Won't somebody please think of the children?

deed02392

Or more specifically the next generation of home owners?

I'm 19 years old and now in a full time apprenticeship. I have been employed since I was 16 years old and as a keen saver now have about £13k to my name in way of a mortgage.

From what I've seen however this doesn't even touch the deposit new buyers are being expected to pay for a house in my area (Portsmouth). With interest rates as low as they are though, my savings are pretty much shrinking (against inflation, although I now have £5k in an NS&I inflation linked savings account) whilst mortgage costs are only going to go up.

So what I am really looking for is some advice on what I SHOULD be doing with my money? Should I be looking to get out of living with my parents as soon as possible and get on the property ladder, or should I stay at home as long as possible and keep saving until I can afford a deposit on a nice house in the area? I do not have a preference either way, I really just want to see my money go as far as possible.

I appreciate anyone's thoughts.

Thanks!

jonesMUFCforever

Move to a cheaper area.

lulu650

First of all, well done on saving so much money. However, surely the first consideration is whether you could afford a mortgage? And at what salary will you be able to get a mortgage that will pay for a place in Portsmouth?

I was married at 19, almost 40 years ago. On a £10,500 house I would never have been able to afford to buy without two salaries coming in. Even then, we were severely stretched for many years.

ViolaLass

What's your salary and how much does the house you want cost?

Also, you're 19. Don't get too het up about not having a house yet.

Saints2011

jonesMUFCforever wrote: »

Move to a cheaper area.

Not cheaper areas close to Portsmouth.

deed02392 wrote: »

Or more specifically the next generation of home owners?

I'm 19 years old and now in a full time apprenticeship. I have been employed since I was 16 years old and as a keen saver now have about £13k to my name in way of a mortgage.

From what I've seen however this doesn't even touch the deposit new buyers are being expected to pay for a house in my area (Portsmouth). With interest rates as low as they are though, my savings are pretty much shrinking (against inflation, although I now have £5k in an NS&I inflation linked savings account) whilst mortgage costs are only going to go up.

So what I am really looking for is some advice on what I SHOULD be doing with my money? Should I be looking to get out of living with my parents as soon as possible and get on the property ladder, or should I stay at home as long as possible and keep saving until I can afford a deposit on a nice house in the area? I do not have a preference either way, I really just want to see my money go as far as possible.

I appreciate anyone's thoughts.

Thanks!

Hello mate well done on the saving, i'm in a situation like yourself (kind of i'm 20), living in Southampton though so a bit of rivality haha.

Need to look at your salary and I would say keep saving if you want to stay in this region . Good luck !

deed02392

At the moment I'm earning just over £9.5k a year although that is due to go up by two or three grand after I gain a qualification in a couple of months time. Still not even enough to take advantage of all the competitive current accounts that are going around (wanting £1k a month)! Devastating.

What is it that you're thinking of doing KirbyBirch?

I think the salary I'd need to pay for a place in Portsmouth would be at least £25k, which if I do well on my apprenticeship would be feasible in about three or four years from now. It just seems as thought 22/23 is too old when I keep getting told stories by older relatives about how at my age they had already moved out into a place of their own etc.

Lokolo

You are 19, you can wait a good few years before buying, circumstances change, could find yourself a partner, have a kid etc.etc.

The average FTB is around mid 30s..... there were different circumstances to previous generations.

callum9999

deed02392 wrote: »

At the moment I'm earning just over £9.5k a year although that is due to go up by two or three grand after I gain a qualification in a couple of months time. Still not even enough to take advantage of all the competitive current accounts that are going around (wanting £1k a month)! Devastating.

What is it that you're thinking of doing KirbyBirch?

I think the salary I'd need to pay for a place in Portsmouth would be at least £25k, which if I do well on my apprenticeship would be feasible in about three or four years from now. It just seems as thought 22/23 is too old when I keep getting told stories by older relatives about how at my age they had already moved out into a place of their own etc.

Then move £500 in and out of the account twice in the month - you now have an income of £1k into the account.

That's ridiculous! You can't really think it's the norm for people to be coming out of uni and then buying a house there and then! There is no way 22 is too old to buy a house, if anything it's too young. There is a very big difference between moving out and buying a house. If you want to move out then rent somewhere - preferably with friends.

masonic

People are obsessed with owning property. It's unhealthy.

jambosans

masonic wrote: »

People are obsessed with owning property. It's unhealthy.

Three words: right to buy. It was the beginning of a socio-political shift which coincided with the explosion of the "free" market. Part of me thought that when the bubble burst mindsets would change and people would realise owning property is not the be all and end all.

Saints2011

deed02392 wrote: »

At the moment I'm earning just over £9.5k a year although that is due to go up by two or three grand after I gain a qualification in a couple of months time. Still not even enough to take advantage of all the competitive current accounts that are going around (wanting £1k a month)! Devastating.

What is it that you're thinking of doing KirbyBirch?

I think the salary I'd need to pay for a place in Portsmouth would be at least £25k, which if I do well on my apprenticeship would be feasible in about three or four years from now. It just seems as thought 22/23 is too old when I keep getting told stories by older relatives about how at my age they had already moved out into a place of their own etc.

Just keep on saving, wait until your salary increases as lenders will only lend a maximum of four times your salary