What can I buy on my income?

John_Ma

You shouldnt base your budget on your income alone. You may be earning 22k pa but that doesnt mean you will be left with 22k each year. Like others before me I believe you should save for a bit longer. It will be worth it getting a much better house and while doing it comfortably.

want2bmortgage3

i think i might have to just borrow as much as possible while i'm living in this expensive area, with a view of moving to a cheaper area later on (5-10) years, and being able to reduce my mortgage or buy a bigger house for the same money elsewhere.

as you say 22k isnt great, we are due a pay rise but it will only be a few %, i can't see it going up above 25k in the next 5 years.

[Deleted User]

And house/flat prices will probably rise quicker than your pay anyway.

So, look at your options:

1. Change jobs - have you been at your current place for a long time? Maybe you're not getting 'market rate'
2. Move somewhere you can afford
3. Move in with your parents, save like you've never saved
4. Find a 'do-er upper'
5. Buy with someone else

Reue

want2bmortgage3 wrote: »

I live in Reading and earn £22k a year. If I am a FTB that means I can borrow £88k right? (4x income). It's probably sensible to have at least a 10% deposit, so if I was to find something for £100k, I'd have to have £12k deposit.

The problem is what is there for £100k in Reading? Anything I've seen and liked the look of is £125-150k. Those are still only 1 bedrooms, so I'm not exactly wanting more than I should.

For £100k I'd be lucky to find a leasehold studio flat.

So what are the options, save more deposit (which will take time) or anything else? Move area? Well I'm single but my job and family are here. Any other options I have?

Reading is very expensive as prices are pushed up by the London commuters.

You should consider moving to other nearby (and cheaper) areas. Basingstoke, Newbury, Tadley and Bracknell are all considerably cheaper with relativly short commutes.

A 125 motorbike costs £800 brand new, £6 a week petrol and £10 a month insurance. That would handle any commute of those distances.

Also, as others have hinted at; 22k at 30 isnt a huge salary for the Reading area. As you're single with no dependants.. you could seriously consider moving to a totally new area? Leicester, Sheffield, Wales.. All have much cheaper housing.

Doshwaster

want2bmortgage3 wrote: »

as you say 22k isnt great, we are due a pay rise but it will only be a few %, i can't see it going up above 25k in the next 5 years.

What are your career ambitions? Are you happy to keep doing your current job, are there prospects for promotions or are there qualifications you could take to get a better job?