Never mind the house prices, I'm saving a deposit.

RobMoz

RoxieW wrote: »

would anyone like to start a 'saving for deposit' thread - if not I'll go ahead and do it as I think many on here are in the same boat.

Yes! Definitely! That's a great idea.

Was so glad to come across this forum. I'm 28 and having spent over £22k in rent in the last few years, I've now moved home to focus on making 2008 the year I get some money saved. Wish I'd focussed on it sooner but it's been a fun few years.
Have put together £6k. Aiming to have £20k in the bank by the end of the year.
Roll on with that dedicated forum!

sm9ai

Currently saving, have around £7,500 saved.

However if house prices don't come down to sensible prices I am going to use it to start my own business instead.

Having said that I'm not really sure if any of these is a wise idea at the moment.

dannyboycey

I applaud born_again_saver for what they are doing. It is perhaps the only sensible option at the moment, and saving a proportion of your salary consistently will stand you in very good stead for the future.

However... I still have an issue with this.

I find it absolutely sickening that we have got to the stage where honest, hard-working, financially responsible young people have to save for 4,5,6 (or more years) just to get together a basic deposit. Effectively putting their lives on hold, some even putting off starting families.

For the sake of these people, (and our country !!!!!!) bring on the crash! I hope it's a monumentally huge one!!

bryanb

I am not advocating stopping deposit saving, However I would just like to list who would like to see a house price crash and who not.

For crash- Anyone wishing to buy
Against-Estate agents (commission %)
Against-Government (stamp duty %, inheritance tax, capital gains tax)
Against-Surveyors/valuers( fees %)
Against-Lenders (interest payments %)
Against-BTL landlords
Against-Home owners not intending moving

I'm sure there are many more against but how many more for?

Lotus-eater

dannyboycey wrote: »

I find it absolutely sickening that we have got to the stage where honest, hard-working, financially responsible young people have to save for 4,5,6 (or more years) just to get together a basic deposit.

Lets be fair, when I bought my first house in 1998 we had been saving like mad for 3 years to get a deposit together. That is not a new thing.

Turnbull2000

After rent, bills, council tax, pension contributions and student loan repayments, I'd be looking at many, many years of saving in order to achieve a worthwhile deposit. I'd could easily save a tidy sum if I moved back in with my Mam (who I get on with very well), but the thought of of doing so at 29 seems horrifying and humiliating.

Most people that I know obtained a deposit through their parents - usually from equity release. My own has offered some support, but the whole concept of borrowing against an overpriced house to help your offspring buy another overpriced house seems ludicrous to me, so I refused.

Another alternative is to work abroad. There's a position on offer in Johannesburg through my firm, and I might just take it up so long as my pay is increased significantly. My quality of life (as in friendship, family, outdoor lifestyle) would suffer though, and my fitness levels would go to waste just as I'm reaching my peak. And the chances are, I'd use this opportunity as a stepping-stone to another country rather than return to the UK - where prospects remain pretty grim even if prices do drop.

So in all, I'm not quite sure what my next move is!

dannyboycey

Lotus-eater wrote: »

Lets be fair, when I bought my first house in 1998 we had been saving like mad for 3 years to get a deposit together. That is not a new thing.

The scale of debt/borrowing on the shoulders of this country in 2008 is far, far greater than it was in the 90's. I agree that saving hard for a deposit is not a new thing, but homebuying is now out of reach for many young firefighters, doctors, nurses, teachers.... and that is an absolute outrage.

The implications of this are wider than just home ownership. It will have an affect on our public services and the quality of life within the UK for generations to come.

Turnbull2000

dannyboycey wrote: »

The scale of debt/borrowing on the shoulders of this country in 2008 is far, far greater than it was in the 90's. I agree that saving hard for a deposit is not a new thing, but homebuying is now out of reach for many young firefighters, doctors, nurses, teachers.... and that is an absolute outrage.

Most of whom are generally very well paid, have secure jobs with excellent pension provision and are entitled to generous Government 'key worker' subsidies.

Your outrage should be reserved for those fighting it out in the private sector with lower pay, job insecurity, rubbish pensions and no Government assistance.

dannyboycey

Turnbull2000 wrote: »

Most of whom are generally very well paid,

Rubbish. Sure, there is job security, but well paid? Give me a break. These people are the backbone of our country and deserve better.

As for the government's key worker scheme, it is an absolute joke. Let's see... you pay rent AND a mortgage, and the government keep a big chunk of any profit you make. Many of these properties are ludicrously over-priced new-builds anyway, so the seemingly good deal is actually more of a p*ss take on the governments part.

bryanb

Turnbull, The South Africans are doing their best to leave SA, do you imagine they don't have good reasons for that? The concept of working overseas is a good one though, often your salary is enhanced, accomodation provided, tax free etc.