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Original poster

What would you do in my position?

31 replies

DoItAgainPlz · 08/09/2023 19:43

I've been feeling a little lost and at a dead end recently. I'm posting here for advice.

I'm currently single and 30 years old, with no children.

I earn around £33k pa and have around £120k in savings.

I've spent my time boomeranging between renting and living with my parents. I'm currently living with my parents and now I'm no longer in my 20s, I'm finding it difficult to see a way out.

I just want an idea of where I'm at, financially. I know I don't earn a great deal, but I feel I have substantial savings. I would like to buy a house but I feel my income is too low. Would you agree?

Is it a total pipedream for me to buy somehwere while I'm where I'm at on the pay scale? Is there any easy way I can boost this to be earning £40k - £50k?

OP posts:

Montydin · 08/09/2023 19:45

No one can answer what your earning potential is without knowing your job or skill set.

You seem to be doing fine to me, plenty of people I know that age earn similar and £120k is a huge amount to have saved. Where do you want to live? It would be enough to buy a home in a lot of northern cities for example.

Riverlee · 08/09/2023 19:51

I just put 33k in a mortgage calculator and it says you could borrow up to £148000. Depending on how much you want to borrow, you could easily look for a house or flat for £200000- £230000, and that would still leave some money in the bank for furnishing it, and some emergency savings.

OnlyFoolsnMothers · 08/09/2023 19:52

Where in the country do you live and what do you do? Logic would said job hunt and see what salaries you qualify for.

ApocalypseNowt · 08/09/2023 19:52

Well done you! You e got a great savings pot.

What area of the country do you live in?

TedMullins · 08/09/2023 19:56

How much are flats/houses where you live? That’s a fuckload of savings, you could easily buy a property up to 250k using your savings as a deposit and getting a mortgage on the rest

Original poster

DoItAgainPlz · 08/09/2023 20:02

Thanks all.

I'm in the North - I would be happy to settle in areas around either Manchester or Newcastle. That's also part of my dilemma to be honest.

Manchester has become so expensive post-pandemic, though. I feel like I've been priced out of the place.

I have a degree in a STEM subject and I'm working in a field that's finance/data/insurance-adjacent. The best way too boost my salary would be to continue with the professional qualification I started studying towards - but I'm finding the exams quite difficult to pass and haven't really progressed.

I would be tempted to get a new job but ultimately I feel like I can only move into entry level roles and that may involve taking a pay cut. I can't imagine successfully breaking into a new role on a higher salary.

OP posts:

Montydin · 08/09/2023 20:09

With those savings you could use them to top up living whilst you retrain? If you were careful you would still have enough for a deposit.

CatsOnTheChair · 08/09/2023 20:17

With those savings, I'd buy a 2/3 bed outright round where I bought my first house (current prices 100-110k) and live rent/mortgage free.

ManchesterLu · 08/09/2023 20:18

If you're in the North, you'd be able to get a small house (decent condition too) for 120k. You're in a much, much better position than lots of other people, but don't waste any more money renting.

Changingplace · 08/09/2023 20:21

You have more than enough in savings to buy somewhere, just do it.

Have you applied for a mortgage offer in principle to know what you can borrow? There’s plenty online, in your shoes I’d be house/flat hunting asap.

TheFormidableMrsC · 08/09/2023 20:32

CatsOnTheChair · 08/09/2023 20:17

With those savings, I'd buy a 2/3 bed outright round where I bought my first house (current prices 100-110k) and live rent/mortgage free.

Do you mind me asking where?

cheesetoastybut · 08/09/2023 20:34

Keep studying you’ll get there! Ask for help from people who have done the quals…

ps amazing deposit!!!!!

Vandhana1986 · 08/09/2023 20:35

This reply has been deleted

This has been deleted by MNHQ for breaking our Talk Guidelines.

Montydin · 08/09/2023 20:36

@TheFormidableMrsC there are places around Leeds where you can buy property in a fairly decent area with that budget - Pudsey, Morley, for example. There are also nicer areas of Wakefield where you could get a 2 bed terrace for close to that, Horbury, Middlestown, Netherton are a few I know of.

AnIndianWoman · 08/09/2023 20:40

Look at Mancester and Sheffield commuter towns where the rental market’s decent and get a mortgage for a small 2-3 bed terrace using as little of your savings as possible, then rent it out. Then after a year use that passive income to boost your options when you take out your personal mortgage. That’s how I climbed onto the property ladder many moons ago.

Montydin · 08/09/2023 20:55

Going against other advice but I would think carefully before getting involved in BTL properties. Most ‘cheap’ houses around Leeds for example have low EPCs and you may find them expensive to upgrade to meet standards to let. Read up on reasons landlords are selling up and go in with your eyes open.

Stomacharmeleon · 08/09/2023 21:01

If you don't feel ready to settle have you thought about travelling? Think of what you could do!
Life is incredibly short. (Sorry if this sounds maudlin.

Original poster

DoItAgainPlz · 08/09/2023 21:17

AnIndianWoman · 08/09/2023 20:40

While this sounds appealing, I'm quite risk averse and like @Montydin says, I'm not convinced it would work for me, so not too tempted to go the BTL route.

I think the closest thing to this would be getting a lodger once I do buy - though I would have to see how I felt about that at the time.

OP posts:

Original poster

DoItAgainPlz · 08/09/2023 21:21

Stomacharmeleon · 08/09/2023 21:01

If you don't feel ready to settle have you thought about travelling? Think of what you could do!
Life is incredibly short. (Sorry if this sounds maudlin.

I have thought about this! I have no real ties to the UK and would love to live a life where the weather is nicer and have some culture.

While I'm not keen on "travelling", I would like to settle elsewhere for sometime - be it Europe or a little further.

Now is the perfect time, but it seems so daunting and I don't speak a second language. I don't even go on holidays much so it would be a huge change!

OP posts:

Stomacharmeleon · 08/09/2023 21:36

@DoItAgainPlz just think of the places you could try out :)
Am now living vicariously through you and making a list!

heartofglass23 · 08/09/2023 21:41

It's daft to have that amount sitting is savings rather than in property.

Get an IFA and buy a flat!

Original poster

DoItAgainPlz · 09/09/2023 00:04

heartofglass23 · 08/09/2023 21:41

It's daft to have that amount sitting is savings rather than in property.

Get an IFA and buy a flat!

I agree. I have some pedestrian investments but feel like if I could/should be getting a better return.

OP posts:

nannynick · 09/09/2023 06:41

You don't need an IFA to start investing some of the money.

A couple of books, podcasts and YouTube will teach you what you need to know.

Two books I would start with are:
The Meaningful Money Handbook
The Simple Path To Wealth

I would think about where you want to live, as if you want to live and work abroad then that will affect what you do with the money.

Whyohwhyohwhy123 · 09/09/2023 06:47

Get a second job and then save really hard for a year ( it’s what I did for four years actually). House prices are likely to drop a bit more and then you can buy something decent with a small mortgage.

Changes17 · 09/09/2023 08:52

Can you find a job in your sector abroad? That could be an easy way to travel while maintaining your career.

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