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Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.Never mind the house prices, I'm saving a deposit.
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born_again_saver
Posts: 72 Forumite
We can all boggle at the house prices of today. How do you buy your own, albeit modest first place as a young, single person earning less than 20k? Or as a couple earning £30-£40k between you? "Priced out" first time buyers young and old, what are we to do?
Save, save, save.
It's the only thing that makes sense to me right now. It's what our parents did. It's what a lot of people on here and elsewhere are recommending, even people who might have said "buy whatever it costs" not so long ago. The mortgage lenders are changing their rules, once again they'll want a sensible deposit before they'll give you a mortgage with sensible interest rates.
I'm in my late twenties and on below £20k. I'm renting a room in a shared house - and I'm single. I'm going to save up a deposit of £20,000 to buy myself my first home, plus costs, with a view to buying in late 2011. I've already got nearly £4,200 to get me started.
My savings target is now in my signature. It will take me a few years of hard saving, and there's no guarantee I'll be able to afford anything in 2011 either, but you have to aim for something.
Save, save, save.
It's the only thing that makes sense to me right now. It's what our parents did. It's what a lot of people on here and elsewhere are recommending, even people who might have said "buy whatever it costs" not so long ago. The mortgage lenders are changing their rules, once again they'll want a sensible deposit before they'll give you a mortgage with sensible interest rates.
I'm in my late twenties and on below £20k. I'm renting a room in a shared house - and I'm single. I'm going to save up a deposit of £20,000 to buy myself my first home, plus costs, with a view to buying in late 2011. I've already got nearly £4,200 to get me started.
My savings target is now in my signature. It will take me a few years of hard saving, and there's no guarantee I'll be able to afford anything in 2011 either, but you have to aim for something.
Never mind the house prices, I'm saving a deposit.
[STRIKE]£20,000[/STRIKE] £15,100.82 still needed - 24.50% saved so far!
Buying and moving costs: £3-5k - will save this after the £20k
Aiming to buy my own place by the end of 2011
[STRIKE]£20,000[/STRIKE] £15,100.82 still needed - 24.50% saved so far!
Buying and moving costs: £3-5k - will save this after the £20k
Aiming to buy my own place by the end of 2011
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Comments
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Good luck. You are doing the right thing.
Instead of whingeing about prices, do something POSITIVE.
GOYA
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0 -
Good for you - how are you planning to raise the £20 000 out of interest? By cutting your outgoings or boosting your income, or both?0
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I'll be raising the money mostly through saving a large chunk of my take home pay, due to my low outgoings. As a house sharer the rent I pay is low and bills are shared. I have no debts (save for my student loan), and as I've learned to live fairly simply I have few outgoings. I don't run a car, don't drink or smoke, don't go on expensive holidays, have inexpensive hobbies and socialise cheaply, etc.
This way of life is actually re-learned from my childhood, as my parents brought our family up frugally on low incomes, and we were encouraged to save for tomorrow, not spend today. I'd be far more well off today if I'd not ignored their advice in my teens and early twenties :rolleyes:
To boost income I am considering taking on a second job or extra casual work. Paid overtime in my day job is very limited but of course I'll do it where I can. I'll be looking at improving my salary in the longer term too. As a public sector worker I am inching up through the increments, but will aim to get promotions in the next few years taking me up a grade or two.Never mind the house prices, I'm saving a deposit.
[STRIKE]£20,000[/STRIKE] £15,100.82 still needed - 24.50% saved so far!
Buying and moving costs: £3-5k - will save this after the £20k
Aiming to buy my own place by the end of 20110 -
Sounds like you're on the right track, born_again - and you're definitely in the right place for advice and inspiration to help you achieve your goal. Your childhood sounds like mine! Lots and lots of luck to you.0
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Thanks for the moral support, Gorgeous George and BusyLizzie! I'll be checking in here from time to time with updates on my savings, and to share tips on keeping motivated - and to note how the housing market is doing...
Anyone in a similar situation want to join me in a savings and house hunting diary of sorts?Never mind the house prices, I'm saving a deposit.
[STRIKE]£20,000[/STRIKE] £15,100.82 still needed - 24.50% saved so far!
Buying and moving costs: £3-5k - will save this after the £20k
Aiming to buy my own place by the end of 20110 -
Unfortunately if prices continue the way they are, then a house that costs say £120k now, in 5 years time may cost £160k.
However, prices may crash, not rise etc..........
I'd buy as soon as i can and start paying off a mortgage.0 -
Lol ? buy as soon as you can?
4 months in a row house prices have been dropping... I know of houses in my area knocking 5k off their starting prices (about 4% reductions).... this is never seen in an inflating market.
We've hit the peak of afforability and as the OP suggests I am also doing the same thing with my partner... saving like mad.
Got approx 14-15k deposit saved already and we are hoping to save another 10k
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Hopefully when the prices drop or even just stagnate I'll have 'caught' up a bit so i can offer a 20% deposit or so on my 'first house' at the ripe age of 27...0 -
Absolutely agree with you, OP. We too are saving like mad for our deposit while watching what house prices are doing. By the time we are ready to buy, we hope to have a very substantial amount of money put aside. Between us we save at least a third of our take-home salary every month which adds up to quite a considerable amount.
I would willingly join you in a deposit-saving thread
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Ditto to the deposit saving thread.
Maybe we could track targets and how far we are off it (i.e percent wise incase people dont want to reveal savings hehe.
Like i want to have 30k deposit within a year and a half. Got almost 18-20k atm with partner.0 -
born_again_saver wrote: »Thanks for the moral support, Gorgeous George and BusyLizzie! I'll be checking in here from time to time with updates on my savings, and to share tips on keeping motivated - and to note how the housing market is doing...
Anyone in a similar situation want to join me in a savings and house hunting diary of sorts?
I'm saving a deposit too £17k so far, aiming for £35k :eek: or more if possible Saving a house deposit. Member no.7 100% of target
He is your friend, your partner, your defender, your dog.
You are his life, his love, his leader. He will be yours, faithful and true, to the last beat of his heart. You owe it to him to be worthy of such devotion.0
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