How did you manage to buy your house?

Davesnave

moneyistooshorttomention wrote: »

Single/poorly-paid and there is no way one can save enough to keep up with house price inflation AND save for the amount of deposit one needs in the first place at that point in time in many parts of the country.

Things have always been this way. I'd argue that when our generation bought houses, it was somewhat easier than it is now, and very much easier than before WW2.


However, the opportunities to make more money have always been there for those who deem that the most important aspect in their lives, and that's still the case today.

Davesnave

Ecommerce.businessman wrote: »

The advice I would give to everyone is start a business immediately but I know very few people are cut out for business.

Am I alone in thinking that would seem to be contradictory advice?

You might as well tell people to aim at being brain surgeons; that pays well enough.

However you're right that most businesses fail within 5 years, which is still no reason to shun enterprise and just keep 'working for the man.' Maybe that's what you meant.

moneyistooshorttomention

Davesnave wrote: »

Things have always been this way. I'd argue that when our generation bought houses, it was somewhat easier than it is now, and very much easier than before WW2.


However, the opportunities to make more money have always been there for those who deem that the most important aspect in their lives, and that's still the case today.

For our generation as a whole possibly - but I think that depended on whether there was two of you (one of them at least being a man - ie "mans wages"). It was all flooding back to me recently - as I'm currently watching that tv programme "Back in time for the factory". Watching the early 1970s episode featuring the Equal Pay Act coming through and I remembered that, shortly after that, women had to have their salaries taken into account for mortgage purposes. I could remember thinking "I know I'm on lower money - because of being a woman:mad::mad:", but then "Mr Right will be on higher money than average - because of being a man - and between us that will smooth out to 2 average salaries coming in".

Within months of that Equal Pay Act I had made the decision "I'm going to buy my starter house RIGHT NOW on my own (as Mr Right is taking his time about showing up - never did in the event) and I could see a heck of a lot of effort/topped up by moving back in with my parents:eek::eek: might have done the trick providing me with the money for a deposit. Moving back in with/staying with parents wasnt such an option for women then - as many of us had parents that treated us differently to our brothers and we were rather restricted in our lifestyles because of it. So we had to move out - in order to live the way we had decided to.

But it was at about the same time that married women also thought "Aha - now is the time" and mortgages were based on joint incomes and bingo....the second a single woman like me could look at them and couples went "Shazam/joint buying power" and they shot out of my reach.

Perhaps I needed a crystal ball:cool: to have seen that was going to happen in the early 70's and tried my hardest to save (ie stayed with parents:eek:) in time to grab for a possible tiny little sliver of "window of opportunity" before couples had that "Shazam moment" and there was the chance gone - as they'd pushed prices up so with their joint buying power.

MERFE

Moved from the south east to the south west, shaved a good £100,000 off what we need for a house and we met in the south west and have family here so wasn't a completely random move. Then paid off our debts and as they got paid off moved the money used to pay them off to save. The whole moving set us back slightly as OH took a while to get a steady job, alot of agency work but getting paid £600 one week and £300 the next is tricky to budget. Once he got a regular job it actually turned out he was on better pay than in the South East. This April he changed roles at work and is on even better pay, meaning we now qualify for enough mortgage and with the Lifetime ISA bonuses we have enough for a 5% deposit. Currently going through the buying process coming up to 40, with 3 children so a flat wasn't going to cut it.

Nasqueron

My reality would be renting or shared house, not a chance on my salary that I could afford a mortgage. Even in rough areas I'd be looking at 5-6x my salary borrowing just for mortgage and then bills, commute etc all add up. Only chance I'd have is people stop inflating the value of their houses every year which isn't going to happen*. My other half fortunately is well paid (probably 3.5-4x what I earn) and so we have a house.

*Our house was bought for 98500 iirc in 2002, our neighbour's house, I believe it's identical as few have attic conversions, on the terrace that sold for £186,000 in 2012 and just sold last year for £222,500. The one to our other side sold for £187,000 in 2015

Cakeguts

Computer_Beginner wrote: »

I was never given any money by anyone.
But I was lucky in other ways, the friends I had etc. I didn't realise it at the time though. I just took what came along. Didn't really plan that far ahead.

