To think I don’t have a hope in hell of buying a property

[Terrified1]

I’m 27, still renting, on a 22k salary. I got myself into quite a bit of credit card debt in my early 20s which I thankfully have now paid off without help from anyone. A lot of my friends seem to now be buying lovely houses, small but cosy with pretty little gardens. I just feel so low about how far away I am from being there. I’m single, in a flatshare, and will not have any money given to me like most of my friends have had from parents. I think others saved deposit money due to living at home with parents and therefore paying little/no rent but I don’t have this option. A 2 bed house where I live is about 190k. Is it nuts for me to hope I could do this on my own? I Currently saving £600 a month. I swing between feeling optimistic and just utterly defeatist

I think your biggest problems is that banks rarely lend more than 3-4 times a persons annual salary, so it's unlikely on your own you would get a mortgage for more than 90k, so even with a saved deposit your budget is going to be pushed. You best options are:

1. Consider shared ownership?
2. Aim for a smaller, cheaper property to begin with? You can start with a 1 bed flat and if you manage to get some equity may make some money on it?
3. Buy a property that needs work, so is being sold off cheap?
4. Look at cheaper areas and commute to work?

How much do you have saved up already? What are the chances of finding a higher paying job or taking on a second part-time job?

@kitkat1985 yes it’s really tricky. I’d ideally want 2 beds so a flatmate could help with costs however appreciate this might not be feasible. I’d love to get a Saturday job or work 1-2 evenings a week doing something else, it’s just pretty hard to find stuff! But I’ll keep looking.

Its perfectly ok to raise a small family in a 1 bed flat btw.

Can someone tell me whether you can move if you have a shared ownership place? I've read that you wouldn't be able to move and have someone else renting your flat. I wouldn't want to be locked in for many years.
OP might be fine with that of course.
I wish I could save £600 a month, but once you're used to your own place, you can't go back to sharing.

The main thing is your salary. Think big and be brave, apply for promotions and other jobs. Remember, the salary is not linked to what you think you are worth. Loads of stupider and lazier people than you are earning more.

@Gwenhwyfar no you can't let out a shared ownership property. Because shared ownership properties are part rented letting them out is regarded as subletting and not allowed.

You sound like you're doing great. I was not making 22K at 27. I was not saving a penny at 27.

At 39, dh and I are in the process of buying our first house, a very nice big 4 bed detached house with 7 acres of land. We save plenty now and collectively make over 100k a year.

A lot can change in a decade. Please enjoy your 20s. Travel. Have fun. By all means, keep saving but live your life too.

@mindutopia thank you 💗💗💗

If you decide to share buying with somebody have your shares legally documented in case there is a misunderstanding later down the line. A reasonable person would agree wholeheartedly.

I'm 30 and only just buying a place. It's taking moving to a much cheaper area to do it though. There's no timeline for success and £600 a month an an amazing amount to save. At 27 I was in a similar position, I didn't think I would ever even come close to owning. But in a few year my circumstances changed so, so much. You don't know what the future is going to bring and if you keep working and saving like you are, I'm sure you'll get there.

I think it's doable, you're in the right mind set at least and saving a huge amount each month!

If I were in your position, I would buy something cheap in the area and I take in a lodger to help pay the mortgage.

£190k is cheap compared to where I live. Don't give up hope, many people don't buy in their 20s these days. Many rely on inheritance or buying with a partner. Keep saving and look into all the ISA schemes too

I'm 30 and still renting! Also had credit card debts to pay off so completely understand where you're coming from. I second the advice about finding a mortgage broker/advisor, I was in the process of applying for a mortgage before COVID (application can't proceed at the mo as they can't do a valuation) and have found it really helpful having someone guide me through the process. Plus I think previous posters are right in that you might be surprised what you can afford, sometimes brokers have access to better deals/rates than you'd get applying directly to a lender.

One bit of good news for you is that house prices are predicted to fall between 10 and 20% over the next couple of years, so the house you want could be within reaching distance, I would personally be avoiding help to buy and shared ownership which have both over the years pushed up house prices overall, prices would be alot cheaper if they had not been introduced and has just got people into more debt through additional borrowing.

Going against the grain a bit here, but at 27 perhaps you should be putting a big focus on grabbing life a bit, not saving for a flat. So getting out and about and having fun and working on your earning potential and career too.

27 is so young; all my friends are professional people in their 50s and hardly any of us bought before 30. What’s the rush?

You’re doing great as you are - it’s a good salary and you’ve cleared your debt which is great.
Some building societies have a financial advisor, when I was saving up for my first home, I booked a meeting and we talked about lots of useful ways that I could get onto the property ladder. They suggested stuff like buying with friends or with a parent named on the mortgage. But, most importantly, they suggested ideas on how to build the capital for the deposit. It helped me so might help you too.

@YinMnBlue Help to Buy is still very much available. It is what props up the housing market by inflating the value of new builds. You are thinking of the Help to Buy ISA.

You're well on track to be able to buy your own place.
You might have to lower your expectations.
Start off small, 1 bed flat or bedsit, maybe in a cheaper area then work your way up.

Why start with a house n garden..., how much is a 1bed flat of a studio flat? Most people I know started with a scruffy studio/ small flat ... added value by doing up a bit then moved on to next step .... I bought my 1st property about your age ... then met dh a few years later he had same so we rented one and lived in 1 then got sm scruffy house tidied it up got next house....

If I hadn't met him I might have traded to bigger flat as mine tiny but that's all...

You are doing really well saving that much ... look at help to buy and LISA I think it's called .. I had no help either and it's tough but you will be able too ... I worked 2jobs for a bit but actually studied whilst working more which paid off as could go for better jobs .... is that an option?

I think @TinklyLittleLaugh is right. Why not save half and actually go out and socialise and travel and network and increase your chance of finding career progression and someone to share a house/life with?

Property market is going to tank. Hang on for a bit. If you have job security you are going to be well placed to take advantage of that.

Congratulations on clearing your credit card debt.

Well done on your current savings.

You will be in a much better position than lots of people who don't even bother and throw money away.

Keep going. You will buy your own place eventually and be proud that you did it without needing others to give you money.... well done

I'm 48 and I still hope to buy a property. I'm studying at the moment so saving is patchy, but I have my help to buy ISA which I add to when I can.
My plan when I graduate is to get a job in my profession and some form of second job.
I was also in a vast amount of debt which I paid off last year. This morning I was approved for a credit card which I plan to use for petrol and pay off monthly to improve my credit rating.
You are so much younger than me and saving a whopping amount. You'll get there. Whether I do or not remains to be seen but savings won't hurt me so I live in hope.

Don't give up hope! Some mortgage lenders look at affordability rather than straightforward multiples!

You're doing great with the anount you're saving on your salary!

You could boost your savings loads by working? A couple of nights in a pub would get you dosh... And also if its a good pub time passes quickly! Guess you most likely wouldn't make much more than minimum wage... But 12 hours x 8/9£ is best part of £100 weekly gross... Probably an extra 300£ you could save monthly!

Cleaning, although tough work, can pay very well.... In London my family pay 18£ ph.... Think that's high but 15£ is quite usual... Often much is cash in hand....

I was you up to the age of 33 but with debt. Met my DH, we saved like mad for two years and bought when I was 35. Don’t give up