. Ability to purchase at 25 will depend on the price of property you are after. You’ll need a fair deposit 10-15% and they will lend a 3-4 times your income, maybe more because of your secure profession and good salary prospects. Other thoughts are to get as much free investment advise as you can. The interest rates on cash ISAs at the moment are so low that the tax protection is irrelevant. Shares ISA for longer term investments and the best regular and standard savings accounts are where it’s at currently. Other thoughts are if your parents will be able to assist with the deposit or indeed if you should have a partner to share with at that time. In short saving as much as you can in a long term investment with reasonable probability of growth is the right thing to do now.
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Surnia
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Don't just focus on buying the house, think about all the initial outlay of moving in to a house. You've got to furnish and equip the place, get some food, toiletries and cleaning products in stock, and allow for the first few months of bills.
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