I will never be able to move out

[roldog]

I'm 25 and desperate to get my own house. But right now feel that I will never be able to afford to.

I still live with my parents, I work full time and have a boyfriend who also works full time. I have a decent wage but just feel like I will never be able to afford to get my own place.

I am saving, but it's going to take so long. At the end of every month I barely have any money left which makes me think how the hell will I ever be able to actually afford to run a house.

I'm at the stage to be wanting to start a family etc now, but obviously want my own place first. It's really getting me down.

Sorry if this sounds like a pity party, I just wanted to rant I suppose. How are young people these days supposed to get on the property ladder with the rising prices of everything?

@loislovesstewie to me that is something my parent's generation did.

My parents married at 21 and 23 but did not start having children until their late 20s. Never got the mortgage but that is a different story 😬

Reading the first page, I wonder if homeownership is for you?

You'd have to commit to a mortgage, which can rise, there are repairs and unexpected bills. If you're struggling to work things out now, you might not manage if you have your own house.

@roldog

if you can afford the mortgage repayments on a 3 bed home, then I would do that.

you want to settle down & have kids, buying somewhere too small is false economy as you'll be paying another set if buying expenses before you know it.

if you were able to save the equivalent of your mortgage payments for a period, would your parents give/lend you a chunk of money towards a deposit?

is your partner saving well?

(sorry if it's all been covered, but MN is closing down/jumping around on my phone).

If you saved £1000 a month in 3 years you could have £36,000 saved!

Also think about a side hustle.. selling clothes online or dog walking, house sitting. Or something. This would get you out of socialising too much and weddings etc!

Over the years you will get paid more too, and progress in your career.

Then you'd be in a good position to buy a flat! Do it up and move on in a few more years.

& which magic fairy is going to cover her car costs?

I think it does also depend on where you live. If property is cheap then people feel they can settle down early. Many years ago I lived in West London, we could not afford anything in that area even then. We had friends, quite a lot of them,who lived in much cheaper areas who were already married with a house and children. We eventually moved out of London precisely because we could buy something on our salary in one of those cheaper areas. The people I know who bought earlier had their second 'young adult' fun time in their late 40s/early 50s. I didn't get to do that for various reasons, mostly difficulty conceiving, but I wish I could have been mortgage free earlier and had children earlier. I understand that's a different story, but I would urge people to learn to budget early and buy a property early.

1. You don't need such an expensive car but you are obviously tied into finance for now.

1. What are you actual core bills? Phone, contact lenses and whatever else you actually have to spend. Is it £300 or does that include other stuff?

In which case you can save £1500 a month. Two years you can save £36,000 a respectable deposit anywhere in the country.

But you need to actually want to save and prioritise that.

I would suggest asking your parents to charge you rent of £1000 a month. Which they then lock away in savings for you that you can't touch. To teach you about bills and non negotiable costs

@TheGreatEggRave very gracious of you, hope things get better soon

This. Get real OP.

Looks as if you should be able to save £1000 a month. If your boyfriend was able to do like wise you'd have £40k within 2 years and then you should be able to buy. If you want to speed things up, get an extra job in the evening or at the weekend.

This is how most of us started. Nobody just gave the boomers the deposit, we had to scrape and save too.

Well I don't need to add to the pile on - well done for waking up OP.
Also... life doesn't end once you buy a house. Especially as you're buying with your partner.
Saving for the deposit is hardest, but once that's done you can let loose a bit. Of course, it will still be a big shock to your system as you've been living rent free and spending money like water.
We go out etc so much more now that we're not paying exorbitant rent and saving like mad

I was on the same salary in my mid twenties + I was renting so had to pay rent and all that comes with renting (council tax, utility bills, internet, etc) but I was saving over 1k a month.
Your situation is more than easy for saving a huge deposit, and especially if houses where you live are only £180k on average.
Also, when you buy a house, you'll have a lot of expenditures (unless you buy a house that's completely done up) so definitely better to start looking at your finances sooner rather than later. Make a spreadsheet and see where your money goes every month.

You need patience but it's very achievable where you live.

As an example my dd earns similar My dd saves £600 a month for her deposit for a house, £400 for her car (she owns outright but wants to replace so is saving), half her salary. She then pays rent (military, mess bill) and still has enough the party too much!

I'm a year younger than you, moved out at 16 and own a home. I get there is a cost of living crisis but you should be saving a lot more on your incomings.

Put aside £750pcm for all general spending, bills etc. Save £1250. Keep it up for a year and use a LISA and you'll have £15k plus LISA contributions of £1k.

