Is it possible to buy a house?

(53 Posts)
fluffyduckie Tue 24-Dec-13 19:42:39

Not to sound whiny or totally pessimistic but is it possible to buy (and afford to run) a house as a single person with a job rather than a career?

I earn about 16 thousand (before deductions) a year and can't get a mortgage for enough to buy a home. sad I just want my own little home - a little cosy nest.

sooperdooper Tue 24-Dec-13 19:45:44

It depends where you live, would you be willing to look at a flat instead of a house? And how much deposit you have will also be a factor, but it's not impossible smile

DamnBamboo Tue 24-Dec-13 19:46:59

I don't know where you live, what kind of deposit you have, what other financial commitments you have etc.. so it's hard to say if you can buy a house. But regardless, you won't get a mortgage for much more than 50k (assuming excellent credit) which isn't a lot.

monkeysox Tue 24-Dec-13 19:48:57

Could do here I'm north east. 50000 house affordable on your wage

fluffyduckie Tue 24-Dec-13 19:50:33

I'm in Yorkshire and the houses around here start at about £80000. I am not super picky but I want an area that I feel safe in as I will be wandering around by myself. Especially with the dark nights in Winter!

DamnBamboo Tue 24-Dec-13 19:51:35

Well then you have a rough idea of what is required of you.
Do you have a £30k deposit? Or can you jointly purchase?

nocheeseinhouse Tue 24-Dec-13 19:52:09

I've struggled on my own, and I'm on twice your wage. Perhaps through a partbuy scheme? But... home ownership isn't all that, remember.

fluffyduckie Tue 24-Dec-13 19:54:13

I don't have much of a deposit - about £10000. I think I really need to make saving as much as possible a priority in the new year.

I panic that I will (finally) buy a house and then will struggle with the bills. Everything seems to be going up! Plus I have never lived alone so I need to become a lot more practical. It feels like the longer I stay at home the less likely I am to ever move out!

Around here, near Liverpool, you definitely can. There are some quite cute terraced houses on at around £50k according to Rightmove and some slightly less nice ones on below that. I would question how safe some of the neighbourhoods are and would carefully search crime statistics before buying, though.

ouryve Tue 24-Dec-13 19:56:19

Here, yes. 2 bed terrace in a quiet street under £70K (we're living in one!)

Most places, no.

DamnBamboo Tue 24-Dec-13 19:58:27

Don't panic too much.
You could get a lodger which will offset some of the cost and help towards living expenses.
Would you consider buying a doer-upper in a reasonable area (area more important than size in terms of resale), that way you should be able to get it a bit cheaper.

Have you looked on right move?

Do you have any other debt, loan commitments or dependents?

fluffyduckie Tue 24-Dec-13 19:59:23

Around here some "bad" areas are a bit cheaper. A lot of the terrace streets here are all rented and have a bit of a bad reputation especially after dark. It is hard to balance what I can afford with what I want!

2 bedrooms, reasonable kitchen, preferable not open plan, and I would love a garden.

I just think that I may only ever buy one house - my salary is unlikely to increase - so if I give up something (like my dreams of growing vegetables in a decent sized garden) I may never get them.

YoureBeingASillyBilly Tue 24-Dec-13 20:01:43

I am in NI and a 3 bed terrace on my street went gor £44k. Others recently have gone at auction for £35 and £45k one townhouse and the other a 4 bed semi. Good areas too.

DamnBamboo Tue 24-Dec-13 20:02:37

Well just keep your eye out in the new year. Bank rates are expected to go up sooner rather than later, which will unfortunately result in a spate of loan defaults, repossessions and probably cheaper housing.

Just keep saving for a deposit, which you need to do regardless, and monitor the situation.

We held out for our 'forever' home and it tooks months, but we got it eventualy and I'm glad we waited.

YoureBeingASillyBilly Tue 24-Dec-13 20:02:46

All with gardens.

revivingsnowshower Tue 24-Dec-13 20:12:13

Wow guys some of your house prices are low. Our 3 bed terrace with small garden is £150k ish this is in S.E coast

Earlspearl Tue 24-Dec-13 21:47:13

What about a ground floor flat?

