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

phillw

You can't really predict what will happen with house prices based on what has happened in the past. Many people saw rising prices and thought there would be a crash similar to the 80s and 90s and they could clean up buying a property for half the cost. Instead they have doubled. I would always recommend people buy the largest house they can afford.

AnotherJoe

SG27 wrote: »

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.

Well, you will compared to rental. Plus, sometimes there's a point at which you can afford a house and then prices rise and you can't any more.

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

The BTL cash cow has been slaughtered, this past weeks announcement was the coup de grace. You only have to look at recent examples in here where the return is actually less than on ordinary savings accounts plus of course it's much riskier. Even if BTL provided a decent profit as a business, if you BTL'd instead of buying to live somrwhere, you'd then have to pay rent which would make the "profit" go negative.

FIRSTTIMER

This is interesting, I was in this exact situation and was getting to age that I needed my own place and regret waiting now.

Homeowner is expensive initially, but in two years my mortgage LTV has dropped significantly and I am even contemplating remortgaging to get a little extra funds in another two years to buy another (forever home!) property and rent this one out as a long term investment. The rental would be around 750-800 and my mortgage is only 400. I would defo say property.

Gwendo40

FIRSTTIMER wrote: »

This is interesting, I was in this exact situation and was getting to age that I needed my own place and regret waiting now.

Homeowner is expensive initially, but in two years my mortgage LTV has dropped significantly and I am even contemplating remortgaging to get a little extra funds in another two years to buy another (forever home!) property and rent this one out as a long term investment. The rental would be around 750-800 and my mortgage is only 400. I would defo say property.

I take it you haven't got the slightest clue about the way the wind is blowing in regards to leveraged BTL?

(Here's a helpful pointer... you don't have to look any further than some of the replies on this actual thread)

FIRSTTIMER

Thank you for your response.

SpiderLegs

FIRSTTIMER wrote: »

This is interesting, I was in this exact situation and was getting to age that I needed my own place and regret waiting now.

Homeowner is expensive initially, but in two years my mortgage LTV has dropped significantly and I am even contemplating remortgaging to get a little extra funds in another two years to buy another (forever home!) property and rent this one out as a long term investment. The rental would be around 750-800 and my mortgage is only 400. I would defo say property.

Interesting. How long is your mortgage term for your LTV to have dropped significantly in just two years? Have you seen a disproportionately high level of HPI?

It must be quite a lot in order to raise enough for a second property deposit.

If you could post some numbers up so we can see the full picture it would help.

bp5678

Marvel1 wrote: »

Personally I would move out for the independence.

Sea_Shell wrote: »

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.

In 5-10 years I'll have moved out but say in the next year or two I could move out or continue living with parents. Eventually I will get on the property ladder but in the short term I'm tempted to keep saving.

I earn £1.75k a month, give my parents £300 a month in rent and manage to save £1k at the end of the month taking into account the rent i've paid them.

bp5678

onwards&upwards wrote: »

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?

Actually they'd rather I live at home as I can help take care of my autistic brother.

bp5678

phillw wrote: »

You can't really predict what will happen with house prices based on what has happened in the past. Many people saw rising prices and thought there would be a crash similar to the 80s and 90s and they could clean up buying a property for half the cost. Instead they have doubled. I would always recommend people buy the largest house they can afford.

Interesting you say that last bit (in bold) as I was hoping to not buy the biggest house I can afford. It'll mean I can put down a larger deposit/overpay on my mortgage and also means I won't be stressing/panicking each month about ensuring I have enough funds. Basically it means I won't be living life on a shoestring and will have emergency funds in case of a disaster!

FIRSTTIMER

I sense you are the type of person Tiger Woods Loathed too....

https://twitter.com/CareyLohrenz/status/1117592433561260032