Is there any way I can get on the property ladder in Brighton?

lincroft1710

Word of warning re buying and selling on eBay. If you buy items with intention of selling on for profit you will need to register as self employed with HMRC and pay tax on profits. Apparently HMRC are getting very hot on this. EBay may also require you to register as a business seller

PasturesNew

Or this one, £400/month which includes about £70s worth of bills. Says it's well maintained and newly refurbished. http://www.rightmove.co.uk/property-to-rent/property-14590308.html

Although I've no idea where you are, where you need to be ... or the area at all

But, say, £400 rent, including £70 of bills, less council tax ... would add up to at least £3000/year saved.

PasturesNew

afterglow wrote: »

this includes some retro furniture which I will need room to store and do up and this flat offers me the space to do that.

Ah .... but are the earnings greater than the costs?

There's no point earning £200/month from something that's costing you £300 to service.

It might be worthwhile analysing this part of your activities and seeing if you can do it differently. e.g. it's cheaper to rent a garage to store/restore the furniture (and tax deductible), than using your home and paying extra rent/bills for that space.

Jowo_2

The advice to move to cheaper accommodation is sensible because its your main outgoing, accounting for half your monthly expenses, so it makes sense to focus on reducing the big bills.

If you can trim your expenses by 15%, such as cheaper rent, lower mobile phone, trimming the grocery budget and so forth, you'd be able to save £700 per month, £8400 per year (around 60k in the pot if you continued until you were 40, or 25k in 3 years). If you manage to increase your income by 10% at the same time by getting slightly better paid positions, then this shaves years or months off your deposit nest egg.

I think you should think seriously about the risks involved with any alleged quick high return investment schemes as they tend to be risky and speculative. There's not usually any short cut in getting together a deposit for a property other than diligent saving and a high interest savings account.

I think you also need to check whether a mortgage company will take all your income into account or just the main job when it comes to calculating the loan amount they will grant you - obviously a 60 hour week isn't going to be sustainable in the long term.

Look at the shared ownership and low cost home ownership schemes to see if these are suitable for you.

afterglow_2

well the ebay business route is something I am working on at the moment, should be registering as busines seler soon, and registering as self employed which will be good for me starting my photography again.
but has anyone got any ideas other than me moing into a studio or shared house, as I have lived like that for 10 years before and in this area I know it will not save me a huge amount overall, and I do work hard to make up the difference.

How much would I be expecting to put down as a deposit in this area, what would the bank be looking for in terms of salary,
need to know that its not a complete pipedream and have a target to aim for, and be investing/saving that money wisely until needed for a deposit?!

afterglow_2

...and the expenses (other than rent) in the soa are higher than normally spend, generally I save £100 a week at the moment

Jowo_2

afterglow wrote: »

...and the expenses (other than rent) in the soa are higher than normally spend, generally I save £100 a week at the moment

Update your budget spreadsheet to reflect your actual expenses since it gives the impression you can save £120 per week so you are 20% out.

Jowo_2

afterglow wrote: »

but has anyone got any ideas other than me moing into a studio or shared house, as I have lived like that for 10 years before and in this area I know it will not save me a huge amount overall

I think you are wrong with this particular observation, perhaps its your attachment to space/lifestyle that is the main driver for your reluctance.

Your greatest expense, therefore the area for the greatest potential saving is through changing your accommodation. Studios are often cheaper than a 1 bed to rent and the CT/energy bills can be lower.

This studio is £455 per month and includes all bills except electricity. This means an instant potential saving of £245 per month (£145 rent, 75 CT, Water 25, Gas £20 (though the leccy could be higher).

http://www.findaproperty.com/displayprop.aspx?edid=00&salerent=1&pid=5977727

Yes, you would be downgrading your accommodation but you could increase your capacity to save by 50%, slightly less if you decided to pay for a storage unit for your ebay furniture.

kaych

it looks like you still have £500 left each month after all your spending. just put all of them in an ISA, especially in the coming year, the ISA limit will increase to £5100. without counting the interest, saving £500 a month will give you £6000 a year. depending on how much houses are in brighton, i would recommend at least a 20% deposit if possible to get a better interest rate. unless things change... i.e. good rate with 90% mortgage, then you would only need 10%, so you won't have to save as much.
I know what you mean by rather having your own place. i have shared with others before and never liked it. have to wait for your turn for the kitchen, toilet..etc and also get annoyed when they would not switch the light off everytime they leave the room! i did rather pay a bit more and have my own place at the end.

Trollfever

A very long running discussion about the Brighton property market can be found here:

http://www.housepricecrash.co.uk/forum/index.php?showtopic=50475&st=0


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