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  • FIRST POST
    • Planning ahead
    • By Planning ahead 8th May 18, 8:44 PM
    • 82Posts
    • 566Thanks
    Planning ahead
    What encouraged you to save for a house deposit?
    • #1
    • 8th May 18, 8:44 PM
    What encouraged you to save for a house deposit? 8th May 18 at 8:44 PM
    My children have all finished their studies and will be in full time employment. I want to encourage them to save for their futures. What encouraged you to save for your first house?
    :12,000 / 28,000 Mortgage free date planned May 2023 Actual mortgage free date June 2030
    Retirement date planned May 2023
Page 1
    • SG27
    • By SG27 8th May 18, 8:45 PM
    • 2,447 Posts
    • 1,720 Thanks
    SG27
    • #2
    • 8th May 18, 8:45 PM
    • #2
    • 8th May 18, 8:45 PM
    Simply that I wanted to buy a house! I started saving around 22/22, moved out at 30!
    • Planning ahead
    • By Planning ahead 8th May 18, 8:51 PM
    • 82 Posts
    • 566 Thanks
    Planning ahead
    • #3
    • 8th May 18, 8:51 PM
    • #3
    • 8th May 18, 8:51 PM
    Seven years to save is a long time, I want to keep them focused and not give up and splash out on holidays and cars.
    :12,000 / 28,000 Mortgage free date planned May 2023 Actual mortgage free date June 2030
    Retirement date planned May 2023
    • cjdavies
    • By cjdavies 8th May 18, 8:56 PM
    • 3,524 Posts
    • 3,786 Thanks
    cjdavies
    • #4
    • 8th May 18, 8:56 PM
    • #4
    • 8th May 18, 8:56 PM
    Always been a saver at a young age, bought on my own at 25.

    You could try showing them the cost of buying a house, mortgage calculators etc
    • diggingdude
    • By diggingdude 8th May 18, 9:22 PM
    • 383 Posts
    • 489 Thanks
    diggingdude
    • #5
    • 8th May 18, 9:22 PM
    • #5
    • 8th May 18, 9:22 PM
    Shoe them how they will be paying someone else's mortgage if they rent. It worked for me eventually once debt was paid off after uni
    House Deposit - Target 20000 April 2019
    Current Savings - 10225 13121.22 14621.22 16021 17296
    • SG27
    • By SG27 8th May 18, 9:23 PM
    • 2,447 Posts
    • 1,720 Thanks
    SG27
    • #6
    • 8th May 18, 9:23 PM
    • #6
    • 8th May 18, 9:23 PM
    Always been a saver at a young age, bought on my own at 25.

    You could try showing them the cost of buying a house, mortgage calculators etc
    Originally posted by cjdavies

    Dont do that they would give before they start!
    • Planning ahead
    • By Planning ahead 8th May 18, 9:34 PM
    • 82 Posts
    • 566 Thanks
    Planning ahead
    • #7
    • 8th May 18, 9:34 PM
    • #7
    • 8th May 18, 9:34 PM
    That's my concern, we have looked at calculators and I have done a budget spreadsheet for them. Very tight budget, even on the cheapest houses in the cheapest areas.
    They will need to a save a good sized deposit.
    Are the 30-35 year mortgages any good? Thinking this might help them. I am wary of help to buy schemes,should I be?
    :12,000 / 28,000 Mortgage free date planned May 2023 Actual mortgage free date June 2030
    Retirement date planned May 2023
    • GoingOn30
    • By GoingOn30 8th May 18, 9:37 PM
    • 101 Posts
    • 70 Thanks
    GoingOn30
    • #8
    • 8th May 18, 9:37 PM
    • #8
    • 8th May 18, 9:37 PM
    It's kind of something they'll have to figure out for themselves, but showing them how much a monthly mortgage repayment would be compared to rent could help.
    It can be really hard for young people for whom it might take 5-7 years of saving for a deposit to take the first step as the challenge seems so great. Getting into a regular savings habit from the off is the best bet.
    • a_silver_lining
    • By a_silver_lining 8th May 18, 9:55 PM
    • 321 Posts
    • 880 Thanks
    a_silver_lining
    • #9
    • 8th May 18, 9:55 PM
    • #9
    • 8th May 18, 9:55 PM
    I moved out at 18, so for me it was to have security. I saved from 18 to 27 when I bought and got a 30 year mortgage. I paid rent the whole time and wasn't on the highest wage. I bought in the south east. It can be done by anyone I think if it is a priority.
    19/12/14: Spent 10 years of savings!!
    ..... to buy my first home.

