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waldiman

Am I Doing The Right Thing

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At the present moment in time I am going against what seems the majority and waiting to purchase a new house.

I am not renting because I hate the idea of throwing money away and not ending up with anything when the tenure ends (bar maybe a few cooking skills).

So at the moment I am 27 and living at home with my parents and trying my damdest to save lots of my monthly wage. Although I am not going on holiday and don't own a car, and don't spend much money on clothes I do have other interests that mean I don't do just sit around doing nothing, e.g. season ticket for football, Broadband, Sky Digital and going out drinking from time to time.

I think I have about £45,000 saved thus far. Through some strategic stock market moves (never a certainty) hopefully I'll have accumulated £80,000 within 4 to 5 years. By this time I can foresee the housing market to be down to levels of about 4 years ago. Then hopefully I will have substantial cash to put a big deposit down on a house in a decent suburb of Birmingham and not be overburdened by a huge mortgage. I'll then have sufficient spare cash to be able to fund a leisure laden lifestyle whilst saving more money for the impending retirement (whenever that may be).

So am I being sensible here by waiting, or should I be joining the majority and become laden in mortgage debt?

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Similar postion here, So I think your doing the right thing,

As long as your investments are spread well over different class,

There's plenty of good advice on various ideas for good investments on the Finance board,

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Don't worry waldiman, i'm in the same boat as you (although i'm 24). I plan to continue living with my parents just so I can get a sizable deposit together, although I would love my own home - but I know how depressed I would be if I got a one bed flat in a shitty part of town.

I plan to buy april 2007 (i'm very specific aren't I), and I plan to be able to get a detached by then; basing my calculations on 15-20% falls. If I did move out I would look to lodge with someone...

...so just hang on, it has been proved you would be better off buying now than 1 year ago, and if you continue to wait things will only get better!

On another note, it still amazes me how many people of my age don't save any kind of deposit, even though there on a higher salary than me. I guess they could be lying to me?!?!

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Same as me, I'm 30 still at home I'll have £65k banked by 2008.

I refuse to buy whilst property is falling at the rate it is. When I jump I'll not be living in a squalor but in a place I can put roots down in decent area where I'll stay for the rest of my days.

I'm not a mover by nature, so I will be doing it once only (if I can help it) and doing it right first time <fingers crossed>

:)

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Awooga! Awooga!

The story is just too perfect.

Hold your Horses Phaedrus,

I don't see why just becuase it to perfect it warrents that,

Sounds spot on to my situation and many people I know,

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Hold your Horses Phaedrus,

I don't see why just becuase it to perfect it warrents that,

Sounds spot on to my situation and many people I know,

First post, straight in there, "I'm 27 still at home with the olds blah blah blah..", then a load of others fess up to being in the same situation, it's a wind-up.

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Similar position for me. I am 31 and have £60k currently, mostly in cash. Aim to have £125k by Winter of 2007 by saving from salary.

I am STR but I only owned property for 2.5 years, so only 25k of my 60k is STR money. So I am more similar to FTB in a way.

I rent rather than living with parents. They are very nice but they live in another country!

frugalista

Edited by frugalista

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No really, i'm 24 and I do live with my parents! Nothing to brag about I know.. I'm not fortunate enough to have STR'ed like all you guys/gals!

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Investment policies that will mature in 2008  ;)

That money isn't including what I will save in cash between now and then.

Fair enough but you did write.

Same as me, I'm 30 still at home I'll have £65k banked by 2008.

Which does imply your total worth in 2008, not just current maturing investments, why didn't you write 65K + £1500 * 36 = £119K, for example.

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Same, got a fair bit of cash saved, not enough for my liking and will be saving until I see prices slip sufficiently for me to be comfortable.

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Crikey you lot have been busy saving! Didnt realise people saved up so much! Makes sense but hard to do

Im 26 Ive only just got around to saving, working out how to clear my debts and putting some money aside. Ive only got 4k saved up! Ill only have about 10k within two years though should have cleared debts completely. Hope to get about 15k together before buying a house. Im only on 21k but hopefully will be on I dunno 28 or something by 28, its all in a spreadsheet im cobbling together! Its got a blank sheet called "Millionairess dream girl" on it too just in case I need to add her details to the equation

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How can you be so sure, what if you loose your job in the meantime.

