Is it possible to buy a house?(53 Posts)
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. I just want my own little home - a little cosy nest.
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
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.
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.
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.
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.
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!
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.
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.
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.
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.
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:
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.
Depends where you are in Yorkshire, but it looks like it could be possible
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.
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.
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.
Wow. Round here you would be lucky to get a 2 bed flat for 200k .
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!!
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.
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
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!
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.
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.
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