Can I really afford it?

d0nkeyk0ng

I earn around £3000pcm net. I'm looking at properties in the £200-250k region. The problem I have is working out living costs. I'm at home with my parents so my expenditure on the house is minimal (I pay for weekly shop).

How do you work out how much you can afford to pay? Things like council tax, water rates, electricity, insurance etc?

When the interest rates start to go up, how much do I need to set aside for them?

theoretica

Council tax - you can get hold of the figures from the relevant council. If you are living alone you can claim a 25% discount. Water/electricity etc asking what your parents pay would be a good start.

dunstonh

I earn around £3000pcm net. I'm looking at properties in the £200-250k region.

So, you are really pushing the limits to extremes unless you have around £50k-£75k deposit.

How much deposit do you have?
Do you have any loans or credit cards that do not get paid off each month?

Lenders have reverted back to more sensible lending criteria. Asking for 5-6 times salary just isnt going happen.

roonaldo

Thats a huge step going from parents into a property of that value. Are you in London?

d0nkeyk0ng

No. Birmingham. No outstanding debts apart from student loan.

Natwest have offered me £250k with a 10% deposit for around £1700/mth for the first two years.

Just looking at whether buying a house will ever be affordable for me.

Doshwaster

d0nkeyk0ng wrote: »

No. Birmingham. No outstanding debts apart from student loan.

Natwest have offered me £250k with a 10% deposit for around £1700/mth for the first two years.

Just looking at whether buying a house will ever be affordable for me.

On your income a mortgage is certainly affordable and living at home you should be able to build up a deposit quickly. You just need to lower your sights from that £250,000 "dream home" to something cheaper especially if you are a single buyer.

I'm no expert on the Birmingham property market but surely you ought to be able to get something in the £150,000 range with a 20% deposit - which would only cost around £600 a month.

A lot of people who have been lucky enough to grow up in a really nice parental home have got used to a certain high standard of living. Unfortunately most people cannot continue with that lifestyle when they buy their first home and they have to make compromises and "rough it" a little. The housing ladder is so called as you tend to start at the bottom and work your way up one step at a time.

PasturesNew

Buying a house is EASILY affordable for you .... but you seem to have your eye set on the posh gaffs.

£1300/month after mortgage is paid is more than most working people have before they've paid their mortgage/rent.

Thrugelmir

d0nkeyk0ng wrote: »

Just looking at whether buying a house will ever be affordable for me.

What do you spend your salary on?

Living at home on £3k. A years hard saving would set you up for life.

d0nkeyk0ng

Fast cars and women. Actually I had to give £10k towards my sister's wedding. The rest went on courses and exams.

Need to move closer to work and that means nicer areas. Posh houses where I work go for £1m.

droiderm

Having a mortgage that big would scare the hell out of me .
We are aiming for our mortgage to be around 20 percent of net monthly income.
I don't think would take on 25 percent.

beachie

If you do decide on a £250k house I would consider renting out one or two rooms. You can earn up to £4'250 a year tax free.

Even so I am not sure I would ever want to spend £250'000 on a house if I was buying alone as even having an £85'000 mortgage is scary!

You would save alot of money buying a 3 bedroom house for £150'000 and renting out one of the rooms. If you rented out two you would pay tax however they would basically cover your mortgage payments.