23 yr old....wants to buy own place.

ipri

spunko2010 wrote: »

Interesting that nobody has mentioned the pitfalls of buying now, especially to a 23 year old. How secure is his job? What if he wants to travel or take time out abroad? Go to University/education? Change of career direction? What if she leaves him, can he survive on his own and afford the mortgage by himself

Sorry to put a downer on it, but this is a 25 year commitment, and when you're 23 (I am not much older) I think you should at least rent first for a few years. Your post didn't mention if they were already renting or living at home, it's interesting the way a relationship can change for example, once you live together in your own place.

And of course then there's the economy and the general anticipated trend in house prices over the next 5 years. I believe there should be a responsibility even when your kids are over 18, to help them understand that it's not all fun and games when buying a home, especially with the heightened risk of negative equity etc.

I recently bought a house, my parents told me that renting was 'dead money' and never once took me aside and spoke about affordability etc, which I don't blame them for of course, but I think every parent should overstate the risks when buying a home for their child's sake.

I do take my resposibilities seriously...thats why I'm posting here!....he lives at home..cheaply!...not going to uni...sadly...listens to his mates far more than his worldwise parents!

elantan

spunko2010 wrote: »

Interesting that nobody has mentioned the pitfalls of buying now, especially to a 23 year old. How secure is his job? What if he wants to travel or take time out abroad? Go to University/education? Change of career direction? What if she leaves him, can he survive on his own and afford the mortgage by himself?

Sorry to put a downer on it, but this is a 25 year commitment, and when you're 23 (I am not much older) I think you should at least rent first for a few years. Your post didn't mention if they were already renting or living at home, it's interesting the way a relationship can change for example, once you live together in your own place. If they haven't rented then he'll need to factor in additional costs.

And of course then there's the economy and the general anticipated trend in house prices over the next 5 years. I believe there should be a responsibility even when your kids are over 18, to help them understand that it's not all fun and games when buying a home, especially with the heightened risk of negative equity etc.

I recently bought a house, my parents told me that renting was 'dead money' and never once took me aside and spoke about affordability etc, which I don't blame them for of course, it was all BUY BUY BUY, luckily I did my own research and disregarded that advice mostly. However I do think every parent should overstate the risks when buying a home for their child's sake.

just to answer this for my son ... his job is as secure as anyone elses, no job is secure does that mean that we all stop living?

my son does infact intend on travelling, he will rent his house out when he goes travelling we will ensure it is in good nick for his return, and if the lodger doesnt stay for they year/2 years whilst he travels his savings will cover his mortgage

my son is at university just now ... he goes to uni full time works part time, has savings and owns his own house ... it can be done you know

he deff intends on changing career, however he wont just pack his job in then change career, he will find the job he wants then deal with changing jobs

my son does not intend on having a 25 year commitment, he intends on owning his first home within the next 5-10 years max, he then intends on buying a second and keeping his first as an investment, my son doesnt believe in typical pensions ( that has cause many a discussion in our home i can assure you ) and wants to have BTL, shares, stocks,a business etc as his retirement income

the house my son bought was valued at 85k he paid 65k for it with a 20k deposit, he has spent money on it ( central heating installed, new (cheap) bathroom fitted) it is in a very good area where houses sell for over 100k in no time ... yes his value may go down ..., but it may also go up ...

my son knows it isnt all fun and games, he has been renting since he was 16 (although he did move back home for a year and a half to save his deposit)

i'm not saying his life is by any stretch easy, but i will say he makes the best out of any given situation, i wish i had his knowledge at his age ...

elantan

BitterAndTwisted wrote: »

NOPE! Landlords do not share a bed or plan a future with their lodgers. I wouldn't like to try and persuade a court that the person I lived with as a partner was purely a lodger. That really wouldn't fly if or when they split up: that hefty deposit would have to be shared.

The most sensible option would be a full and frank discussion between them about every single possible outcome and what they both agree should happen. Then have it drawn up as a deed of trust if they are to buy a property in both of their names.