Having a mortgage of 70 would be about 4.7 times your wage which is quite high. It depends on your overheads and potentially they could be quite low considering you have no car or kids. Ours is 4.3 ration wise. We have 4 kids though and two cheap cars but do everything on the cheap - holidays/second hand clothes etc. Nothing is ever new but my kids still attend clubs etc. we live within our means.

You could always consider letting the second bedroom and splitting the bills half way to make things affordable.

fifi669 Tue 24-Dec-13 22:10:59

I'm in Cornwall and the cheapest flat here is prob pushing 100k!

FudgefaceMcZ Tue 24-Dec-13 22:17:55

Yes. I have small terrace in a perfectly ok but not posh area and only on a wee bit higher pay than you (most of which goes on childcare). You just need to 1. not live in the south and 2. ignore dickheads who are snobby about 'location, location', when in fact anywhere you live will mainly be populated by human beings who are very similar to yourself.

OatcakeCravings Tue 24-Dec-13 22:21:19

Depends where you live, it's around £150k for a two bed mid terrace where I am, a flat would be no less.

Tabliope Tue 24-Dec-13 22:22:47

Could you get another job in the evenings or at the weekends to top up your income? Also think the idea to get a lodger in is a good one if you pick the right person (quiet, tidy etc). Wishing you luck and hope you get it soon.

YoureBeingASillyBilly Tue 24-Dec-13 22:26:54

Do you rent at the moment op or live with parents?

YoureBeingASillyBilly Tue 24-Dec-13 22:28:53

Ah- sorry i see you are with parents. You are in a good position to be able to make savings as i assume you arent paying market rate to your parents? I second the idea of taking on a second job if possible.

fluffyduckie Wed 25-Dec-13 08:31:59

I had thought of getting a second job but I work 37 hours a week in my job and do maybe 30 ish hours as a carer at home so I don't know what sort of job I could fit around that.

There aren't many flats here - mostly terraced houses near town and semi detached and bigger terraces further out.

stgeorgiaandthedragon Wed 25-Dec-13 09:26:49

Flats generally aren't necessarily notably cheaper, unless they are high-rise ex-council and I wouldn't recommend one of those as selling it again would be very difficult/impossible.

My first home was a flat and it cost more than a lot of two-bedroom houses. The point with flats isn't that they are cheaper, but they tend to be suitable for somebody in a particular position. My flat cost me £120,000 and when I sold it it was for £160,000. I bought a 3 bedroom house for £170,000, so very little difference.

I would also not advise a lodger, myself, I realise it can work well but to be frank the sort of lodger who would be attracted to the sort of home the OP can afford might not be ideal.

Anyway, it is possible - just - in some areas, but not easy. I don't live in a very expensive area but it still wouldn't be possible here.

You could round here (west Yorkshire) we bought a lovely little two bed semi with garden for £55k last year. Needed very little work. It's in a working class area which doesn't look that nice on paper but is actually lovely and quiet. It's a very friendly close knit community

juneybean Wed 25-Dec-13 10:26:26

I'm on a similar wage as a single person and my mortgage advisor said the bank should offer 60-65k with a 10% deposit.

Norudeshitrequired Wed 25-Dec-13 10:28:24

You could go for a part ownership scheme on a new build property. You can buy additional shares when you can afford it and as it will be new build the maintenance costs will be minimal.

juneybean Wed 25-Dec-13 12:07:59

Part ownership isn't actually affordable (to me at least) as you have to pay rent on the other half so it makes it more than a mortgage or rent.

Norudeshitrequired Wed 25-Dec-13 13:43:57

The rent part can be quite low depending on the scheme. Friend of mine bought a flat through shared ownership, her salary is £15k, the flat total cost was 98k, she bought a 50% share and pays £100 monthly rent on the other 50%.
Another friend bought a 70% share of a 120k flat but doesn't have to pay any rent on the other part.
Both only get equity on the bit they own if the flat rises in value.

fluffyduckie Thu 26-Dec-13 09:14:47

I don't mind a working class area - it would be nice to have good neighbours.

