Live with "toxic" parents in order to BUY or RENT, save then BUY?!

FBaby

I have worked out that after all my tax, overdraft, NI etc is deducted I should have £2356 for expenses if I were to live with my parents

What about pension contribution?

sann420

23 is very young. If I were you I would take the psychological hit for a couple of years while living with parents

This will leave you with a very good deposit to buy a decent place to live of your own and set you up financially for the rest of your life hopefully.

ambitiouspanda

Hi everyone, thank you for your advice -- I will stay for the next 1-2 years to save. I have deducted all my overdraft and expenses hence why I reached that figure. Yes, the salary is 40k+, I am lucky and yes I have deducted what I will contribute at home too! Sorry if I didn't make this clear enough!!

Yes, location is everything and I plan on doing so when buying by looking.. I am thinking North of the river/west london or nice parts of east etc etc! If not, the outskirts.. your Twickenham, Richmond, Wimbledon etc etc etc..

ambitiouspanda

Hi everyone, with much comments and advice given here - I have decided to stay for 1-2 years to get on the property ladder.

Grenage wrote: »

If we're talking a year or maybe two, by all means suck it up for while. Anything more... well, you only live once.

Of course, London houses prices in two years may once again be unaffordable.

bouicca21 wrote: »

If you can really stick to that budget you will still be looking at a 1 bed flat on the very outskirts of London, if not as far as the Medway towns or Harlow. Unless of course the economy tanks and property prices plummet. If you move out it will take even longer.

I know, it sucks. Rock and hard place. But at least if you move out you can have a bit of fun - life is to be enjoyed not endured.

gingercordial wrote: »

If you move out it won't just be £800 in rent but also council tax, gas, electricity, water, phone line/broadband and so on as well as groceries for one which can work out more expensive.

Have you looked at renting a room or flat share? Spareroom.co.uk has over 5,000 listings in London at less than £600/month and I expect some of those have bills included.

On the other hand will your parents let you stay in their house rent-free, or do you have to make some contribution to all of the above household bills including your food? If you are working you really should be paying your way and so you need to factor that into how much you can save.

As to whether you can deal with your parents, that's not something any of us can answer.

sann420 wrote: »

23 is very young. If I were you I would take the psychological hit for a couple of years while living with parents

This will leave you with a very good deposit to buy a decent place to live of your own and set you up financially for the rest of your life hopefully.

hazyjo wrote: »

You need to play around with some mortgage calculators. See what you can get. The O/D will reduce what they will lend you (even if you intend to pay it off. It has to be gone). You need to work out what deposit they'll take. I am guessing an absolute min of 5%, but that will mean a higher rate of interest. 10/20%+ deposit should reduce that. Don't forget purchase costs too. Stamp duty alone will be up to £4k for something at £200,000. Plus solicitors, man & van(?), survey/valuation, mortgage fees, not to mention furniture/appliances if needed, etc... It can get pricey.


Rent cheap or house share for a while. You should still be able to save.


Your salary isn't unreasonable, it's the lack of deposit, the overdraft, and the fact you've not saved anything despite being on a very good wage. Is the debt Uni loans?


Jx

FBaby wrote: »

What about pension contribution?