New First Time Buyer Wannabe

talliedebtbuster

Hi there everyone, a rather long post here but i thought id add some new imput and insight from my situation and to meet people to keep motivated to get my own home...

I am in debt. Oh yes. There are some things however i have had to spend on last year, like a reliable car to get to work. (I know, exp, but after weighing up the pros on cons of a oldie car, repairs, i work shifts in london, (guess what i do :cool: , new seemed the ideal situation, i got a great deal believe me ex display, tiny miles, and the girl messed up in the showroom meaning i got 2k off the car price, 5 years warranty and free service!! one advantage of that things you sign when they do the quote, once its there they have wrote it down on that bit of paper thaey have to give you it at that price!! haha!! ) :j so......

Anyways, I have saved like mad and next monday i will be able to pay the car off in full!! It will be mine heheheheheh:D

So as of monday 7th april i will owe...

1k credit card
10k student loan

Alot better than most people, but 2 years ago, i owed nearer 25k and have paid this off through i hard work in overtime in my first proper job and living at home.

I have put a few post replies on here and i think it is a great board.

I wonder is anyone in the same or similar position as me? Live at home right now saving, paying off debt, but not as cheap as people would think! and i will be buying on my own. No partner. I find it hard sometimes my friends advice and things when they are with someone and have the two incomes. So the bills are all shared. Imagine instead of 1300 pounds coming in, 3000!!!

It is much harder on your own. If only i could find a footballer to marry haha.. but on a serious note, to those on their own without the second income i think we are doing really well and our friends should remember we have one income not two!!

Getting to another point. I think after reading many posts, internet, and the many schemes avaliable, i think i may have found my solution with FTBI, but the answer for the next year or so is save save save. I am 2 days into my new budget, plan, save, no spending, no anything non essential and the realisation to pay off debt and get there. The more money for the deposit, the less debt, the better position to us all.

So anyone with any really helpful tips please post! Here's what im doing so far, i really am going to do it, please post too anyone who is lacking the motivation, has the urge to spend and needs that NO! do not go the shop and buy a fivers worth of munchies for sat night!

I am using loyalty points, taking advantage of credit card freebies and offers, buy in bulk, no fizzy drinks, use squash instead, and i actually have more energy! lol I went to the library today and got 3 great new books to read to keep me occupied. 2 are on debt i might add! lol

I am stuck in my phone contract so no savings there and have to stay of the internet on my phone...that costs guys! i never realised how much!

Bring own lunches of course...and dinners if you work 12 hour shifts like me!
Freebies...dont buy papers..get the free london papers and pick up any freebies at the stations...dont be embarrased, hey i have ended up with tons in the summer!!!
Take any overtime at all
Use coupons.

Im not doing too good but its a start!!

Happy posting!!!:rotfl:

PandaPants_2

Be careful, a few people don't appear to like FTB's posting on this forum. Prepare for some abuse and unwarranted insults.

You appear to be doing well with the saving and WELL DONE on the car deal.... I am terrible at saving but i hit upon the idea of a DD coming out of my account on payday, using the basis that if it ain't there i can't spend it....

talliedebtbuster

Thanks, if they dont like it they are immature and i will ignore them! Some people forget when they were first time buyers in a market where they could buy a 3 bed home for 80k!

I thought about direct debits but because there are always so many different things that come up each month i thought against it. You know what i found helped. put the savings in premium bonds rather than the bank then you cant spend them!!

born_again_saver

Hi talliedebtbuster, just wanted to say welcome, and congratulations on clearing most of your car debt. I'm sure it won't take long for you to clear the credit card too and start building up some decent funds.

I'm single too and also saving for a deposit, but I live in a house share rather than at home. I paid off my remaining debt just over a year ago, with the exception of a small interest-only debt which will be paid off in a few months, and of course the pesky student loan. My savings are currently something like £4,500 and have been built up during the last year.

Rather than buying into premium bonds I'm saving into cash ISAs, as I believe there's a better return this way. Currently I have most of my money fixed at 6.15% interest tax free for a year with the Nationwide, although in theory I can get my hands on this money it would involve a large interest penalty, and this helps me to keep it untouched.

