remove please...

daivid

guideme said:

Hello,

I'm hoping to buy my first property within the next year or so, I've recently opened a LISA and have been looking into the Help To Buy scheme in Wales, which ends next March I believe.

I'm currently on £19500 so I know I wouldn't be able to afford much for my first place. I plan to save around £5-8k for the deposit.

I'm really overwhelmed with all the various options and schemes. I checked a mortgage calculator and it said I could get around £75-110k depending on the deposit. I did a mortgage in principle with NatWest who said £77k on a 35 year mortgage. Is there any way I can get more than that?

I'm looking to buy in Cardiff. I doubt I will be able to get a house for that much. I'm not against flats but I am really noise sensitive and have had bad experiences, I'm scared I'll end up buying a place where I can hear everything.

I'm also not sure if, considering my low salary, I should be going for Help To Buy as it's more expensive new builds, or if that's the better option for me either way?

Apologies it's all over the place I'm overwhelmed by the whole process.

Thanks for any advice you can offer!

Saving £5-8k in a yearish on your salary is pretty impressive IMO. what are your prospects for job/pay progression? I would suggest keep up the good work of saving then buy when you can afford what you want. You have some specific wants (and why not) so don't buy a place you will be unhappy in just because its what you can afford now - considering 35 year mortgages suggests you have plenty of time left to buy with a mortgage.

grumiofoundation

[Deleted User] said:

grumiofoundation said:

[Deleted User] said:

Sadly the numbers just don't add up. Houses are basically unaffordable for individuals on above average salaries, so you have very little chance.

You will get the usual advice - look somewhere cheaper, get a better job, sell your iPhone etc. Ignore it, you know your situation and have doubtless considered these things.

Sorry it's bad news, but that's how it is.

As you have been asked before - how does ignoring anything ever help anyone?

Your logic seems to be either a) that everyone is already fully optimised their saving and minimised their spending - obviously you know this isn't true or b) that there is no point saving small amounts as it sont make a difference. Which is it? (neither is correct or helpful).

20 x 5 x 12 x 5 = 6000

Finding 5 ways to save £20 a month (e.g. get a cheaper phone contract, cut out one lunch out a week) is £6000 after 5 years (£7500 in LISA). That's not a small amount of money to me.


If you have nothing useful to post - why post at all?

Luckily not everyone on this site takes your attitude and many will actually make an effort to help posters. 

guideme said:

Hello,

I'm hoping to buy my first property within the next year or so, I've recently opened a LISA and have been looking into the Help To Buy scheme in Wales, which ends next March I believe.

I'm currently on £19500 so I know I wouldn't be able to afford much for my first place. I plan to save around £5-8k for the deposit.

I'm really overwhelmed with all the various options and schemes. I checked a mortgage calculator and it said I could get around £75-110k depending on the deposit. I did a mortgage in principle with NatWest who said £77k on a 35 year mortgage. Is there any way I can get more than that?

I'm looking to buy in Cardiff. I doubt I will be able to get a house for that much. I'm not against flats but I am really noise sensitive and have had bad experiences, I'm scared I'll end up buying a place where I can hear everything.

I'm also not sure if, considering my low salary, I should be going for Help To Buy as it's more expensive new builds, or if that's the better option for me either way?

Apologies it's all over the place I'm overwhelmed by the whole process.

Thanks for any advice you can offer!

With the HTB equity loan scheme you can borrow a 20% deposit. 

Comparing to the numbers posted above 
Based on your salary you're looking at a max loan of £87,750 plus a deposit of £8k = £95,750. 

As said in earlier post for a house in that price range you would be looking at the valleys for example somewhere like pontypridd being the closest to cardiff. If you want to buy in cardiff as you say flats are lookign at your only option. 

HTB would mean a house price of ~120,000 (87,750 mortgage, 23400 HTB loan, 8k deposit  

Based on a quick look at rightmove at the ~120k mark for new builds doesnt seem like there are many options at this price range - so maybe HTB won't be that helpful.


(Ignoring the rubbish quoted above) what is the outlook for salary increases in the near future, and what impact could this have upon affordability?

How long are you looking at to save the 8k? being able to save on sub 20k is good, and this may not be applicable but are there other opportunities to save/make money available?  Bank switches are a good way to make some easy money (mse weekly email or the budgeting and banks account forum a source for this info).

You think 6k after 5 years is going to help? What planet are you living in?

This has been explained to you before. 20 quid a week is not going to fix this. You can't magically make the numbers work just because you want to believe that life is fair.

Ok I will bite.

I live on Earth, and sadly I am not rich enough to turn my nose up at 6k.

