When is too young to buy as a young professional?

[mankieminj]

DD and her boyfriend are looking to buy a place together in London. DD is 23 and about to start training as a solicitor (on about 60k), but a job isn’t promised after 2 years qualification. If she did get one she’d be on big £ (over 150k aged 25). Her boyfriend is 25. He works in finance and is on around 100k.

They’re looking at buying a one bed flat together in a posh area of London. Might they be better to wait a few years before buying? And by then they might have the deposit for a two bed. I guess it’s always a risk about possibly losing your job, but for young professionals, when is “safe”.

I understand they are in a fortunate position and far luckier than most, but with their situation comes different risks/problems.

IMO they'd be mad not to buy if they can afford it.

Why wait? I bought my first place at 19

They should buy but have a legal agreement in case they split up.

What would likely happen is the higher earner buys out the lower earner.

The sooner the better, without a doubt.

In their shoes I would absolutely buy! I bought my house at 27 earning a third of what your DD earns.

Please advise her to buy as tenants in common rather than joint tenants though, in case their relationship breaks down.

There's no sense is paying money on rent if they could buy, even if all they can buy is a one bed flat. But off topic, they've done well haven't they? £100k at 25 is A LOT of money!

They should buy now, I doubt it's going to get dramatically easier. Well done to them.

stealth boast much😂

What is the benefit of waiting? Dh and I bought at 23 (38 now). It's better to buy as early as you can!

I think that tying your romantic and your financial lives together in your early 20s is risky.

The only thing I’d caution about is the one bed. If buying as a couple I’d want a second bedroom if I could afford it, even if it means another year of saving. Moving in London is expensive with stamp duty, so a bit of future proofing is sensible.

In their position I wouldn’t worry about job security and I also think it’s sensible for her to base her mortgage affordability on a £60-£80k salary. She doesn’t want to get stuck servicing a debt that needs a £150k income as that will give her no flex to go to a less intense firm.

Me too

I wasn’t earning that but I bought just as I turned 23 (viewed at 22, completed at 23). I never rented. Absolutely the best decision I ever made.

Buying a house or flat isn’t permanent- if plans change they sell and move on. We had to buy and sell 3 times in 7 years at one point. No-one died (and we made money).

A second bedroom would also give them the option of a lodger if they split up and need the extra income while they sell and disentangle finances. It’s a shame she’s not buying independently but it’s tricky if they both want to live together and get on the ladder.

Bought my first flat at 18.

Financially yes they should. But they are quite young to entwine themselves financially.

Being financially committed at that age is a big deal, especially as it's not equal and DD would end up in a situation that she's not financially independent, ie living a lifestyle and area that she can't afford on her own.

She's 23 and yet to qualify and secure permanent work.

So no I would advise them to wait and edge their bets when they are actually secure. Save for their deposit, do some travelling etc instead.

I'd buy too. As a solicitor I'm sure she'll have no problem finding a job. Better to buy now than spend tens of thousands on rent.

I bought at 19. DH was 23.

It all worked out well for us in the end (we're still together after nearly 20 years anyway!) but honestly when I think back now it seems like another person's story. I don't know what possessed me as a 19 year old to actually buy a house with my boyfriend of two years. It seem madness.

Exactly. Who needs to find themselves that young in a situation where they may feel compelled to stay on in an unhappy relationship because they need the other person’s salary to service the mortgage? You see it often enough in middle-aged unhappily-married posters on here, but it would be a potentially huge and costly mistake for people right at the start of their adult lives.

I wouldn’t buy now - their salaries in a few years (which based in their areas of work will explode) will afford them a much better property and they will be more certain about their future together. At their salaries and future earning potential they can afford the luxury of keeping their options open through renting for now.

if she is embarking on a training contract at a firm paying that much on qualification (I’m assuming a top us law firm) then she will get a good role somewhere else even if they don’t keep her on at qualification. So I don’t think buying is a risk. I think it would be sensible for them to look for something else with her current salary and his as then she won’t be caught by golden handcuffs - they should focus on something they can resell easily for when more money is coming in and they know where they want to settle. As noted above, they need a clear agreement in place regarding their respective ownership in the event they break up. I worked at a us law firm myself and bought a house when I was 23, a small starter home, nothing fancy or expensive. Sold after 3 years for a 4 bed house where we stayed there for 6 years. We moved again last year.

I think it's sensible to buy now. The price is good now while the rent is mental. The only caution is whether they lived together before? If not, quite a risk tying to each other in such a big asset.

They would be taking a risk to buy now imo. Everything is stacking up against property values, at least in the short term. Tell them to wait 12 months and save as hard as possible to build the deposit. Then they should be able to skip straight to a 2 bed.

don't think it's the deposit being the real issue actually, I think they would rather have a mortgage of 3k a month rather than 5k a month for a 2 bed for example.