Buying young/making the first step onto the ladder

rictus123

This is fantastic.

LillyJ

rictus123 wrote: »

Can anyone here say there quite young(talking under 23) and have just stepped onto the property ladder? Im only 17 and just gave up my car and im starting from nothing saving every penny i can, i will be putting in every hour overtime possible at work i am so eager to be a success and make something of myself im starting now. I see so many middle aged people with a career and been earning since 16 like me and have absolute nothing to show for it. Im not looking for people to tell me to get out there and get laid and enjoy myself, i do enjoy myself, me and the gf have never been happier:D

So just wanting to know your stories if you have, or some advice from you all about making those first steps with saving a deposit and how to go about it. I am almost in the 3rd year of my apprenticeship meaning only 2 more years and im a time served builder(dont need anyone to comment on house prices or it not being a good job just now, work gets buisier every week!) Ideally itl be a small flat to move into at 20-21 or so then rent it out and get a house?

I was 23 when I bought my house. However I had rented for many years before that (since I was 17), so I was used to living away from home.
The only advice is to save, save, save, but have fun while your at it. It's a balance I think. It sounds like you are pretty focused on your job etc, which is great. If you work hard, earn the money and save a deposit, you can be proud of yourself for working hard.

I was at uni for a long time so had less time to save, but my OH worked since he was young, saving money for our deposit.

The one thing I would say is what is the point in getting a small flat then renting it out? I would say save a deposit for somewhere you actually want to live (house prices probably have further to drop), rather than buying something you will have to move from straight away. We bought a house, because then me and my OH can live here for a long time, and we will probably have kids in the near future.

If you and the girlfriend are having as much "fun" as you say you are, make sure kids don't come in to the equation until you want them to; there's nothing like a kid to drain your house deposit!

Good luck!

rictus123

This is fantastic.

devilot

rictus123 wrote: »

There will be no kids for a good few years anyway and it will be planned!

Ha-ha! We all say that, son!:D

Good luck to you anyway, you sound like you have your head screwed on, refreshing to see someone so young wanting to make something of themselves.

GDB2222

I also wish you all the best. In principle, what you are trying to do seems a reasonable idea. You need to think about the detail a little bit more. In particular, the sort of flat you might want to live in yourself might not be suitable as an investment. A good investment flat would probably need to be near the station, whilst you might want to live somewhere quieter. For an investment flat, you really want a rent of 10% plus. That might not be achievable on the sort of place you want to live in.

GDB2222

oh, by the way, is not always a property ladder. Some of the time it is a property snake.

rictus123

This is fantastic.

m_13

I bought a terraced house when I was 18 in 1986. 100% mortgage from the Halifax. I was a full time student with a part-time job. Very bad timing as in October 1987 the markets crashed and interest rates rose, I remember watching news coverage of people jumping out of windows in the city on Black Monday. Soon after interest rates dropped and I didn't worry. I was young and care free! I didn't save or have a long term plan, if I wanted to go away for the weekend I just did. I dropped out of University and started work.

By early 1991 the BofE interest rate was 13% and my variable rate mortgage was higher. I still had a job but couldn't pay my mortgage. I handed my keys back in 1992. Halifax sold my house via Halifax Property Services to a builder mate of the EA and I took them to the ombudsman over the outstanding debt as I didn't feel they got a reasonable price for the house. I won and the debt was wiped clean.

For over a year I had only a cash card from Lloyds TSB and no cheque book. I lived in a council flat with no carpets and very little furniture. My partner cries when she thinks about it. I lived on sosmix sausages, beans and pasta. I worked part-time as full time jobs were hard to come by. Eventually I went back into education and got a professional qualification, then a degree from the OU and since then more professional qualifications. I hope to start on an MSc in September.

rictus123 I can see that your head is screwed on far better than mine was. 100% mortgages are no longer available - and certainly wouldn't be given to a student with a part-time job! - and lenders are far more cautious. You are doing an apprenticeship which I admire you for and say that work is busy. What work does your girlfriend do? Has she got a career that will progress?

GDB2222

I wouldn't worry about buying very soon, as property prices have a lot further to fall.