It was an example of how small savings that some may view as pointless can add up over time. 

What about if someone can save an extra £50 £100 a week? £200 a week? At what point is it worth them saving more?

I don't believe life is fair to everybody, but rather than telling people to give up I attempt to make helpful suggestions. 

 Giving people false hope is not helpful. Telling them to waste 5 years saving not enough money is just making things worse.

How exactly does it make things worse?

Do you have anything helpful to post?

Who is in a better situation? (and to preempt your answer if you say equally bad you need to get out more and realise how much money 6000 actually is)

Person A - can't afford the deposit for a house, listens to rigolith and makes no attempt save more than they currently are

Person B - can't afford the deposit for a house, listens to other posters, assesses their spending and manages to save 6k over 5 years.

tracytown

It's very difficult to save money, so well done on saving up any amount. 

I've twice considered share to buy. I find it hard to recommend, but yes look into all the schemes. Probably use an online mortgage broker as they might get a bit more or some kind of better deal.

Sometimes studios are large and could be made into 1 beds, for a cheaper alternative.

Being noise sensitive can prove difficult in flats. Some ways to combat this:

1. Never get a flat with anyone above you. Yes this means living top floor, but you can end up with wooden floor shoe walkers and bangers, which is hard to stop or complain about as its not quite noisy enough for issue and debatable amongst everyone. If you truly have noise issues then you can't risk it. Top floor are usually cheaper though at least.

2. If top floor  look at ones where theres only 2 flats high, then its really first floor. Thus, no one above you.

3. Having your own entrance in a 2 block type makes it much better for less noise overall and less communal issues

4. Try ignore any communal area issues that might arise. Bins and things are always an issue.

5. Expect some noise. Tv noise etc. However factor in how many neighbours there are per flat. 

SavingPennies_2

It took me 10 years to save a deposit, zero help, renting privately, and wages under national average. I did it by saving small amounts regularly by standing order, £50 birthday money? Save it, new job or pay rise? Save the difference, sold stuff on ebay? Save it, 1 holiday in ten years, no car, zero takeaways etc. Not saying this is what everyone should do but this is how I did it, it doesn't happen overnight and yes I made compromises on my home, for me it was location or size and I went for location because I couldn't afford both as much as I would like that, but hey maybe in the future. Or maybe I'll never get the house and location I want, but I'm grateful for what I have. I don't know who said life is fair, it's not.

To the OP, start saving now (check this site for optimal savings account) no matter how small and keep the regular savings going, you are on a low salary so that will likely increase, don't absorb the increase in your spending, save the difference, if you get an unexpected windfall, save it, and importantly - do not get into debt! Consider other options for your first home, not all flats are noisy (not all houses are quiet!), Explore other areas, I assume central Cardiff is pricey but are there commutable towns nearby? Also remember if you meet someone and buy together it makes it a lot easier, who knows what the next few years will hold.

Belleofthebooks

You would probably qualify for shared ownership or affordable housing. I would look into those.

Unfortunately HTB is for new builds only and you'd be lucky to get a flat in Bridgend or Newport for less then £120k brand new, let alone Cardiff. 

[Deleted User]

grumiofoundation said:

[Deleted User] said:

grumiofoundation said:

[Deleted User] said:

Sadly the numbers just don't add up. Houses are basically unaffordable for individuals on above average salaries, so you have very little chance.

You will get the usual advice - look somewhere cheaper, get a better job, sell your iPhone etc. Ignore it, you know your situation and have doubtless considered these things.

Sorry it's bad news, but that's how it is.

As you have been asked before - how does ignoring anything ever help anyone?

Your logic seems to be either a) that everyone is already fully optimised their saving and minimised their spending - obviously you know this isn't true or b) that there is no point saving small amounts as it sont make a difference. Which is it? (neither is correct or helpful).

20 x 5 x 12 x 5 = 6000

Finding 5 ways to save £20 a month (e.g. get a cheaper phone contract, cut out one lunch out a week) is £6000 after 5 years (£7500 in LISA). That's not a small amount of money to me.


If you have nothing useful to post - why post at all?

Luckily not everyone on this site takes your attitude and many will actually make an effort to help posters. 

guideme said:

Hello,

I'm hoping to buy my first property within the next year or so, I've recently opened a LISA and have been looking into the Help To Buy scheme in Wales, which ends next March I believe.

I'm currently on £19500 so I know I wouldn't be able to afford much for my first place. I plan to save around £5-8k for the deposit.

