How am I ever going to buy a house?

[Sasha13]

OK - I earn �25K. Physically impossible for me to get a mortage big enough to buy a one bed flat where I live. Been busy paying student loans so don't have a deposit. By the time I save a deposit house prices will have increased hugely. I genuinely can't see how I will ever be able to afford a house. Can anyone offer any practical advice? Thanks!

[Sasha13]

What a lovely answer - thank you!

[bezzapebo]

You can look into Shared Ownership (part-rent part-buy - as previously suggested). You can normally buy anything from 25% upwards of the property, and a housing association - or local authority will own the remainder of the 100% share. You then pay mortgage on the percentage that you own, and rent for the rest. As you progress further in life, you have the option to buy more shares from the housing association/local authority (this is called Stair Casing), until you own the whole of the property. It is a good way to get onto the property market. Visit www.housingcorp.gov.uk/server.php?show=nav.550 for more information - good luck

[dolly pond]

how about finding a rich man to marry next wednesday xxxxxx happy valentine.

some lenders do 4/5 times salary. maybe ask someone to buy with you?

good luck

[frankief]

I dont know , young people today are such willing consumers!
They finish uni, get a first job. Then they are into a loan for a new car , mobile phone contract, plasma tv, credit card bills, and a mortgage 6 x their salary before they have had chance to enjoy their freedom.
In my day it was living with parents, catch the bus, then a bedsit when you got kicked out,2nd hand black & white tv, then name down on the council list. 'Settling down' and getting a mortgage round your neck was not usually contemplated until you had to get married!

[Sasha13]

frankief - I worked through Uni as my Mum couldn't afford to help me out much. I would have lived at home during Uni, but the closest one was 60 miles away. I don't want everything now - I don't have a plasma tv, have one (interest free) credit card, and don't want a mortgage at six times my salary! There is a lot of pressure on people my age (I am 28) to buy a house - we are constantly being told that renting is throwing money down the drain. I'm not thinking about buying a house in the next 20 minutes - but I couldn't see how, if I left it 5 years, I was going to be able to afford to buy, when I can't now, and when house prices are rising so much quicker than salaries - some people would be of the opinion that I was being sensible thinking about it now???!!!!

[dolly pond]

look at areas around the expensive ones as they will be cheaper and potentially the next areas to boom. for eg, take harborne in birmingham, soooo pricey, that a shed is out of range for ftbs. the next area which then boomed was bearwood, which is now �125 minimum for a small terrace. the next area which joins itm is smethwick, which is loads cheaper and getting better. even further into winson green was a no no area 5 years ago, drugs, the prison, stopped people buying. the houses were 30k and no-one would view them!! now they are 95k and selling like hot cakes. where as harborne has peaked and it costs 250k for a small house!! so do your homework and you will find a nice first house you can afford.

[frankief]

cleversod, I was just making the distinction between my generation where thrift was a virtue and you bought something when you needed it and you knew you could pay for it. Not when you wanted it. There is a big difference between want and need.
BTW I do not share your adoration of the invention of the mobile phone. I dont think it has enriched our lives at all, the only people to profit are telephone companies who rip off schoolchildren.
Also your argument about unskilled labour opportunities is totally wrong, we have to bring immigrants here to do these jobs.

[frankief]

Cleversod...so the phone companies make their profit from people whose cars have broken down do they ?!)..I always thought Vodafone etc made their milions by manipulation of youth culture.(young people don't drive old bangers anyway - they wouldn't dare, it's not cool).
Going back to the first question, depends on which part of the country you live in, but 25K salary (and living with parents?)seems enough to get a deposit together and get on the first rung.
Maybe Sasha could let us have a breakdown of her income and outgoings.

[frankief]

'reframe'?
Don't make the mistake that anybody who goes to uni is a brain surgeon - some graduates couldn't tie their own shoelaces, standards have got lower as Blair impliments his plan to get everybody into college.
A lot of them will end up working in a call centre for companies like Vodafone!
Sorry I don't share your view that the mobile phone and alloy wheels are an important part of our society.

[frankief]

What have you ever done, cleversod?

 

[Sasha13]

Argh! Didn't mean to start an argument!! No, I don't live with my parents and haven't since I left university. I must certainly did drive an old banger for my first few years after uni - I'm now lucky enough to have a company car. I worked hard for my place at uni and graduated with a degree in Chemistry and Pharmacology, not a degree to which they will admit just anyone.

I must add that I know that some people my age do live wrecklessly and beyond their means and then cry when they find themselves thousands of pounds in debt. I went out drinking about 5 times (yes, five) whilst I was at uni and although I spent too much when I graduated (which I'm now paying back) I generally have a good attitude to money.

My question was, when I am on my own and earn �25K - i.e. not enough to get a manageable mortgage to buy a property in this area, how will I be able to buy a house. Not "Because I can't buy a house it must mean I spend spend spend. Discuss"

[Nether Edge]

Dollypound says that houses are �125? Buy now!
Even in Monopoly (now Mono University?), no houses are priced at �125.

[dolly pond]

they are where i work!! and popular! most are alot more but the houses at 125k sell b4 they hit the papers. try this postcode so then you can believe me!!
B67 5DG type this into www.rightmove.co.uk with half mile radius and a budget of 130k and you will find loads of good houses, and the prices are rising as we speak!

[sense4all]

Combine funds with a friend or friends. You can use any equity gained in the next couple of years as your deposit for your next place.Probably gain faster than you could save money. If two of you can afford a spare room you could rent that out under the rent a room scheme ( tax free )
to help both of you with the finances.

[babylongroup]

Can be a bit of a risk but try finding a new homes site, the big developers will always look at paying deposit etc if your income stacks up on a mortgage. you will overpay when buying a new house but invariably, once the whole site is sold and everyone has moved in then prices do jump up slightly. if you can sell, even for the whole price you paid then you will release the deposit and go on and buy something else. just be wary of early redemption penalties on the mortgage, usually payable if you try and pay off mortgage early within the first 2 years.