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Original poster

R.E Home Ownership feels so unattainable

118 replies

MotherOfRatios · 22/10/2023 13:25

Hi,
I am in my mid-20s and I already have £10,000 saved through hard work. I save around £500 a month.

I live in London, and before you say to me, just move out of London, it's just not realistic. My job is heavily London-based, depending on what is happening in the news, I can be called to last-minute events in London pretty quickly, so for that reason, moving up north isn't realistic because the transport in this country is expensive and unreliable.

I have considered moving Kent way and outside of London just but I still enjoy a night out with friends or a late night event in London and I would then have to get a taxi home which would be expensive because transport out of London doesn't run at 1am/ 3 am like the tube does on the weekend. I'm still young and still live very much a young and care free life.

I was looking at shared ownership, but since the massive mortgage rates increase the prices I just so so expensive but to buy without S/O it is also incredibly expensive.

I guess this is just a rant because I am just so fed up of house-sharing, but also it seems like it will take forever to get a mortgage.

OP posts:
Goodornot · 22/10/2023 16:24

MotherOfRatios · 22/10/2023 15:41

The market I want to buy in is about £320k-385k it is just a case of saving. This was just a post of frustration.

Show quote history

It isn't actually. I have more than 10 times the deposit you do and £385k for a property is pushing it for me.

It is not just a case of saving as property prices rose faster that I could save and now the interest rates make it unaffordable also.

You can't buy because you want what you can't afford and aren't willing to change your location, your budget or desire for 3am nights out.

Freetodowhatiwant · 22/10/2023 16:25

I think you have done really well by saving 10k in your mid 20s! You obviously have your head screwed on and are determined to be able to buy at some point. FWIW when I was in my mid 20s living in London in the mid 2000s NONE of my friends had anything like that sort of saving and most of us bought our first flats (tiny little poky things and/or ex LA) when we were turning 30. We were quite pleased to be able to do that! So you are way ahead of where we were.

That said, the only way I could buy at that point was because I managed to get a 105% mortgage, thanks Northern Rock, as I would never have managed to save enough for a deposit. I realise those throwing-money-at-you mortgage days are over and the ratio of property prices to salary is different these days however to me it sounds like you're actually doing really well. Keep saving and wait a few years, there really is no rush to buy. I don't necessarily think there's going to be a crash but there is a downturn in property prices which has started already so you might well get a better deal once you have enough money for a deposit.

If you really can't buy in London by that point then you could always buy in a town you can afford and rent it out, that way you will be on the property ladder but don't necessarily have to move out of London. For a property like that you can buy it with a 10% deposit on a standard residential mortgage and then in a few months apply for a consent to let agreement and rent it out.

Original poster
MotherOfRatios · 22/10/2023 16:25

Goodornot · 22/10/2023 16:24

It isn't actually. I have more than 10 times the deposit you do and £385k for a property is pushing it for me.

It is not just a case of saving as property prices rose faster that I could save and now the interest rates make it unaffordable also.

You can't buy because you want what you can't afford and aren't willing to change your location, your budget or desire for 3am nights out.

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I think in terms of saving and what I need I'd rather take advice from my financial advisor and mortgage broker

OP posts:
caringcarer · 22/10/2023 16:34

The limit for a LISA is £450k. You can only pay in £4k per year but the government will top it up to £5k per year. Are you considering spending more than £450k on a 1 bedroom flat? If not you'd be mad not to get a LISA and get a free £1k from our government each year. My DS did it for 3 years and the additional £3k basically paid for his solicitors fees.

Original poster
MotherOfRatios · 22/10/2023 16:46

caringcarer · 22/10/2023 16:34

The limit for a LISA is £450k. You can only pay in £4k per year but the government will top it up to £5k per year. Are you considering spending more than £450k on a 1 bedroom flat? If not you'd be mad not to get a LISA and get a free £1k from our government each year. My DS did it for 3 years and the additional £3k basically paid for his solicitors fees.

