Opportunity to buy first house at 16

beingjdc

sillyvixen wrote: »

this is the only chance we had at getting away from the rental trap of dead money.

Rent is only dead money if it's more than the mortgage interest would be. We're paying 1235 a month for a flat on which the mortgage interest would be around 1500 (and service charges, building insurance, repairs).

Call it 4k extra a year in the bank. Good enough.

mrstinchcombe

Having saved £5k at the age of 16 is pretty impressive!!

Silver spoon maybe?

Party a little. Have great holidays. Do girls.

Best advice on here, you're 16, enjoy yourself!

country_sport

Silver spoon or not, i am very impressed with your common sense, a rare thing these days. Look out Richard Branson!

chappers

Run away from this like the wind.You say your sister is irresponsible with money, well this sets two alarm bells ringing here.
1.what if she doesn't keep her end of the mortgage payments up and
2. with you paying half the mortgage, what incentive is there for her to ever sell up.

Basically the bottom line is I would do as George said and go out and blow some of your money on booze, drugs and girls.

HammersFan

You are in agood position, because the market is soft (not a bad position because the market is soft). You can drive a hard deal and have nothing to lose by walking away if the deal doesn;t stack in your favour. Of course, save some more until you are 18 I would say, prices probably wont move much, and it could be that borrowing rates are pretty low by then. And houses give you much more flexibility than flats. If the deal is in your favour, buy a house as soon as you can would be my advice for what its worth. Good luck.

Gorgeous_George

chappers wrote: »

Basically the bottom line is I would do as George said and go out and blow some of your money on booze, drugs and girls.

NEVER do drugs.

GG

MORPH3US

Well done OP for all your hard saving.

However I would agree with the majority and say don't buy into any flats / houses yet!

Keep saving hard and sticking the cash into your ISA. IMHO you'll make more money in the ISA than in a flat.

Owning property is a millstone (although not necessarily a bad one) around your neck that you don't need at your age.

You might want your cash to go travelling / buy a car in a few years, who knows!

If not then you'll still have it all saved away for a house when the time is right for you, not for your sister...

BTW, my elder sister and her husband are crap with money too. She has just remortgaged to 30 years on a house that is too small for their family (3 bedroom and they have 3 kids and a fourth on the way). They waste so much money and I would never lend her any or go in on her mortgage with her. She got her house 5 years before me and my g/f yet they now won't pay off theirs for 30 years. My GF anf I got our house two years ago, have overpaid the mortgage by the maximum allowed (20%) since the very first payment and now only have 15 years left on our mortgage!! Yipee!

jaype

Never mix money and family (unless you have won the Lottery, in which case a gift is okay ). Seriously, you are basing your view that property is a good thing to invest in on past price growth. But it's not a sure thing anymore. Far better to wait and put your money in a fixed rate bond (you have to keep it there for a year, but you generally get more interest). Your sister is at an age when you can spend money like water, especially if let loose in a city centre! Keep your finances separate and play safe with your hard earned cash until the future of prices becomes clearer. Oh - and never, ever go near a credit card. they are the devil's work! Hope this helps - good luck as you clearly deserve it.

chappers

Gorgeous_George wrote: »

NEVER do drugs.

GG

You are of course correct GG

Life_Tasted_Sweet

Gorgeous_George wrote: »

Party a little. Have great holidays. Do girls.

Buy a house when you are 22.



GG

Carlsberg don't do dads....


LtS