Buying a flat as a singleton on average salary

Littlemisssiwantahouse

Hi everyone. I'm 28 years old, single and currently working in the South East. I'm on a £25k salary but recently moved back in with parents in order to save quicker for a place of my own one day. This seems like an impossible task buying even the smallest 1 bed flat where I live but at the moment I know I just need to get my head down and save as much as I can.

Currently I have liquid savings of £15k. By living at home I'm able to pay 12% (£190ish) into my pension each month (employer adds a miserable 2%), which is making saving for a house tougher but I think it's important I keep this up so I can one day retire in a half decent position I'm really watching what I spend and am then saving £750 minimum a month in savings.

I am so desperate for a place of my own - I have looked at shared ownership but I don't think it's for me and I think what with a mortgage and paying rent as a single person on my salary I would still really struggle financially so it's worth trying to wait and buy 100% of a 1 bed flat.

I've looked a little at houses in cheaper areas of the country thinking I can live there at weekends and build a life there and my parents are happy for me to live with them Mon-Thurs. I would then potentially further down the line either get a new job where the house is or continue to commute/ask to work from home more. I enjoy my job and there are lots of progression opportunities and I would hope for pay rises if I stay so I do think that I am best staying there at the moment as having a look around most other jobs I can do the salary isn't any higher. I'm conscious I'm turning 29 soon so need to get on the housing ladder in the next few years.

Does anyone have any experience of buying on their own on an average salary like mine? Or in an expensive area? I feel a bit stuck as I like my job but realistically I will have to save such a huge deposit (£88k ish!!!) as I won't get a massive mortgage. Although my parents are happy for me to live with them and pay just a small amount of rent therefore helping me save they are unable to help/contribute with any money for a deposit as they are busy trying to save for retirement!

I'm interested to hear other peoples experiences and advice. Sorry for the long post - thought it's best to properly explain my situation.

julicorn

It's definitely difficult to buy down here on your own.

I work in Brighton, and colleagues of mine who are on a similar salary as you (and wouldn't be able to buy in Brighton) have moved to cheaper towns nearby such as Eastbourne and surrounding areas. There's still not crazy amounts in their price range there, but better than nothing. I don't think they pay anywhere near as much as you into their pensions though. Might have to do some prioritising - South East or more affordable area, town or further out, keeping pension contributions high or temporarily reducing them to save more money for the short term (and for affordability calculations), etc.

Hoploz

How much is a one bed flat in your area?

Pixie5740

A mortgage lender is not going to give you a mortgage for a property that's not with a reasonable commuting distance to work. They won't believe you intend to live in it and will suspect that you intend to let the property.

Are you making use of a Lifetime ISA? Every little helps and a 25% bonus is not to be sniffed at.

I wouldn't necessarily discount shared ownership in your circumstances - low(ish) salary in an expensive part of the country.

Littlemisssiwantahouse

Around £200-250k for anywhere that is half decent. Looking further afield with about 1 1/2 hours commute to work I could probably get somewhere for £150k. I don't think I can get anywhere less than £150k to be able to commute unless I move really far away.

boliston

in some places even a 1 bed flat is really expensive so it might be an idea to go with a studio to get a foothold in a decent area

pinkshoes

Littlemisssiwantahouse wrote: »

I'm really watching what I spend and am then saving £750 minimum a month in e busy trying to save for retirement!

A salary calculator says that your take home pay after paying in 12% pension is just over £1500. Is that correct?

Then if you are living at home, you should easily be saving over £1000 a month, or more if your parents are not charging you board.

Have a couple of years living like a hermit and you'll have another £30k to add to the deposit.

You then might want to change job and move to a cheaper part of the country!!

I live in the south East and house prices are frightening.

SG27

Just stop eating avocados, buying coffee, sandwiches or Iphones.

Owain_Moneysaver

£25k isn't a high salary compared to South East house prices. Are you likely to get rapid promotion in the next few years, or could you get a similarly paying job in a cheaper part of the country?

Remember if you buy further away from work, your commuting costs increase.

goodwithsaving

SG27 wrote: »

Just stop eating avocados, buying coffee, sandwiches or Iphones.

There's always one Daily Mail reading idiot.

Red-Squirrel_2

goodwithsaving wrote: »

There's always one Daily Mail reading idiot.

I assumed that was sarcasm tbh.

£250k is a lot of avocados.