If I can afford rent how come I can't afford mortgage?

dmg24

Cracking advice from Melissa - positive but still realistic.

Can we have an individual post of the month?! x

extrastrongbint

Melissa177 wrote: »

I have a can-do approach to approach to property - I don't like being told I couldn't do something, so I worked out how I could do it.

Decide what you want, and how much money you need to do it. A 5% deposit on a 120K property is 6K. So, think, how am I going to get 6K?

You could earn it - get an extra evening/weekend job and put all that money into your "deposit savings" account
You could sell items you no longer need to raise the cash
You could loan the money from a friend or relative (perhaps offering them a return on their "investment")
You could use a skill that you have to make money - perhaps you could tutor pupils if you have specialised knowledge of a particular subject.


Read "The Rules of Wealth", which is in most book shops at the moment; this might give you some ideas as well.

You will need to earn more also, I expect - so think about how you can increase your salary.

Good luck! Remember, lots of people are very rich who have come from very humble circumstances. Money does not discriminate - you can be very wealthy too if you put your mind to the task.

Thanks for this! Sometimes I forget that I am very lucky to be in the position I am in and that there are people who are far worse off than me. Just gotta keep the nose to the grindstone! (and be patient....not my best skill I admit)

emg

And bear in mind all the hidden costs if you are looking at buying a flat. You can easily end up paying an extra £100 month maintenance charge and there's also your share of the buildings insurance and any other insurances you need in order to get your mortgage.

Where I live you get a lot more for your money in rented accomodation. I have now found somewhere to buy but it's been hard to accept that I will have to live in a less nice area in a smaller flat and pay £200 a month more for the priviledge.

Melissa177

I'm exactly the same, ExtraStrongBint!

Patience is a virtue, so they say, but the people I know who have made money aren't remotely patient. So perhaps use so of that "impatience" to make your property dream come true.


Thanks for your kind words, DMG *blush*

funkster01_2

hi, i have just got on the property market i earn 22000 as a teacher. i paid 100,000 for my one bed house and nortern rock are the best place for high mortgages, they lend you 110% of the house value and 5 times your slary. yeah its hard but its worth doing!!

firesidemaid

you sound as if you have a goal -and i also would say save as much as you can to cushion yourself.

if you have just found this site, then it can help you both to make money and save money. spend more time on here, browsing! and maybe get martin's books too.

there are lots of ways for you to maximise your income and minimise your outgoings.

for example, your gas bill is way too high (as you know) - when i had a problem like that with a rented flat, i asked the landlord to fix/replace it or cut my rent to cover the gas bill, he did the latter.

good luck with your quest.

lucy_w86

Hi,

I earn £21K and want to look into moving out on my own. If you can afford £500, I should be able to. How did you find that?

extrastrongbint

lucy_w86 wrote: »

Hi,

I earn £21K and want to look into moving out on my own. If you can afford £500, I should be able to. How did you find that?

Sorry I don't know what you mean?!!

lucy_w86

extrastrongbint wrote: »

Sorry I don't know what you mean?!!

How did you find your flat?

Idiophreak

Surely there's also an argument that whilst you can afford it now, should the interest rate leap any time in the next 30 years, you might not be so able to afford it...?