Buy a house first, or get a new job?

Frog01

Hi,
I'm just after a bit of advice really as I'm struggling to make a decision on what's best for me.  I used to have an old account on here years ago so I've had to re-register under a new username.  I won't be one of these posters that only posts once and you never hear from again.

I probably already know the answer to this anyway but here goes;

I'm 35, single and male and have been saving to buy a house for the last few years. As embarrassing as is it to admit, I'm still living at home.    I work full time and have saved around £40,000 altogether.  My job isn't very high paying, I'm only on £20,000 per year.  There are 2 bedroom houses in my area going for £125,000 which would suit me fine.  However, I'm still not certain if I've saved enough to be offered enough for my mortgage.  I'm going to see a mortgage broker very soon so I'll get a clearer idea then.  

The problem I'm having is that I've been with my company since I was 18, so I guess that looks good on an application.  But,  I'm unhappy in my workplace.  I've coasted along for the last few years after initially hoping to progress into management after I finish University (in 2011, aged 27).  I want to start job hunting as soon as possible but I feel, at 35 that time is running out for me to get started on a new career path.  I also feel that I'm going to leave it too late to get on the property ladder if I'm not too careful.   Ideally, I'd like to find a new job as quickly as possible,  but I cringe to myself when I tell people that I still live at home.  


So, does anybody have any advice?  Am, I better off buying the house first?  I understand that getting a new job whilst owning a home is a risky, for job security, happiness etc.  But, I can't work in the same place for the rest of my working life.   Does starting a new job have a massive effect on what I could borrow?  I've heard conflicting things from people,  some have said that it doesn't matter so much these days, and others have said that it's only self employed that would have a problem.  If anyone has any advice, that'd be great,  I know you're not here to make decisions for me but I just need to get this off my chest really.


Thanks  R

TyreLever

Frog01 said:

I'm 35, single and male and have been saving to buy a house for the last few years. As embarrassing as is it to admit, I'm still living at home.    I work full time and have saved around £40,000 altogether.  My job isn't very high paying, I'm only on £20,000 per year.  There are 2 bedroom houses in my area going for £125,000 which would suit me fine.  However, I'm still not certain if I've saved enough to be offered enough for my mortgage.  I'm going to see a mortgage broker very soon so I'll get a clearer idea then.  

As embarrassing as this is to admit, thats a near mirror image of my life right now. Similar wage but less savings. I can get a mortgage for about 85k. I have an agreement in principle. However buying a house is turning out to be an arseache. The previous house I went for had loads of stuff wrong with it (always get a survey!). Had to pull out because the seller was being arsy with a builder I had sent round to get quotes for work.

I'm going for another house now but the communication is poor, not helped much by me working permanent nights. A few emails would be nice tho.

What sucks for me though is that I can only afford terraced houses. Spacious enough for my needs and wants but I do fear noisy neighbours.

kinger101

The short answer is a lender would probably want to understand whether a new employment contract had a probationary period.

My feeling is you should get you career sorted first.  Lending multiples are likely to be low on a £20K income, as a relatively higher proportion of your income will be needed to cover household bills than say someone on median salary.  But the main factor is being geographically mobile is going to allow you more job opportunities.  Home ownership can tie you down.

Don't worry about the age too much.  The average age of a FTB in the UK is now 33 I believe.  You're not far off that.

Edited to add: Some places won't promote anyone that doesn't ask for a promotion.  If you feel your role has changed since you first joined, you might think about seeing if you can set out your case to whoever makes these decisions.

xylophone

My inclination would be to  suggest that you stick out the job until you've been a property owner for   a year or so and then look for a new one. And don't leave the old until you have a firm job offer and contract for the new. 
There's nothing wrong with living at home  - an uncle and aunt of mine did this until their dying day.
In a way, I think my grandmother ( a very maternal woman) may have been glad of this as both sadly died in their forties - she had them while they lasted as it were.
I left home at 27 - I wasn't unhappy there and my parents would have liked me to stay but I was in a job which offered very favourable "fixed  interest for the life of the loan" mortgages to staff, and colleagues kept telling me it was an offer I couldn't refuse!

timeism0ney

How employable do you consider yourself to be? For an average person I'd say you need 6 months savings to get through a rough patch and find a new job if things go bad. So if you leave that amount of money for a rainy day and use the rest for buying a house (deposit and fees) then you've done everything right. Definitely buy the house now, concentrate on that, then deal with your job/career change after. Both things are important but your house purchase will be delayed by at least a couple of years if you go ahead with your job change first.