Several mortgage brokers have advised me this is not wise if I'm looking to buy in London. So I run the risk of putting in there and then not being able to get it out.
property prices could go up by the time I want to buy.
It is riskey to put it all in the isa this has been discussed throughout the thread. I would hope in four years time I am edging towards £80-90k as a salary so I might be able to afford a two bed which is higher than £450k

OP posts:
C8H10N4O2 · 22/10/2023 16:59

caringcarer · 22/10/2023 16:23

I'm white and live outside of Birmingham where whites are now in the minority, my Foster son is the only white player in his cricket team, but so what? Why does it matter? Why do you need to live with people who look like you? Far better in my opinion to live near people who are not racist.

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Do tell us where is this nirvana where no-one is racist? Be prepared for the stampede when you name it.

Goodornot · 22/10/2023 17:08

MotherOfRatios · 22/10/2023 16:25

I think in terms of saving and what I need I'd rather take advice from my financial advisor and mortgage broker

Show quote history

So why are you here if you don't need advice or want to make any adjustments to what you're prepared to do?

As you were.

Turmerictolly · 22/10/2023 17:11

Where to live - London / SE www.mumsnet.com/Talk/property/4919127-where-to-live-london-se

This recent thread might be useful. The person has a large deposit but lower salary than yours by the sound of it - budget around £300K.

okilen · 22/10/2023 17:11

We bought our first property in London at age 33, which is fairly average around here. Admittedly we were able to buy a fairly nice flat, in a central area as we have a high income/large deposit saved from teens, but most friends who have bought here did it in their 30s/40s - not 20s. And we know plenty of people who are on ordinary salaries who have bought in London - they've done it by lowering expectations, opting for ex-council flats in the furthest zones (which is still cheaper to travel in than commuting from outside London as train costs are high compared to TfL zones), and they have the night tube so no expensive cab fares. Have also had friends using shared ownership, right to buy, keyworker schemes, buying with friends or siblings. There are plenty of options out there.

Original poster
MotherOfRatios · 22/10/2023 17:11

Goodornot · 22/10/2023 17:08

So why are you here if you don't need advice or want to make any adjustments to what you're prepared to do?

As you were.

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People are allowed to rant about the housing crisis...

Additionally, some people have given some really helpful pointers

OP posts:
Original poster
MotherOfRatios · 22/10/2023 17:13

okilen · 22/10/2023 17:11

We bought our first property in London at age 33, which is fairly average around here. Admittedly we were able to buy a fairly nice flat, in a central area as we have a high income/large deposit saved from teens, but most friends who have bought here did it in their 30s/40s - not 20s. And we know plenty of people who are on ordinary salaries who have bought in London - they've done it by lowering expectations, opting for ex-council flats in the furthest zones (which is still cheaper to travel in than commuting from outside London as train costs are high compared to TfL zones), and they have the night tube so no expensive cab fares. Have also had friends using shared ownership, right to buy, keyworker schemes, buying with friends or siblings. There are plenty of options out there.

I often see auction homes that are super cheap and look like something really fun to do up but a mortgage broker. I had advised against buying one of these as she said there are too many difficulties you can incur. I am more than happy to buy ex council flat. I am really not wanting a new build or anything.

For the record, I don't want to buy in like zone one of London

im very happy zone 3-5

OP posts:
Original poster
MotherOfRatios · 22/10/2023 17:14

Turmerictolly · 22/10/2023 17:11

Where to live - London / SE www.mumsnet.com/Talk/property/4919127-where-to-live-london-se

This recent thread might be useful. The person has a large deposit but lower salary than yours by the sound of it - budget around £300K.

Thank you, yeah in 3 to 4 years, I should have £40k if I were to stay on my current salary, if I am to move up, salary, probably could save a lot more.

OP posts:
caringcarer · 22/10/2023 17:25

C8H10N4O2 · 22/10/2023 16:59

Do tell us where is this nirvana where no-one is racist? Be prepared for the stampede when you name it.

Show quote history

Obviously it can be anywhere. Well, I am white and in the minority and I have not experienced any racism. Or do you assume only blacks and Asians can experience racism whether in the majority or the minority?

caringcarer · 22/10/2023 17:29

If you are planning to buy alone you'd be very lucky to get a 5 x multiplier especially if you've only got a 5 percent deposit. Lenders require buyers to pass a stress test.

Original poster
MotherOfRatios · 22/10/2023 17:32

caringcarer · 22/10/2023 17:29

If you are planning to buy alone you'd be very lucky to get a 5 x multiplier especially if you've only got a 5 percent deposit. Lenders require buyers to pass a stress test.

