Using all of savings for house deposit

ProDave

It depends where you are and what the property market is doing.

When I bought my first house, I needed every penny I had, including the cash from selling a decent car and buying a rusty old banger. Luckily it was a new build and the completion was delayed by 2 months, so I had 2 months more to save up, otherwise I would have been short and would have had to beg or borrow the shortfall.

But I did this because house price were rising faster than my wages and my ability to save so it was now or never and I made it. Just.

And people tell us how easy it was to buy a house 30 years ago.....

Red-Squirrel_2

I would buy a smaller/cheaper property and save some cash.

You're only 23, you don't need to buy a lifelong home at this stage, why not look at one that will suit for about 5 years or so, and then look to move on?

Your dream house will start to feel like a nightmare if you can't afford to repair or maintain it. What would you do if the boiler died after a week or the roof started leaking after a month?

keyring1

Wow - what a great response so quickly!

I'm not in a rush to get out, but I always hear people saying get on the property ladder as soon as you can (not that, that is making me want to buy the first thing that comes up)

My money is currently in a help to buy ISA, that I'll transfer to my LISA next march assuming I've not bought before then

There is a great points for both sides of the coin as to whether keep saving or to buy a place that I think suits me needs/wants very well!

One of my main requirements is a big driveway and garage with space to extend the garage if I wanted in the future ( I have a few cars, and working on them is a hobby I enjoy and have for years)
The house in question has the driveway and garage I want, along with having nice big rooms, a modern look inside, and looks fresh enough I wouldn't have to change anything for a few years until I decided to...

I have a girlfriend that lives at her mum's however she doesn't have a job at the moment, and she doesn't feel ready to move out, especially since I work offshore so she would be alone for a couple of weeks at a time

Looking at the mortgage rates I have been offered, I think I could comfortably afford the house, but I like the idea of having say 6 months worth of bills and living expenses in savings should the worst ever happen

But at the same time, if this house turns out to be one that I really like when I view it, I'm just trying to decide the best thing to do

It's up for offers over 225, but it is a 4 bedroom bungalow with the features described above, obviously my initial offer would be below asking price, as from what I've been told, it can pay off sometimes to go in under and just see what happens?

Thanks for all the help so far

Ciaran

keyring1

I guess it should also be said that if I think I have found the perfect house just now, there's no reason another one I feel similar about couldn't come up in 6 months time for example when I'd be able to leave some extra money in the bank...

Murphybear

Have you thought about taking in a lodger/housemate? This will give you a bit of extra income and, as you are looking at a 4 bedroomed property, should be plenty of room. As you work offshore, presumably house will be empty quite a lot, so there will be someone to look after it. Things like insurance will be higher if the property is empty.

keyring1

It was something I had considered to begin with, however the more I've thought about it, I'm not too keen on the idea especially while I'm not at home for periods of time, most likely my parents will pop round to check on the house when I'm at work

SG27

At 23 i would I would stick to saving a few more years for a bigger deposit allowing you to get a better mortgage deal. Then also save a contingency fund on top. The boiler might vreak, a pipe might burst, the roof starts leaking etc. You need emergenxy savings.

Robin9

Take someone else with you when you view - and view in daylight.

moneyistooshorttomention

Red-Squirrel wrote: »

You're only 23, you don't need to buy a lifelong home at this stage, why not look at one that will suit for about 5 years or so, and then look to move on?

That doesnt necessarily work that way.

Some of us (puts my hand up!) buy our starter house and plan on only having it a few years and things don't work out financially (eg salary goes down instead of up, etc) and we are stuck in that starter house for many years longer than The Plan.

I guess that happens to a noticeable number of people.

Worst case analysis and the boiler does go wrong - it's a sight easier to find £2,000-£3,000 for it than to bridge an enormous financial gap (of 5 to 6 figure size) to move to the "next house up".

comeandgo

If I were you I’d go for the house. It may take a few months till you actually get moved in giving you time to get some more savings. You mention your hobby, cars. Are you selling them after you have done them up? Check the deeds of the house that you will be allowed to do this.
Good luck, it’s exciting to be buying your first property.