First Time Deposit

jordan_2k1

Hey money savers

I'm guessing this has been disgussed many times already, but with the ever changing market I wanted some present opinions.

I'm 20 living at home with parents, and really starting to out grow my bedroom. I graduate in the next 6 months, so with this and the market in mind, when would be the strongest time to buy in the next 2 years, and what sort of deposit would be sensible on a 100k property.

Thanks
Jordan

Welshlassie

Hi Jordan,
Difficult to say when they best time to buy would be as house prices are still dropping, when will they stop?
But I'd recommend have a big a deposit as possible, on a £100k property you will probably need at least £10k minimum to get a mortgage and £20K to get a decent mortgage. You should be aiming for a 80% LTV or better if possible.
Start saving!!
Good luck.

jonny2510

Welshlassie wrote: »

Hi Jordan,
Start saving!!
Good luck.

^ ^ ^
Definitely start saving now if you can, and if not start as soon as you graduate and get a job.

If you're living with your parents, then no doubt you'll be better off than if you where renting / paying a mortgage (I'm assuming they charge you a reduced rent / no rent at all), so any spare money you get, put aside, and this will help build your deposit much quicker.

Then keep an eye on the market and see what's happening when you feel you have a large enough deposit (the bigger the better really - min of 10% I'd say).

If prices are falling, and you feel you can wait (at your parents), then do so, whilst saving and increasing your deposit (until house prices level), at which point you can buy.

If you feel you need to move out ASAP, then either buy a house you'll be happy to stay in for a few years (in case the prices keep on falling), or rent (until they bottom out/pick up).

As for the best time in the next few years, people can predict, but no one really knows...