1st time buyer, can't borrow enough money

Crashy_Time

Concerning that you would throw your full savings (which are much bigger than most FTB`ers BTW) into a very iliquid asset class which is also very overvalued, by learning how to invest that money while living cheaply you could build a much bigger nest-egg for the future. If all FTB were like you the government could scrap all their Help To Borrow schemes tonight! IMO better to go for smaller mortgage/deposit if you must buy and keep a bigger slice of that cash cushion for emergencies, living in a mortgaged house won`t help you much if a big cash expense crops up!

KBNewby

OP, with your budget and interest rates so low I'd be buying as soon as possible There will be plenty out there for under the stamp duty threshold which will leave you lots of savings as a back up!

jimmyjammy001

Don't feel obliged to move out of your parents and into a flat because people from the Internet think you should follow a first time buyers guide and buy something small and rubbish, stay at home save up some more and buy a house for the long term, house prices are in a massive bubble at the moment, it could be worse you could be renting paying off someone else's mortgage because you did not want to stay living in the family home because it looks silly aged 25+, I'd know which option I would choose in order to save money and buy my own place.

oli356

jimmyjammy001 wrote: »

Don't feel obliged to move out of your parents and into a flat because people from the Internet think you should follow a first time buyers guide and buy something small and rubbish, stay at home save up some more and buy a house for the long term, house prices are in a massive bubble at the moment, it could be worse you could be renting paying off someone else's mortgage because you did not want to stay living in the family home because it looks silly aged 25+, I'd know which option I would choose in order to save money and buy my own place.

Yeah I will still around a bit longer and save for something more long term. Though I've also thought that it feels a bit pointless moving out all together.

I'd be either moving further away from work to get a nicer house for a more affordable price. Or staying in the area in a smaller house, but then it's like.. All I've done is move 3 miles up the road, living now by myself and paying more than quadruple to do so. Obviously there are personal development benefits of moving out and when I get a partner then want the personal space. But if I was just to move up the road, it does kinda seem a bit silly considering my parents and I don't mind the company. With that mindset though, I could be at home then till I'm 40 :rotfl:

Sleepless_in_London

You're in a great position for your age! I haven't read the whole thread, but I'd advise against buying a property for a couple of years. If you must move out, would you consider moving out and renting? If you were married and wanted to start a family then I would understand. If I were in the same position, I would continue living with my parents. Society's changed now and while it's a very British thing to 'have to own your own home' it can be a bit of a trap sometimes. Enjoy your life, save up for a couple more years and you'll get more bang for your buck as they say.

Obviously, do whatever feels right for you, but I would personally stay with my parents (the best option I think) or rent a 2-bed and rent out the spare room, work on finding a new job to negotiate an even higher salary and then opt for an interest-only mortgage and then set up a direct-debit every month to overpay my monthly payments.

Crashy_Time

oli356 wrote: »

Yeah I will still around a bit longer and save for something more long term. Though I've also thought that it feels a bit pointless moving out all together.

I'd be either moving further away from work to get a nicer house for a more affordable price. Or staying in the area in a smaller house, but then it's like.. All I've done is move 3 miles up the road, living now by myself and paying more than quadruple to do so. Obviously there are personal development benefits of moving out and when I get a partner then want the personal space. But if I was just to move up the road, it does kinda seem a bit silly considering my parents and I don't mind the company. With that mindset though, I could be at home then till I'm 40 :rotfl:

The financial benefits of staying on at your parents far outweigh the "personal development" you will get from dropping your life savings into a massive property bubble IMO. How would you feel if the market crashed and that 80k just disappeared!

oli356

Crashy_Time wrote: »

The financial benefits of staying on at your parents far outweigh the "personal development" you will get from dropping your life savings into a massive property bubble IMO. How would you feel if the market crashed and that 80k just disappeared!

That's probably a given, though I've never looked at buying a home as an investment. And yes whilst we are all fine and happy with me being here, the cost potentially isn't worth the development. However unless they pass away (dad's the eldest at 65, so hopefully many years left) or it comes to a point where I need to move out due to one reason or another, then I could be that 35 year old who lives with his parents... And get looked at funny, though that's society for you

I do see your point and as someone who doesn't spend much money at all. It does seem bizare to willingly want to spend 4 times as much to move out when everything is fine as it is.

MovingForwards

oli356 wrote: »

I could be that 35 year old who lives with his parents... And get looked at funny, though that's society for you
.

Wouldn't worry about the age, my brother is approaching 50 and is only just talking about saving up to buy somewhere.....

Water bills and council tax bills have the annual charges online, gives you an idea on cost.

You can also look online for the cost of internet, TV and phone packages by using a comparison site. Just put the potential post code in and see who is in the area and how much they charge.

TV licence details are also online.

That just leaves gas / electric / food / fun / insurance, as I assume you know how much you spend on clothes etc.

You could always ask your parents how much they pay for their utility bills and building / contents insurance.

Don't forget you will want an emergency fund, also a fund for home maintenance.

Have you been paying into a pension?

oli356

MovingForwards wrote: »

Wouldn't worry about the age, my brother is approaching 50 and is only just talking about saving up to buy somewhere.....

Water bills and council tax bills have the annual charges online, gives you an idea on cost.
You can also look online for the cost of internet, TV and phone packages by using a comparison site. Just put the potential post code in and see who is in the area and how much they charge.
TV licence details are also online.
That just leaves gas / electric / food / fun / insurance, as I assume you know how much you spend on clothes etc.
You could always ask your parents how much they pay for their utility bills and building / contents insurance.
Don't forget you will want an emergency fund, also a fund for home maintenance.

Have you been paying into a pension?

Thanks for the info.

I've only been paying 3% into my pension for the past 7 years, company puts 8% in I believe. I've upped it to 10% though as of this month, should keep me out of paying 40% tax, or mostly atleast. Think the company will pay 8.7% or something now.

Crashy_Time

oli356 wrote: »

That's probably a given, though I've never looked at buying a home as an investment. And yes whilst we are all fine and happy with me being here, the cost potentially isn't worth the development. However unless they pass away (dad's the eldest at 65, so hopefully many years left) or it comes to a point where I need to move out due to one reason or another, then I could be that 35 year old who lives with his parents... And get looked at funny, though that's society for you

I do see your point and as someone who doesn't spend much money at all. It does seem bizare to willingly want to spend 4 times as much to move out when everything is fine as it is.

Yes, very bizarre, and you won`t be the only younger person thinking this, of course if house prices were cheaper.........