Using all of savings for house deposit

Katapolt

Im 26, and just about to exchange on my first house with my boyfriend. Hes always been a bit more financially savvy than me, so has a little bit of rainy day, but im cleaning out my savings to buy this house.

in my opinion, i love it, i would rather have to spend the next year saving again than miss out on the house, because i see it as an investment in my future.

ultimately you can only do what you think is best for you. there is no right or wrong.

xsor

I'd say go for it.

Even if things go wrong, I'm sure your parents won't let it happen - that's what family is for, no?

Red-Squirrel_2

moneyistooshorttomention wrote: »

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".

He'd still have a home, and generally most people find themselves able to upsize as they get older.

Red-Squirrel_2

xsor wrote: »

I'd say go for it.

Even if things go wrong, I'm sure your parents won't let it happen - that's what family is for, no?

Terrible advice! Overstretch yourself with the expectation that your parents bail you out as and when?

ProDave

4 bed bungalow as your first home. Well done if you can pull that off. Remind me how hard it is to get onto the property ladder these days please?

My first house in the 1980;s was all I could afford, literally the cheapest house on the market in the county, a tiny 1 bedroom starter home. It was NOT what I wanted or where I wanted but was all I could (just) afford. Getting the right house in the right location had to wait a few years.

Red-Squirrel_2

ProDave wrote: »

4 bed bungalow as your first home. Well done if you can pull that off. Remind me how hard it is to get onto the property ladder these days please?

OP is working 'offshore', presumably in a fairly well paid job. Its never been hard for the higher earners!

keyring1

The reason for getting my forever home at this age, if I can, I can start to invest more into the house knowing that it will be a permanent thing in my life

I never thought about the time between having an offer accepted and actually moving in, which as said would give me some more time to save...

I wouldn't like to rely on my parents to bail me out, although if I had to ask they would probably help me, I like to be self reliant and not have to live in a way they'd need to bail me out

SensibleSarah

I'm glad that I bought when I did - but I was renting at the time anyway so not in a position to wait and save more. That said, I spent every penny of savings on the deposit and moving costs and so when a couple of problems did crop up within the first few months (boiler stopped working and a leak in the bathroom), things were very very tight for a while.

I would say wait 6 months and see how much more you can save. Having a safety net is a good idea if you can.

moneyistooshorttomention

Red-Squirrel wrote: »

He'd still have a home, and generally most people find themselves able to upsize as they get older.

OP would still have a home - and that's my basic point here.

But "most people find themselves able to upsize" probably boils down these days to "most married people in my generation (ie baby boomers)" found themselves able to upsize as they get older.

That ain't necessarily gonna be so if one is single and/or current youngest adult generation....

Married Baby Boomers tended to think "Oh well....come the next promotion on our relatively secure jobs etc etc and there's two of us to deal with this". It's beginning to look like that might have been a temporary "Position in History" rather than "The Norm"....:(

Single me was thinking "Oh well - come my due promotion" - errr....yep....famous last words if things dont go that way....

Red-Squirrel_2

moneyistooshorttomention wrote: »

OP would still have a home - and that's my basic point here.

But "most people find themselves able to upsize" probably boils down these days to "most married people in my generation (ie baby boomers)" found themselves able to upsize as they get older.

That ain't necessarily gonna be so if one is single and/or current youngest adult generation....

Married Baby Boomers tended to think "Oh well....come the next promotion on our relatively secure jobs etc etc and there's two of us to deal with this". It's beginning to look like that might have been a temporary "Position in History" rather than "The Norm"....:(

Single me was thinking "Oh well - come my due promotion" - errr....yep....famous last words if things dont go that way....

If he's in a position to buy now, at 23, he'll most likely be in a position to upsize in a few years, especially if he chooses wisely and his house increases in value more than the average.

The difficulties that young people are facing are mostly to do with saving a huge deposit, those that can do so then tend to be fine. I'm 32 and single and I upsized from my one bed flat to my house two years ago.