How to buy your first home?

PhoneGuru

I've been reading alot of the threads on the forum about people trying to buy a second home, or buy to let.

I would very much like to know how I go about buying my *first* without risking bankrupsy or complete financial ruin and not having a life due having to keep up the payments.

I work in the mobile industry as a dev engineer, 26, earn reasonable money for my age and experience. Single and work on the M4 corridor.

I would love to buy my own place, I have been renting a room in shared house for 4 years purely because I can't save enough to raise a deposit and the payments on 1 bed flat anything between £700 and £900 pcm, plus bills, plus insurance. I am also well aware I have paid out roughly £19,000 in rent alone in that time!

How does anybody afford to buy in this country? I would actually be better off, and have a better standard of living and less stress being a scuba diving instructor in Australia (believe me I've thought about it).

Any advice would be appreciated.

itgirlinuk

I am a first time buyer and having a difficult finding that property. I have a deposit, but I don't want a extremely big mortgage...So that forces me out of the city, which will keep the house price lower and my mortgage commitment lower...

But one thing I have been looking into is Shared ownership. The do-it-yourself shared ownership scheme is a good idea, if you will clear the eligibility. I think you will have a better chance than me, as you don't have a deposit to put down for the property...Look into this and maybe you will find a council which will let you get on the list.

Any other ideas folks?

terrierlady

May-not be for u but lots of new homes developers are at the moment paying your 5% deposit on a new home along with free legals etc. I know that doesn't distract from the price of homes but maybe a way in for you if the deposit is your main problem. Good luck.

Phil_rich

In the end though it is the people buying second homes and buy to let who are pricing out us first time buyers.

itgirlinuk

Have you looked at Mortgage lenders who are ready to give you a 100% mortgage? The interest rates are higher, but I am sure you can move the mortgage after the early redemption period (or something like that) comes to an end.

dougk_2

It as much single people (rather than couples and families) as second home owners pricing out FTB's off the market.

Houses traditionally have been owned by couples/families. In the past few years with more divorces/separations and (to put it polietly) less committed relationships people on their own need to purchase smaller houses which are in short supply.

To answer the question early the only suggestion is to buy in a "shared" form in one way or another - either as a couple, with a mate (both can be dodgy situations!) or via an agency.

BTL purchases are in some cases helping because they offer an alternative to buying or living with your family and with large numbers of rental properties available, the rental prices are kept in check.

As far as I can tell from speaking to older relations/friends people often used to live at "home" till their late 20's early 30's and thereby be in a position to save substanstally. I personally managed to save 3 - 4k a year when i lived at home, so a 10% deposit was available within a couple of years. Had I stayed at home till I was 30 I could have potentially purchased 50% of a house outright. (10 years at £4k = 40k!) - OK we are talking about Norfolk prices here!

KrazyFool

its nothing to do with single people, its well known because of high prices that people stay at home for longer. Theres been an increace in those people remortgaging/buying a second house & renting it out to make a quick buck

bridiej

I would suggest either you go the new home route and the 5% deposit paid, or is there somebody whom you would trust enough to get a mortgage with and share the responsibility?

I was lucky, my first home was a reposession that only cost £27,000 otherwise there's no way I would have been able to afford a house - £27,000 was at the top of my mortgage borrowing limit at the time!

The reasons why there's a shortage of affordable homes is not relevant, but I know a lot of younger people who complain that they cant afford a house, yet they're out every weekend p****g it up and have the latest mobile phone etc.

Buying a house is a HUGE commitment and you have to be prepared to sacrifice things to start with.

dougk_2

I agree with bridej.

You need to plan for a house and save and you have to make choices and sacrefices.

With more younger people starting with debt for various reasons (University for one reason) it is harder now - but I stick by what I said.

People used to live at "home" longer - demand for rental property is high as younger people no longer want to stay at "home" and move into rented accomodation. You can't blame people for investing in this area of the property market.

In times past people met someone, got married (or not as the case may be) moved out from home and bought a house together - this is less the case now.

KrazyFool

ok so when you say buying is better and wouldnt rent because its a waste of money, what you are saying get in there first and let others have to pay the rent. i would prefer to buy but i have to rent, any of the affordable houses have been taken by house investment "certain types of property in certain areas seen as an investment" programs. i dont care about your "investments" i want a house to "live" in.

dougk_2

What I am saying is you need to save to buy a house. Basicallly as soon as you start earning you need to put money aside, spend wisely and forsake some of lifes pleasures.

You have to make decisions like buy a new mobile or car or make do with an old one. Stay in and save for the house or go out and P*** up £100 down the pup with your mates.

You need to suffer a little and if possible live at "home" rather than move out and rent. Had I moved out of home and rented I would have dfound it harder.

Very few of us "get" a house we would class as ideal. You normally start off with something naff in a not to good area and build up.