I have looked into part ownership but there aren't really any new builds around here.

Preferably I would like to stay in the area that I live in now (family and friends nearby, can walk to work and the shops) but houses are about £120000 as they are semi detached and mostly 3 bedroom. Then there are rates and council tax bills and heating and maintenance costs to consider on a bigger property. They are ex council houses though so well built!

somethingchristmassy Thu 26-Dec-13 23:12:06

If you're living with your parents and I see you have some deposit, then (assuming your rent and bill contributions at your parents' will be quite cheap), then yes, probably. Some help to buy schemes require a 5% deposit.

dancingwithmyselfandthecat Thu 26-Dec-13 23:20:59

If that's the cost and most places are three bedroom could you buy with a friend? Split the costs, and pay down for a few years and you would have a bigger deposit to get somewhere by yourself? If three beds, you could each have a sitting room, so not too much on top, or get a lodger and pay off the mortgage even faster.

Loshad Thu 26-Dec-13 23:35:12

It does depend whereabouts in yorkshire you are, Harrogate/Leeds/York golden triangle is very pricey, parts of south/west/north yorkshire very much less so and would be affordable on your income. I guess you have to balance how much you want to stay in the immediate area, in which case it seems unlikely you could afford your own home, or are you prepared to move a few miles away, which generally in yorkshire is all that is required.
There aren't many very rough areas either to be fair.

MsVestibule Thu 26-Dec-13 23:40:37

If you're concerned about how much the bills will be, this is a very rough guide:
Mortgage - £300ish, but very variable!
Council tax - £100 pm
Water - £20
Gas & electric - £100
TV licence - £15
Food - £30
Phone/broadband - £25
House insurance - £30

So £600ish, but you'll also need to factor in repair bills, boiler servicing, replacing furniture & white goods etc, which in the long term probably costs about £100pm.

Norudeshitrequired Fri 27-Dec-13 08:04:50

Don't know what part of Yorkshire you are in or if you would move to another part of Yorkshire, but there are new builds available at low cost:

Norudeshitrequired Fri 27-Dec-13 08:05:50
Norudeshitrequired Fri 27-Dec-13 08:06:56
Norudeshitrequired Fri 27-Dec-13 08:07:51
NearTheWindmill Fri 27-Dec-13 08:52:03

A good start would be the old back to backs in Armley, Leeds. Two beds in good nick available for about £75,000. Have just looked on Right Move. They are very very central, the area has to be due a price hike soon due to its proximity to Leeds. Also a brilliant place to let to a student lodger if the budget is a bit tight.

BIWI Fri 27-Dec-13 09:00:19

Depends where you are in Yorkshire, but it looks like it could be possible

glammanana Fri 27-Dec-13 12:17:01

Have a look at some of the new build's information and find out if any houses have been taken in part-exchange for a new build property,builders resell these properties at below market value to achieve a quick turn around but you have to be quick off the mark,register with builders for notification of any PX properties that come on to their books and remember these PX properties would have had a survey already prior to the builders interest and any works required would have been done prior to remarketing so you would only have to pay for a valuation survey as opposed to structual survey.

QuizteamBleakley Fri 27-Dec-13 12:35:49

Check out the local housing associations in your area. Some HA's have Government-backed schemes for people in particular jobs. Check the small print.

A lodger can be the right balance of ad-hoc company and a bit of extra income, but it's best to not cast your net too wide. If you're on Facebook, then you could ask your friends if anyone is looking for a room to rent.

Good luck - it's a big step but you're clearly thinking it through and not rushing in.

fluffyduckie Fri 27-Dec-13 18:41:35

Oooooh it looks like there are a few properties around this general area for about £70000 ish.

Is it best to save and have a bigger deposit and smaller mortgage? Does it work out better in the long run?

None of the cheaper properties have good gardens .... I am not fussed about mod cons (apart from heating and double glazing!) but I don't really have any skills to fix up a house. Other than painting! I don't even care if I have a falling down kitchen and just a bed and a chair (and my books!!) so long as I have a garden.

