Moving out by 2020

El_W

Trying to steer clear of renting but I've set myself a goal of moving out by 2020. I've worked out I will have about £10,000 saved up... and if I were to continue saving with my current wages to get £20,000 it's going to take years.

Although I don't live in London I've worked out I won't be able to buy with £10,000 + fees etc. Which leaves me to rent which I feel will be a rut I won't be able to get out of. How on earth do people afford to buy these days?

[Deleted User]

How old are you? Can you buy with someone else i.e. a partner?

Unfortunately unless your earning a very good wage or have a huge deposit it does seem impossible to people to buy on their own

AdrianC

When you say "by 2020", do you mean "Absolutely, definitely, positively must be before 31/12/2019"? Or at some point during 2020?

Frankly, you're starting to get tight if you're thinking of buying anyway. Spend a month or two looking, summer holiday delays, and you're into August/September. Two-three months purchase time, and you could be into the Xmas delays very easily.

What sort of numbers are you looking at? Salary, purchase price etc.

Why do you think renting for a year or two would be so horrifically "rut"-like? Have you ever lived anywhere but the parental bosom?

MovingForwards

What county/city do you live in, or want to live in?

For some £10k deposit may be sufficient, then you just need to save legal / broker fees.

Furniture can be picked up for free/second hand.

El_W

MovingForwards wrote: »

What county/city do you live in, or want to live in?

For some £10k deposit may be sufficient, then you just need to save legal / broker fees.

Furniture can be picked up for free/second hand.

Worcestershire (Worcester is where I'm looking).

El_W

AdrianC wrote: »

When you say "by 2020", do you mean "Absolutely, definitely, positively must be before 31/12/2019"? Or at some point during 2020?

Frankly, you're starting to get tight if you're thinking of buying anyway. Spend a month or two looking, summer holiday delays, and you're into August/September. Two-three months purchase time, and you could be into the Xmas delays very easily.

What sort of numbers are you looking at? Salary, purchase price etc.

Why do you think renting for a year or two would be so horrifically "rut"-like? Have you ever lived anywhere but the parental bosom?

Yes, had my own place via Help to buy so not going to be eligible for that again now.

MovingForwards

El_W wrote: »

Yes, had my own place via Help to buy so not going to be eligible for that again now.

What happened to that property?

El_W

MovingForwards wrote: »

What happened to that property?

Was having a few financial issues and wasn't in the best state mentally. Shame really but glad I sold it when I did.

Fire_Fox

El_W wrote: »

Trying to steer clear of renting but I've set myself a goal of moving out by 2020. I've worked out I will have about £10,000 saved up... and if I were to continue saving with my current wages to get £20,000 it's going to take years.

Although I don't live in London I've worked out I won't be able to buy with £10,000 + fees etc. Which leaves me to rent which I feel will be a rut I won't be able to get out of. How on earth do people afford to buy these days?

You also need several months mortgage payments in a 'rainy day fund' from day one. There are no state benefits at all for many months now, even then only a loan to cover the mortgage interest.

Many people do not buy, many are content to let someone else have the stress and responsibility of property ownership. Why do you want to recreate a scenario that had a negative impact on your mental wellbeing and finances only a couple of years ago?

People who do afford to buy may:
Acquire the qualifications/ skills that lead to a well-paid job (part-time study, volunteering)
Work a second job
Go halves with a partner or friend
Relocate to a cheaper part of the country
Scrimp and scrape every last penny
Be gifted or inherit a lump sum
Buy a money spinner rather than a livable home (wreck, BTL, lodger-friendly)

and no doubt others I have not thought of.

Do you know where every penny of your current income goes?

If you had £20K now, would your current wages cover a mortgage, bills, repairs and maintenance (inc. service charges), and an acceptable standard of living?

Cakeguts

You have to be absolutely ruthless about saving every penny that you earn. Cheapest phone you can get and no finance for cars of anything like that.

MovingForwards

Ok, depending on your salary you can afford to buy in Kiddy and other areas for your £10k as a deposit, you will need to find some cash for your legal fees.

Cut back on everything and save like crazy for a year. So buy basic range food, if you eat meat make it last for two meals and bulk it out with veg, forget takeaway, forget cinema, ditch the gym if you have a membership and can cancel it. Don't go out every weekend, do one or two a month instead. Remember, it's only while you save to get your deposit and fees, there will be a light at the end of the tunnel.

I did have a look on Rightmove the other day when you said what area.

Expand a little bit on where in Worcs you will want to live, look at surrounding counties. If needs be look at shared ownership and staircasing to 100% as the years go on, but you should be able to get somewhere. Buy a flat not a house.

Don't get discouraged, but do stay focused.

I'm in a similar situation and have just driven 30 miles north of where I live, just to see several areas in my price range; can't afford to buy where I want to stay locally.