    2018: 2.4k personal savings --- Family Loan (3.6k paid direct + 2.75k in saver + 417.81 saver 2) 6767.81/ 10K paid 67.67%
    Extra cash made 2018: 920.53
    • HampshireH
    • By HampshireH 8th May 18, 10:04 PM
    • 907 Posts
    • 1,003 Thanks
    HampshireH
    I've saved for as long as I can remember and only buying now in early 30s

    My 1 goal as a teen was to buy my own house. After uni I rented with a friend. Then lived on my own for 5 years. Still saving but watching the house market boom.

    Decided to buy a car. Figured I was never going to be able to afford a house so put some of my savings into a car I needed for work.

    Continued saving and have done ever since. But have rented for the last 13 years (inc uni) .

    I've not scrimped on holidays although I'm not overly extravagant either & I've had new cars.

    I wouldn't have done anything different but my aim was always to buy my own place regardless of how long it took me.
    • Cakeguts
    • By Cakeguts 8th May 18, 10:05 PM
    • 4,856 Posts
    • 7,205 Thanks
    Cakeguts
    If they are living at home you charge them a commercial rent and the put it away in a saving account so that they can't get at it.
    • Cakeguts
    • By Cakeguts 8th May 18, 10:13 PM
    • 4,856 Posts
    • 7,205 Thanks
    Cakeguts
    I didn't actually save for a deposit. I came from a family where you couldn't rely on anyone to bail you out if you didn't have enough cash so I had to not spend everything I earned from the start. When I needed a deposit the money was already saved. It took about 4 years I think. I lived in a bedsit with a shared bathroom and toilet and own basic cooking facilities.

    The culture at the moment seems to be to spend everything you earn and not to go without. On occasions it leads to problems on here where people don't have anything in savings so if they lose their job they lose their rented accommodation or if they change the day they get paid they try to change the day they pay the rent. I have no idea what they do if something goes seriously wrong.
    • stevenhp1987
    • By stevenhp1987 8th May 18, 10:20 PM
    • 695 Posts
    • 545 Thanks
    stevenhp1987
    Seven years to save is a long time, I want to keep them focused and not give up and splash out on holidays and cars.
    Originally posted by Planning ahead
    I have saved for as long as I can remember (I'm 30)...

    I've also had a few holidays per year (got to use those holiday days)!!!

    I think it's more important to simply teach them the value of money and not to spend it on frivolous things. Many of our holidays would be very difficult when we eventually have a kid... So having holidays while still young is beneficial if you want to see the world!
    • Hoploz
    • By Hoploz 8th May 18, 10:30 PM
    • 3,832 Posts
    • 3,366 Thanks
    Hoploz
    The best lesson to encourage them to get a move on might be to show them the price of a first time buy on the market now, versus the price of a similar first time buy 10 years ago. There's likely to be a big difference. Then use this to imagine what it might cost in 10 years from now.
    • Cakeguts
    • By Cakeguts 8th May 18, 10:48 PM
    • 4,856 Posts
    • 7,205 Thanks
    Cakeguts
    I have saved for as long as I can remember (I'm 30)...

    I've also had a few holidays per year (got to use those holiday days)!!!

    I think it's more important to simply teach them the value of money and not to spend it on frivolous things. Many of our holidays would be very difficult when we eventually have a kid... So having holidays while still young is beneficial if you want to see the world!
    Originally posted by stevenhp1987
    My generation, I am 60 viewed holidays away as luxuries not something that you would spend a lot of money on. Foreign holidays were not something you did very often if ever. Holiday days were spent at home. I would class holidays away under frivolous waste if I was saving to buy a house. Holidays away are in the same category as cars on finance, expensive iphone contracts, sky tv, eating out, and takeaways.

