Are we ever going to make it?

madfrenchgirl

Hi people!!

As my sig might already says it: my partner and I are saving to buy a house.

We live in Farnham, renting a room out of our friends. We are planning on saving 6 grands each in a year and we both earn 18k each. I already have 11 grands and my mom is ready to lend me 10k. That would make about 33k to start with. I know there are fees plus travelling costs etc... We might count onto a 30k deposit. With that, we could stretch it to a 25 year mortgage, fixed for 3 years @ 5%ish, which would allow us to buy a house for 140k.

Now our 1st choice was Southampton as this is where my partner's job is (actually Romsey). And I would drive to Aldershot (where my HQ is). Now we need to be in a certain part of Southampton to be able to get on the M3 quickly. Now the problem is: I went onto Upmystreet.com and posted there to ask about different areas and supposedly, all of those we thought would be good are supposedly warzones.

So here we are now: we cant live in the nice affordable areas of Sotton cos they are a pain to get in and out of, and we cant afford anything upper north.

Are we ever going to make it? I am really starting to despair!

Elljay_2

Have you thought about Chandlers Ford? That is near the M3 and isn't a war zone. Bit pricey though coz it is mostly a sought after area... Where are the War Zones in SOU you've looked at?

Almost_Redundant

If you can, then sit tight, keep saving and wait for the crash/correction. Then you will be in a far better buying position.

Good luck

Robert_Sterling_3

Madfrenchgirl:

Re your signature.

It is not the case that the bank will own your house until you have paid for it.

Contrary to what most people think you do not get a mortgage from a lender you actually give a mortgage to the lender. The lender is given a mortgage so that if you fail to make your payments in full and on time then, and only then ( and subject to some safe guards ) the lender may take possession of your house. The lender may then sell your house and take what is owed to him. The lender gives you what is left from the sale.

If you keep to the contract you at all times are the owner of the house.

madfrenchgirl

The areas are Coxford, Millbrook, Lordshill, Shirley, Shirley Warren, Redbridge, etc... Literally everything below the M27 before crossing to the NewForest.

Robert Sterling: I am aware of all of that but I hate debt, and a mortgage is still a debt, might be a necessary debt, but you still owe them money...

jezza1O1

keep saving and the time will come. Dont be afraid to rent - it has its advantages. The old 'dead money' argument is silly because of course you are getting something for your money, you arent just giving it away for nothing in return! It also gives you flexibility, it frees you from a number of responsibilities etc etc... Ive also found that the rates arent scary when split with a partner and we've been able to save agressively - note that may mean some sacrifices, you must be willing to shun the 'must have it all' society we live in and enjoy the basics. As a member of this site you'll know all about that already!

In some EU countries renting is normal for most people for most of their lives. Dispair seems rather strong, just accept that its not going to happen for you immediately but start the preparation now - a journey of 1000miles starts with a single step blah blah blah.

I have some old posts here harping on about the impossibility of buying but a few years down the line, thanks to hard saving and career progression that came from hard work I am now looking at purchasing a proper house+garden in London! You can get there, it wont be easy, it will take work, its up to you really....

Elljay_2

madfrenchgirl wrote:

The areas are Coxford, Millbrook, Lordshill, Shirley, Shirley Warren, Redbridge, etc... Literally everything below the M27 before crossing to the NewForest.

Robert Sterling: I am aware of all of that but I hate debt, and a mortgage is still a debt, might be a necessary debt, but you still owe them money...

Hmmm I agree...warzones. Stay away from there!! Other areas you could try are..North Baddesley, Eastleigh,Marchwood, Totton Southampton Central isn't too bad or Bitterne, Sholing places like that, but they might be too central for you.

madfrenchgirl

Totton would be ok for us, so would Eastleigh... Thx for the info!

For everybody's info, in case no one has come across any of my posts, I have an 7yo 1.2l corsa that I have bought with my own cash without anybody's help, I have my old partner's phone which does not have a camera nor a colour screen and is about 3 yo, we rent a room in lodgings and pay 350 of rent for both of us, instead of buying an ipod, i bought a incar CDplayer for 40 pounds (needed one for all the miles i am doing), we are spending 100 pounds on food for a month, until my company assigned me to Staines (very long commute), I used to work on weekends as well. I always hang around here trying to get the best deals, I have put some books on ebay, and I have sworn no to buy any items of clothing for a year (apart from renewing 2 pairs of shoes that are completely gone). Also, I am not going to buy any CD's, only build up my piggypoints to get some free.

I really dont see how we could save more. And we are planning to do that for a year. I already have 14 grands of hard cash, of which 6 saved by applying my new "vision".

The despair (or more named "loss of hope") was created by looking at house prices and how much we were able to save for the deposit! Knowing that we only earn starter's money and there is only so much we can save, and by definition, can borrow.

I am just wondering if there is anyone out there who had or is having a similar experience. Just so I could get a reality check on my aspirations. For the thing of waiting, we first discussed buying a property in March last year, however, this meant taking a 100% mortgage for a ridiculously small flat in an ex-council estate: no thx! So we decided to give ourselves a year for saving in order to afford something in which we would like to stay in for at least 10 years. We do not consider ou rent to our friends to be dead money: we d rather see it go to someone who cares about us rather than a greedy property manager (plus it would work out double with bills and council tax).

Now I am off looking for properties in Eastleigh and Totton...

lush_walrus

I think considering you are moving to another area and you refer to your wages as starter wages (I assume you have finished Uni quite recently or in first job), perhaps the most sensible thing is to wait. Not for the big crash, as I really wouldnt advise to expect that to happen (if it does and you buy at that time then great). But maybe wait until your wages go up a bit, you have more money saved and have lived in Southampton. Even 6 months may well help a bit and definately may show you an area somewhere inbetween your work and BFs work that may be suitable. Also, you will get an idea of how much your petrol costs etc may go up.

Personally I am a great advocate of buying property rather than renting, but I would always advise someone to try renting in a new area before buying.

zag2me

Get what you can afford in a nice area, dont be tempted to get a bigger house in a crappy area. It is possible to buy a house, especially with 2 people contributing. I also agree with the previous posted, try waiting until you are on a slightly better wage, wages tend to go up yearly so you will probably be able to afford more next april, if not, look for other jobs, maybe closer to each other. Personally I had to change jobs to get on the housing ladder, and it was the best thing I ever did.

madfrenchgirl

well, I am a "consultant" earning 19k basis... my salary was 18k when i started, after a year i got a 5% increase. I still think the job is pants, I am being treated like a secretary, but I am working on getting more resposibility. I do not see myself hitting above the 20k line for a long time. I have tried changing jobs but it is always hte same thing: not enough experience. As for fuel costs, BF drives everyday from Farnham to Romsey and my company sends me from Farnham to Staines. My company pays for the fuel 40p a mile, this covers for OH and mine plus some left to go towards servicing and parts. So we roughly know how much it is going to cost us fuelwise. I am perfectly aware that my company wont pay me a cent for the journey from Sotton to Farnham because I would have chosen to live there. Eventually, after getting some experience, i will leave this monkey's business that is my company.

Lush: when did I say we were planning on moving to Sotton before buying a house there? We live in Farnham. If i want to trek some areas, I have a friend living there who can put me up for weekends and stuff. I have done the journey from hers to my workplace several times in the orning and it tooke about an hour, which is what it takes now. I do not see the point in us spending a lot more in rent than we are now, just to live in Sotton. Unless I misunderstood.

But thank you guys for the advice on the other areas: I have found 2 houses in our price range and to (my) our (possible) liking. I am perfectly aware those houses will be gone, I am just doing some price research.