Young First time buyer looking for right option!

AlexShizza

Ive saved up a decent amount of money in my life, roughly £5000 and im looking at getting my foot onto the property ladder. I would like to get somewhere of my own but im open to the whole buy to rent option. Im only looking at Flats/apartments or maybe a small house, im looking at mortagaes around the £100,000 mark as i know you have to start small unless you want to pay for it and with 95% mortgages becoming increasingly popular but i do want to keep away fro the government lending scheme they have just brought in. Also I am employed and this will not change.

Does anyone have any suggestions from me? what would be the best and obviously most cost effective way for me to go forward?

monty-doggy

How much do you earn?

You will need 5% deposit plus legal fees and moving costs.

You say buy to rent, do you mean you want to buy a property so you can rent it out? Where do you live now?

AlexShizza

Im not earning too much at the moment around 200 per week so 800 per month.

Im from northampton,england.

And yes buy to rent it out

monty-doggy

You'll be on 12-13k a year then? Even at 4x salary you won't be able to get a 95% mortgage on the range you are looking for.

I meant are you living with parents

I'm pretty sure you can't buy to let unless you already have a property of your own, someone more informed will prob be along soon.

As for becoming a landlord have you really thought about this?

monty-doggy

In any case if you really want your own place it would seem your only/best option would be a shared ownership.

R_P_W

Unfortunately you don't earn enough or have enough saved to buy.

To buy to let you will already need your own residential property and you will need 25% deposit.

Only thing you can do is keep saving and try and find a better paying job.

tBagpuss_2

I agree that while you've made a good start, you're no in a position to buy yet. Don't forget that you will need to pay your costs of moving as well as the deposit, and you will have access to a wider range of mortgage options if you have a larger deposit.

If you become a landlord you need to budget for repairs, inspections, void periods etc.

I would suggest that you keep plugging away to build up a better level of savings. Once you are in a position to buy, you may be able to look at getting a 2 bed house or flat and letting the spare room to a lodger, if you want to at that point.

ACG

You need a 25% deposit for a buy to let property.
You generally need to be a home owner and an income of around £20-25k.

If you want a 95% mortgage on a property costing £100k, then you would need an income of around £20-25k.

I think you need to either work on getting your income up (either promotion/change of job/pay rise/hammering the sales targets etc) or save up a bigger deposit.

Dont let that put you down. £5k is a good start. When i first started working i was on about £14k a year and i used to blow most of my money on beer (when i say blow, i still dont actually consider it a waste of money :P) but i was living at home. It took me about 2-3 years to save my deposit but i got there.

I loved my first house, i was please i had got on the ladder and that i had worked to get it. Just keep your head down and before you know it, that £5k will be £10k. That means with your income and £10k you could purchase somewhere for approx £70k... which isnt that far off £100k. Which shows you that your not actually a million miles off from the £100k you need.