I'm aiming for a 10% deposit

OP posts:
Original poster
MotherOfRatios · 22/10/2023 17:33

caringcarer · 22/10/2023 17:25

Obviously it can be anywhere. Well, I am white and in the minority and I have not experienced any racism. Or do you assume only blacks and Asians can experience racism whether in the majority or the minority?

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Well white people don't experience racism, they can experience xenophobia but not racism....

OP posts:
easylikeasundaymorn · 22/10/2023 17:36

MotherOfRatios · 22/10/2023 15:39

You have made a lot of assumptions one I never stated my wage...

secondly, I never said £10,000 was going to get me a mortgage...

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how is any of it an assumption? I'm only going from exactly what you've said - you want to live in a very specific area of the country, you're already (in your mid 20s) fed up of house sharing. I haven't made any assumptions about your wage other than 'not particularly high' which in London could cover a pretty wide spectrum and isn't exactly a completely out there speculation, because most people in their mid 20s aren't at the peak of their earning power.

If you are on a very high wage then save more and you'll be able to buy somewhere soon, great, problem sorted, no need to moan on MN about something most people understand without being told (Why isn't it easy to buy in an expensive location?)

RiderOfTheBlue · 22/10/2023 17:38

caringcarer · 22/10/2023 17:25

Obviously it can be anywhere. Well, I am white and in the minority and I have not experienced any racism. Or do you assume only blacks and Asians can experience racism whether in the majority or the minority?

Show quote history

That's so naive. Your experience as a minority in your area will be very different to the experience of other minorities in other areas.

Celibacyinthesticks · 22/10/2023 17:48

My auntie bought a home on a lot less than me and the house was a lot less than what it is currently valued at today and you just think the young generation has been completely screwed over..

How have the young been screwed over? You are wanting to buy a property by yourself in your twenties in the most expensive city in the country, what did you expect? It costs a lot of money to do that so you either accept you will either have to earn more to pay for it, or move to a cheaper area, this is exactly what the rest of the population has to do if they want to buy a house, it’s called compromise.

Goodornot · 22/10/2023 17:51

I just don't get the OP. Thread is titled homeownership seems so unattainable and she then proceeds to tell everyone else they're wrong and she is right and she can afford exactly what she wants.

There was no need to start a thread then.

caringcarer · 22/10/2023 17:53

MotherOfRatios · 22/10/2023 17:33

Well white people don't experience racism, they can experience xenophobia but not racism....

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I disagree. Anyone can experience racism especially if they are in a minority race/social group and others treat them in an inferior way purely because of their race/social group.

Original poster
MotherOfRatios · 22/10/2023 17:53

Celibacyinthesticks · 22/10/2023 17:48

My auntie bought a home on a lot less than me and the house was a lot less than what it is currently valued at today and you just think the young generation has been completely screwed over..

How have the young been screwed over? You are wanting to buy a property by yourself in your twenties in the most expensive city in the country, what did you expect? It costs a lot of money to do that so you either accept you will either have to earn more to pay for it, or move to a cheaper area, this is exactly what the rest of the population has to do if they want to buy a house, it’s called compromise.

If you don't realise how young people have been screwed over by the government in terms of housing, then that's a you problem, not a me problem.

House prices have risen rapidly. Meanwhile, wages have not kept up in line with wages. You now need a bigger deposit than in previous generations. So yes, the young generation have been screwed over by the housing crisis.... maybe do some reading

OP posts:
Original poster
MotherOfRatios · 22/10/2023 17:53

caringcarer · 22/10/2023 17:53

I disagree. Anyone can experience racism especially if they are in a minority race/social group and others treat them in an inferior way purely because of their race/social group.

Show quote history

I'm not going back-and-forth on this white people cannot experience racism

OP posts:
Original poster
MotherOfRatios · 22/10/2023 17:54

Goodornot · 22/10/2023 17:51

I just don't get the OP. Thread is titled homeownership seems so unattainable and she then proceeds to tell everyone else they're wrong and she is right and she can afford exactly what she wants.

There was no need to start a thread then.

Actually, some people have given some really good suggestions

OP posts:
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