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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:
Gobleki · 22/10/2023 18:17

Sorry, can I just check, you do know that you can only get 4.5x your salary don’t you? So if cheapest place is 350 and you have a 40 deposit you will need to be earning 77000?

MotherOfRatios · 22/10/2023 19:06

Gobleki · 22/10/2023 18:17

Sorry, can I just check, you do know that you can only get 4.5x your salary don’t you? So if cheapest place is 350 and you have a 40 deposit you will need to be earning 77000?

Yes I'm aware of that

OP posts:
Yocal · 22/10/2023 19:20

Slow and steady away. Keep saving, keep increasing your income and you will get there. Try enjoy yourself in the meantime...doing free things.

You sound like you know what you want. That's a good thing. You just need to be patient. But I don't begrudge you a moan about London house prices.

MotherOfRatios · 22/10/2023 19:23

Yocal · 22/10/2023 19:20

Slow and steady away. Keep saving, keep increasing your income and you will get there. Try enjoy yourself in the meantime...doing free things.

You sound like you know what you want. That's a good thing. You just need to be patient. But I don't begrudge you a moan about London house prices.

Agree!

it's just ridiculous that older generations could literally buy a house much easier.

It's definitely doable within four years I was recently offered a house for £200,000 in west Croydon through pocket living and I went in visited and I just didn't like the area I prefer East Croydon so hopefully more of these homes will be built. I have also looked at save to buy where you pay rent, but that essentially goes to your deposit and then once you have the right amount, they let you buy the place

OP posts:
Yocal · 22/10/2023 19:31

This might not be possible anymore, but some people I know who lived in London, it will be 15 years ago now, rented a 4 bed and then rented the other rooms out so they didn't have to pay any rent as it was covered by them managing the rooms.

That would, if you can do it, be a quick route to saving up your deposit sooner. If you can be bothered.

MotherOfRatios · 22/10/2023 20:00

Yocal · 22/10/2023 19:31

This might not be possible anymore, but some people I know who lived in London, it will be 15 years ago now, rented a 4 bed and then rented the other rooms out so they didn't have to pay any rent as it was covered by them managing the rooms.

That would, if you can do it, be a quick route to saving up your deposit sooner. If you can be bothered.

Doing something like this doesn't align with me morally or ethically I have done a lot of work on the house in crisis and shouted a lot about landlordism etc and I'm not about to be a hypocrite.

OP posts:
KievLoverTwo · 22/10/2023 21:12

I have read this thread again some amusement.

Get a husband.

Move to Milton Keynes.

We don't have racism here.

Anyway, other people's opinions aside, I have a few things to add:

I think flat prices in London will continue to fall, and by the time you have your deposit together in 3-4 years, you might be looking at a far better, bigger quality of property.

I think around Croydon is a good idea, it's pretty diverse, has been for the decades I have known it.

I admire your determination to remain child free and single, however, I would also add, when you get into your mid 30s, it can get a bit tiresome. Friends couple up and reproduce, and if you don't keep making new (younger) friends, a lot of your social circle will be a lot less available.

London itself can grind you down over time. I was ready to get out by mid 30s, but then I only ever really worked and lived there because I never really felt I had any other choice. I never had the confidence to up sticks and remove myself to a completely different location where I knew noone. I didn't have the means, I didn't have the balls.

Perhaps in the future, when your career has developed to the stage where YOU can dictate the location of the work you take on, somewhere like Brighton might suit you better - say in ten years, for a longer term home. Always people coming and going, always something happening, not necessarily centred around family life, people of all ages in all the places.

I find your determination and reserve admirable, OP.

It's really interesting to see an increasing number of young people on this board in the last few months who are absolutely determined to not be financially screwed over with ball and chain mortgages, taking on ropey houses that haven't been maintained, and so forth. To an extent, it works in your favour that you are not going to have cheap credit thrown at you, because you can now observe from afar the spectacular fall out that's going to occur over the next few years from people who mortgaged themselves to the hilt (sometimes because they had no choice, sometimes because of wanting to keep up with the Jones). People who have never owned a home (myself included) are learning a lot of lessons from other people's past financial decisions (and an awful lot about governments and the housing market).

