Is this an impossible dream or can I make it a reality?

EltonJohnFan

Hi all,

I've dreamt about owning a house near where I live for almost as long as I've been alive and this dream is what's keeping me going at the moment as I haven't been having much luck recently. This house is a really beautiful Victorian Detached home that's unique in so many ways and I remember when I was a little boy the owner let me have a look inside as I used to sit just watching it day by day and dreaming about what it would be like if I could someday, somehow live their myself. I love the gardens and I dinstinctively remember all the original features and beautiful woodwork inside the property and to this very day I still pass it by and smile hoping that I might still have my chance.

The thing is though that I'm not where I want to be in life because I was made redundant over six months ago and can't find any work no matter how hard I try. I don't have much savings (£8,500) but I do have a willingness to save and this house would be the only reason I need to save, knowing I could maybe own it someday would keep me saving forever if needbe. I also earn an about average salary when I'm working and because I'm very badly disabled I receive Disability Living Allowance and when I'm in work I also receive Tax Credits due to the severity of my disabilities. What do you think? is it possible for someone in their very early twenties in my situation who earns an about average wage (£18,500 after tax) to be able to own or ever hope to own a property that I believe I'd probably need around £350,000 to buy? I know that might not be a lot of money to some people but it is to me and in my area of the country it's a HUGE amount of money as you can buy two bedroomed properties for around £50,000 or so.

I know this question might seem a little silly to some people but think of it like this, do you have a dream? is there something that's keeping you going? that's what it's like for me and I pass this house nearly every day and the determination to own it continually grows within me and I can't ignore that. I don't know what I could do to possibly hope to raise that amount of money but I don't mind waiting for say even 30 years as long as I can own that house before I die. I have so many plans for it and it's such a shame that the owner who was there when I was a little boy has since passed away because I used to remember them tending to their gardens and I can imagine me doing that their too because it's a really stately home with fantastic scenery. I won't write anymore but let me tell you I appreciate your help so much, thank you

opinions4u

How much will you inherit when your parents die?

EltonJohnFan

opinions4u wrote: »

How much will you inherit when your parents die?

Hi,

I'm not really sure actually as it's not something I like to think about. I doubt I'll receive much as I have other siblings and the money will probably be equally shared out between us but to be honest I'm not looking for anything from my parents and I've stood on my own two feet all of my adult life and don't want anything from anyone as I prefer to rely on myself

blinko

mate we all have dreams,. but to get to them we either need rich parents which most of us dont have failing that you will need to take a risk

eg i put my money in the stock market i am up 10% since august it would take me 4 years to get that from a savings account but then again i could lose that !!!

the main point here is risk and reward you can work all your life like my mum did she and she still does and after paying rent for 25 years she managed to save up 100k and bought her own place

now she didnt want to buy 25 years ago because of the risk and now she has only just made it onto the ladder which is fair enough but i will be lucky to make it to 35 with my current condition i siomply cant wait that long and i cant work either or claim benefits

good luck buddy but dont forget that if you want to make the kinda money you want to live a good lifestyle and own a house and that you will need to take risks

this includes the stock market, setting up own business, lieing on your CV which i dont condone but if it gets you an extra 5k in your pocket who cares the company makes enough profit its a nasty and cruel worold out there so you have to goout and get but it can be done

good luck

EltonJohnFan

blinko wrote: »

mate we all have dreams,. but to get to them we either need rich parents which most of us dont have failing that you will need to take a risk

eg i put my money in the stock market i am up 10% since august it would take me 4 years to get that from a savings account but then again i could lose that !!!

the main point here is risk and reward you can work all your life like my mum did she and she still does and after paying rent for 25 years she managed to save up 100k and bought her own place

now she didnt want to buy 25 years ago because of the risk and now she has only just made it onto the ladder which is fair enough but i will be lucky to make it to 35 with my current condition i siomply cant wait that long and i cant work either or claim benefits

good luck buddy but dont forget that if you want to make the kinda money you want to live a good lifestyle and own a house and that you will need to take risks

this includes the stock market, setting up own business, lieing on your CV which i dont condone but if it gets you an extra 5k in your pocket who cares the company makes enough profit its a nasty and cruel worold out there so you have to goout and get but it can be done

good luck

Hi,

Thanks for the good advice, and well done on the stock market thing too! I know it's probably a very hard goal to attain for an ordinary person like myself but I've never been one to just give up without trying and I live a pretty simple life and don't have expensive tastes which enables me to save most of my wages when I'm earning as I don't have any bills other than for the basics. I look around me and see other people my age struggle, most people are finding this recession hard and I'm intelligent enough to know that a lot of it was caused by people living beyond their means and that is why I'd rather save and buy this house in cash and then it's completely mine and I don't owe the bank a thing. I really have to be honest, £350,000 is a LOT of money to me and I can't think of a way I could possibly earn that much anytime soon. I'm too afraid to try the stock market or other investments as I've heard lots of horror stories so I think my only option is to work hard and find the best possible rate I can on my savings. I've used the Money Saving Expert savings tool and it says that if I was able to save what I think I could save (if I was working) and nothing bad happens then I would have the £350,000 in about 20 years assuming an after tax return of 1.7% with National Savings Income Bonds which seems realistic enough. I would add the income received every month back to my monthly savings and then add it to my total amount of Income Bonds held, might be a worthwhile plan but maybe not and I'm no expert with regards to these things. Take care

opinions4u

EltonJohnFan wrote: »

