What are my options?

Harper123

spunko2010 wrote: »

You don't have to moan about them, but offering false hope to people isn't fair. The OP has no options, like so many others of her/our age, aside from moving to another part of the UK or even abroad where earnings/price ratio isn't so high. All of the other options here are nonsense.

I am a homeowner too, by the way.

Don't get me wrong I think it's very unfair that someone earning the average £36,000 can't buy a one bed flat somewhere London without a massive deposit. If you earn an average salary and save a deposit you should be able to live near where you want to live.

However. I don't think it's unfair that someone that earns £11,000 less than the area average is unable to buy in that area.

And I don't think it's unfair that everyone doesn't get to buy in the exact area that they want to buy straight away. Everyone has to start somewhere. My parents (who most people would complain about as they are of the generation everyone says had it handed to them on a plate) only just, at age 60, finally got to buy what they wanted where they wanted. Over 35 years after they first bought a house.

And it's not true that the OP has no options. They can work hard to increase their salary over the next 2-3 years. Take advantage of living with parents and save a big deposit. Or buy further out of London.

People rarely have no options. They often just don't like any of them.

glasgowdan

For other reasons alone I'd be looking for a job away from London but close enough to visit family every few weeks (not TOO close that they want you to visit every weekend!).

Within a couple of hours drive you have a lot of choice.

Might be something you warm to if you think about it, though I know it'd be lonely to start with.

If that's not even a possibility, I'd stay with the folks for another 3 years. Could you save £40k in this time? Sadly, prices will have gone up during this time (where's Crashy Time?) so you might not have a great deal more buying power than now.

Harper123

skullncrossbones wrote: »

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.

You say your mum is willing to top your deposit up? By how much?

And which station do you need to come into in London every day?

AnotherJoe

skullncrossbones wrote: »

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.

How does "best paid" work out if you factor in the huge percentage of your salary spent on mortgage interest were you to buy?

PlymouthMaid

I think since you are single it might be time to move right away from London and get another job as 25K is pretty average in most parts of the country. I grew up in Greater London and couldn't imagine ever being able to buy there without a partner even in the eighties.

skullncrossbones

Thanks for everyone's reponses.

So I appreciate I need to compromise and I can't have everything I want. I work in Waterloo in a nursery. This wage is brilliant for the sector, I have also just completed my degree so retraining has already been done. This is not the sector to increase your salary just because you have a degree. I have been looking for better paid jobs but the early years sector is notoriously badly paid, frustrating as it is, and I'm not going to work just anywhere. I work a 40 hour week with a 2 hour commute each day. I've thought about another job but after leading a team and caring for 24 babies each day it leave you nothing short of exhausted.

Back to the drawing board. My mum can top it up to about 60k, I'm going to make some appointments with mortgage advisors and take it from there. It's a shame those who were born and bred in London are being forced out, I truly love the city but I guess I'll have to leave.

Harper123

skullncrossbones wrote: »

Thanks for everyone's reponses.

So I appreciate I need to compromise and I can't have everything I want. I work in Waterloo in a nursery. This wage is brilliant for the sector, I have also just completed my degree so retraining has already been done. This is not the sector to increase your salary just because you have a degree. I have been looking for better paid jobs but the early years sector is notoriously badly paid, frustrating as it is, and I'm not going to work just anywhere. I work a 40 hour week with a 2 hour commute each day. I've thought about another job but after leading a team and caring for 24 babies each day it leave you nothing short of exhausted.

Back to the drawing board. My mum can top it up to about 60k, I'm going to make some appointments with mortgage advisors and take it from there. It's a shame those who were born and bred in London are being forced out, I truly love the city but I guess I'll have to leave.

If you have no other debt or financial commitments with your mums top up of your deposit you should have about £172,500 at your disposal which will buy you somewhere nice enough if you're prepared to commute into Waterloo every day? Though you say you already do an hour commute every day into work and you currently live in London? I don't do an hour commute and I commute in from Hertfordshire! Bear in mind increased rail fares though if you commute in from outside London.

I know you don't want to leave London because that's where you're from and your family is. But in terms of house prices and percentage of salary spent on mortgage. You'd be much better off taking a £5000 pay cut to move to and work in a much cheaper area.

Hoploz

A 2 hour commute to Waterloo?!? That's crazy! People here in Surrey get there quicker! £172500 still wouldn't buy much around here but if you went somewhere like Aldershot or Farnborough (just into Hampshire) you'd get something.

Madness to retain this commute and still not be able to afford to buy somewhere.

Or get a job in a more rural nursery!

cloo

I suppose you can bear in mind that in the next few years there will be many 'build to rent' units becoming available. I don't know what the rental costs will be like, but they will be corporately owned and offer leases that last several years, plus the owners will never need them back, so they'll be a much better option than living somewhere owned by a single property landlord or private investor. They should also be better maintained, as the owners will want to protect their reputation and not leave things undone for months on end.

I have to say, if things continue as they are I can't see how my kids will be able to buy anywhere, but if there are to be more professionally managed rental units around I think that's not a depressing option.

ThePants999

Harper123 wrote: »

Spend the next 3 years at home and triple your deposit

Easy to write, but even living at home, saving £40K in 3 years while she earns £20K a year net is a big ask when she lives in London...