What are my options?

skullncrossbones

So I'm 27 and currently living at home. I've lived in London my entire life and would prefer to stay within or very close by as I work centrally. I earn just over £25k and have 20k in savings so far.

I've been trying out mortgage calculators which tell me the most I can be lent is £97k with my salary, to be lent £180k I would need to be earning around £40k. Currently I can't afford to buy a shed let alone a flat.

My mum is able to help me top up my deposit and her mortgage was paid off years ago.

I don't want to rent a room in a flat, I don't have any friends who are wanting to share right now or they already live with partners/friends.

I feel extremely lost and don't know which way to turn. Any advice would be greatly appreciated.

[Deleted User]

However much you prefer to stay in London, if you want to buy, I suspect you will have to consider areas outside London.., look at places with high speed rail stations. However with the money you have I suspect this will still be problematic.

Much as you like London, I think you might have to consider working and living outside London to get more for your money.

Or find another flat share.

Or consider shared ownership properties.., but these can be relatively expensive when you add in rental and service charges costs.

Smodlet

I hate to depress but I think you already know the answer. I just had a quick look on RM searching for studio flats within 40 miles of London (the max distance it allowed me to specify) and the results were disappointing, to say the least.

I suggest you save up as hard as you can, or get a much better paid job or move right away from London. Sorry to be blunt but you said it yourself, you cannot afford a shed anywhere near to where you currently work.

getmore4less

Focus on getting a partner.

Grenage

I would probably do as above (get a partner and save), resign myself to renting, or move out of the city (and not necessarily commute back in).

skullncrossbones

Wonderful. The future really is as a bleak as I had thought!

Problem is with my job the best paid ones are in central London.

I had a partner for 3 years, he couldn't handle growing up and commiting so we went out seperate ways.

Thanks for the replies everyone.

Hoploz

All is not lost. There are other options such as shared ownership, and various government Help to Buy schemes. Perhaps there might be a friend or relative in the same position you could pool resources with to get a start, or even a work colleague.

Another option people seem to consider is buying out of town and letting the property, in order to fund their own rent elsewhere. No idea how this would work for you. This then enables you to benefit from some capital growth in the property you own which if nothing else usually acts as a good savings scheme.

It is hard to consider moving away when it's all you know, but you have to think what your priorities are. You want to own but you want the same lifestyle. These cannot both happen together, so you will have to compromise somewhere.

If you were to move jobs out of town perhaps your salary would not be greatly affected? You could possibly attain a similar lifestyle living and working elsewhere.

I bought my first flat on 70% shared ownership. I was a newly qualified teacher and my salary increased year on year so I managed to buy the other 30% after a couple of years. Then I met my husband and let my flat for a while before we eventually pooled our resources. I felt it was important to get the first foot on the ladder in any way I could, and I have reaped the benefits (sold my first flat after 5 years for almost double what I paid)

Just saying, there are many options these days to help young people, so don't give up!

jimpix12

What a depressing state of affairs where someone earning the average wage cannot afford anything but a shed.

Do what everyone else apparently does, find a partner quickly and buy. Then after living together realise you hate each other and split up and you'll get next to nothing back.

Or in all seriousness move abroad where you'll enjoy a much higher quality of life.

Harper123

Unfortunately your salary is pretty low for a London salary. I think the average London salary is £36,000 so even if prices in London weren't so expensive and were much more affordable you'd still really struggle to buy at the moment.

But all is not lost. You're only 27 and have this amazing opportunity to live at home. I think the average age of a first time buyer in London is 30 something?

Spend the next 3 years at home and triple your deposit and actively work to get a better salary.

Then you will be in a much better position.

Home ownership is hard for young single people but it is possible if you work hard for it. Your future is not bleak at all.

Harper123

Except £25,000 is not an average wage in London. It's pretty low.

I think £36,000 is the average salary for London? Which yes again wouldn't get you a flat in London as a single person without a large deposit. As a couple with both people on £36,000 you'd be fine.

pmlindyloo

I know that you say that you have no friends for a house share but do consider a house share, even with strangers.

My daughter has been living in a house share in Greenwich and works in London. There are good transport links and she has a wonderful social life. This can work out so much cheaper that having your own place and will also give you the opportunity to save (look for government incentives re: ISAs etc) If you set up a direct debit each month for your savings then it is amazing how quickly it will grow.

It is difficult to live at home in your late twenties however lovely your parent(s) is!

You still have time to save and buy your own place and things will undoubtedly change in the future. It is not the end of the world not being able to buy your own place at your age so spread your wings and have fun.

If you sign an agreement for 6 months then if a house share doesn't work out then it is not the end of the world. Some house shares even allow you you to move out sooner.

Take the plunge! Good luck!