You keep doing exactly what you are doing because when you do finally buy, I have no doubt the end result will be absolutely brilliant.

(there are still some HORRIFICALLY racist areas in Kent, if the time comes and you want to head that way, do lots of research)

Yocal · 22/10/2023 22:23

You're on a high salary for your age and clearly an aptitude for saving. I agree with PP that flats in London are not holding or rising in value at the rate of knots that once was. Good for you sticking with your values. All you need is patience and the same continued success in your income. You will be able to afford somewhere probably sooner than you think. Wishing you good luck 🍀

MotherOfRatios · 22/10/2023 23:42

KievLoverTwo · 22/10/2023 21:12

I have read this thread again some amusement.

Get a husband.

Move to Milton Keynes.

We don't have racism here.

Anyway, other people's opinions aside, I have a few things to add:

I think flat prices in London will continue to fall, and by the time you have your deposit together in 3-4 years, you might be looking at a far better, bigger quality of property.

I think around Croydon is a good idea, it's pretty diverse, has been for the decades I have known it.

I admire your determination to remain child free and single, however, I would also add, when you get into your mid 30s, it can get a bit tiresome. Friends couple up and reproduce, and if you don't keep making new (younger) friends, a lot of your social circle will be a lot less available.

London itself can grind you down over time. I was ready to get out by mid 30s, but then I only ever really worked and lived there because I never really felt I had any other choice. I never had the confidence to up sticks and remove myself to a completely different location where I knew noone. I didn't have the means, I didn't have the balls.

Perhaps in the future, when your career has developed to the stage where YOU can dictate the location of the work you take on, somewhere like Brighton might suit you better - say in ten years, for a longer term home. Always people coming and going, always something happening, not necessarily centred around family life, people of all ages in all the places.

I find your determination and reserve admirable, OP.

It's really interesting to see an increasing number of young people on this board in the last few months who are absolutely determined to not be financially screwed over with ball and chain mortgages, taking on ropey houses that haven't been maintained, and so forth. To an extent, it works in your favour that you are not going to have cheap credit thrown at you, because you can now observe from afar the spectacular fall out that's going to occur over the next few years from people who mortgaged themselves to the hilt (sometimes because they had no choice, sometimes because of wanting to keep up with the Jones). People who have never owned a home (myself included) are learning a lot of lessons from other people's past financial decisions (and an awful lot about governments and the housing market).

You keep doing exactly what you are doing because when you do finally buy, I have no doubt the end result will be absolutely brilliant.

(there are still some HORRIFICALLY racist areas in Kent, if the time comes and you want to head that way, do lots of research)

It's interesting as a lot of my friends also want to be childish and single. I think my generation compared to my mum and dad is very different in that regard. But yeah they might decide to have kids who knows.

I get quite a lot of calls from shared ownership sales people offering me flats constantly so something is happening if they can't get the buyers.

yes there's definitely racism in Kent. I'm not scared to move as I wasn't born and raised in London but I know the experience I did have up north is not something I wish as an adult which is why diversity is so important to me and probably why London has such a chokehold on me.

In regards to my career, I might get into my 40s and think I want to change careers, but I truly do love my job and maybe over time it will become less London based but I don't know if that will happen in my lifetime as politics has always been concentrated in London.

i'm hoping in four years, I should be in a better position. I definitely should have at least progressed into a leadership role. I am also currently working on different side hustles as I enjoy writing so looking at that and non-executive director rules which often pay quite well. I have done quite a few panel roles this year that have paid quite well.

OP posts:
KievLoverTwo · 22/10/2023 23:53

MotherOfRatios · 22/10/2023 23:42

It's interesting as a lot of my friends also want to be childish and single. I think my generation compared to my mum and dad is very different in that regard. But yeah they might decide to have kids who knows.

