I’m 26, and I’m not saving for a house or planning to move out

[WeCouldBeNice]

And apparently that’s a very unpopular decision amongst certain family members.

I have grown up always listening to my mum and grandmother saying that they regretted not travelling more in their youth. So I’m doing it, before I can have any regrets.

i work a job that pays just under £25k. Moving out would be miserable. I’d exist to pay my bills and nothing more. I am unable to borrow enough to even purchase a flat in my local area. So I’m spending all my money on travelling instead. Short trips. Weekends away and longer European trips next year.

my older brothers are horrified by this (despite both doing it themselves). They think I should be moved out and renting by now.

my dad turned round to them yesterday and asked if they wanted to ever see their daughters struggling and unhappy. They obviously said no, so he asked why they expected that of me. They couldn’t really answer.

theoretically I could take the money I’m putting into my travel savings each month and use it to save for a house. But I’d never get a big enough deposit to allow me to buy anything even anywhere near decent to live in. And I’d then be bound to a mortgage and never be able to do anything other than sit at home.

is it really that bad to do this?

What if your parents need to sell their house to pay for their care in the future? Or want to downsize? What then

I assume you’re single. I’d find it very unattractive in a potential partner that they hadn’t learnt to stand on their own financial feet. Not long after meeting my dh we bought a place together with the money we’d both saved. I doubt he’d be very impressed if I didn’t have any at all

Personally I think you're silly not to save for a place now, while you can without commitments. You sound like my friend who just wanted to travel all of the time while living with his parents. He is now 41 and renting as his elderly parents had enough of him living at home! He is sad he'll never own a property and complains when the rent increases. I have paid off my mortgage and glad to live in a house I now own. I took out the mortgage when I turned 21. You should consider saving up for your own place so you never get trapped into high rentals.

Have you ever lived away from home?
Did you go to uni?

£24K for someone aged 26 is quite low. The median grad salary (age 21-22) is now around £30K even in typically poorly paid jobs like teaching.

Your earnings are low- not much more than minimum wage- and maybe you need to focus on advancing your career by studying and getting more qualifications if they are relevant?

If you do meet someone and it becomes a permanent relationship, you aren't bringing much to the table, in terms of your priorities. Unless they too want a ho-bo type life.

I don't blame you for wanting to travel, you're only young once. You won't be on £25k forever so I wouldn't worry too much. Enjoy yourself and spend your money as you choose, it's your life.

The thing is, when you return from travelling you'll be different and will you still be content to be living with mum and dad? I know when I was young I'd rather have starved than still be at 'home'.

I think OP that you are living your best life on the income you currently have. And why would you not?
Homebuying is out of reach for you, even if you were to save a substantial deposit as the income multiplier still isn't enough to buy as a single person. So, yes, go and travel. I don't think many people when looking back regret such experiences.
But in my mid fifties I do regret not being able to buy and am stuck in rented without security. It is a worry.
Of course, life can change and quickly. You could meet someone and together wish to buy your first place. So finding the balance between spending on travel and saving for the future is the key. Future you will be glad you put some money aside.

I see what you're saying and tbh if your parents are happy to have you there then can't see what the issue is AS LONG as you're paying them something to be there. My husband (then boyfriend) and I spent our savings on a year long round the world trip when we were 26, it could have gone towards a deposit but we wanted to travel.

Now I have a child I'm so glad I did as that kind if trip now isn't accessible as even when he's grown I'd not want a year seeing him. I'd also be older and that kind of travel of constantly moving and sleeping on 30 hour buses etc woukd be wearier. We were renting our own flat when we saved though so bit different but I had flack from my brother at the time for not using the money to get on the property ladder, but no regrets here.

This is not at all true. The government tops you up 25% anything you save that year, each year until you're 50. So if you save £4K thats now £5K. Better than any interest rate available! And then theres the actual interest on top. Plus you can have a stocks and shares LISA, so your money can grow even more.

My DS will be 25 soon..he earns £30k ish..he's happy at home with us. No rent to pay. He's got a decent chunk saved though..

OP could even consider buying with a (or said) friend as a means to get on the property ladder. People do this if they struggle to buy alone or not in a committed relationship.