I'm also reluctant to transfer large chunks of my pay by direct debit to savings in case something unexpected comes up, so I tend to hold the amount I'm intending to save in an e-savings account linked to my current account. This means it's instantly available if I need it, but it's still earning an OK rate of interest until I am able to commit it to savings.

Good luck and let us know how you get on with building up your deposit.

PandaPants_2

born_again_saver wrote: »

Hi talliedebtbuster, just wanted to say welcome, and congratulations on clearing most of your car debt. I'm sure it won't take long for you to clear the credit card too and start building up some decent funds.

I'm single too and also saving for a deposit, but I live in a house share rather than at home. I paid off my remaining debt just over a year ago, with the exception of a small interest-only debt which will be paid off in a few months, and of course the pesky student loan. My savings are currently something like £4,500 and have been built up during the last year.

Rather than buying into premium bonds I'm saving into cash ISAs, as I believe there's a better return this way. Currently I have most of my money fixed at 6.15% interest tax free for a year with the Nationwide, although in theory I can get my hands on this money it would involve a large interest penalty, and this helps me to keep it untouched.

I'm also reluctant to transfer large chunks of my pay by direct debit to savings in case something unexpected comes up, so I tend to hold the amount I'm intending to save in an e-savings account linked to my current account. This means it's instantly available if I need it, but it's still earning an OK rate of interest until I am able to commit it to savings.

Good luck and let us know how you get on with building up your deposit.

That's a great idea. But if it's available i will SPEND IT! :rotfl: Mine needs to be tucked well away. I have opened a new ISA and am giving my OH the card to hide from me, no matter how much a beg! :rotfl: :rotfl:

Riq

My work don't do overtime I am envious of anyone that can work overtime.

Doesn't add anything to your thread sorry, but as I am in the same situation as you i.e., first time buyer and single, I don't come into this forum very often as you just get absolutely flamed for even suggesting you are a FTB or indeed want to buy a house.

So I kinda stay over the Gambling Intro offer board. Friendly bunch, unless you mention bingo!

born_again_saver

Riq wrote: »

I don't come into this forum very often as you just get absolutely flamed for even suggesting you are a FTB or indeed want to buy a house.

I think it's a pity if people feel the need to criticise the opinions or discourage the efforts of first time buyers. I know there has been some frustration at the seeming impossibility of getting on the property ladder these days, but it's pretty unsympathetic of existing homeowners to have a go, or to suggest you're an idiot to think about buying into a crash. Fair enough, if you can wait to buy then do so, but others have good reasons for buying sooner and of course the crash isn't guaranteed, albeit likely (IMO).

But what I am seeing here and gaining motivation from is a growing number of people aiming for the same thing despite the difficulties - their own home. I think if we stick together we'll be stronger, and once we do get to buy we'll be able to actually help other aspiring first time buyers to practically achieve their goal, which I feel is much more in the spirit of MSE.

Cemetery

Am in a similar position. Coming up to 28 now & back living with the folks. Single & saving for a deposit but have been now for some time (both sadly ). No real idea what my target is for savings given the uncertainty in the housing market at the moment, having waited so long I don't want to buy & then everything go mammeries up on me so am continuing to save & save.

Likewise have the old student loan debt, not sure how much as their statement system is appalling as I am sure you know, think it is around the 10k mark however.

In general I aim to save around 10k a year at the moment & most of that is in either isa's or savings accounts. Not really used regular savers but am thinking about dropping some into a fixed account for a year or so as I depressingly cannot see me moving in that time scale

Lotus-eater

born_again_saver wrote: »

I think it's a pity if people feel the need to criticise the opinions or discourage the efforts of first time buyers.