If he goes ahead and buys the property in his name only then he must not accept a penny from her which could later be interpreted as rent or a contribution towards the mortgage-payments. No expensive holidays in lieu of rent, no repairs and maintenance, no furniture, no improvements. Only proveably half of the utilities, council tax and groceries. Nothing else.

thanks i wasnt aware that a gf didnt count as a lodger ... just thought it mightve helped

Lokolo

elantan wrote: »

my son does infact intend on travelling, he will rent his house out when he goes travelling we will ensure it is in good nick for his return, and if the lodger doesnt stay for they year/2 years whilst he travels his savings will cover his mortgage

I'd be surprised if this will be allowed if he has a residential mortgage.

But I agree with the rest of your post. I am 23 and a putting in an offer for a place next week. But I am a bit of a geek, with 17.5k posts on MSE!

elantan

i am sure knowing my son Lokolo he will figure a way to sort that out ... legally as well ...

i have seen you about ... mse has a great deal to teach everyone of every age

good luck with buying your first home

dawyldthing

i'm 25, earn just over 10k before tax on paper based on my base wage and got offered 43,500 mortgage, so it is possible. Do an soa with him so he knows what it will cost, then factor in the other things so he knows the full picture. But deffo agree on putting down as much as possible as you will get a better rate so will pay less in the long run

sirmosh

dawyldthing wrote: »

i'm 25, earn just over 10k before tax on paper based on my base wage and got offered 43,500 mortgage, so it is possible. Do an soa with him so he knows what it will cost, then factor in the other things so he knows the full picture. But deffo agree on putting down as much as possible as you will get a better rate so will pay less in the long run

I don't want this to sound in any wasy offensive but it seems ridiculous to offer a mortgage of any amount to someone on such a low income, even with small mortgage repayments combined with other bills surely you'll be at a loss each month.

BitterAndTwisted

elantan wrote: »

my son does in fact intend on travelling, he will rent his house out when he goes travelling we will ensure it is in good nick for his return, and if the lodger doesn't stay for they year/2 years whilst he travels his savings will cover his mortgage.

This needs to be researched very carefully indeed before he makes any plans to leave the country. The very moment he moves out of the property that lodger will become a tenant with completely different rights and security of tenure, and your son will acquire completely different responsibilities. And will have to declare the rental-income for tax purposes. IF the lender will give consent-to-let rather than insisting your son converts tht residential mortgage to a buy-to-let one with a much higher interest-rate attached to it. Mortgage-lenders who deal in residential mortgages don't always sell BTL products as the risks are completely different.

My own feeling is that should a young person have plans to go off travelling for a couple of years, owning a property first is putting the cart before the horse.

elantan

i have no doubt my son will get all that sorted before he goes travelling ... even if it meant he would delay travelling for a year or so while he pays the house outright to have no mortgage ( which he intends on doing very early anyway)... he is saving alot of money everymonth as it is now that he has the house organised the way he wants it ... i know he intends on paying his mortgage off early and between us we have started a competition to see who can get mf first ( we started when our mortgage got to the same level as his)

i also understand your sentiment about the cart before the horse ... but if he had left it till after he went travelling he may have came back to much higher house prices ... this way he got a good house at a cheap price

jimpix12

elantan wrote: »

just to answer this for my son ... his job is as secure as anyone elses, no job is secure does that mean that we all stop living?...

"A job is as secure as anyone else's" is false logic; some jobs are much more secure than others. And a lot of employers use a "first in, first out" policy which clearly puts younger people at higher risk.

Anyway I was just giving some guidance based on my own (very little) experience.. However I have to say, implying that not buying a home is akin to "not living" is wrong, there is nothing wrong with renting. A lot of people are putting their homebuying plans on hold for a few years, this is a good, balanced decision in my opinion if you're starting at the bottom of the ladder where house prices are more likely to slump further. Just my 2 cents anyway!!