Would I make more money getting on the property ladder or from saving living with parents?

bp5678

What would make me have more money in the long term? Getting on the property ladder or continue living with parents?

Say I get on the property ladder in an area where house prices are rising super fast. Let's say 5% per year. I buy a £180k house with a £25-30k deposit on the mortgage. The house would be a 2 bed that just myself would live in.

Or alternatively, I continue living at home with my parents where I can save about £1k a month (salary is £1.7k a month or £27k a year).

Marvel1

Personally I would move out for the independence.

Socajam

I agree with Marvel1, if you an afford it buy the property.
You cannot never go wrong and if things become tight, get a lodger

bp5678

Marvel1 wrote: »

Personally I would move out for the independence.

Thanks for replying so quickly. I'm focusing more on from a financial perspective which i guess is more factual/objective/statistical as wanting the independence is more of a personal thing.

00ec25

bp5678 wrote: »

Thanks for replying so quickly. I'm focusing more on from a financial perspective which i guess is more factual/objective/statistical as wanting the independence is more of a personal thing.

then your question has a perfect, factual, absolute answer based on the maths using your numbers. Feel free to answer it yourself.

#allow for inflation and mortgage costs

letitbe90

bp5678 wrote: »

What would make me have more money in the long term? Getting on the property ladder or continue living with parents?

Say I get on the property ladder in an area where house prices are rising super fast. Let's say 5% per year. I buy a £180k house with a £25-30k deposit on the mortgage. The house would be a 2 bed that just myself would live in.

Or alternatively, I continue living at home with my parents where I can save about £1k a month (salary is £1.7k a month or £27k a year).

Surely a high rising place will add a premium on its value based on the fact that is rising fast, negating the growth somewhat?

I’d say save that £1k monthly into some passive find like vanguard/fidelity etc and call it a day.

Thrugelmir

bp5678 wrote: »

Say I get on the property ladder in an area where house prices are rising super fast. Let's say 5% per year.

What's going to sustain the rapid increases in price? Interest rates aren't likely to drop any lower nor are wage increases (in general) likely to be that significant. Markets ultimately return the mean. Even if they move ahead of the curve in the short term.

Gwendo40

Unless you're intending to then downsize and move to a much cheaper area then buying a house in an area where ''prices are rising fast'' makes little financial sense purely in terms of ''making money''

SG27

Unless your house rises a lot in price and you then sell up and move back to your parents you will never realise any profit.

The "return" you get from buying a house to live in is security of somewhere to live. (But also of the liability of maintaining the property) it may be an asset you can leave to your children, or can be sold to pay for your care in old age.

If you are looking to make money then you should look at investments or BTL

Sea_Shell

Rather than the pure financial maths of it, i'd be asking myself, "where do I see myself in 5-10 years time?". Would you be happy living with your parents forever? What's your goal? How old are you?

You don't mention how much "keep" will you be paying them towards the running of the household, or are they prepared to let you stay "rent" free forever?

In life, it's not all about doing the things that makes you the most ££££'s. It helps to enjoy your life along the way too.

onwards&upwards

Bet your parents are really pleased you’re asking this!

Don’t you think they deserve to be able to move on from the ‘kids at home’ stage of their lives and get their privacy and freedom back?