I was around the Motley Fool's message boards when the Marconi share price was falling through the floor, it took quite a while. All the way down there were some who advised waiting and holding on. Funnily enough when it turned out the shares were worth nothing in the end, those who had advised to hold weren't around anymore.
Disagreeing (or criticising their opinions as you put it) may save them alot of money, or it may cost them alot, as may advice to buy now.

neas

I am also a first time buyer wannabe. And my partner and I could've purchased a house before we moved to our current rented accomodation.... BUT if you read the papers, do a little research you will see that for the last 5 months house prices have been dropping... slowly maybe but they aint been increasing... this is good for you and me. I'd suggest aiming to buy in 2 years time, then you'd have 20k deposit saved up. Remember add 5k extra monies required for the fees in buying a house.

You should as you suggest try and save as quickly as possible, i had a similar 'Eureka' moment as yourself about 3 months ago. I've started looking into coupons, been stashing nappies from offers and the like to save money in the future, tweaked all my bills like water,elec,gas.

We as a couple aim to save 10k a year also. Even though you aren't saving as a partner team.. with the added 350 quid saving (rent+bills monthly if you shared 2 people) will help.


Just a few things you could do:

• Signup to baby clubs (You get free vouchers/coupons), can sell these on ebay or use them at tesco as '99' coupons.
• Get all your family to have tesco clubcards (or similar) and collect points for you
• Check the freebies section
• Ebay old junk you don't need
• Properly Maintain your car: (i.e Having tyres at correct PSI will save some MPG as there is less drag)
• Shop frugally, go to poundstores and look for bargains
• If you need to go somewhere (local) walk, its good for you and saves money
• Avoid eating out at overly expensive restaurants (Frugal Part)
• Prepare your own food, eat tesco value crap.. some of it isn't too bad
• Look through this site to reduce your outgoings (Mobile phone bills, Internet etc).
• Pay fully your CC/normal loan debts off first (Your student loan, if its the government... should not be paid off as you can get more interest by shoving what you would pay off into a savings account)
• Try and top up within the next 5 days some money into an isa account... barclays have a good one at the moment (Tax free savings means... well the goverment doesn't steal some more money from you).

talliedebtbuster

Hi guys! Thanks so much for your posts today it has really made me feel better. Unfortunatley ive run out of money to put into the ISA. I didnt realise you were only allowed one of them! But Im hoping on the 7th i would have gained some interest on what i kept there to pay off the car loan to get me through the month. 4 weeks to go guys till the next payday!

I have just come back from the library. Your tips Neas really helped. i parked in the B and Q car park and walked 15 mins to the library, saved me 2 pounds bus fair, although i had to get loo roll and bought a bottle of squash for the week. It will save on drinks, keep me hydrated cheaply! No DIET COKE!! (mums request for loo roll) it is an essential!! So i now have exactly 4.50 to get me through the month, but everything else is paid for, budgeted for. Like travel, petrol is in the car for the month, oyster card topped up. Iv planned everything you see.

I really do appreciate the advice and support of other single peeps and those with the dreaded student loan. I didnt know that savings bit thanks! I just worked out that interest is 4.8 but interest on cash in the new ISA if thats 6.00 ill make a profit and can pay that off quicker! esp if the loan interest rate falls in september. fingers crossed everyone!

The baby club tip is brilliant!! I did that with boots and ended up getting a fivers worth extra points on my advantage card when i bought tons stuff on offer and in bulk for next few months, i got a free camera too!! So some things are really good.

other tips i have come up with today everyone....

Get the free boots magazine health and beauty
Get the free superdrug magazine Dare - it is free now!!
This is the same as company or New woman mag..plus sometimes there is coupons in there!
Same with Asda mag, Tesco mag. If your there shopping anyway pick one up.
Value brands can really be okay, i have stored up lots of tinned bits and cheap noodles in my locker at work for dinners (nice hot ravioli, mac cheese, spag bol) and if you go to asda's or sainsburys the value stuff has no crap in it, no additives etc. not that bad!

Keep track of library items in your diary when are they due - no fines!
Plan tv days in! today im revising coz i have uni exam on wed...but have come dine with me on soon!!

Imnot doing very well here with the tips ive realised so better get back to revising!
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