First Time Buyer, High Earners, No deposit

Thrugelmir

Chojinalpha wrote: »

Just a shame I still have to burn money on rent too.

Choice is yours.

Fritter money away or buy what most people can only dream of.

Mortgages may sort themselves out a bit with competition from lenders in 12 months too.

Unlikely to change for a very long time. With the general state of financial markets. Greatest likelihood is an increase in interest costs in the medium term.

Creditcardkid

One thing I have noticed - you mention buying a house for 250K and avoiding stamp duty. This is not 100% accurate - you would avoid 3% stamp duty on any house over £250,000 but still have to pay 1%.

casper_g

Creditcardkid wrote: »

One thing I have noticed - you mention buying a house for 250K and avoiding stamp duty. This is not 100% accurate - you would avoid 3% stamp duty on any house over £250,000 but still have to pay 1%.

As first time buyers, OP and girlfriend would pay no stamp duty on a house costing £250,000 or less. The exemption is due to expire on 24th March 2012, but I wouldn't bet against it being extended. It sounds like they are unlikely to want anything at this level anyway, so it's not much of a consideration.

opinions4u

I struggle to have sympathy.

"I earn loads but haven't saved enough" really doesn't tug on the heart strings.

I think house prices will remain flat.

I think lenders will continue to want deposits.

I think mortgage product rates will remain close to where they are now for the short term at least.

In the same situation I'd save everything I can to get the property / mortgage deal I wanted. If that takes time, so be it. The "want it now" times are memories when it comes to easy debt.

getmore4less

Chojinalpha wrote: »

Just another bit on outgoings. I work from home and she is on the M4 corridor, both own our car outright too. So far havent done a baby budget, she gets 24 weeks full pay maternity too and 4 months after at 50%

We I guess are luckier than most.

Move closer to OH work, rent cheap and down to one car for a year, will save loads of money.

£2k on living is getting on for £70 a day do a spending diary.


don't forget if the OH want to take 12 months maternity thats no pay for nearly 3 months and if she returns to work childcare.

R&C

Save save save.

Or start looking in Staines, Sunbury, Ashford, Egham, Shepperton etc where you can get a decent enough house for your £250k.

Personally I'd be looking for something in the £250k range that perhaps is run down and using excess wages to renovate it, although this may prove difficult with a baby on the way, and I understand isn't everyone's cup of tea.

Good luck!

Chojinalpha

Thanks for the responses, clearly location and so forth as well as house cost is something for me and my partner to look at in time.

So for now, its head down and save.

Wasnt looking for sympathy, just advice as the only advice I have had up to now is from people trying to sell me things.

Appreciate everyone taking the time to answer.

Thrugelmir

Chojinalpha wrote: »

Thanks for the responses, clearly location and so forth as well as house cost is something for me and my partner to look at in time.

So for now, its head down and save.

Wasnt looking for sympathy, just advice as the only advice I have had up to now is from people trying to sell me things.

Appreciate everyone taking the time to answer.

Decide where you like to live. See how much you need to save to achieve your goal, and go for it.

You'll be far more satisfied at the end. Than any amount of frivolous spending.

Remember you are doing this for "somebody" else as well.

Good luck hope all goes well.

Doshwaster

Chojinalpha wrote: »

So for now, its head down and save..

Yes, that's the only reasonable solution. The problem is that as you income increases so do your outgoings and when you are cash rich you don't notice or care where the money is going.

You just need to analyse every penny you spend and work out where it is doing. Use a spreadsheet to track everything. It may be painful, but if you went on a 6 month Cash Diet then you should be able to save a lot of money. So cut out *everything* which isn't essential - meals out, weekends away, new clothes - and put everything you saved into a separate "house deposit" fund. It's not going to be nice but you just have to keep thinking about the rewards at the end. Besides, when you have a new mortgage and a baby you have to start cost cutting so this will be good practice.

Good luck!

SAMMYE_2

You have a baby coming so massive motivation to save.

Put your heads down and save like there is no tomorrow!

This is the single best advice you could be given before buying a house.