Your advice is needed - complete newbie, stuck in a dead end!

Errata

Many years ago, when money was as tight as it is now, my OH and I saved for 18 months for the 10% deposit on our first property and we did it by not spending any money at all on anything that wasn't board to our parents and fares to work. My mum bought all the birthday/Chritmas cards and my tights out of the housekeeping. Wasn't easy, but it's possible.

Kez100

We also had negative equity in the last recession. So, despite being careful with our money, we still had to find 5k to enable us to buy ourselves out of that debt and move on. Interest rates were 13% at the time so we really had to look at our finances in great detail. We spent 6 months saving like mental, treating it as a challenge. We got through it (and, as it happened, bought this home right at the bottom of the market). I'm fed up of eating tomato pasta but there you go!

Look for cheap ways of getting away (it's another challenge). Be ready to book cheap travelodges when they go on sale. Think about a camping holiday or short break.

I can understand how difficult it must be at times living with your parents but they are doing you a big favour (I bet they find you just as irritating!). Of course you want somewhere of you own - and one day you must. You have a great partner by the sounds of it and I'm sure between you, you can come through this.

Doozergirl

I really think you should become a regular on the debt free wannabe board. It really isn't a case of saving your spare money for a deposit - it sounds to me like you don't have spare but are still indeed overspending if you have another 4000 on credit cards on top of the loan which you took to consolidate the other 5000 and you still live with your parents! I think you have a real spending bug and you need a proper look at yourself and your habits to see exactly what you are spending your money on.

It isn't really up to your girlfriend to pool her resources into paying off your single debt either

hethmar

huntersc wrote: »

Dude, he has £20k + of debt. It's not just a question of saving £11k for a deposit! You forgot that massive debt didn't you? I'm sure the bank would be more than happy to lend him £100k+ with a 10% deposit and £22k of debt

I was aware of that, as, very clearly is the OP.

"Read all the boards on here and ask for advice on that loan and on money saving - you will do it if you buckle down. Whilst you are saving that £1100 (hopefully more) a month, the property market will be falling - so its no loss to wait for that year".

We werent discussing just saving for a deposit, as you can see I also said he should go on the boards for help re his outstanding loans. The guy needs some positives to work towards! Hopefully £12k or more saved in a year would be a good start, particularly if his desire property is down to about £70k by then.

Entertainer

Every day there is someone posting on here saying renting is dead money. Renting is only dead money if rents are higher than mortgage payments plus expenses. With rental yields in many parts of the country at 5 or 6% this is not true and this has been the case for many years now. Although interest rates are falling at the moment they will increase again if the economy recovers so you should factor in a long term figure of 6 or 7% for the interest alone.

The property market is currently falling at its fastest rate on record so you are not even speculating on capital increases.

Why are you so keen to leave your parents, are they that bad? You have a partner, it is not as if you are a single male living in their basement!! Are you comparing yourself to your peers? 24 is nothing these days, alot of people are at their parents houses in their 30's. The fact that you have racked up this debt when you are presumably saving alot in rent, doesn't bode well for clearing it if you do get your own place, let alone saving for a deposit.

If you need your independence then rent somewhere at least until the property market has stopped collapsing.

Mr_Matey

I agree with huntersc's post.

I think you should be putting all spare money into paying back your debts as credit card and personal car loans have stupidly high interest rates. Forget buying property for now.

Property ownership is a long-term goal. It will take years to save a deposit and years to pay it off. It is not something to rush into when you have negative net wealth. Work hard, save hard, and you'll be debt free in a few years and ready to build up a deposit.

Rents are falling at the moment too so make sure you negotiate a bargain.:j

izzybusy23

MajicMOLE wrote: »

Was kinda hoping to be on the ladder before i was 34 though!

I would never go for one of them shared homeowner things, iv heard things bout them before

I'm 36 my DH is 34.... we are renting and in no hurry at all to buy, not in this present climate. We have debt, but a lot less than yours and we earn more than you.. but still wouldn't even think about buying.

Seriously think about what you want and do not make any rash decisions. Having your own space is great BUT when it takes up all of your spare money so you have no money for fun, it will be like living in a prison cell with 4 walls closing in on you... and thats when you will start to resent it.

My advise is, swallow your pride, stay at your parents and save up and pay off some debts and a deposit for a rental somewhere. To rent, the initial outlay is going to cost you £1000+ as it is what with referencing fee's, a months deposit and a months rent upfront so even thats not going to be cheap.

MajicMOLE

Thanks again for all your replies! I really do appreciate it!

bristol_pilot

Dude, you are too old for your age. 24 and been in a relationship 5 years !!!!!!. Why not travel, sleep around, go clubbing, have some fun. The average first time buyer is something like 35 these days.

beingjdc

MajicMOLE wrote: »

We would love to get onto the property ladder more than anything, as I am a believer that renting is dead money

I'm a believer that Jesus has brought universal forgiveness and eternal life to all mankind, but I wouldn't base an investment decision on it.

Rent or mortgage interest are what you pay for the privilege of living somewhere. Both of them are dead money, you never see them again. Dead money to a landlord is no worse than dead money to the bank, it's the amount that counts.

Any spare money can be spent or saved. If you save it as a renter, it's probably in a savings account. With a mortgage, it goes towards paying off the capital, but don't fall into the trap of thinking that if you pay £900 of mortgage, you've reduced your debt by that much. In the early years of a mortgage it's more like 90% interest, 10% capital.