Getting on the ladder: It's not impossible

Eskimo12345

House prices are high. In my opinion they're unfairly high compared to what previous generations saw, and huge deposits are needed for a decent place in a pleasant area. Which is why, over the last decade-and-a-bit, I went to uni (thank you student loan), got a job, made it in to a career and now I'm ready to buy. It wasn't easy - I've just finished a 60-hour week, I've been knocked back for promotions, I've not had luxury holidays, I gave up booze for a year, quit smoking, I rarely buy new clothes and my budget is tighter than a duck's you-know-what. Most meals out with the other half are paid for by Tesco vouchers - it's a good job she appreciates gestures that are both romantic and thrifty!

My current situation:
31 years old
£35k in the banks for a deposit (£28k of that was saved in the last two years)
Income ~ £51k
Looking to put 15% down on a £230k place.

I think I'm far from a shining beacon of sensibility when it comes to spending/saving money - I've spent far too much on cars and guitars for that! If I'd been more sensible, I'd own my own place outright by now.

So why do people think it's not possible to afford to buy?

Is what I've done unachievable by most?

I'm happy to post my budget, saving history etc if anyone would like to see them.

custardy

Eskimo12345 wrote: »

House prices are high. In my opinion they're unfairly high compared to what previous generations saw, and huge deposits are needed for a decent place in a pleasant area. Which is why, over the last decade-and-a-bit, I went to uni (thank you student loan), got a job, made it in to a career and now I'm ready to buy. It wasn't easy - I've just finished a 60-hour week, I've been knocked back for promotions, I've not had luxury holidays, I gave up booze for a year, quit smoking, I rarely buy new clothes and my budget is tighter than a duck's you-know-what. Most meals out with the other half are paid for by Tesco vouchers - it's a good job she appreciates gestures that are both romantic and thrifty!

My current situation:
31 years old
£35k in the banks for a deposit (£28k of that was saved in the last two years)
Income ~ £51k
Looking to put 15% down on a £230k place.

I think I'm far from a shining beacon of sensibility when it comes to spending/saving money - I've spent far too much on cars and guitars for that! If I'd been more sensible, I'd own my own place outright by now.

So why do people think it's not possible to afford to buy?

Is what I've done unachievable by most?

I'm happy to post my budget, saving history etc if anyone would like to see them.

is it achievable to buy a house on £51K
is that the question?

thescouselander

custardy wrote: »

is it achievable to buy a house on £51K
is that the question?

It will be pushing I think any those sorts of multiples.

Eskimo12345

I didn't always earn that. I earned £3.10 an hour in my first job, so couldn't afford to buy on that. So I made more money. My question is, why do people think they can't afford to buy, using my situation as an example to show anyone can.

I have a couple of mortgage approvals in principle. No loans or debts, perfect credit rating.

shortchanged_2

Is the £51k income just yours or a joint income?

grizzly1911

Imagine the spread of incomes as an hour-long parade through a town, where the height of each individual corresponds to their salary. The first 40 minutes or so would witness a parade of dwarves, since the skewed spread of incomes towards the affluent few ensures that most people are below the average. After that, a fair few people of average stature would pass by, and then a few more who were somewhat on the tall side. But in the last few minutes, great giants would emerge, and during the last few seconds their heights would be measured in miles

http://www.theguardian.com/society/datablog/2012/jun/22/household-incomes-compare

kabayiri

I think OP is at the wealthier end for his age bracket. Hey, good luck to him and all that.

I have done work for a few call centre clients in the last decade. It's still a volume employer here in the NW.

You get to talk to people in the bulk jobs there (advisers and team leaders etc). It's not uncommon here to find a Team Leader job paying late teen Ks or early 20Ks. For that the role will often be filled by a graduate nowadays.

It doesn't take much by way of rent increases; fuel increases; or heating cost increases; to eat into any savings you are able to put away. It's going to be a tough few years I suspect for many. I hope things pick up for the next generation. We may deride them on here but most work hard and show aptitude and application.

ukcarper

kabayiri wrote: »

I think OP is at the wealthier end for his age bracket. Hey, good luck to him and all that.

I have done work for a few call centre clients in the last decade. It's still a volume employer here in the NW.

You get to talk to people in the bulk jobs there (advisers and team leaders etc). It's not uncommon here to find a Team Leader job paying late teen Ks or early 20Ks. For that the role will often be filled by a graduate nowadays.

It doesn't take much by way of rent increases; fuel increases; or heating cost increases; to eat into any savings you are able to put away. It's going to be a tough few years I suspect for many. I hope things pick up for the next generation. We may deride them on here but most work hard and show aptitude and application.

But the property he is buying is 35% above the average house price or 50% above the price of average terrace house (Land Reg)

tiger_eyes

Eskimo12345 wrote: »

My current situation:
Income ~ £51k

Eskimo12345 wrote: »

So why do people think it's not possible to afford to buy?

I can't imagine why people on a quarter of your income would find it more challenging than you to buy a house.

chucky

Eskimo12345 wrote: »

Getting on the ladder: It's not impossible

Of course it's not impossible. Don't let he usual suspects on this forum tell you it is impossible and people shouldn't take on a mortgage or debt.

They don't live in the real world.

MacMickster

Eskimo12345 wrote: »

huge deposits are needed for a decent place in a pleasant area.

One of the big problems now is that people seem to expect to be able to buy a decent place in a pleasant area as their first home, rather than a bit of a dump (do-er up-er) in an "up and coming" area.

Everyone wants to bypass the traditional first rung of the ladder.