I'm really overwhelmed with all the various options and schemes. I checked a mortgage calculator and it said I could get around £75-110k depending on the deposit. I did a mortgage in principle with NatWest who said £77k on a 35 year mortgage. Is there any way I can get more than that?

I'm looking to buy in Cardiff. I doubt I will be able to get a house for that much. I'm not against flats but I am really noise sensitive and have had bad experiences, I'm scared I'll end up buying a place where I can hear everything.

I'm also not sure if, considering my low salary, I should be going for Help To Buy as it's more expensive new builds, or if that's the better option for me either way?

Apologies it's all over the place I'm overwhelmed by the whole process.

Thanks for any advice you can offer!

With the HTB equity loan scheme you can borrow a 20% deposit. 

Comparing to the numbers posted above 
Based on your salary you're looking at a max loan of £87,750 plus a deposit of £8k = £95,750. 

As said in earlier post for a house in that price range you would be looking at the valleys for example somewhere like pontypridd being the closest to cardiff. If you want to buy in cardiff as you say flats are lookign at your only option. 

HTB would mean a house price of ~120,000 (87,750 mortgage, 23400 HTB loan, 8k deposit  

Based on a quick look at rightmove at the ~120k mark for new builds doesnt seem like there are many options at this price range - so maybe HTB won't be that helpful.


(Ignoring the rubbish quoted above) what is the outlook for salary increases in the near future, and what impact could this have upon affordability?

How long are you looking at to save the 8k? being able to save on sub 20k is good, and this may not be applicable but are there other opportunities to save/make money available?  Bank switches are a good way to make some easy money (mse weekly email or the budgeting and banks account forum a source for this info).

You think 6k after 5 years is going to help? What planet are you living in?

This has been explained to you before. 20 quid a week is not going to fix this. You can't magically make the numbers work just because you want to believe that life is fair.

Ok I will bite.

I live on Earth, and sadly I am not rich enough to turn my nose up at 6k.

It was an example of how small savings that some may view as pointless can add up over time. 

What about if someone can save an extra £50 £100 a week? £200 a week? At what point is it worth them saving more?

I don't believe life is fair to everybody, but rather than telling people to give up I attempt to make helpful suggestions. 

 Giving people false hope is not helpful. Telling them to waste 5 years saving not enough money is just making things worse.

How exactly does it make things worse?

Do you have anything helpful to post?

Who is in a better situation? (and to preempt your answer if you say equally bad you need to get out more and realise how much money 6000 actually is)

Person A - can't afford the deposit for a house, listens to rigolith and makes no attempt save more than they currently are

Person B - can't afford the deposit for a house, listens to other posters, assesses their spending and manages to save 6k over 5 years.

6k is less than the amount that houses in the range that the OP wants to buy rose by last year.

If they saved 6k in a year, they actually fell further behind. They aren't getting closer to owning a home, they are getting further away.

Do you understand how futile it is? Taking your advice will just make things worse for them.

grumiofoundation

[Deleted User] said:

grumiofoundation said:

[Deleted User] said:

grumiofoundation said:

[Deleted User] said:

Sadly the numbers just don't add up. Houses are basically unaffordable for individuals on above average salaries, so you have very little chance.

You will get the usual advice - look somewhere cheaper, get a better job, sell your iPhone etc. Ignore it, you know your situation and have doubtless considered these things.

Sorry it's bad news, but that's how it is.

As you have been asked before - how does ignoring anything ever help anyone?

Your logic seems to be either a) that everyone is already fully optimised their saving and minimised their spending - obviously you know this isn't true or b) that there is no point saving small amounts as it sont make a difference. Which is it? (neither is correct or helpful).

20 x 5 x 12 x 5 = 6000

Finding 5 ways to save £20 a month (e.g. get a cheaper phone contract, cut out one lunch out a week) is £6000 after 5 years (£7500 in LISA). That's not a small amount of money to me.


If you have nothing useful to post - why post at all?

Luckily not everyone on this site takes your attitude and many will actually make an effort to help posters. 

guideme said:

Hello,

I'm hoping to buy my first property within the next year or so, I've recently opened a LISA and have been looking into the Help To Buy scheme in Wales, which ends next March I believe.

I'm currently on £19500 so I know I wouldn't be able to afford much for my first place. I plan to save around £5-8k for the deposit.

I'm really overwhelmed with all the various options and schemes. I checked a mortgage calculator and it said I could get around £75-110k depending on the deposit. I did a mortgage in principle with NatWest who said £77k on a 35 year mortgage. Is there any way I can get more than that?

I'm looking to buy in Cardiff. I doubt I will be able to get a house for that much. I'm not against flats but I am really noise sensitive and have had bad experiences, I'm scared I'll end up buying a place where I can hear everything.

