31 replies to this topic

[Black.Ghost]

What drastic measures have people taken to be able to save for a deposit? After a year with one income (we have a 1 year old daughter), my wife and I have made little progress in saving so far! She is about to go back to work, but even so we really want to accelerate the savings so looking to reduce costs everywhere. We don't spend unnecessarily (wifi is going, we don't have Sky or watch TV (no license), don't buy coffee out and about etc). 

 

The only reason for wanting a house is so we don't spend our whole life paying rent for someone else to live a comfortable life. 

 

I'm not against living in a motor home or static caravan for a year, but the missus doesn't seem so keen especially with the little one!

 

[DeanP]

Are you renting now or living rent free at parents? I'm guessing you could be renting?

Edited by DeanP, 23 October 2017 - 07:15 PM.

[Black.Ghost]

We are indeed renting. I should have said living with parents / family isn't an option. Mine are all a really long way away (plus no space / don't get on well enough) and hers are on a different continent!

 

The rent isn't too bad for what we get, really, but we could still do with slashing it down. We are paying £750 at the moment. If we downsize to a one bed flat, would probably have to put stuff in storage. 

[DeanP]

Everyones circumstances are different obviously and according to Moneysupermarket a £150K mortgage against a 170K house is circa £600 per month.

 

By saving £600 per month that would be 33 months to get the £20k deposit needed for an LTV of 88.24%.

 

So that's the challenge you are up against! Have you thought of asking parents for the £20k in return for a percentage share in the property or a fixed return when you move to upgrade?

 

Does £170k get you something to just get on the ladder?

 

Could you save £300pm and asked parents for £10K.

 

 

Or am I in no no territory lol.

Edited by DeanP, 23 October 2017 - 07:34 PM.

[pusb]

Its very difficult.

 

I am saving £500 a month towards a deposit at the moment (which is incredibly difficult to stick to when I don't exactly earn excessively), but I still feel like I'm not getting anywhere! The prices seem to be going up as fast as I can save.

Edited by pusb, 23 October 2017 - 07:45 PM.

[Black.Ghost]

Parents are a no-go to be honest, on both fronts. My grandfather is wealthy, and could probably doit easily, but I don't want to ask him to be honest. I'm going to see him on Sunday though.

 

We should be able to save ~£500 a month easily once the missus starts getting paid again (more if we pushed it). 

 

I found a static caravan for £380 a month and a fair bit less council tax. The problem is its so far away I'd be spending £300 a month on diesel, and that before you even look at increased servicing, general wear and tear etc. That's an even bigger waste of money than renting!

[hazpalmer14]

Im similar situation, 1 1/2 year old. Our rent is £450 a month 2 bed house. We kind of gave up on the idea of trying to save now. Like you moving back etc with parents isnt an option. Mine live too far away and mother in law only has a 2 bed house and her son lives there at the moment. We could make cut backs to save money, but what we would be able to save would take us that long to save - is it really worth it?

 

At the moment our thinking is when the little one is in full tie education then my Mrs can go back to work without incuring childcare cost and then we can save for a house. We each get our pocket money each month to spend on what we want. We dont have sky etc, we just use netflix. Dont have a finace car or out. The money we have left after all the bills are paid is family money which is for our days out etc, or if the car goes wrong just anything outside of the recuring bills.

[Haygate]

First of all well done for the both of you for wanting that dream of owning your own home, little bit of background on me, I am a property developer now and almost 40, bought first house at 25 and went for the most rooms I could afford, things were a little different in 2005 when I got on the ladder and houses were cheaper, ok not drastically but as you know a grands a grand when buying a house. Saying that Im not sure it would be as easy now as it was then.

So back to thread, I was with a gf at the time and had saved since I was young, I lived with parents and for 6 months they took no rent so myself and ex managed to save £900 per month to add to what I had, at time earned about 17k a year, took my phone to payg etc, stopped any luxuries and went for it, parents also helped us out at end with a few k and managed to put down £12k which was 10% with fees. Drove round in old cars etc. Best thing I ever did.

