Cant get on property ladder

billy2shots

Chapter24 wrote: »

£220k? so you would have needed to be earning about a third of that, between the two of you. That's pretty high earnings.

Even if you'd somehow managed to save £50k deposit it still would have been a struggle on average wages.

It’s amazing how much you can save between 16 and 26 years of age, living with parents and not wasting cash on luxuries. I didn’t manage to save £50k. I saved £100k.

As for pretty high earnings lol. We earn less than £52k combined.

Simby

Op rent a room in a share house.. and then save save save...

I.e no holidays, no takeaways, shop at Aldi , prepay phone, no cinema , no drinking at the pub , no restaurants, no new clothes , bring lunch to work, etc..

It is possible to save if you don’t spend your money ... it’s what we did to buy our first house deposit for two years ..now we own out own house and still save 70 percent of of our income

FtbDreaming

If you want a house you have to save up. I have 3 kids. Left home at 16 and mum and dad have never given me anything... im now 32 and just getting in a position to look at buying. It doesnt just come on a plate, unless you're one of the lucky few. Even people that inherit are well into their 60s and 70s themselves before their parents pass away so have well established their own lives by then.

Chapter24

billy2shots wrote: »

It’s amazing how much you can save between 16 and 26 years of age, living with parents and not wasting cash on luxuries. I didn’t manage to save £50k. I saved £100k.

As for pretty high earnings lol. We earn less than £52k combined.

Wish someone had said that to us at 16, instead of telling us to study till the age of about 23, then :rotfl:

£100k from 16 to the age of 26?? :T

The only person I know who did something similar was my cousin. Mind you, he had no girlfriend till he was about 40, lol Think I'd rather be skint than lead the kind of uptight weirdo loner life he led.

FtbDreaming

The only person I know who did something similar was my cousin. Mind you, he had no girlfriend till he was about 40, lol Think I'd rather be skint than lead the kind of uptight weirdo loner life he led.

I have to agree. Ive got a couple of cousins that are loaded and live at home like children in their late 20s. If i croaked it tomorrow I've lived well and experienced a lot!

Cherry_Burton

Hi,

Perhaps your friend should look into Shared Ownership with a housing association or local council. It is not ideal but may help your friend take the first step. Look on the local council website.

CB

billy2shots

Chapter24 wrote: »

The only person I know who did something similar was my cousin. Mind you, he had no girlfriend till he was about 40, lol Think I'd rather be skint than lead the kind of uptight weirdo loner life he led.

Alternatively your cousin could be sat down the pub laughing with a mate about his cousin who didn’t save and is complaining about house prices to complete strangers on the internet.

Pooky

Both our DDs have brought via the shared ownership scheme. The security of buying with the help of not buying all of it in one go. Both have brought a quarter share and pay mortgage on that and then rent on the other part. They have the option of stepping up to buy more as they can afford it.

We are in the south east so property prices are silly high, both DDs are earning average wages for their ages (early 20s) and needed a 5% deposit on the part they were getting a mortgage for.

Whilst it might not be ideal for everyone, it means they can both live affordable and independently for much less than they could rent even a studio flat for.

Both used the "help to buy" saving scheme too which gives you a 25% bonus once you've saved over £1600 and could be used against solicitor fees.

I think it's a fantastic way to get yourself on the property ladder at a much more affordable price to a single first time buyer.

Mr_Singleton

billy2shots wrote: »

managed to be mortgage free last year at the age of 36 on a property bought for £220k 9 years earlier. For context I am not a higher rate tax payer and my wife works 12 hours a week. No inheritance etc.

Doing some quick calculations and generalisations ie mortgage deposits/interest rates and I think somebody’s telling porkies.

You’d need to be paying at a rate of just under £25k/yr to clear the mortgage in 9 years. Currently top rate income Tax starts at £50,001. So earning £50,000.99p it might just be possible with a take home of £36,000ish plus the 12hrs. When you go back to the start of the mortgage higher rate Tax started at about £35,000 at which point your basic take home pay would barely service the mortgage let alone cover Council Tax, food, utilities etc.

It would also be interesting to find out how you got such a large mortgage with such a low income.... anyone fancy a porkie pie??

Mr_Singleton

Pooky wrote: »

Both our DDs have brought via the shared ownership scheme. The security of buying with the help of not buying all of it in one go. Both have brought a quarter share and pay mortgage on that and then rent on the other part. They have the option of stepping up to buy more as they can afford it.

As I’ve said in the past it’s hard not to see ‘shared’ ownership as a huge con! For the record you don’t own anything.