Buying first house same year after graduating uni, doable?
I am currently doing a postgrad course part time. I am making around 40k a year with my job -and expect to make around 60k next year.
I can save reasonably 20-30k in time for my graduation in 22 months time. That, with some help (10k or so) from my parents, means that I could potentially have a downpayment for a 350k house. A 20 year mortgage should be about 2k a month, which, assuming that everything goes to plan, I should be able to afford in the future.
Does it make sense to make such a purchase? I do not have any significant outgoings outside my personal expenses.
I can save reasonably 20-30k in time for my graduation in 22 months time. That, with some help (10k or so) from my parents, means that I could potentially have a downpayment for a 350k house. A 20 year mortgage should be about 2k a month, which, assuming that everything goes to plan, I should be able to afford in the future.
Does it make sense to make such a purchase? I do not have any significant outgoings outside my personal expenses.
Original post by Anonymous
I am currently doing a postgrad course part time. I am making around 40k a year with my job -and expect to make around 60k next year.
I can save reasonably 20-30k in time for my graduation in 22 months time. That, with some help (10k or so) from my parents, means that I could potentially have a downpayment for a 350k house. A 20 year mortgage should be about 2k a month, which, assuming that everything goes to plan, I should be able to afford in the future.
Does it make sense to make such a purchase? I do not have any significant outgoings outside my personal expenses.
I can save reasonably 20-30k in time for my graduation in 22 months time. That, with some help (10k or so) from my parents, means that I could potentially have a downpayment for a 350k house. A 20 year mortgage should be about 2k a month, which, assuming that everything goes to plan, I should be able to afford in the future.
Does it make sense to make such a purchase? I do not have any significant outgoings outside my personal expenses.
Just my 2 cents
I honestly think that it is a tactical decision since inflation exists, meaning housing will get undeniably more expensive, however you should invest in assets which give you a passive income. This means that you should take in consideration real estate investments. You could easily buy a small property and renovate it, or if it comes already renovated even better, and rent each room out, making it a shared household. It is a profitable investment. And if anything, you own the property, so you will have 100% guaranteed a place to live.
You’re knowledge on real estate wouldn’t be an issue, since it can simply be fixed by buying a CPD course, duration of 40 hours average I total, which leaves you with a certificate in the course you chose (real estate/finance/etc)
Alternatively, you can buy shares in companies, which gives you a passive income.
Hope this helped! <3
Original post by elenimuffin
Just my 2 cents
I honestly think that it is a tactical decision since inflation exists, meaning housing will get undeniably more expensive, however you should invest in assets which give you a passive income. This means that you should take in consideration real estate investments. You could easily buy a small property and renovate it, or if it comes already renovated even better, and rent each room out, making it a shared household. It is a profitable investment. And if anything, you own the property, so you will have 100% guaranteed a place to live.
You’re knowledge on real estate wouldn’t be an issue, since it can simply be fixed by buying a CPD course, duration of 40 hours average I total, which leaves you with a certificate in the course you chose (real estate/finance/etc)
Alternatively, you can buy shares in companies, which gives you a passive income.
Hope this helped! <3
I honestly think that it is a tactical decision since inflation exists, meaning housing will get undeniably more expensive, however you should invest in assets which give you a passive income. This means that you should take in consideration real estate investments. You could easily buy a small property and renovate it, or if it comes already renovated even better, and rent each room out, making it a shared household. It is a profitable investment. And if anything, you own the property, so you will have 100% guaranteed a place to live.
You’re knowledge on real estate wouldn’t be an issue, since it can simply be fixed by buying a CPD course, duration of 40 hours average I total, which leaves you with a certificate in the course you chose (real estate/finance/etc)
Alternatively, you can buy shares in companies, which gives you a passive income.
Hope this helped! <3
Doesn't sound very passive, sounds like effort is involved.
Original post by elenimuffin
Just my 2 cents
I honestly think that it is a tactical decision since inflation exists, meaning housing will get undeniably more expensive, however you should invest in assets which give you a passive income. This means that you should take in consideration real estate investments. You could easily buy a small property and renovate it, or if it comes already renovated even better, and rent each room out, making it a shared household. It is a profitable investment. And if anything, you own the property, so you will have 100% guaranteed a place to live.
You’re knowledge on real estate wouldn’t be an issue, since it can simply be fixed by buying a CPD course, duration of 40 hours average I total, which leaves you with a certificate in the course you chose (real estate/finance/etc)
Alternatively, you can buy shares in companies, which gives you a passive income.
