Raising a deposit?

samson131313

The house i rent is in slightly better area than i would be buying in but is the same sort of size as i will be buying.

A terrace house of my own would be fine as i would use the 2 downstairs reception rooms as storage for all the records i have on my online site and an office and just treat the upstairs like a flat and just use the kitchen downstairs, i know this isnt ideal but i could happily live like this at least for a good few years.

I've thought about getting rid of my storeroom and using the place i rent as storage but i doubt many landlords would be happy with me storing over 20000 records in there house!

plus its no mean feet to shift that number of records, a landlord could suddenly say they had decided to sell up at the end of my lease and then i'd have to move them all again, the next time i have to move them (last time took me about 2 weeks hard graft!) i want to move them into my own property so i can decide when i next want to move!

My point is its hard to save for a mortgage deposit when you already have £600 a month rent on where you live plus £270 a month rent for the storeroom going out plus all the other normal bills, if i had neither of these costs (which is the idea of buying somewhere and having a mortgage instead) the £870 would pretty much pay the monthly mortgage payment and all the monthly bills.

I'm just stuck in a catch 22 where with all the outgoings i currently have i find it very hard to save for the mortgage deposit.

I just added the bit about the business loan as that is finished in about 4 months so the the £245 i pay out a month at the moment for that will then go towards other bills or mortgage payments.

InMyDreams

OK, so this would be my plan for saving £10K then:

In the next 4 months find yourself somewhere a bit cheaper to rent, that, crucially, you could fit your records in (in a worse area if you have to, smaller than you'd ideally like if you have to... it's a short term thing, doesn't have to be as nice as what you'd actually like to end up in - seems daft to be getting used to living somewhere nicer/more expensive than you aim to buy in). I *know* this isn't ideal, but short term pain for long term gain and all that...

Maybe you could cut your rent to £500? Saving £100/month. Or more? How much would your £85K house really cost to rent? Would you really have to compromise that much compared to how you want to live when you buy this place?
Get rid of your storeroom, saving £270/month
Loan repayments will have finished, saving £245/month.

Total saving £100+£270+£245 = £615/month

Once you start renting your new place, you could save your £10000 in only just over 16 months without even cutting back on your party lifestyle.

In addition, if you could manage to cut your spending by even just £100/month (which most people can do without it impacting on their lifestyle at all, just by following tips on this website) you could bring that down to 14 months to get to your deposit. If you save even more on the rent, or cut back a little more, you could do it even quicker. Bottom line is what do you *really* want and when do you want it? (And yes, I know the answer is "£10K on a plate, please" but wouldn't we all? At least you are in a position to actually do something about it if you want to. You are in a more fortunate position than many.)

I honestly believe that in the long run this will be less painful than borrowing the money upfront, or being given it from Bank of Mum (who it seems can't really afford to anyway without compromising her own financial security and you don't want that for her, surely).

ScotlandM

Why not have you, your mother and your sister all trying to save and gift you the first deposit. Between the 3 of you there must be 3,333 savings per year. Then after the first year you get a mortgage and flat and your costs magically reduce. Then all 3 of you save for your sister and finally you find out if your mother would like repaying.
3,333 for 3 people gives you the 10k first deposit
3,333 is only 278/month
For you that will be easy as you have your business loan.

You can't raise a deposit by using credit. Your mother could downsize to release capital or give her house to a "dodgy" equity release company and then gift the resultant equity to you.

Other than that there is no special way of saving a deposit, you clearly could save a lot of money if a house is what you want but you can't have everything. Cutting back on a social life isn't the same as never going out. It's having a coffee at home with friends for pence rather than at starbucks for pounds. Drinking/partying at home with a few cheaper bottles of wine than having a few expensive glasses and then going to a club.

I'd also suggest you do downgrade your rented place now before you get a house. You want the move to your own house to be a small step up not a step back. Otherwise this long term investment might not feel right after 2 years.
Sounds like your plan for the house and need for the extra storage is true, though you don't have much of a plan if you did find a partner.

Yes, it is hard. That's why not everyone does it. That's why people need to make sacrifices to save for a deposit

DRP

Either,
Get your mother to sell her house
or
Spend less, save more
or
Keep buying those lottery tickets.

There is no 'free lunch' so to speak.

pinkteapot

samson131313 wrote: »

Ok cheers my income after tax is about £25000, unfortunatly i like to party a little too much which is where a fair bit of my income currently goes and i'm not prepared to put my life on hold while i save (i know this is like trying to have your cake and eat it but ah well!)

£10k is not enough for a deposit and all the fees and costs that go along with buying.

You WILL need your own savings in addition to the £10k from your mum.

Talk to her about her lifestyle before she bought her first house. In all likelihood she saved hard for it.

SuzieSue

samson131313 wrote: »

unfortunatly i like to party a little too much which is where a fair bit of my income currently goes and i'm not prepared to put my life on hold while i save (i know this is like trying to have your cake and eat it but ah well!)

That's your main problem and if you aren't prepared to make sacrificies for a few years to get what you want I don't think it is fair to ask your mother to.