I had a similar crisis at 35 after 7 years in financial services and left for what I was convinced was a dream job for me. I was let go from that place after 3 months. Started yet another job similar to the 'dream' job gone wrong, and lasted 3 years with some stress and difficulty, but got my current job as a result of acquiring new skills. I really enjoy my current job, and it is also well paid. So the whole change was harder than I expected but in the long run it was worth it. I wouldn't want it to overlap with a house purchase though, because both things require a lot of energy!

Good luck. You're in a good position so once you have a plan in your head, you should be fine. 

timeism0ney

My search for my current job lasted about 4 months, so that's why I said 6 months savings is advisable. It means you don't have to settle for opportunities that don't quite fit and you are able to look for the job that is right for you long term. 

timeism0ney

I agree with kinger101 that once you're a home owner you're tied to a geographical area. At 35 I was happy with where I lived and happy with limitations that it imposed on possible career opportunities, so if you're the same then buy a house first. If you're actually open to moving elsewhere for an attractive job opportunity then it's a different story. 

Moneyminded

It depends. You want to leave you current job but are you clear on what you would like to move to? Do you have the skills for that role, are there lots of job opportunities in the local area or would you have to move? You finished uni 8 years ago and by the sounds of it haven't had much of an opportunity to put those skills into practice, are there any vacancies or projects coming up internally that would allow you to stretch yourself mentally and gain some experience in a different role? 
It might be worth speaking to a career coach or someone who works for an employment agency to talk through your career aspirations and skills/ experience. This would allow you to have a realistic view of your chances on the job market. Depending on what comes of those discussions you can then make a more informed choice about when to buy a property

[Deleted User]

Would you have more career opportunities if you didn't tie yourself to the area you are currently living in?
It's not a binary choice, buy or live with parents, you could always rent.

tom9980

New job first. 

AdrianC

Frog01 said:

I'm 35, single and male and have been saving to buy a house for the last few years. As embarrassing as is it to admit, I'm still living at home.

Well, pretty much EVERYBODY lives at their own home. I presume you mean you live with your parents...?

I work full time and have saved around £40,000 altogether.  My job isn't very high paying, I'm only on £20,000 per year.

I don't want to rub salt in, but "not very high paying" is an understatement. You're not earning much more than minimum wage... Full time minimum wage will be just above £18k from April.

There are 2 bedroom houses in my area going for £125,000 which would suit me fine.  However, I'm still not certain if I've saved enough to be offered enough for my mortgage.  I'm going to see a mortgage broker very soon so I'll get a clearer idea then.

You're certainly in the right ballpark - rule-of-thumb 4 x salary = £80k borrowed + £40k equity = £120k and a ~65% LtV mortgage. Plus fees, obvs.

But people on very low incomes have a much higher proportion of their income that's not disposable, of course.

The problem I'm having is that I've been with my company since I was 18, so I guess that looks good on an application.

Irrelevant.

But I'm unhappy in my workplace.  I've coasted along for the last few years after initially hoping to progress into management after I finish University (in 2011, aged 27).  I want to start job hunting as soon as possible but I feel, at 35 that time is running out for me to get started on a new career path.  I also feel that I'm going to leave it too late to get on the property ladder if I'm not too careful.   Ideally, I'd like to find a new job as quickly as possible,  but I cringe to myself when I tell people that I still live at home.

So why haven't you ever moved out, into a rented property or a houseshare with mates?

Do you have any idea what "real life" actually costs? You've managed to save a substantial amount, so I guess you live very cheaply - what are you paying your parents in the way of rent/housekeeping, and what does that include?

So, does anybody have any advice?  Am, I better off buying the house first?  I understand that getting a new job whilst owning a home is a risky, for job security, happiness etc.  But, I can't work in the same place for the rest of my working life.  

What if there's a fantastic new job opportunity... which isn't just down the road from where you live now? And you've not made any mention of a partner or family.

Does starting a new job have a massive effect on what I could borrow?

If it pays a lot more, yes! Obviously, if you've only just started with a new employer, then there's the risk of probation periods. But that apart...

Sounds to me as much like you want to be posting here -> https://forums.moneysavingexpert.com/categories/employment-jobseeking-training