Hope this helped! <3
I honestly think that it is a tactical decision since inflation exists, meaning housing will get undeniably more expensive, however you should invest in assets which give you a passive income. This means that you should take in consideration real estate investments. You could easily buy a small property and renovate it, or if it comes already renovated even better, and rent each room out, making it a shared household. It is a profitable investment. And if anything, you own the property, so you will have 100% guaranteed a place to live.
You’re knowledge on real estate wouldn’t be an issue, since it can simply be fixed by buying a CPD course, duration of 40 hours average I total, which leaves you with a certificate in the course you chose (real estate/finance/etc)
Alternatively, you can buy shares in companies, which gives you a passive income.
Hope this helped! <3
Passive income is nice but I think they want somewhere they can live tho 😛 (I do buy and rent garages for this myself tho, not quite passive but close to)
OP my opinion for buying a house over a 3rd of a mil young with a big 20 year mortgage is you need to talk to a professional adviser in planning these things, not randos.
Where is the 350k figure coming from? do you have a specific area/type of property for this value, or are you thinking about your maximum?
Even with a wage going up to 60k (net? gross?) that mortgage is going to be a big % of your overall income for a loooong time, and you'll obv need to maintain or increase those earnings over time.
Currently, mortgages are 4 to 4.5 times your salary, so people don't overstretch themselves; that's not a £350k house for you. They will also look at where the deposit came from; there's a big difference between saving 20k and 30k and do your parents need repaying?
It's not 20 years of a consistent £2k a month. A typical mortgage lasts 25 years, but within that you can have deal options, eg you pay a variable rate for 5 years, then a fixed rate for 5 years. You have to renew your mortgage and move to another deal at the end of each 5 years (5 as an example, could be shorter, could be longer) and it doesn't necessarily have to be with the same provider. There are options to overpay and pay off early, but beware of fees; if you can overpay, it's better putting the money into something earning extra interest and paying extra when there's no fees due, which is normally after a few years.
Have you factored in the fees for buying a house? Some you could add to your mortgage rather than pay seperately. And all the costs? For the latter there's the upfront expense of furniture, soft furnishings, white goods, electrical appliances. Then bills: council tax, insurance, utilities, broadband, phone, TV licence. Then there's personal expenses, including travel, depending on where you buy, food, clothes, laundry and cleaning, gardening, socialising, credit cards, hobbies, subscription services, holidays.
Me: 10% deposit, 25 year mortgage, paid it off in 12 years. Used Fixed Rate Bonds as short-term investments for any spare cash and overpaid the mortgage when it was free to do so. Had it fairly well worked out on a spreadsheet as my provider advertised its deal options well in advance and I could adjust my figures with interest rate changes and overpayments. My calculations were within about £400 of the final lump sum that I paid to clear the mortgage, approx £8000.
It's not 20 years of a consistent £2k a month. A typical mortgage lasts 25 years, but within that you can have deal options, eg you pay a variable rate for 5 years, then a fixed rate for 5 years. You have to renew your mortgage and move to another deal at the end of each 5 years (5 as an example, could be shorter, could be longer) and it doesn't necessarily have to be with the same provider. There are options to overpay and pay off early, but beware of fees; if you can overpay, it's better putting the money into something earning extra interest and paying extra when there's no fees due, which is normally after a few years.
Have you factored in the fees for buying a house? Some you could add to your mortgage rather than pay seperately. And all the costs? For the latter there's the upfront expense of furniture, soft furnishings, white goods, electrical appliances. Then bills: council tax, insurance, utilities, broadband, phone, TV licence. Then there's personal expenses, including travel, depending on where you buy, food, clothes, laundry and cleaning, gardening, socialising, credit cards, hobbies, subscription services, holidays.
Me: 10% deposit, 25 year mortgage, paid it off in 12 years. Used Fixed Rate Bonds as short-term investments for any spare cash and overpaid the mortgage when it was free to do so. Had it fairly well worked out on a spreadsheet as my provider advertised its deal options well in advance and I could adjust my figures with interest rate changes and overpayments. My calculations were within about £400 of the final lump sum that I paid to clear the mortgage, approx £8000.
I would go and see a mortgage advisor to help you weigh things up, I found Halifax very good. They should tell you what’s what. I do think it’s a good idea to get on the housing ladder as soon as you can, particularly if you have no other expensive pursuits or spending ambitions. This said, the £350k target with the deposit you’ll have seems like a challengingly high monthly repayment against the salary you’re aspiring to in the short term
(edited 2 months ago)
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