Surely at some point you’re going to want your own space and be the adult in your home? You should at least be preparing financially for that moment?

this

Get yourself mortgaged to the hilt OP. Life is all about accumulating material possessions and building status. Just hope that the incomparably amazing "babies first steps" don't happen during business hours, because you'd be at work, and you'd miss it. It's very easy to find a bitter, regretful person with lots of assets and no life experience.

It’d be cheaper to take a sabbatical and go to Asia for 3 months than to go for lots of individual European trips. Then once you’ve got the travel bug out your system you can come home and start saving to leave home. Or would you work abroad for a while?

My 22yr old son and his gf have started a LISA. I have always encouraged my kids to get on the property ladder as soon as they can.

Sorry, slightly off topic, but have you investigated buying the lease of your house? (So that you then own the freehold?) Leasehold houses are very unusual (unless there is a communal garage or communal grounds shared between a number of houses). Our house was leasehold when we were buying it - it was an end of terrace, about a hundred years old, but historically was leasehold, so the solicitor got in touch with the person who held the leases, negotiated, and we paid a sum of money and we now own the freehold. Is this something you could explore?

Yes, it's awful when you think about how the quality of young people's lives have worsened over the last few decades.

Why is an earning adult being subsidised?

You’re being silly. Most of us were not earning more than you are when we were 26. We still had flat shares with dodgy house mates or rented a room somewhere. In my case, I moved to Asia (travelling!), got a job there and a dodgy flat share. It was great. I was not saving for a house deposit at 26. But I wasn’t living at home either. You can still work and travel and plan for the future.

I met Dh at 28 and we still travelled. We used our 30s to save for a house deposit. Yes, a whole decade of saving, but we still enjoyed life while doing it. Bought our first house (nearly £1mil) at 40. Have a lovely life with lots of travels and hobbies and 2 dc.

We are definitely not sitting at home being sad about our mortgage. We’re actually grateful that the mortgage we pay on this massive investment of a house is only a bit more than we used to pay in rent. We will pay off the mortgage in the next 10 years with overpayments and be mortgage free the rest of our life. When we eventually die, the house, worth probably closer to £2mil by then, will be a great inheritance for our dc.

All that from being 26 and making like £18k a year. Life will not always be how it is in your 20s. But you do have to work for it.

Nah, OP is hoping others are happy to do this on her behalf, then she can just live there.

The poster isn’t even going travelling she’s talking about it taking a few holidays ! Op I’m married have a house and little kids - and use all annual leave and bank holidays to go away various places - we go camping in the uk warmer months and drove around Europe and long haul every other year ! Travelling I thought you meant packing up for 6months to a year which would actually probably be cheaper if you went to Asia it something

That sounds like a good idea.

I think the idea of working abroad for a bit is wonderful. Have you thought about this, OP?

I get living at home while you’re saying for a deposit. But living at home while blowing money on travel seems really immature and short-sighted.

You complain that you can’t afford somewhere nice, but you will still have to move out at some point (unless you plan to die there?) and if you’ve spaffed all your money on travel your first home will ne considerably smaller and dingier and in shitter area than if you’d saved up a good deposit over time.

Unless you’re hoping Prince Charming will swoop in?

I’d forgotten about the sex drive thing! You are so right. Apparently testosterone levels have halved over the last generation. Also, when I was young, having a boyfriend over to stay the night was verboten. Today, it’s quite common for young adults’ partners to stay over.

Really the ease of living at home plus this series of short trips away that can be taken in low season means you absolutely should be able to save something. I stayed in some youth hostels overseas when young, that’s a great way to meet others on trips and still one of the cheapest ways.

What are your base expenses, amounts parents and then phone contract, travel to work and essentials?

My DS is a similar age to you and does still live at home, though at his GF house relatively often. He went on 2 overseas trips last year totalling 3 weeks but is also saving for a deposit. They are holidays not travelling, travelling really means an extended trip, DH did this is his twenties for close to 2 years. Working in 3 different countries for a couple of months each time to further fund his travels.

Yes, think about this OP, if your parents hadn’t secured themselves a home you wouldn’t be in the position you are now.

I bought at 29 and it was a struggle. I had sleepless nights worrying about bills and did my shopping at Kwik-Save (remember that?). But roll on 25-30 years (I would have been paying rent if not a mortgage during that time) and I was mortgage free. Something I’ve been very thankful for during Covid (I lost my job) and other uncertainties in life. The one certain I had was that I no longer had to worry about paying a monthly mortgage or rent. How can anyone regret that?