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

makeyourdaddyproud

Reue wrote: »

Theres a good few places along London and Kendrick Roads as well.

No. Most of those are not private but clinics, workshops, hostels and offshoots of the NHS. Same with Craven / Addington Road.

In fact as a proportion to other Reading stock, probably statistically lower than any other town in England. Very, very few come up for sale and when they do, the price is very steep compared to more modern stock.

Reue

makeyourdaddyproud wrote: »

No. Most of those are not private but clinics, workshops, hostels and offshoots of the NHS. Same with Craven / Addington Road.

In fact as a proportion to other Reading stock, probably statistically lower than any other town in England. Very, very few come up for sale and when they do, the price is very steep compared to more modern stock.

Good for them... not quite sure what your point is though? Youve just confirmed what others have said; That there are some nicer houses in Reading but they will cost more.

Personally I wouldnt buy in the town either and moved out to the surrounding villages.

Fraise

dave_100 wrote: »

I live at home with my parents happily in Reading
I have £150,000 saved and am looking to buy my own place also in Reading. The options are either a 2 bedroom place for about £180k which with help from parents I would not need a mortgage. Alternatively I could stretch to a 3 bed place at £210k or so, with a mortgage of £60k.

At the moment I'm in a relationship but not at the stage of moving in with her and would like my own place.

I'm trying to take best advantage of the money that I have saved and not sure what is best, is it to buy somewhere cheaper but not quite big enough for a family home with no mortgage (2 beds), or go for the 3 bed place which I could start a family home in (though we might outgrow it, the third bedrooms at this price range tend to be small) with a mortgage. The 3 bed option would get me higher on the property ladder, but I don't like the whole prospect of borrowing so much money in the form of a mortgage and how much of the repayments are interest! Also I'm not sure it would be big enough for a "home for life".

House prices in Reading have stayed stagnant and possibly slightly rising over the last few months. I'm in a job where I bring home £1.9k a month and at the moment am saving about £1500 of it a month. I'm not in a rush to move out but at 25 feel I should and do want to grow up soon!

I'm looking for the most sustainable plan, ideally one that I can use my savings to my advantage that I can lead a life where I can even retire early due to my head start in life savings wise.

If anyone has any advice on the above or alternative suggestions on what you would do in my situation, they would be gratefully received.

If your parents are willing to help you with an extra £30k to buy the £180k place so you won't need a mortgage, could they not give you that £30k towards the £210k place, so you only have a £30k mortgage with the bank rather than a £60k mortgage?

Honestly I don't know why you're worrying, because if you're able to actually save £1500 a month anyway, then the repayments on a mortgage of £60k shouldn't daunt you at all.

Please give us your tips on how you managed to save so much money and you're still only 25? I think you're amazing.

Poppy9

LannieDuck wrote: »

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

But he can only save so well as he is living at home and has no outgoings. Once he has a house he not only a mortgage but council tax, water rates, gas, electric, insurance, TV licence, telephone/broadband in addition to food, furnishings etc.

Reue wrote: »

Not bad for 16. Gotta be 18 to be a lifeguard now though I believe.

DD trained and worked as a lifeguard at 16 and she's only 18 now. Friend's son is lifeguard and he is 17.

dave_100

Thanks to all those with input (and the kind comments), it is definitely food for thought. What is very interesting is that looking at all responses, there is no definite answer as to what is best... it has really caused some debate! So I need to take it all on board and assess my personal circumstances and have a think for myself.

For those asking how I have done it, I frankly am not completely sure, but I have always had very cheap housekeeping rent (my generous parents only ever charged to cover the cost of living at home with them), have worked since I was 17, never been big on nights out, don't have expensive hobbies, have had help from grandparents too (approx £20k) ... oh and haven't been in a long relationship till recently :rotfl:

Reue

Poppy9 wrote: »

DD trained and worked as a lifeguard at 16 and she's only 18 now. Friend's son is lifeguard and he is 17.

Ah, must just be my local pool which upped its age requirement then. Good weekend job for people to have, especially if they can get into the larger leisure centres where the work is more varied.

Lord_Baltimore

It's no-one's business how you got your money dave, but you have done well. Take my advice and don't get a mortgage - it will suck the life out of you. There's even a 'mortgage-free wannabe' section here at MSE - I mean, what does that tell you?!

Try not to look too far into the future either. Interest rates can only go up and they will soon. What impact would that have on your BIG loan, I mean, mortgage?

Que sera, sera.

Poppy9

dave_100 wrote: »

T have worked since I was 17, never been big on nights out, don't have expensive hobbies, have had help from grandparents too (approx £20k) ... oh and haven't been in a long relationship till recently :rotfl:

One thing I will say is that you are a long time old so while you are young and free go out and enjoy yourself and don't save too much for an easy time when you are older as you dont know what is around the corner. I've ownded a house since I was 22 and I regret it to a degree having my money tied up in property. With hindsight I should have bought and rented out and taken advantage of cheap board and lodge at home and spoiled myself a bit!

tukka123

dave_100 wrote: »

Thanks to all those with input (and the kind comments), it is definitely food for thought. What is very interesting is that looking at all responses, there is no definite answer as to what is best... it has really caused some debate! So I need to take it all on board and assess my personal circumstances and have a think for myself.

For those asking how I have done it, I frankly am not completely sure, but I have always had very cheap housekeeping rent (my generous parents only ever charged to cover the cost of living at home with them), have worked since I was 17, never been big on nights out, don't have expensive hobbies, have had help from grandparents too (approx £20k) ... oh and haven't been in a long relationship till recently :rotfl:

What do you get upto in your spare time? It just sounds a little like you are spending so much time and effort saving which is fantastic but if you don't step back and enjoy yourself and your money then you wont have much to look back on. I'm 26 and am saving for a deposit to buy a place which is very difficult. I did have some money a few years ago and I went travelling around the world and met some amazing people that I am friends with still and will be for a long time. I saw some amazing places and done some real life changing things.

I know buying a house and saving is important but you only live once and if you don't let your hair down and treat yourself in life you may regret it. I'm not saying blow your hard saved money on a luxury holiday or a !!!! up with the lads but if you drop dead tomorrow there's a hell of a lot of money in an account that you earned.

If you have really understanding and supporting parents then maybe waiting a year or two before buying a place will not only give you and extra 10 or 20k but it means you don't have to rush any decision about a place. And also mate you say you have a newish girlfriend... that could blossom and you can have some real fun and it may even end up you buying a place together meaning you have some cash left over for your future.....

[Deleted User]

tukka123 wrote: »

you only live once and if you don't let your hair down and treat yourself in life you may regret it.

You might also regret being 40 and having nothing to show for the last 20 years.

tukka123 wrote: »

if you drop dead tomorrow there's a hell of a lot of money in an account that you earned.

Sure he might drop dead tomorrow, or he might live until he's over a hundred years old.

I did what you're suggesting, spent lots doing anything I wanted. If I wanted to buy something, I bought it, if I wanted to go somewhere, I went there. I lived for the moment, who cares about the future? That's for future me to worry about! I'll probably die before I hit 21 anyway! Now I'm future me and I regret every second of it, I've found more fulfilment out of not spending money than I ever did spending money. I'm happier than I've ever been and it cost me nothing.

Everyone is different, if the OP is 25, has been steadily employed for the best part of a decade, has a girlfriend and family that care about him and he's thinking about the future it's unlikely he needs to be told how he should live his life.