FTB: Mortgages & PHDs

OCD

BeardedWonder wrote: »

True, we know plenty of people who have taken over 3 years but invariably they're people who didn't do much work in the first year, or even 2nd.

That's why my gf is treating it as 9-5 role and made very good progress so far.

Her work at the uni means that (all going well) she'll have at least a £6k p/a income to cover any overrun. She might be able to do more hours there if needed as well.

The extra wor she does, is definitely a bonus and the fact you are putting some aside now is a good idea.

It's also a good idea getting in to a routine and being disciplined.

One of the problems with PhD's is that they are so variable. Every project is different. The frustrating thing is that success or the timeliness of completion does not seem to be directly related to the effort applied.

Some people get an easy project, things go to plan and they finish on time.

For others, things can drag on despite the best intentions and work ethic.

OCD

BeardedWonder wrote: »

Appreciate what you say about financial worries but we need to live somewhere; if we don't buy we're still renting - monthly outgoings will be the same, just we want to be renting "from the bank" not a landlord...

I totally understand what you are saying.

I agree that it would make sense to pay down your own mortgage that someone elses. There are of course alot of advantages of having your own place.

However, the reason why I would feel quite apprehensive about buying while your partner is PhD is the uncertainty surrounding it.
The risk of having your own house is greater than renting. If you cannot pay your mortgage you risk losing much more - the house and deposit plus all fees involved.

On top of that, you will have less flexibility to move - something you may have to do for your partner to get a job after her course, and something which is often necessary in academia.

BeardedWonder

The risk only really kicks in once my partner finishes; until then her income is guaranteed.

While relocation may be required as we're in Manchester there are quite a few universities within commuting distance. A jump in to the private sector may be possible (her PH includes a lot of advanced statistics).

Sure, there's a risk but as long as we get something well within our budget and keep saving just in case she has to extend her studies than think thats a risk we're prepared to accept.

We're both very, very fed up of renting and all the restrictions it entails.

OCD

2 and a half years is a short time.

Do some sums and compare the cost of renting and buying.

Factor in the monthly repayments based on the type of mortgage you might be able to get. Include fees.

See a broker, who will be able to offer you specific advice about your situation.

Doshwaster

OCD wrote: »

PhD's invariably take longer to complete than expected. I know people who have taken a few months over three years to complete, others closer to 4 years. A year is a long time to go without earning.

Yep. I've been there. I tried wiriting up a PhD with no income but got sick of living in a tiny damp bedsit, eating beans and toast and an ever increasing overdraft. I took a job but then found I had no time to work on the thesis. I eventually got bored of it and just gave up.

It happens to so many people. The PhD goes fairly well but the writing up breaks the soul. It's all about will power. Those who have churned out a thesis fairly quicky have started it early (while their funding is still runnin) and treated it as a full time job

I wouldn't be in a rush to get a mortgage at the end of the PhD. The job market is uncertain and even if you do find a job it could be anywhere - and you don't need the stress or distraction of buying a house while writing up. I would sit tight.

OCD

Doshwaster wrote: »

Yep. I've been there. I tried wiriting up a PhD with no income but got sick of living in a tiny damp bedsite, eating on beans and toast and an ever increasing overdraft. I took a job but then found I had no time to work on the thesis. I eventually got bored of it and just gave up.

It happens to so many people. The PhD goes fairly well but the writing up breaks the soul. It's all about will power. Those who have churned out a thesis fairly quicky have started it early (while their funding is still runnin) and treated it as a full time job

I wouldn't be in a rush to get a mortgage at the end of the PhD. The job market is uncertain and even if you do find a job it could be anywhere - and you don't need the stress or distraction of buying a house while writing up. I would sit tight.

You are right. Before I went through the process, I thought people exaggerated the writing up process. It is tough and it is a battle with yourself more than anything else. I also had to work while writing up and found juggling the two incredibly difficult. I had to scale back the amount of work I was doing towards the end to make the process necessary. I also worked during the course of my funded period - during the weekends. If there's anything you can do to reduce the stress involved - would do it - even if it means putting up with some of the downsides of renting.

seraphina

For me, the biggest risk is not being able to find a job in the same area after completing your PhD, rather than how long it will take you to write up. You run the (very) high risk of your partner not being able to work in her chosen field in her area, but you can't move because you have a house...

Seriously, I would strongly advise against it, guaranteed income or not. One of the reasons we didn't buy when I was doing my PhD was that we just didn't know where I could find a job when I had finished. Three years is too short a period to get any benefit out of buying IMO.

OCD

seraphina wrote: »

For me, the biggest risk is not being able to find a job in the same area after completing your PhD, rather than how long it will take you to write up. You run the (very) high risk of your partner not being able to work in her chosen field in her area, but you can't move because you have a house...

Seriously, I would strongly advise against it, guaranteed income or not. One of the reasons we didn't buy when I was doing my PhD was that we just didn't know where I could find a job when I had finished. Three years is too short a period to get any benefit out of buying IMO.

More common than not, you have to move to be able to find job in your chosen field.
Alternatively you need to take a job outside of your field if you want to stay in the area.
I know alot of people who have had to take jobs which they would have been able to do prior to their phd.
Maybe if prices were rising rapidly it would be more of good idea.

BeardedWonder

Appreciate the feedback but we're not as naive as may be thought in regards to PHDS. My gf has worked ina academic research for 10 years (in the field of her PHD), worked as project lead on a national government funded study and acheived a Research Associate position where a PHD is normally required. She has a substantial publication list and regularly presents at international conferences. Which incidently, means half price flights for me.

Her department has strict deadlines and a very high 3 year pass rate. There is no writing up year, it's beeing written up as she goes along. Of course she may go over 3 years as well, expect the unexpected.

Not saying she knows it all but she isn't a 23 yeard old who's just rolled in from doing a masters.

Most work in her field is contract work anyway so will be a risk attached. With the potential to work in both private sector and academia we're hoping that won't need a move from Manchester.
An hour (ish) commute can get you to Merseyside, West Yorks, Cheshire, Lancs if needed so we have options.

Neither of us want to move down south (no gravy in chip shops? )

Understand people don't know the backgroung so points raised are very valid. I can't escape the fact that we'll have to pay someone to lives omewhere so might as well be a bank, not £6k dead money a year going to a dead beat landlord!

OCD

In that case, it sounds like you've considered things in detail and are in a much better position than most would assume.

Don't forget that interest on a mortgage is just as much "dead money" as renting.

If she has been working for 10 years, would that make you both in your late twenties? Does your age influence this decision? What are people's thoughts on this?