I get quite a lot of calls from shared ownership sales people offering me flats constantly so something is happening if they can't get the buyers.

yes there's definitely racism in Kent. I'm not scared to move as I wasn't born and raised in London but I know the experience I did have up north is not something I wish as an adult which is why diversity is so important to me and probably why London has such a chokehold on me.

In regards to my career, I might get into my 40s and think I want to change careers, but I truly do love my job and maybe over time it will become less London based but I don't know if that will happen in my lifetime as politics has always been concentrated in London.

i'm hoping in four years, I should be in a better position. I definitely should have at least progressed into a leadership role. I am also currently working on different side hustles as I enjoy writing so looking at that and non-executive director rules which often pay quite well. I have done quite a few panel roles this year that have paid quite well.

If you are tethered parliament, sadly that really limits your choices. But do remember Scotland, Wales and NI also have their own parliaments.

Also, If you live in Ireland for five years, you get European citizenship back (I think).

Zanatdy · 23/10/2023 07:24

I feel for you OP. It’s so tough living in London and the SE. I’m mid 40’s, got 3 kids and feel the same as you. Buying on your own around here feels impossible sometimes. I grew up in the north, so could (and might in 3yrs when youngest DC is 18) move back, and buy a nice house, but I love living near london and do enjoy much of what it has to offer - theatre, galleries etc, no clubbing now I’m old! I can afford a 2 bed flat now, but I’m in 2 minds as current interest rates mean paying out around 50% of my salary on mortgage repayments.

Where I am (near Caterham) you can get a 1bed for 220k. One near me for sale for that right now, and probably get it under asking price. Prices are dropping, good for us who want to buy. Keep an eye on the market. Trains here are quite good. I’ve got 2 lines but last train back is around midnight, though you can get to purley through the night and taxi.

Lots of sympathy, it’s incredibly tough on young people now, especially in London. Even on high salaries, and when buying alone. Good luck

Zanatdy · 23/10/2023 07:31

Also avoid West Croydon for sure. I work in Croydon and personally wouldn’t live there but there are worse places, but avoid west Croydon.

Where I am, it’s only 13 mins to East Croydon, 30 mins direct to Victoria and is much cheaper than more central London. 2 train lines. Many people move out this way. Very multi cultural still (less so than Croydon, but definitely still multi cultural)

MotherOfRatios · 23/10/2023 10:42

Zanatdy · 23/10/2023 07:31

Also avoid West Croydon for sure. I work in Croydon and personally wouldn’t live there but there are worse places, but avoid west Croydon.

Where I am, it’s only 13 mins to East Croydon, 30 mins direct to Victoria and is much cheaper than more central London. 2 train lines. Many people move out this way. Very multi cultural still (less so than Croydon, but definitely still multi cultural)

I received a call this morning about some properties in east Croydon it seems very gentrified round there my only concern is the bankrupt council

OP posts:
Ginmonkeyagain · 23/10/2023 10:57

What's your budget OP?

Realistically you need about £300k for a 1/2 bed flat (perhaps less than that if you are willing to go out to zones 5/6 and look at ex local authority properties).

In terms of multucultural reas outside of London have you looked at places like Reading or Slough - pretty multiculutral and very quick and easy to get in to London now because of the Elizabeth line.

Gobleki · 23/10/2023 18:51

So you are taking home 4.5 grand a month or more, with no kids. Feel like I need to go back and read the opening post again as I’m sure you were complaining that you can’t get a mortgage or that it’s very difficult. Seems like you’re on the normal path to saving up for a mortgage. Most people spend 2-5 years cutting back and saving up.

BritinDelco · 23/10/2023 23:25

Have you considered Barking OP? That's how I got on the property ladder early 30s and single at the time, away from the new developments it's still pretty affordable, Z4 on 2 tube lines, overground and mainline rail with c2c. Night tube you can take a £10-15 uber from Jubilee and Central lime stations a few miles away.
Very multicultural, a bustling high St (if lower end) and a few nicer places springing up locally.

I see you already looked at Pocket Living, their development there started in the low 200s so there are options

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