20yr old 'owning' £250k house

lippy1923

ringo_24601 wrote: »

Also.. it makes this big assumption that everyone can live with mummy and daddy, rent free, earning a grown up income.

Not to mention, the house price is laughable to anyone in the south east

My house has been valued at a little over £250k and it's only a 2 bed semi! South east is a joke.

tiger_eyes

I'm not sure why the BBC think it's newsworthy that two full-time workers still living with their parents saved up a deposit between them. That's easy. A lot of people have to put a deposit together on a single income while paying full rent in the private sector.

HappyMJ

The hardest bit about saving is as the article states...they also restricted their social lives. So I gather for the last 2 years they didn't go out very often at all. I'm also assuming they don't own a car. That was the only way I could save enough myself to buy a house. I just went out once a month and only for a few hours. These days I do go out more often. I could visit the pub on any random day of the week and the same people are there drinking potential house deposits and complaining they can't afford to buy. Stop spending money, work full time, take overtime as much as possible, save, get a partner who works full time and that £250,000 house is easily within reach at any age.

Split the debt between two of them and it's £125,000 each. The mortgage is for 75% of the property value i.e £93,750 each. A person on £27,000 can easily afford a mortgage of that size. They only needed to save 5% of the purchase price of the property being £6,250 each. At £500 a month that would have only taken each of them 1 year to get their respective deposits.

It can be done...

Herzlos

They both saved a minimum of £500 a month and lived with parents instead of renting for over two years.

That implies £1000/month in savings between them, which would be £24,000 after 2 years? So where's the remaining £6k+? Legal fees?

The article seems a lot less impressive than the title implies, but then I guess "22 & 20 year old couple with decent jobs living at home and not going out manage to buy a decent house".

HappyMJ

Herzlos wrote: »

That implies £1000/month in savings between them, which would be £24,000 after 2 years? So where's the remaining £6k+? Legal fees?

The article seems a lot less impressive than the title implies, but then I guess "22 & 20 year old couple with decent jobs living at home and not going out manage to buy a decent house".

They only needed a 5% deposit £12,500. The rest of the 25% deposit is funded by a government funded scheme.

purch

I bought my first house when I was still 20, for £29,500

Nowadays a similar house in the same street has just sold, and was marketed at £299,950 :eek:

http://www.rightmove.co.uk/property-for-sale/property-35644770.html


So I guess I bought a house worth over £250,000 (in todays money) when I was 20.

P.S. It was number 6 in case you were wondering

bugslet

kabayiri wrote: »

Even in Cheshire, where they live, there are plenty of places where £250K won't buy you a new build 4 bed detached.

You'd need double that around here.
.

You is dead posh then, kaba.

I rather like my 1930's three bed semi ( which has bigger rooms than my mates 4 bed 80s build detached), but it's only worth 140, maybe a bit more now its been tarted up.

I'm in Cheshire.

SailorSam

purch wrote: »

I bought my first house when I was still 20, for £29,500
Nowadays a similar house in the same street has just sold, and was marketed at £299,950 :eek:

Don't you wish you'd bought two while you had the chance.

kabayiri

bugslet wrote: »

You is dead posh then, kaba.

I rather like my 1930's three bed semi ( which has bigger rooms than my mates 4 bed 80s build detached), but it's only worth 140, maybe a bit more now its been tarted up.

I'm in Cheshire.

Hardly posh, just the price of living near family I guess.

I just think the article is not very typical and might encourage some to over extend. It's only when you get a house that you realise how much can go out in bills.

Mistermeaner

ringo_24601 wrote: »

If I was a low earner, I'd be questioning why the government is helping people who are financially better off, be able to invest in owning a property - rather than helping the poor more

Yeah we should be paying far more in tax credits and hb to those who sit around doing nothing.