I'm also not sure if, considering my low salary, I should be going for Help To Buy as it's more expensive new builds, or if that's the better option for me either way?

Apologies it's all over the place I'm overwhelmed by the whole process.

Thanks for any advice you can offer!

With the HTB equity loan scheme you can borrow a 20% deposit. 

Comparing to the numbers posted above 
Based on your salary you're looking at a max loan of £87,750 plus a deposit of £8k = £95,750. 

As said in earlier post for a house in that price range you would be looking at the valleys for example somewhere like pontypridd being the closest to cardiff. If you want to buy in cardiff as you say flats are lookign at your only option. 

HTB would mean a house price of ~120,000 (87,750 mortgage, 23400 HTB loan, 8k deposit  

Based on a quick look at rightmove at the ~120k mark for new builds doesnt seem like there are many options at this price range - so maybe HTB won't be that helpful.


(Ignoring the rubbish quoted above) what is the outlook for salary increases in the near future, and what impact could this have upon affordability?

How long are you looking at to save the 8k? being able to save on sub 20k is good, and this may not be applicable but are there other opportunities to save/make money available?  Bank switches are a good way to make some easy money (mse weekly email or the budgeting and banks account forum a source for this info).

You think 6k after 5 years is going to help? What planet are you living in?

This has been explained to you before. 20 quid a week is not going to fix this. You can't magically make the numbers work just because you want to believe that life is fair.

Ok I will bite.

I live on Earth, and sadly I am not rich enough to turn my nose up at 6k.

It was an example of how small savings that some may view as pointless can add up over time. 

What about if someone can save an extra £50 £100 a week? £200 a week? At what point is it worth them saving more?

I don't believe life is fair to everybody, but rather than telling people to give up I attempt to make helpful suggestions. 

 Giving people false hope is not helpful. Telling them to waste 5 years saving not enough money is just making things worse.

How exactly does it make things worse?

Do you have anything helpful to post?

Who is in a better situation? (and to preempt your answer if you say equally bad you need to get out more and realise how much money 6000 actually is)

Person A - can't afford the deposit for a house, listens to rigolith and makes no attempt save more than they currently are

Person B - can't afford the deposit for a house, listens to other posters, assesses their spending and manages to save 6k over 5 years.

6k is less than the amount that houses in the range that the OP wants to buy rose by last year.

If they saved 6k in a year, they actually fell further behind. They aren't getting closer to owning a home, they are getting further away.

Do you understand how futile it is? Taking your advice will just make things worse for them.

What on earth is wrong with you? How can you seriously suggest saving money will make someone’s life worse. 

Other than furthering your own bizarre agenda that appears to be convince people to give up on saving for a house deposit do you actually have anything to add to this (or any similar) conversation? 

Since saving £100 a month is so pointless and makes no difference to your life  (well actually makes your life worse apparently??) may I suggest you donating this amount to a worthy cause. Such as a local food bank, water aid or Ty Hafan?

Thankfully the OP doesn’t seem to share your ridiculous attitude and if I have contributed even slightly to them, or other people who are actually trying to save for a house deposit, being more likely to ignore your incredibly unhelpful and frankly rather spiteful posts then I count the time spent replying to you time well spent (and I would like to apologise to the OP for contributing to taking the thread off topic and wish them well in their saving). 

daivid

[Deleted User] said:

6k is less than the amount that houses in the range that the OP wants to buy rose by last year.

If they saved 6k in a year, they actually fell further behind. They aren't getting closer to owning a home, they are getting further away.

Do you understand how futile it is? Taking your advice will just make things worse for them.

Of course they are getting closer. £0 savings = no chance of buying nor prospects to buy soon. £6k means they have legal fees and a minuscule deposit, in another year they have a small deposit after 3 years buying a sub £100k property would very much be possible particularly with shared ownership. 

Also do you have any evidence the houses in the OPs range rose by more than £6k last year? Prices in cheaper areas of Cardiff haven't all followed the headline price rises, in some areas average sold prices are the same as 12 months ago.

[Deleted User]

How is this do hard for you to understand?

If the house prices go up faster than they are able to save, that means they are further away from being able to buy one.

It's not rocket science.

OP, what is your family situation? These days most people get money from their parents or an inheritance to get their first house.

gwynlas

It is time to be realistic that there is almost nothing in your price range in Cardiff except Ely or Rumney and I would not recommend either. Why Cardiff are you working there? You should probably think of earning extra income with a second part time job and save as much as you can. If you buy a flat there will be ground rent and service charges to pay.