<_<  <_<  <_<

what about buying taking a fatty mortgage loosing you job in, say 1 year... and trying to sell at a lower price than what you paid humm? isn't it worse?

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Why are you saying this scenario is too perfect.

I believe that having hard cash is the greatest commodity of all. The bigger deposit that is put down the smaller your mortgage can be. This in turn means you will be at less of a burden when it comes to paying this off.

Howcome you slated me saying this was my first post. Come on we've all got to start somewhere. I've only recently come across this site and have been enjoying reading the forums.

It could all be a gamble I know, but I feel sure that prices at the moment for houses are too high and and thus I am just playing the waiting game. So that houses drop to a more sustainable level, when those with hard cash will have the greatest opportunity available.

If we turned back the clock four or five years, I would of been 2/3rds or so of paying for a 3 bedroomed house in a fairly nice suburb of Birmingham. I would of paid for my house by now that's for sure.

Let;s hope these times return.

Edited by waldiman

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WIf we turned back the clock four or five years, I would of been 2/3rds or so  of paying for a 3 bedroomed house in a fairly nice suburb of Birmingham. I would of paid for my house by now that's for sure.

Oh, you're a Brummie, fair enough then, suddenly evrything is clear. Carry on. ;)

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Waldiman,

I am also in a similar situation to you, but 5 yrs older.

Not much fun living with your parents at my age, but i'm lucky that they are happy for me to stay as I can save alot more.

Have also dabbled with the stockmarket, and lost 10k so be careful !!

There seem to be alot on this thread who will be in a similar position when the price is right, but I don't think its that common outside this forum.

Most of my friends, who have not yet bought do not save a penny, in fact most have spent their cash on nice cars / women / beer.

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'MY Friend' is also against buying right now and is saving considerably.

In a few years the interest should pay his rent for the year. He currently has about 50k in banks and 10k in mini/maxi isa's and 3k in mini cash isa.

What really pisses me off is how low the margin is to jump to paying 40% tax.

If your savings are making you 3-4k severly limits you from earning before you reach threshold which is about 38k...(i think!)

What investments have you made which will pay out in 2008??

I have company shares that pay out in 2007 if i stay with the company that long and havent left cause they keep giving me shitty 3% pay rises.

I have real problems with GF's though. Cause they keep leaving me cause i wont buy. They dont have any long term visions. i only rent rooms to keep all bills down. Really F..ks me off because they walk away from someone who is cash rich 70k because he rents. Surely they must understand that in a few years hell be the f..king king ina 4 bed house with a sauna, jacussi etc when they are being used like the local bike to get by by some chav council house mink!

Edited by delboypass

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Same as me, I'm 30 still at home

This is one hell of an indication that things are f****d up. When blokes dont leave home untill their thirties there is something twisted going on with this country.

My folks had dropped 2 sprogs and had a 4 bedroom detatched house with a few acres (in Poole) by 30'ish. (My dad was a plumber of sorts)

I am not knocking you, its sensible if you get on with your folks, but it seems like people earning a good wage trying to save have to put large parts of their life on hold.

I cant live at home, and I made a poor career choice (am just finishing a PhD) so do not feel too bad Mr_Sminty as I have about 3K after 4 years of 50-60 hour weeks and living on beans on toast!

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'MY Friend' is also against buying right now and is saving considerably.

II have real problems with GF's though. Cause they keep leaving me cause i wont buy. They dont have any long term visions. i only rent rooms to keep all bills down. Really F..ks me off because they walk away from someone who is cash rich 70k because he rents. Surely they must understand that in a few years hell be the f..king king ina 4 bed house with a sauna, jacussi etc when they are being used like the local bike to get by by some chav council house mink!

Do you really want to be with someone who is only interested in your net worth?

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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