Get your boyfriend to do similar and in one year you should have £32k between you. It's more than doable, you just need to be stricter on yourself.

I DID IT OP

three years of no weddings, holidays, takeaways, new clothes you don't need etc and you will have a deposit big enough with your partner. I'm not saying no fun but I had a fun budget of £20 a week for meals out/cinema/coffees. The less you spend the quicker you can achieve this.

Start with buying a two bed and then move up to a three bed. You can have a child in a two bed and by the time they're 1 or 2 years old you will have enough to move up to a three bed.

Assuming it's £150k (two bed) with a 20% deposit you need £30k. If you save £1k a month you can do this in 30 months. If yourself and your partner each save £1k a month then you can do it in 15 months. if yourself and your partner save £1.5k each a month you can have a home this time next year.

I achieved it at 25 with the same budget as you. I was a super saver but had to pay rent and missed out on a lot but now sit in my own home. I forced myself to justify every single penny, I was always applying for higher paying positions and reached £28k salary at 25 years old, and I picked up extra work such as cleaning and house sitting to bring in an extra £2-5k a year.

I always took holiday from my job the week before Christmas and Boxing Day up to new year. I would get a temporary seasonal job in this time that paid double pay due to being over Christmas Day etc and would pull in an extra grand for the year. You have to be willing to do what others are not.

Ask your boss for a pay rise too.

@Dishwashersaurous my car actually isn't an expensive one, it's a small car and cheap to run. It's not on finance I had to get a bank loan to get it when my old car conked out so I pay back £200 per month on my loan, which should be cleared by the end of the year.

That's a really good idea actually to give my parents the money, atleast then it's gone from my bank account and I can't see it!

I would work out what your mortgage and bills would be (say £1000) and save that each month. That will help you budget and save at the same time.

Or treat your savings as a non negotiable bill. Set up standing order to a savings accoung the day you get paid.

Hi OP. Sounds like you've decided £400 is a decent amount to save per month therefore have subconsciously also decided that the rest is free to spend as disposable income. You need to work backwards, how much do you need to live on as an absolute minimum? from your previous posts, that is around £600pcm. Then give yourself a reasonable disposable income amount to spend as you wish, let's say that was £400pcm - that's your coffees on the way to work, odd meal/night out, new clothes etc. Then the rest you save, which would be £1k. If you did that for 2 years you'd have £24k. It's a lot of sacrifice and a lot of saying no to your 'wants not needs' but it's temporary and doable. All the best!

Great, so at the end of the year you can save another £200 a month as well. Brilliant.

Also you can get some relatively good deals on longer term savings, so if the money is locked away for a year then you can earn 4% interest.

Say you manage to save £18000 in year one, then in year two you will gain an extra £700 for nothing.

You just need to prioritise the savings and getting your parents to lock it away will make it much more like having to pay rent or a mortgage.

If you run out of money you simply won't be able to afford to buy new clothes or whatever that month.

Of course you can move out - what's wrong with a bedsit or a room in a shared house? Most people rent for at least a few years. Even if it's a dump, at least you'll have your independence, which is so precious.

You are asking the right questions and doing it all at a great time. You have had a few years of enjoying your 20s and having fun and not worrying about where your money goes. And now you are in a perfect position to start looking to the future and saving. And you are in a great position to be living with your parents and not paying rent.

I wouldn’t recommend moving out and renting just for the sake of it as that will limit how much you can save.

Just prioritise your savings. Make a plan. Open a savings account and transfer your saving portion out as soon as you get paid. Maybe also open a ‘fun’ account. And save some money in that for holidays/hen weekends etc. Watch what you are spending generally. Once you get into the swing of budgeting and really looking at where your money goes you may well have money left over at the end of every month which could go into your savings or into a separate account that you build up for emergencies etc.

Tbf it doesn't seem like you are trying! Did you go to uni? Clearly 2k a month unless you are in a high paid career is more than many adults who pay bills and rent or mortgage. If this is a job with not much progression that'll be what you get with kids. Obviously if you have career progression thatll change. Budget, use an app if necessary.

You're in a great position...I don't get your angst.

You're saving £400 a month and could easily save more if you adjust your current lifestyle. You have a boyfriend who works. You live in a reasonably cheap part of the country and have wealthy parents who don't charge you rent. Ok you might not be able to afford a house today but you will.

I would recommend a monzo account

you can allocate spending so you can see exactly where your money goes and then have pots for your saving and spending .

if you can’t save you can’t pay a mortgage .

my husband and I had a graph and saving targets and bought our first house by age 21.