    I didn't have any holidays away when I was saving. I also only ate out once a month. No takeaways. Very old second hand car.
    • capital0ne
    • By capital0ne 8th May 18, 11:30 PM
    • 531 Posts
    • 260 Thanks
    capital0ne
    My children have all finished their studies and will be in full time employment. I want to encourage them to save for their futures. What encouraged you to save for your first house?
    Originally posted by Planning ahead
    I just wanted to be able to go home without the 'rents waiting up for me, asking me where I'd been, and basically fussing over me.
    I also didn't want to line someone else's pocket so I saved and saved and then bought miles away from where I was brought up (cheaper housing), a two bed terrace, half my salary went on the mortgage payment, I never had a new car, always an old banger, I learnt how to keep them on the road, didn't eat out, had enough spare money for the odd pint.
    Repayment mortgage, 7% rising to 17% and back down to 7% or so all in the 1970-1990's
    if your kids like being at home with all the home comforts like meals, washing, etc then take rent from them, and when they leave, give the rent back for their own house - save it for them but DON'T tell them you're doing that.
    Good luck
    • ViolaLass
    • By ViolaLass 8th May 18, 11:42 PM
    • 5,431 Posts
    • 7,488 Thanks
    ViolaLass
    They're adults - can they not work these things out for themselves?

    Also, the best thing they could do (as well as budgeting/saving) is improving their job/career prospects. Pay rises will make a big difference.
    • sugarbabe84
    • By sugarbabe84 9th May 18, 12:17 AM
    • 254 Posts
    • 33 Thanks
    sugarbabe84
    Constantly being on the move. I!!!8217;ve rented 8 places in the last 9 years, enough was enough so I started my Help To Buy ISA in 2016.
    • Elinore
    • By Elinore 9th May 18, 6:26 AM
    • 151 Posts
    • 469 Thanks
    Elinore
    we rented for years - nice houses with lovely LLs so it worked for us. Then after a tenancy of 10 years our LL sold the house. We then had a run of bad LLs huge fees and moves every few years - expensive.

    We ended up in a nasty rental house where there a was a leak deep under the kitchen floor in the cement subfloor that the LL refused to fix and the guttering was broken causing water to run down the render of the house. (the house had been repainted to hide the issue on viewings and the guttering wasn't immediately obvious)

    This caused really nasty damp in the property as the water has to go somewhere. LL harped on the damp was 'lifestyle' rather than him shirking his responsibilities. We were paying over a 1K a month. He always managed to put across the feeling that we should be grateful as we had pets so he was being so nice to us by renting to is - many wouldn't you know.... and for so much more - we really got a bargain. He played the magnanimous benefactor to the hilt - drove me bonkers.

    When i got a horrible chest infection and diagnosed with a breathing issue the DR felt was linked to the damp - we found all the wardrobes, mattresses and units all had spores growing on them and the same day LL casually mentioned that his kids private school fees were going up so to expect a rent rise - our temper blew.

    We went on the strictest moneysaving spree of our lives- I swear every.single.penny. went into the pot, we lived on cheap food and halted our lives - Both got second jobs or worked over time - and in a year we had a deposit.

    On the day the LL came round to advise he was putting the rent up by 200pcm we handed in our notice. (predictably he got quite nasty about it too)

    I am forever thankful. It was the huge kick we needed 12K a year for a poor home that was making us ill and ruining our things. We had been saving but this was the push we needed. (I worked out we would have paid off over half our current mortgage with the equivalent rent we have paid over the years)

    i love our little house - love love love it.
    Last edited by Elinore; 09-05-2018 at 6:42 AM.
    • Davesnave
    • By Davesnave 9th May 18, 7:10 AM
    • 26,123 Posts
    • 94,817 Thanks
    Davesnave
    They're adults - can they not work these things out for themselves?

    Also, the best thing they could do (as well as budgeting/saving) is improving their job/career prospects. Pay rises will make a big difference.
    Originally posted by ViolaLass
    I agree with this 100%. If the children have grown-up in a responsible and reasonably frugal environment they should have savings skills built-in.

    At the time of ending studies, it might be appropriate for them to save in a traditional way. Equally, there could be worthwhile activities to do requiring personal expenditure which will serve them in the future and, perhaps, further their careers.

    Once I started it, I made the most important progress in my true career during the first 3 to 5 years, and so did my children. We completed additional studies and gained a broader view of the world before saying, "Right, now to get a steady job and save for a house!"

    That's maybe not what you meant, but it's how it might be interpreted. To be honest, if I had my time again, I'd have travelled more and tried an even greater variety of jobs before 'settling down.'
    Last edited by Davesnave; 09-05-2018 at 7:12 AM.
    I might be old, but I got to see a lot of good bands...
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