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What Deposit Do You *currently* Have Towards Buying


beerhunter

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HOLA441

For FTBer's only please... (perhaps an STR'er would like to do similar poll)

One of the bullish "taunts" is that as soon as prices drop, FTB'ers will pile in.

I'm not sure this is true for a number of reasons, but as a gauge as to when, I'd like to ask a question:

As a FTB, how much of a deposit do you have?

Since we all earn different amounts, I think replies as a percentage of your regular income (ie before tax but excluding bonuses/overtime) is a fairer measure.

ie if you earn £20,000 (excluding overtime/bonuses) before tax, have £6k in savings towards a deposit then x = 6/20 = 30%, so your answer is "30% <= x < 35%"

Thanks.

[i hope I've got this new poll thing right... so much more hassle than before!]

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HOLA443

0! Im in debt! As a graduate without a silver spoon in the cuttlery draw, It'll be at least 3 years before I can muster a decent deposit (by that I mean 15k +). The only other young profs I know who can afford a house these days are either prodigeous entreprenours, or have a lot of help off mummy and daddy, or who are extreme misers.

At the age of 25, perhaps I should be in credit, but economic awareness has been tempered by enjoying the world in my my initial post-grad days...woe is me!

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HOLA445

Earn 32k. Assets and savings of about 20k. How? Living with parent B4, now renting a room (not a house) for 300pcm. Shared house renting is cool if your flatmates are good - better than living alone. I believe in living well within your means today to have a better lifestyle tomorrow.

If HPC happens i'll buy a house. If not i'll emmigrate and take my valuable skills to another country. I know someone who did this during the last bubble - for the reason of house prices.

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HOLA446
For STR's...

100% plus ?

I would hope so B)

However I suspect there are probably more FTB'ers "in the wings" than STR'ers in the country (however I suspect there are more STR'ers here as a percentage of the posters), so please don't skew the poll. Thanks.

If a STR'er would like to post a similar poll..

Percentages are meaningless - I have x in deposit.

That is y% of a £100K property, or y/10% on a

£!,000,000 property.

ABB

But there is a constraint on how much a bank will loan you... based on salary.

Therefore comparing deposit with salary makes sense.. ok the multiple maybe x5 today.. and x3 tomorrow... and hence affect the price you can buy at, but deposit stays the same relative to salary.

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HOLA447

Still too many variables, I could and wouldlelect to front more

deposit on a cheaper place, rather than borrow the most I can.

Not everbody will buy at the same time or on the same multiple.

Maybe a more useful poll would be:

'How many year's salary do you have saved for a deposit?'

ABB

(just over one for me, so 20% at 5x, or 33% at 3x...)

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HOLA448

A miserable 6K :( , of which 2.7K belongs to the lovely Student Loans Co. :angry:

Still, a year ago I was -5K, so I suppose I should be happy about being +3K now - no football for me last year :(

When I compare myself to other people around me, 5-10K SL debt, and (d'oh!) huge credit card bills - mustn't grumble...10K will be a 15% deposit on a terrace in Swinedon next year, right Bears??? :unsure:

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HOLA4410

10 years salary in savings (I'm a tight git, but aim is when it hits 25 times I am retiring)

Obviously wouldn't use all for a deposit, but have earmarked 160-170,000GPB for property, and would go for 50% mortgage, 50% equity.

But most likely in Vancouver or Perth, OZ...

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HOLA4411
Guest KingCharles1st

Will have a measly, but significant, 50K to invest in property in Jan if I so desire. But would rather use it for 1 year to double its value in my business, and then use it, along with the fact that the prices will have crashed another 15%, OR can get a 15% more expensive house for the same money.

I might wait longer. At the moment, the "quality of life" available from my money in rented for say 900-1000 per month, far outstrips that which I could afford by mortgage, going in cold and new in the South East over 20 years. I was only going to live once last time I checked...

I actually think now that we never really got out of the last crash totally, and will watch with glee as desperate sellers chase the market down too late with the desirable properties, slowly slowly catchee monkey etc.

If I was STUPID enough to buy at the this present worrying time- I would have to lie about income and do a self cert 15% down, ie Immediate negative equity 5 year millstone city.

Unless of course I bu something really cheap n nasty "one bed flat over chip shop" style monstrosity- but then go back to the previous statement, except double the time in neg equity and no quality of life...

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HOLA4419

I have up to 150% of our combined salary, or 200% of mine (but it's in the shape of a Keyworker equity loan, so it doesn't count. In actual cash, it's 8k, or 5% of the 160k I'd be prepared to spend on a slightly scabby 3 bed terrace in a slightly scabby outlying area of SE London (current price 190k and up)

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HOLA4423

26 and I earn 21, I have 3.4k in savings but about the same in debt! Hopefully though if I stick to my guns over the next 2 years I hope to have 10k, and will have cleared my debts. Ideally I would like a 15-20k deposit, with maybe 3k of it to cover furnishings like a fridge etc. Starting a new job on 26k so hopefully if a 20% drop in prices over the next 2 years + with a 2 bed flat at about 150k on avg currently and a 10k deposit and a bit of wage inflation should all fit into a 3.5 times mortgage. Thats the theory anyway

All this talk of 50k-100k deposits for a FTB surely must be STR's etc? If not fair play!

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HOLA4424

24 years old on a salary of 20k rising to £24k next year.

I have approximately 30k as a deposit. I have been able to save 20k cash over the last two years and was fortunate to get 10k from my parents in shares when i was 18. Confident that the shares will retain value over the next year and intend to put more into it rather than soley cash as i have been.

i have 10k student loan but it makes no sense to pay it back given its charged at 2% and id get 4% plus ina bank. Currently paying back £39 per month through my pay check.

Edited by defweb
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HOLA4425
24 years old on a salary of 20k rising to £24k next year.

I have approximately 30k as a deposit.

i have 10k student loan but it makes no sense to pay it back given its charged at 2% and id get 4% plus ina bank. Currently paying back £39 per month through my pay check.

I wish I'd been as organised as you after graduation, and been thinking in terms of saving a deposit!

BTW, student loan interest is now up to 3.2% as of this month - still just about worth keeping your money in the bank, my Egg account gives about 3.6% after tax now that my ISA is maxed out for the year. If IRs fall by another 0.5%, I'll be paying off my loan instead. And setting fire to the loan agreements, then dancing on the ashes.

£39pcm on 10K?? I pay £70pcm on 2.7K :o Do recent grads pay over 10 years now or something? (mine is over 5 years, the last one was taken out in 1995)

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