I think it's a mindset really. I never felt "poor". I felt proud to be working and didn't want a flash car etc. It wouldn't have lasted long anyway! This was the days when cars really did have their wheels stolen. I know, because people would come to our garage looking for them to buy back!

I think a youngster could do the same today, but they would be looked down upon. My son spends loads of money on stuff like gym membership and holidays etc. But I think it's expected by his age group now, and especially the girls seem into looking rich. I never even thought of those things. It wasn't self discipline, I just wasn't interested.

He has more disposable income if he can do this than I ever had. I still managed to save for a deposit.

Waterlily24

We bought our first house in 1968, I was 21 hubby was 26 (not married then though). It cost us £5,900 and hubby cashed in his life insurance for our £600 deposit. The house was a 1930s semi in north west Kent so quite an expensive area. I think the house was in a 1930s state and hadn't had anything done since day one. We refurbished it completely, rewired, double glazed, a fully fitted kitchen which hubby made from scratch (not the normal thing in those days as you didn't have the likes of B and Q or Ikea doing them then), fitted wardrobes, central heating. We removed the chimney breasts.

When we sold a few years later one of the estate agents description was 'We can say without fear of contradiction that this is the finest property of its type that it has been our privilege to offer' another one said 'This is without a doubt the housewives' dream house. This could be given the 'Homes and Gardens' accolade.

We sold it for £16,500 in the early/mid 70s - not sure of the exact date.

Computer_Beginner

Ecommerce.businessman wrote: »

I lived with my parents so very little outgoings.

I started an eBay business in 2011 and struggled to make a full time income.

At the same time I was earning minimum wage warehouse jobs around £200 per week then I started doing 12hr days which was £400 - £500/week then I got a VNA forklift licence and a 60hr week job over time was optional this paid £600 - £700 per week which is more than a teacher / nurse / accountant / solicitor etc.

Using the funds from my 60hr week VNA forklift truck job I invested it in my eBay business to buy stock.

Now my eBay business makes around £2,000 per week I have been accepted for a £450,000 mortgage I am 29.

Another thing to mention is I was constantly in and out of unemployment since leaving uni in 2010, I never held a job for more than 2 - 3 months always back on jobseekers allowance.

This ebay business has been making me proper money this past 10 months and the income is always increasing alot.

I am still living with parents I dont care what anyone says. I'm not like the people in the rat race who go on holiday every 6 months and spend £500 a month on a car and £1,000 a month rent and living expenses. They are all pretending to be rich.

So in short I always looked for the next big jump to get a higher income and I do what others wont do.

The real escape is by having a business.

They say they saved money but if they are earning peanuts they have nothing to save to start off with.

The advice I would give to everyone is start a business immediately but I know very few people are cut out for business.

I am using the ebay funds to set up bigger business's then those business's will fund the next bigger business. I want to build thousands of new houses or have an airline.

I am single I don't need a house just yet.

If you don't need a house, then don't buy one. That makes sense, because you can invest your money, rather than pay mortgage debt. Go for a mixed asset fund, plus some precious metals as "insurance". Maybe some REITs / property funds, too.

With an eBay business, you could even look at buying a cheaper house, with cheaper warehousing space abroad. Maybe Romania, Bulgaria etc.

Computer_Beginner

Waterlily24 wrote: »

We bought our first house in 1968

The house was a 1930s semi

We removed the chimney breasts.

Why did you remove the chimney breasts? That's a lot of work.

dinkylink

I lived at home until I was 25 and saved up a £40k deposit on not a great wage, so it is possible.

Of course I was in a fortunate position to be able to do this and my parents didn't charge me much rent. Plus this was 2009 when house prices had just seen their worst crash since god knows when.

I don't envy first buyers today. If they were in the position to buy a few years ago, I genuinely feel that my generation will be the last generation where home ownership was do-able for the 'average' person, at least in the Southeast anyway.