House Deposit - Saving
House Deposit - Saving
Author
Discussion

kiethton

Original Poster:

14,297 posts

196 months

Thursday 8th September 2011
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Unsure as to weather to put this here or in the lunge but here goes...........

I'm looking at trying to move out of my parents house as soon as possible and need to look at saving up,

I ideally want to buy my first home, and thus a deposit needs to be saved (although parents are offering some help in about a years time) and even the cheapest places around here go from £160k. (ideally in Bromley/Lewisham/Beckenham areas and a walk away from a Train/DLR station that goes into London Bridge/Cannon St/Bank). I will need to save £8-10k myself as a deposit to put towards even the cheapest houses around here (parents subsidising remainder to take me to the 10% figure and fees etc. with me repaying them with lodger income).

Luckily I start a new job in the city on monday morning which will see a much higher income which should help towards this, I see myself being able to put away 700+ a month all being well, which should see me being able to move out in a years time. however how do I manage to make the savings work for me as they need to be achieving over 5% to beat inflation. I am not starting with any real amount although 2k can be put together fairly easily so needs to be more of a regular saver arrangement.

I have also seen new builds (lewisham development offering the new buyer scheme meaning a very low deposit) but view these as overpriced and lack any car parking which could be an issue although like the thought of a new home. How do people rate these schemes?

The other option is to rent but this would be wasted money in my opinion although an escape from the nagging and being able to spend time with the GF without being disturbed without warning would be a definite benefit!

So the main point to this is what would you do, move out now bite the bullet and rent (paying somebody else's mortgage), save up for 6 months and get a brand new home (high service charge, no parking and overpriced IMO) or save up for a year and do it normally (although savings are in effect loosing value frown ) I really have no idea!

Pulse

10,922 posts

234 months

Thursday 8th September 2011
quotequote all
I think you're worrying too much about making money on your savings. You're going to have bugger all in fairness, so you don't need to worry that you may not make 5% on what you save.

I would stick it out at your parents for a year if you can, and save up to get a place you really want. House buying is not cheap, and it's not a process you want to repeat in a year or so when you realise you hate the place you bought previously because you couldn't wait. Additionally, I wouldn't bother moving out to rent somewhere unless you can find somewhere really cheap - it's not worth it if you're really trying to save.

In short, you will need to sacrifice to buy a house. It is worth it in the end though.

Sarnie

8,233 posts

225 months

Thursday 8th September 2011
quotequote all
Pulse said:
I think you're worrying too much about making money on your savings. You're going to have bugger all in fairness, so you don't need to worry that you may not make 5% on what you save.

I would stick it out at your parents for a year if you can, and save up to get a place you really want. House buying is not cheap, and it's not a process you want to repeat in a year or so when you realise you hate the place you bought previously because you couldn't wait. Additionally, I wouldn't bother moving out to rent somewhere unless you can find somewhere really cheap - it's not worth it if you're really trying to save.

In short, you will need to sacrifice to buy a house. It is worth it in the end though.
^^ This.

mcflurry

9,179 posts

269 months

Friday 9th September 2011
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kiethton said:
and even the cheapest places around here go from £160k...
ideally in Bromley/Lewisham/Beckenham areas and a walk away from a Train/DLR station that goes into London Bridge/Cannon St/Bank). !
Or move out further ?
Houses in Chatham and Gillingham (50 mins from Cannon Street) start at around 100k


kiethton

Original Poster:

14,297 posts

196 months

Friday 9th September 2011
quotequote all
Thanks for all of the help guys, I guess the constant nagging is clouding my thinking somewhat.....what would be best, ISA's? premium bonds?

re. moving further out it is possible however I like the area i'm in, my GF works for lewisham, I'm currently in Orpington and all friends are centred around Bromley and being 22 the friend aspect is very important as far as i'm concerned. I guess i am very sociable and thus moving further out would grate rather quickly, plus the current <1/2 hour trains to town are a benefit....

  • i know i will end up paying more/saving longer though

davepoth

29,395 posts

215 months

Friday 9th September 2011
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You'll be very lucky to beat inflation without hitting stocks and shares, which can be risky. Use your ISA allowance though.

Grandad Gaz

5,220 posts

262 months

Monday 12th September 2011
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My youngest daughter is in exactly the same position as you and is probably looking at around the same price bracket.

She has been saving hard for about a year now. Like your parents, we have agreed to help her out when she has saved £10k. Hopefully she can start looking for a house after Christmas.

Don't waste your money on renting, is my first bit of advice!

I would advise against a new build. You pay a premium on such properties and, like you say, parking can be a pain.

I have suggested that she looks for a house with room for improvement. That way we can all muck in and help her modernise it.

As for your savings, why not try premium bonds? Believe it or not I actually won £25k about 10 years ago. You just never know!

Good luck anyway. You will not regret it in 10-15 years time smile