Deposit of £150k, what would you do in my situation?

Reue

dktreesea wrote: »

Is Whitley so different to Calcot? Some better off places mixed with some poorer spots. Most of Reading is like that, isn't it?

Personally I'd say Whitley is worse.. Beaten only by the Oxford Road, Junction and Norcot estates

cwcw

Tancred wrote: »

Right. And he would have been on £30k a year at age 16? :huh:
The maths doesn't add up.

Indeed. He's not 30 either, he's 25. Would need over 8 years saving the £1,500 a month.

lindsaygalaxy

At 25 and in a relationship (serious?) I would get a descent sized 2 bed house - maybe 1 room with an ensuite so you could rent a room to a friend if you wanted to - which would probably cover any extra mortgage or bills. I agree though, I live not far from Reading and I would say location is everything! But I am sure you know the area well enough, buy where you know it is nice.

Flashmanchop

Tancred wrote: »

Right. And he would have been on £30k a year at age 16? :huh:
The maths doesn't add up.

I don't think you have done the maths.

why does he have to have earnt £30k per annum from 16?

if he has lived frugally, he could have saved proportiantely as he has grown up and as he has earnt more.

AgeEarningSaving Savings
16 £ 2,000.00 £ 1,000.00 £ 1,000.00
17 £ 5,000.00 £ 2,500.00 £ 3,500.00
18 £14,000.00 £ 7,000.00 £ 10,500.00
19 £15,000.00 £ 7,500.00 £ 18,000.00
20 £15,000.00 £ 7,500.00 £ 25,500.00
21 £16,000.00 £ 7,750.00 £ 33,250.00
22 £16,000.00 £ 7,750.00 £ 41,000.00
23 £16,000.00 £ 7,750.00 £ 48,750.00
24 £18,000.00 £ 8,000.00 £ 56,750.00
25 £20,000.00 £10,000.00 £ 66,750.00
26 £22,000.00 £13,000.00 £ 79,750.00
27 £24,000.00 £15,000.00 £ 94,750.00
28 £26,000.00 £16,500.00 £111,250.00
29 £28,000.00 £17,800.00 £129,050.00
30 £30,000.00 £20,000.00 £149,050.00

thats very quickly calulated without any compound interest

tukka123

If it was me in that situation (and I am in a relationship) I would purchase the 3 bed.

Have you looked into the realistic bills, monthly mortgage etc?? On 1900 per month in a 2 or 3 bed house your bills will have a big hit on your balance...

Your parents sound cool to be helping you to the 180k house. Can I ask one thing though? How the hell did you save 150k as I find it a struggle to save for a deposit and I am really good at saving.

Also how the hell do you save 1500 from 1900 a month? and with a girlfriend...

Reue

Flashmanchop wrote: »

30 £30,000.00 £20,000.00 £149,050.00

OP is 25...

LannieDuck

If you're saving £1500 a month, you should be able to afford a mortgage and still put some aside for savings.

Personally, I would do that to have a slightly nicer house to live in, esp since savings rates are so rubbish atm. Very little point in having the money sat in the bank. I would take a guess that average property prices are likely to increase more than your interest is likely to accumulate in a savings account... but that's just my opinion. Others may well disagree

Why not take a look at the sort of property you can buy outright, and the sort of property you can buy with a mortgage, and see how you feel about it then? Maybe you'll be very happy in a £180k house. But maybe you'll feel the extra monthly expenditure would be worth it.

LannieDuck

Tirian wrote: »

In a three bed property this would give you a bit of company and some tax free income to offset the cost of the mortgage. Given the relatively low level of mortgage, you could probably even cover the whole amount with the rental income ... and have a bit of company to boot.

I like this idea, OP.

Tancred

dtaylor84 wrote: »

Rubbish. If you're planning to retire before 55 that's a good reason not to put all your money in a pension fund (and use ISAs, etc. instead) but it has absolutely no bearing on your ability to retire.

Not rubbish at all.

You cannot 'plan' to retire before age 55 any more than you can 'plan' to win the lottery! You seem to be pipe dreaming. Dream on.

Tancred

Flashmanchop wrote: »

I don't think you have done the maths.

why does he have to have earnt £30k per annum from 16?

if he has lived frugally, he could have saved proportiantely as he has grown up and as he has earnt more.

AgeEarningSaving Savings
16 £ 2,000.00 £ 1,000.00 £ 1,000.00
17 £ 5,000.00 £ 2,500.00 £ 3,500.00
18 £14,000.00 £ 7,000.00 £ 10,500.00
19 £15,000.00 £ 7,500.00 £ 18,000.00
20 £15,000.00 £ 7,500.00 £ 25,500.00
21 £16,000.00 £ 7,750.00 £ 33,250.00
22 £16,000.00 £ 7,750.00 £ 41,000.00
23 £16,000.00 £ 7,750.00 £ 48,750.00
24 £18,000.00 £ 8,000.00 £ 56,750.00
25 £20,000.00 £10,000.00 £ 66,750.00
26 £22,000.00 £13,000.00 £ 79,750.00
27 £24,000.00 £15,000.00 £ 94,750.00
28 £26,000.00 £16,500.00 £111,250.00
29 £28,000.00 £17,800.00 £129,050.00
30 £30,000.00 £20,000.00 £149,050.00

thats very quickly calulated without any compound interest

The OP is 25 :rotfl:

And I find it unlikely that he has worked since age 16 anyway. You were so keen to argue that you didn't even do your sums right.....pathetic.