How to own a home by the age of 25

Pixie5740

Did anyone read this article on the BBC News website yesterday?

http://www.bbc.co.uk/news/uk-38564137

It irked me a bit because every case was exactly the same. Couples, dual-income-no-kids, who were able to live with their parents whilst continuing to save. Yes it's great that they had a goal and achieved it but I would have liked to see more variety in the types of 20 somethings buying.

Graham_Devon

Pixie5740 wrote: »

Did anyone read this article on the BBC News website yesterday?

http://www.bbc.co.uk/news/uk-38564137

It irked me a bit because every case was exactly the same. Couples, dual-income-no-kids, who were able to live with their parents whilst continuing to save. Yes it's great that they had a goal and achieved it but I would have liked to see more variety in the types of 20 somethings buying.

The article basically tells the story that if you have the money, you can buy something. It's another article that looks at 2 things - the people with higher than average income looking to buy in areas with lower than average house prices". You'll note from 4 examples, 2 examples are buying in a cheaper part of Manchester. No one from their example are buying in Kent, Somerset etc.

Which isn't in itself that great a surprise.

The second couple for instance on 55k a year who lived with parents rent free while saving - lovely story, but it's not reality for most who face having to pay for their current accommodation.

Why the BBC bothered to show the couple on £67,000 per year I have no idea. "Look, this couple on 67k can afford a house in Scotland".

Windofchange

People manage to save 7 grand to own 5% of a house. They are my heroes for sure. What will be the next story, man saves 2 grand to buy BMW on PCP?

System

Windofchange wrote: »

People manage to save 7 grand to own 5% of a house. They are my heroes for sure. What will be the next story, man saves 2 grand to buy BMW on PCP?

I don't think you can really criticise people's abilities to save.

ukcarper

I really don't see saving the deposit as the barrier to buying if you earn enough to get the mortgage by making sacrifices you should be able to save the deposit.

Ronaldo_Mconaldo

In what way do any of these people "own" their house? They're mortgaged up to the eyeballs. Big deal they saved a couple of grand. We pay our TV licence for that kind of journalism?

armchaireconomist

I bought my first house at 21 (single) with 0 financial help from family etc. then spent the next 3 month renovating the whole house with £3k, adding approx. £20k


Where is my medal?

westernpromise

Ronaldo_Mconaldo wrote: »

In what way do any of these people "own" their house? They're mortgaged up to the eyeballs. Big deal they saved a couple of grand. We pay our TV licence for that kind of journalism?

In the way that the Land Registry shows them as holding legal title to the property. That way.

If you don't have a mortgage and don't own property outright, then you're merely "rented up to the eyeballs". The sum of all your future unfunded rents is what you have instead of a mortgage of finite size and term. At the end of said mortgage you own the property, whereas there is no end to the renting and at no point do you own a thing.

HTH!

ukcarper

Ronaldo_Mconaldo wrote: »

In what way do any of these people "own" their house? They're mortgaged up to the eyeballs. Big deal they saved a couple of grand. We pay our TV licence for that kind of journalism?

Their name will be on the deeds.

westernpromise

Windofchange wrote: »

People manage to save 7 grand to own 5% of a house. They are my heroes for sure. What will be the next story, man saves 2 grand to buy BMW on PCP?

I honestly think you would be happier renting.

Ronaldo_Mconaldo

westernpromise wrote: »

In the way that the Land Registry shows them as holding legal title to the property. That way.

If you don't have a mortgage and don't own property outright, then you're merely "rented up to the eyeballs". The sum of all your future unfunded rents is what you have instead of a mortgage of finite size and term. At the end of said mortgage you own the property, whereas there is no end to the renting and at no point do you own a thing.

HTH!

Yes, yes. They're nothing special. Anyone could put down a tiny deposit on a crappy house and qualify for their 5 minutes of fame with the BBC then. I paid off my mortgage at 35, I own my house.