My advice with the possibility of grandfather, if he can then do it, he wants to see you happy, everything I do is for my family now and want to leave my child with a secure future if I can and if I was in the position to help her one day then it would make me happy, Im not going to give her it just like that, I want her to earn it, with my company I hope its still there and one day big enough to take over as chairwoman (long way away but always dream), but I still expect her to learn the trade and sweep the floors first, maybe ask if he would be able to help you but then trade his money for your time, gardening etc.

As for your first proper house, there are lots of schemes available at the moment, help to buy, shared etc and ok these get you on the ladder but there are always catches, try and buy with a Simple mortgage and try and add value, a swish new house is great but an old sh!t hole you have bought and layed your first tiled floor in or fitted your first bathroom suite In is soo much better!

Have dreams and they will come, like an old mini with effort it can be just what you always wanted!

[hazpalmer14]

The way I look at it is, is that Rome wasn't built in a day. I want all these things my mini on the road and a house etc etc and i think we all have the tendency to compare ourselves to other people. And i think im only 27 now its not going to happen over night. Our time will come!

[DeanP]

You make a very valid point. Buy what you can afford, resist jumping too many rungs up the ladder. In five years you'll have equity to move again.

[Northernpower]

When I started off I was living in a rented house. I was saving for a deposit but was getting nowhere, the prices were rising faster than I could save so I changed my plan and found an uninhabitable house but it was in a reasonable location. Due to its condition it wasn’t mortgageable. I had to find someone who would give me a loan on it. It took me nearly six months of knocking on the doors of banks and loan companies until I found someone who would lend me the money and the rate wasn’t great but it meant I could afford to buy it.

 

I sold all the furniture and my car and with the proceeds bought an old estate car and an ex holiday home static caravan (they normally sell them at 10 years old for not very much). It cost nearly as much to transport the caravan as it did to buy it. I installed it down the side of the house and connected it to the mains water, mains electric and drains.

 

For the next two and a half years I spent every spare hour working on the house including my annual holidays, I was the hardest time of my life, I’d like to say it was fun but the truth is, it wasn’t; it was just an unrelenting slog. What was rewarding was when I moved out of the caravan and sold it for more than I’d paid for it and used the sale proceeds for some second-hand furniture and a short holiday. I changed the loan to a mortgage.

 

I moved again two years later and bought another house that needed work and have always bought one that I could improve. I now buy, improve and sell houses for a living.

Edited by Northernpower, 24 October 2017 - 10:15 AM.

[r3k1355]

Easiest way would have been to save up before the kid came along, loads more spare money back then.

Doesn't always work out that way though.

 

Looks like you're gunna have to wait it out, or just ask your grandfather.

[Steve220]

My ex-wife (then girlfriend) saved every last penny we could but also sold a lot of our belongings to raise the deposit. It was a sad time, but once we were in the house and things began to settle, we could afford to get most of it back. There are 0% mortgage deals out there, but they will shaft you royally.

[The Matt]

Consider relocation?  House prices vary so much in this country.  So do rental prices.  Consider somewhere that has reasonable transport links?

 

There are various options. But £750 PCM is a lot to be paying out in rent for a couple and a baby.  Around here, you could rent a house for £400-450 PCM that would be more than adequate. 

 

Salaries here aren't that bad when compared with the national average either.

[Rolo94]

Im currently saving for my first house, its a bugger. Unfortunately for me( in some respects) i work at heathrow as an aircraft engineer on a great wage, but its still not alot in respect to the house prices around here. Untill 4 years ago i lived in selsey and when my mum and i moved here (for me) she brought a 2 bed ground floor flat for £158000, now its valued at just under £290000. Even with my girlfriends combined wage and savings its not enough to afford a small 2bed place in an accesable area. In some respects im probably greedy but i domt want to buy a 1 bed and have to move again in a few short years if 2 became 3,

Just my two pennys