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To not have a bloody clue how we are ever going to get on the property ladder?!

(62 Posts)
DarylDixonsJockstrap Sat 26-Nov-16 16:51:15

As the title says really...we currently rent a flat for £850pcm not including any bills, we have a 3 year old and both work and earn above average wages. However we are always down to our last few quid at the end of the month. We don't have any major debt and manage to save small amount each month but nowhere near enough to save up the enourmous deposit we would need to buy our own home. It's really depressing.

Just seeking advice/ideas from people who have managed it? TIA xx

Allthewaves Sat 26-Nov-16 16:55:20

Depends where you live. In the south of England the probably not

DarylDixonsJockstrap Sat 26-Nov-16 16:59:16

Thanks...yes, south of England.

dementedma Sat 26-Nov-16 17:05:31

No answers but sympathy. We only got our fault because it was in the days of the 100% mortgage. Dd1 is 26 and lives at home for the reasons you state, Dd2 is 23 and moving out this week but only because her BF has bought a flat, otherwise she would still be here too. My brother and my sister both rent and can't afford a deposit. It's worrying.

FourToTheFloor Sat 26-Nov-16 17:06:48

You nee to post your salary amount and what you spend. When we were renting we were earning above average wage but not huge and paying £1200 on rent in London.

I was militant about putting a certain amount away each month on pay day even if it meant for that month we had to eat beans on toast for the last week!

This was pre dc and we did always manage to find a cheap pub to socialise in though blush

It's not easy. It's especially galling that our mortgage in London is nearly half what out rent was angry

RavenclawRemedials Sat 26-Nov-16 17:10:03

You have three options. Move somewhere cheaper - easier said than done. Inherit - choose your relatives carefully. grin Or look at shared ownership schemes; depending on where you are, these do exist.

Or buy a lottery ticket and keep your fingers crossed.

WaggyMama Sat 26-Nov-16 17:15:10

Can you have a year of living frugally? Spend nothing, eat cheaply, no holiday/weekends away. Change energy providers. Packed lunches instead of bought.

Could you save decent amount by doing this??

VeryBitchyRestingFace Sat 26-Nov-16 17:15:16

Can you move?

user1837559372496 Sat 26-Nov-16 17:16:04

Owning your own home is a relatively new expectation and in lots of countries is not the norm. Pre Second World War hardly anyone owned in the U.K. either.

MrsTerryPratchett Sat 26-Nov-16 17:18:52

Owning your own home is a relatively new expectation and in lots of countries is not the norm. Pre Second World War hardly anyone owned in the U.K. either. Which would be fine if renting was; cheaper; better regulated; more stable; the norm.

But it's not. Renting in the UK is utterly shit.

DesolateWaist Sat 26-Nov-16 17:19:43

Owning your own home is a relatively new expectation and in lots of countries is not the norm. Pre Second World War hardly anyone owned in the U.K. either.

You see that just isn't helpful but always come up in these discussions.
Yes in other countries it isn't the norm but they do have rent controls and secured tenancies.

Saying what happens in other countries or in the past simply isn't helpful.

specialsubject Sat 26-Nov-16 17:22:02

the ill-informed guardian journo babble of 'renting in the UK is shit' is hardly helpful either.

29redshoes Sat 26-Nov-16 17:22:09

We did it by doing what waggymama suggests upthread, for two years. We were also lucky enough to be doing jobs where we could sign up for paid overtime which made a big difference. It was also pre kids, I'm not sure we'd be able to do it now we have DD.

Sympathies OP, it's really hard to buy a place these days.

Famalam13 Sat 26-Nov-16 17:25:04

We are managing it through shared ownership. Our one doesn't require a deposit. Have a look and see if you have anything in your area smile

Artandco Sat 26-Nov-16 17:27:18

It's hard. We struggle also.

I mean if you earn £50k, and have high rent for a small place but still live frugally, the apsolute Maximum you could save is £20k a year. A one bed flat here is £450k. So you would need to save at least £100k to buy that. Buy then prices have increased so you need more.

papaverorientale Sat 26-Nov-16 17:30:20

I think like many people you're dependant on inheriting. So many people earn a decent amount and can't afford to buy. Is there anything you could do in terms of setting up a business in your spare time to raise the deposit?

I know 2 immigrant families who managed to buy on lowish wages. Both took a room in shared houses for years first to save up (even when they had kids. Must have been very tough) They also took on every spare handyman and cleaning job going. They also got lodgers once they'd bought (kids plus parents slept in the master bedroom) So it can be done but obviously most people wouldn't want to live like that, let's face it. It would put a lot of strain on you. Both families had come from much poorer countries and they were happy to make sacrifices to give themselves security but it's not how children should be living.

