Your chances of owning your own home?

Gilly said:
This keeps getting spouted.

If you are paying the same amount of money renting as you would paying your own mortgage, you are paying someone else's mortgage when you could be paying your own.

Hence the term dead money.

If it was much cheaper to rent I would agree with you.
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The term dead money is such a silly statement. See it as a investment so you can do the job of life.

How many businesses do you know own the property they do business? Not many I know of. Businesses know that by investing their money in other areas (than trying to buy the building they work in) they will make more money.

Its a change of perspective and is never black and white.

People have to do cost/benefit analysis and take into account other investment option as well as all the costs associated to owning a home.

This is seeing it from a financial point of view and I appreciate other life factors should be considered.
 
krooton said:
Luckily I met my gf and together we have been able to get a 1-bed brand new flat.

Mortgage is £560, and service fees are £100, so it's actually £40 cheaper than the room I was renting in a 3-bed flat.

Sure, bills are a bit higher due to being split between fewer people, but that's more than a fair compromise to actually having our own place.

A newish 1-bed nearby is £750 to rent.
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Mind me asking which part of London? I'm guessing far out to the East / south-East?

Also regarding people saying that renting is dead money, I think it totally depends on peoples situations etc, but what really doesn't help is greedy BTL landlords charging double there mortgages and easily getting away with it, but then lolSWLondon I guess :rolleyes:
 
Gilly said:
This keeps getting spouted.

If you are paying the same amount of money renting as you would paying your own mortgage, you are paying someone else's mortgage when you could be paying your own.

Hence the term dead money.

If it was much cheaper to rent I would agree with you.
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Yes because its that simple and you dont need a deposit do you?
 
100% :)

Just turned 27 and have owned my house with my wife for 2 years now.

3 bed link detached in Shrewsbury with lots of nice things in it. OK so I do not own the Exige I wanted 18 months ago but priorities change. I now find myself getting excited looking at TDI's hah.

It is possible, you just need to pin down a good career. We pay 727 a month and put down 26k to buy our first home. Rent would be about the same, so while the house appreciates we are doing quite well. I suspect we have around 50k equity now, having done the whole house up inc kitchen, oak flooring, slate flooring, new doors/windows etc.

By the time I am 50 I want to be retired and mortgage free with a solid pension living in the south of france - im half way there.

We have a joint income of 60k a year
 
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The thing is, a lot of young people can easily save 10k in one year by living at their parents and saving hard. People just prefer to blow it on alcohol, coke and cars. The amount of people of my facebook with new mini's or 1 series I suspect is around 30%. 300 quid a month gone before the other associated running costs.
 
TMP said:
Mind me asking which part of London? I'm guessing far out to the East / south-East?

Also regarding people saying that renting is dead money, I think it totally depends on peoples situations etc, but what really doesn't help is greedy BTL landlords charging double there mortgages and easily getting away with it, but then lolSWLondon I guess :rolleyes:
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SW London, 5 minutes from Wimbledon :p
 
I've been fortunate enough to go 50:50 on a flat with a friend of mine. I saved my half of the combined 25% deposit, whereas his was gifted from his mum. We rent the third room out to a friend, he pays £600 all in, our interest only mortgage totals just over £1000 per month.

The annoying situation is that I don't see us making any money out of a sale of the property over the next five years (unless Whitechapel dramatically improves), however as long as any sale price covers our combined stamp duty then I'll be satisfied. As much as it would be nice to use the property as an investment, I'm enjoying paying a lot less than I would do renting in London and am content with this situation.
 
Tappits said:
27, 25k a year job, Live at home, pay minimal rent.
Don't drink, don't buy expensive clothes, hardly ever leave the house. (my m8's kick off at me all the time for not coming out)
Never had a car thats worth over 5k. don't have a mobile phone (work pays for it)
don't really buy electronic toys very often.
might have 2 weekends (3-4 day weekends) away on Holliday a year.
yet i have 0 savings, end up some how spending everything i get every month.
no chance for a mortgage, my bank said don't even bother without a 20% deposit.
house prices in my area are 100k+
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How on earth do you not save any money? I earn less than you, live in a more expensive area (for rent / beer etc) and have to pay both college and tuition fees, and yet I have managed to save up about £7k this year! Thankfully my partner is in an actual job and earns quite a lot, so between us we've saved up about £17-20k this year - only problem is that that is probably under 10% of a deposit for a house around here!
 
Dave said:
How on earth do you not save any money? I earn less than you, live in a more expensive area (for rent / beer etc) and have to pay both college and tuition fees, and yet I have managed to save up about £7k this year! Thankfully my partner is in an actual job and earns quite a lot, so between us we've saved up about £17-20k this year - only problem is that that is probably under 10% of a deposit for a house around here!
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Unless you go live in Chesterton! ;)
 
Tappits said:
27, 25k a year job, Live at home, pay minimal rent.
Don't drink, don't buy expensive clothes, hardly ever leave the house. (my m8's kick off at me all the time for not coming out)
Never had a car thats worth over 5k. don't have a mobile phone (work pays for it)
don't really buy electronic toys very often.
might have 2 weekends (3-4 day weekends) away on Holliday a year.
yet i have 0 savings, end up some how spending everything i get every month.
no chance for a mortgage, my bank said don't even bother without a 20% deposit.
house prices in my area are 100k+
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Check your bank statements and assess your incomings and outgoings realistically. You are doing something very badly wrong if you can't save money in your position.
 
Tappits said:
27, 25k a year job, Live at home, pay minimal rent.
Don't drink, don't buy expensive clothes, hardly ever leave the house. (my m8's kick off at me all the time for not coming out)
Never had a car thats worth over 5k. don't have a mobile phone (work pays for it)
don't really buy electronic toys very often.
might have 2 weekends (3-4 day weekends) away on Holliday a year.
yet i have 0 savings, end up some how spending everything i get every month.
no chance for a mortgage, my bank said don't even bother without a 20% deposit.
house prices in my area are 100k+
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I don't earn a great deal more than you and have had my own home for 6 years which I purchased for £108,000. I go out for drinks a few times a month, buy clothes when I want, go out for dinner at least once a week. I have a company car which I have to pay tax on and fuel plus a weekend car and motorbike to run. I tend to buy a gadget every other month and have a mobile contract which cost £30 a month. I had two weeks in Florida at Christmas and will be having another two weeks in California next month all paid for.

I have to pay for everything as I'm single and manage to save around £500 a month.

How can you not have any money when you have hardly any outgoings and an income of around £1,500+ a month?
 
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