Hi,

Thanks for the good advice, and well done on the stock market thing too! I know it's probably a very hard goal to attain for an ordinary person like myself but I've never been one to just give up without trying and I live a pretty simple life and don't have expensive tastes which enables me to save most of my wages when I'm earning as I don't have any bills other than for the basics. I look around me and see other people my age struggle, most people are finding this recession hard and I'm intelligent enough to know that a lot of it was caused by people living beyond their means and that is why I'd rather save and buy this house in cash and then it's completely mine and I don't owe the bank a thing. I really have to be honest, £350,000 is a LOT of money to me and I can't think of a way I could possibly earn that much anytime soon. I'm too afraid to try the stock market or other investments as I've heard lots of horror stories so I think my only option is to work hard and find the best possible rate I can on my savings. I've used the Money Saving Expert savings tool and it says that if I was able to save what I think I could save (if I was working) and nothing bad happens then I would have the £350,000 in 19 years and 2 months assuming an after tax return of 1.7% which seems realistic enough. Take care

And if the property increases in value by 2.7% a year, how much would you need?

Not trying to crush your dreams, but you are assuming no house price inflation for two decades.

EltonJohnFan

opinions4u wrote: »

And if the property increases in value by 2.7% a year, how much would you need?

Not trying to crush your dreams, but you are assuming no house price inflation for two decades.

Hi,

That's a good point, thank you. As I said I'm new to all this and don't know everything yet I've been following this property for a good few years and at one stage it rose to £345,000 but was sold at the end of last year for £309,500 so it's not all bad. I've also noticed that it remains fairly stable around that mark and neither rises by much or falls either. I really appreciate any advice you can give on reaching my goal as it's something I feel strongly about, thanks again.

VT82

How much do you think that house cost in 1990? In 19 years and 2 months, that house won't cost £350,000, it'll probably be at least double that. And it probably won't be for sale.

Mortgages aren't necessarily bad debt. I'd concentrate on ways you could afford to get a mortgage rather than concentrating on ways you can buy a house FOR CASH - from pretty much nothing.


Edit: Whoops, realised I left this open for quite a while before replying - seems I missed an edit and 2 replies in the meantime )

Loopgames

That sounds like a lovely dream and one I'm sure many of us share.

One way, as mentioned is to set up a business. I've been enjoying the journey in setting up and managing a micro business whilst bringing 2 new kids in the world and juggling family life at the same time with my lovely hubby.

Like you and many others - we all want to progress and so I've been looking at leveraging my time more and more. By that I mean looking at what is the best way to manage my time for the highest potential return - with risks, naturally. But I also had to find the route to be in tune with my own principles, value and most of all enjoy myself in the process.

The industry I'm looking at is the Toy industry - creating a new game and spin off merchandise. It's rather exciting industry as with all industries once you find your niche.

So it's something you need to look at - how are you going to create that leverage to provide you with the income and capital to enjoy your life the way you choose to.

I prefer creating products than services personally to increase my leverage...ask yourself what your interests are and do a little plan.

And enjoy the process - most of all don't expect it to be easy - it's extremely challenging and expect to learn from the many many mistakes and stumbling blocks ahead. I'm sure it will be worth it:D (I'm guessing as I'm not there yet either)

Consumerist

EltonJohnFan wrote: »

I've used the Money Saving Expert savings tool and it says that if I was able to save what I think I could save (if I was working) and nothing bad happens then I would have the £350,000 in about 20 years . . .

Well, it's not quite that bad unless you intend to pay cash for your house.

A more realistic plan would probably be to continue saving until you have a sufficient deposit so that the balance can be paid through a mortgage which you can afford. For example, in 10 years, using your estimates, you could have a deposit of £180,000 and if, as you observe, the price of the house hasn't changed too much, then you will only need to borrow around £180,000 and, hopefully, your income will have risen over the period.

Whilst your dream, at the moment, must be a long-term plan including a bit of luck, hard work and keeping your eye on the goal, it could yield a result. A lot will depend on the financial situation at that time - mortgage rates, availability, etc.

If you really want it, plan for it and go for it. I certainly wish you all the luck in the world.

Edit
Reading through your posts again, you say your income is around £18K pa but you don't mention what your day-to-day living expenses are. Are you sure your savings estimate is realistic ?

EltonJohnFan

Loopgames wrote: »

That sounds like a lovely dream and one I'm sure many of us share.

One way, as mentioned is to set up a business. I've been enjoying the journey in setting up and managing a micro business whilst bringing 2 new kids in the world and juggling family life at the same time with my lovely hubby.

Like you and many others - we all want to progress and so I've been looking at leveraging my time more and more. By that I mean looking at what is the best way to manage my time for the highest potential return - with risks, naturally. But I also had to find the route to be in tune with my own principles, value and most of all enjoy myself in the process.

The industry I'm looking at is the Toy industry - creating a new game and spin off merchandise. It's rather exciting industry as with all industries once you find your niche.

So it's something you need to look at - how are you going to create that leverage to provide you with the income and capital to enjoy your life the way you choose to.

I prefer creating products than services personally to increase my leverage...ask yourself what your interests are and do a little plan.

And enjoy the process - most of all don't expect it to be easy - it's extremely challenging and expect to learn from the many many mistakes and stumbling blocks ahead. I'm sure it will be worth it:D (I'm guessing as I'm not there yet either)

Thank you

I'd love to start my own business and though I do feel that I have all the necessary skills to get started and run a business succesfully I just don't know where to start! I'm more than happy to work hard until I come to retire as long as I have something worthwhile to retire to and that house would be the perfect "gift" as it were after a lifetime of work.