Wanting to rent first property but very low income.

Davesnave

Pixie5740 wrote: »

another £3000 left to pay on a car loan?! What kind of car did he buy when he was 18?.

Obviously, it was better than mine! :rotfl:

MisterB1959

I understand your need to rush, BUT DONT. living with a parent is totally different than living on your own together, where you both set boundaries.


have you considered, that when the car loan is paid off, the car might be close to being needed to replace? so it becomes a constant merry go round !


the advise re reducing your outgoings is the major one - mobile phone contract - £40 per month, you have to work over 5 hours, that over half a day, JUST to pay that off, and for what? what more do you get than a simple pay as you go or NO mobile phone. whatever did people do when there were no mobile phones, my childhood was ruined because there was no such thing.


if you are serious about this you need to be less materialistic, less hooked in to the 'I want one' ethos that become a MUST have ethos, if you can get past that and not care about what used to be called 'keeping up with the jones's'


do a list of your outgoings, what MUST you keep, what can you stop doing


saving up is a nightmare when your younger, by getting to a thousand pounds you did brilliantly, I would look at insurance covering my ability to work rather than life cover.


I certainly wouldn't want any of my 'estate' being squandered on unnecessary funeral costs, headstones etc, I would rather my relatives have the money to use for themselves in a positive manner, so your BF should try to move on from that time in his life.


best wishes, life isn't easy at times, BUT you have a lot of fantastic times ahead and at 18 years old, a lot of mistakes to be made, so cut back on spending, but don't be in a rush to have done everything !

TartanSaver

Having a flash car at 21 is most of the problem here. If he still owes £3000 on it after 3 years, I shudder to think what he paid for the car. My car cost £1300, and there's nothing wrong with it. Insurance for a 21 year old with a pricey motor will be prohibitive. Does he need a car? Is he in a rural area, or does he just like cars? Get rid of the paid for bank account unless he REALLY uses the "features." £40 mobile phone contract is way too much. You can get most everything you'll need for less than £15.

Re life insurance, that's a decision for him but personally I feel it's not worthwhile unless you have dependents. I hope at least he isn't over insured.

Neither of you is anywhere near 40% tax, even if you worked 80 hours a week.

Ultimately, your bf earns significantly more than you do, and should be able to save at least as much. Don't contribute more than half just because he's wasting money on himself. Taking out a loan for a deposit is a bad idea. If you really want to make this work, sit down with him about his spending. Perhaps he could sell the car, pay off the loan with the money and down the line buy a cheaper one. At the very least he should be overpaying the loan so interest costs are reduced.

Scope out rents in your area. Worl out what you will need. Set specific goals, starting with him paying off his car loan, and then saving for a deposit. It might take six months, or even longer, but you'll feel a lot better than putting yourself into debt. Between you there's a combined income of about £25,000 and not a lot of tax. You should definitely be able to rent a one bedroom on that in most places, unless you are in London.

Kevie192

The sad fact is that most people of your ages just can't afford to live in their own place.

Have you looked at house shares or you becoming lodgers? Usually much cheaper than living on your own and can be great fun too.

Bingaling86

Don't want this to come across as cruel, but at 18, you're in a very lucky position right now to be living with your parents. I'm 29 and am struggling to find a place me and my partner can afford and I still live with my parents. At 18, you're going to struggle.

My advice, is wait. Yes, I know, at 18 it feels like life is flying by and you want everything instantly. But seriously, be patient. Save. Reduce your outgoings (irresponsible car loan, unnecessary phone contract etc) and SAVE, SAVE, SAVE.

House sharing is usually the way young people go now - a double room in a shared house is a more affordable situation than trying to afford an apartment or flat (or house) between you, so have a look on the estate agent sites to see what the going rate for houseshares is. Where I live (Buckinghamshire) a double room is around £500 a month all in. To rent a 1-2 bed flat or house, you're looking at £600 MIN a month for rent alone and then bills, council tax, internet, tv licence etc etc on top of all that.

My advice is to set your sights lower, and be prepared to wait for what you want; save, save, save and in the mean time try and increase your earning potential by training/learning new skills so you can earn more in the long run.

It is doable if you have realistic goals in mind and are patient.

Good luck.

UnknownTerritory

Hi all,

Just wanted to say thank you for the advice, for those criticizing my partner's loan for his car, please before you judge that, there was a reason he took out a loan to get the car which I will not post on here as I don't feel it's right to do so. However it is not by any means a flashy car, and the loan also allowed him to pay for his first years insurance outright. It's a 1.2 Renault Clio 2004 model. So as his first car its a reasonable one.

I appreciate all this advice given and will have a talk with him tomorrow morning once he's finished work x