Hamiltoes Sat 26-Nov-16 17:31:18

As a pp said you really need to be absolutely millitant about your income and outgoings. I use an app called BudgetPlanner and it's helped me no end. I had a decent salary but at the end of the month nothing to show for it, always skint and raked up quite a bit of debt too.

I went from that to paying £400pm off debt and £500pm into savings. I literally just wiped the slate clean and started again with finances (and changed my mindset). I live off £100pw and that covers everything. If I don't have the money for it, I don't buy it unless it's absolutely essential.

I frittered so much money away it makes me a bit sick. Cancelled £100pm Virgin Media, cancelled TV licence, changed energy providers, switched off all plugs when not in use, got a smart meter to monitor it. 5 min showers instead of 15min twice a day etc.

Halfed my gas and electric to £50-60pm. It can be done but its hard! Lucky that I already have a mortgage but I have a flat and would love a garden, got £10k debt left to clear and would like to have £5k saved.

The app I reccomended really helps you to be strict, and helps with goals. I know exactly how much money I'll have at any given date in the month, I can look forward 6m to see what my bank balance will be if I stick to the plan. Best of luck op.

papaverorientale Sat 26-Nov-16 17:32:06

Spend nothing, eat cheaply, no holiday/weekends away. Change energy providers. Packed lunches instead of bought.

Let's be honest. For most families nowadays, that isn't going to save you anywhere near the deposit for a house. Maybe 50 years ago.

MrsTerryPratchett Sat 26-Nov-16 17:33:13

the ill-informed guardian journo babble of 'renting in the UK is shit' is hardly helpful either. I don't read the Guardian. I am a tenancy expert in another country... I write tenancy education curriculum. I run training sessions on tenancies. I present about tenancies at conferences. Just a little informed.

RandomMess Sat 26-Nov-16 17:33:46

We have moved away from the SE so that our DDs can have the opportunity to move out once they are working adults. It is so difficult in the SE.

Ebbenmeowgi Sat 26-Nov-16 17:34:40

special why is it "ill-informed guardian journo babble" to say renting is shit? It is shit in the UK. Cold, damp houses, landlords unwilling or v v slow to make repairs or insulate at all (why would they, it's not them paying heating bills), poorly done/cheap repair jobs, extortionate prices (hello London), unsecure tenancies... The list goes on.

Op as others have said shared ownership is a possibility. We're also in the process of setting up a housing cooperative, which will enable us to save better for the future should we choose to move on to our own house. That's not an ideal option for everyone as it's a lot of work! But if there are a few of you in a similar situation could be worth exploring?

WLF46 Sat 26-Nov-16 17:35:04

You have my sympathy. It's almost impossible to save enough for a deposit unless you have family who can give you money (or at least loan it) or you receive an unexpected sum (in my case, I got lucky and was made redundant).

The worst part of it is that people like you do all the right things but have no chance because you're paying such a high rent. The chances are that if you actually got a mortgage, your monthly payment would be lower (mine was about 20% lower than I had been paying in rent).

Have you spoken to a mortgage adviser? Not a bank one, but an independent one - they might be able to help and are usually free at point of contact, they gain commission and/or charge a fee upon completion of a purchase.

35 year mortgages are more common now and these also reduce the monthly payment. Not being in debt now is essential, so well done on that.

Realistically you will need to look at moving somewhere cheaper, either to save rent now or when you purchase somewhere.

Is there anything you could cut back on now? TV package, gym, car use, cheaper food? Anything extra you can save will help you immensely.

DesolateWaist Sat 26-Nov-16 17:35:23

the ill-informed guardian journo babble of 'renting in the UK is shit' is hardly helpful either

But at least sympathising is more helpful that 'go and live in the past or another country'.

BarbaraofSeville Sat 26-Nov-16 17:37:39

I mean if you earn £50k, and have high rent for a small place but still live frugally, the apsolute Maximum you could save is £20k a year

I'm not even sure if that is possible. Take home on £50k pa is probably around £35-40k (cba to do actual maths) and I don't know what you're calling high rent, but lets say £1k pm - which is high, but many will be paying more than that, so that goes down to £28k at most, probably less as many on £50k will be paying quite a bit in student loan repayments.

And then of course you have food, council tax and other bills, travel etc, which would have to be very low to leave £20k available to save and that's without a single penny for clothes or anything fun sad.

Of course, buying alone is affordable to hardly anyone, especially in the south.

Agree that renting should be better and more people would be happier with it if it was more stable etc. We wouldn't have bought so young if renting had been affordable and stable. We are lucky it worked out for us, but it doesn't for everyone - some people would prefer to rent if the system was more like Germany etc.

user1837559372496 Sat 26-Nov-16 17:37:40

I just think it's setting up for unhappiness to expect to own. It's like having a life goal of owning a yacht. I agree that rent controls and so on might be a good option but I don't think many landlords are making a huge profit - houses are very expensive.

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