MissWimpyDimple Fri 27-Dec-13 18:46:13

Wow. Round here you would be lucky to get a 2 bed flat for 200k sad.
No hope whatsoever for the likes of me earning 25k (at best!).
I have the means to get a deposit together but not a 150k deposit!!

Norudeshitrequired Sat 28-Dec-13 16:08:35

Fluffyduckie - would a yard on a terrace house be sufficient? If you don't have small children then a lawn isn't essential. You could add some decking, lots of potted plants and wall trellises and a yard could look quite fab and be sufficient for summer dining and BBQ's.
I think people have the tendency to look at the ideal, rather than the reality when they are buying their first home. A house in good maintained condition with a yard or even a one bed Flat with a small balcony will be more practical and affordable in the long run than an old heap with a big lawned garden.

quesadilla Sat 28-Dec-13 16:20:56

Can't get over how low some of these prices are. It's virtually impossible to buy anything in London -- including outer suburbs -- for less than about £180-190k

fluffyduckie Sat 28-Dec-13 16:58:38

The really low priced ones are on the wrong side of the river really.

Not sure I would want a yard .... not if I was going to live there for a long time. I really like gardening and am already perusing the seed catalogues! I do a bit of "grow your own" and really enjoy it. To me the importance order is safe location, garden, then house. Probably not the best order!

Chunderella Sat 28-Dec-13 17:37:53

Yes ideally you want as big a deposit as possible. Its likely to get you a lower rate, and gives you a cushion against negative equity. You'll pay more to the bank the more you borrow, because of interest. Even the difference between 10 and 15 percent deposits could result in thousands of pounds in interest saved during the term of the mortgage. If it were me, as the properties you're looking at are fairly cheap and you can live at home, I'd really want as big a deposit as possible before buying. If you get somewhere for perhaps 75k, a 20 percent deposit may well be achievable with a couple of years tough saving.

I do see your point re garden, but might be worth thinking creatively too. You can do a lot in a yard. If its a total no-no then fair enough, but in your position I'd probably want to know exactly what I could plant in a yard before ruling it out totally. Remember you could always have hanging baskets and window boxes too, as well as a few houseplants.

Norudeshitrequired Sat 28-Dec-13 19:03:09

As chundarella has said, you can plant lots of things in baskets and pots if you have a yard. You can also put your name down for an allotment if you really like growing things.
I think, outside of London, most people can afford to buy some kind of property or a shared equity property so long as they are realistic about what they can afford. When people start wanting to buy only a particular type of property in a specific area then they find that they can't get onto the property ladder no matter how big a deposit they are able to save.
The priority should be a structurally sound property in a safe area, other things are nice but often not essential and shouldn't automatically rule out properties.

fluffyduckie Sun 29-Dec-13 09:16:23

I know a garden is technically a luxury but I managed to grow quite a lot last year - for example can't afford to buy purple sprouting broccoli from the supermarket but managed to grow loads at home. If my wages don't change I can't imagine that I would move house again especially as once I am paying a mortgage there won't be much spare to save. So it sort of feels like I would be giving up a garden forever.

I am not far off 20% of £75000 but there would be fees and moving costs which would reduce that.

Think I need a strict budget! Oh and to set up a bottom drawer!

Chunderella Sun 29-Dec-13 12:00:28

A garden isn't a luxury, not if you consider it to be an essential. If it's a deal breaker for you, there's nothing wrong in that. It just means you may have to make sacrifices elsewhere, whether it's a different area, spending more time at home to get a larger deposit or paying more in interest to the bank long term because the house is dearer. And you're right that a garden might save you money elsewhere, though I also echo the suggestion of an allotment. Actually my uncle and auntie did this a couple of years back, they downsized to a terrace with a small yard where they have flowers, pots etc. Then he grows his veg in an allotment down the road. Works for them. but if it doesn't for you, it doesn't and that's that.

Yes I think you need a budget! Another year of tough saving at home would probably see you in a good position, though.

poii10 Sun 29-Dec-13 12:58:45

Round here 3 good sized bedrooms fully refurb bathroom, kitchen. fully decorated, back and front garden safe area £85,000.

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