Should you have your first home by 24?

alibob_1986

I am under no illusion that I will be a home owner muh before 34, if I even manage that to be honest. I am 26, a single parent and just finished my first year of uni. At the age of 24 I personally was nowhere near buying my first home. In fact, of all my friends I know 2 people who have bought, one on a shared ownership scheme and one buying as a single man, but on a very very cheap house. I believe he also had a lot of help with a deposit. Most others are either living with friends or in a house paid for entirely or partially with housing benefit. Times are very different now, I certainly don't think being a home owner at 24 is the usual these days

SG27

HAMISH_MCTAVISH wrote: »

http://www.houseladder.co.uk/Property_News/2012/04/FTB_ages_vary_across_the_UK_2887.aspx

Looks like I've still got 5 years to go!!!

SG27

littlesparkles wrote: »

My boyfriend and I bought a flat when we left uni at 22. This was only in 2006 but 100% graduate mortgages still existed then. We are now in the process of buying a larger house - this time with 20% deposit (15% of our own plus 5% new build builder's deposit). The mortgage payments on the flat have been very similar to rental costs in our area. This means that we have managed to 'save up' some equity rather than just giving it all to a landlord so now we have a deposit for our next house. We have never ever even almost struggled with our mortgage payments (or other finances for that matter) so it is a shame for that these 100% graduate mortgages are no longer available for those who are now leaving university and have good jobs secured. It would have been more difficult for us to have saved up enough money for the house deposit if we had just been paying rent rather than paying a mortgage and building up some equity. Neither of our parents could have helped with a deposit so I expect we would have been in rented for some time.

For us saving the deposit is not a problem. We have been saving for years now so have a lot of money saved up. But it's still going to leave us with mortgage payments they are more than would like to be paying!

Mobeer

I know someone who bought their first house (un-assisted) at 18!

I first bought at a somewhat older age, and wish I had bought when I was younger.

littlesparkles

SG27 wrote: »

For us saving the deposit is not a problem. We have been saving for years now so have a lot of money saved up. But it's still going to leave us with mortgage payments they are more than would like to be paying!

We chose a flat that was in far from our ideal location. We also would have preferred a house. However we had to choose something that was affordable and comparable to what we would be paying in rent. We are now lucky enough to be moving to hopefully our ideal location but we definitely could not have afforded the ideal house and location for our first home.

Brallaqueen

I think it depends on the person, what they want and how determined they are to get there. I had a friend who left school at 16 and bought at 18 as soon as she could qualify for a mortgage. She's always been way ahead of the curve and has worked incredibly hard to get where she is, on minimum wage. She celebrated her 30th by paying off her mortgage and getting cosmetic surgery all paid for outright.

Looking back, I wish I had not gone to Uni and had instead got a NMW job and saved up for a house in the way she had, I would be in a much better position.

note_2

the title of the question is ridiculous, my older sister is 22 and just finished a degree....now its highly unlikely she'll move out for another 2 years at least, and even so the only way she'll be able to afford a house is through 'help' from parents and possibly relatives.

my aim is to purchase a property by the age of about 26, and even thats very optimistic, and factoring in 'help' from parents....

say i am 26 and earning £20k / year, the lowest i can spend to get a decent property round here is about £110k, now the max you'll get lended is 3.5 x salary which is £70k, so you'd have to have about £45k factoring in fees in your account! if your parents dont have that spare then you're on your own and that could take years to get.....

hcb42

Mobeer wrote: »

I know someone who bought their first house (un-assisted) at 18!

I first bought at a somewhat older age, and wish I had bought when I was younger.

I did exactly this, and interest rates were about 11-13% and peaked at 15% briefly before I was 23 too.

Simon11

Saturnalia wrote: »

I would imagine the vast majority of graduates don't own property at 24, after all they've only been working for 3 years at that point (assuming a 3-year bachelors degree).

Graduate salaries aren't what they once were either, as demand for those jobs has massively outstripped the supply; and especially in London where most of these jobs seem to be based, demand for housing has outstripped supply too.

If you're single you have next-to-no chance of owning property in your twenties unless your salary is massive, and face it by 24 it is unlikely to be.

If you are in a couple or friends buying together then maybe you could, provided you don't mind living on fresh air after the mortgage is paid.

I'd say that thirty-four is a far more realistic estimate!

Hmm, I must be a small minority, being 23, single and now a home owner with a flat just under the stamp duty with 2.8% tracker.

It depends on your mindset. I've worked really hard saving during my uni years and never been one to waste money on pointless things like cars etc. Howevers it important to spend to live and enjoy things.

Finally I worked all hours I could while at university (Still getting a first tho) on £8 an hour. While it may only seem £8 an hour, it was mostly tax free and if I saved that £8 earnt when 18. Using a 3% ISA rate it would be work £9.50 when 23. Then as I've purchased a house, that money makes it cheaper to have a mortgage, thus saving money with a lower % mortgage, not wasting money on rent and well as having a smaller loan. Then as I have been able to afford a flat, it may increase in value. Then by the time I'm 40, that hour earnt on £8, could be worth more than double that value.

Gromitt

I bought a flat when I was 19 as I wanted more freedom to do what I wanted. When I lost my job at 24 I sold the flat for a nice tidy profit and moved back home. A year later I bought my first house. Roughly 15 years laters, I'm now in my 3rd!

If I had waited until I was 24, I would have never had the same amount of money as I did by buying and selling the flat (although I did spend about 6 months doing it up). Best investment ever.

Of course, now you are unlikely to make such a profit. Break even more like.