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'i'm 20 And I Own A £250,000 Four-Bed House'

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http://www.bbc.co.uk/newsbeat/article/34804311/im-20-and-i-own-a-250000-four-bed-house

By Rick Kelsey Newsbeat reporter

For most people in their teens and 20s buying a property is a distant and unachievable dream.

It often means years of saving only to scrape enough together for a small flat.

But Ellie King, 20, and Rory Schurer-Lewis, 22, weren't prepared to accept the wait.

And now they are proud owners of a large four-bed detached home. Newsbeat went to Cheshire to find out what they did to make it all happen.

This is how they did it

Ellie and Rory bought their home via the government's Help to Buy scheme which meant they could borrow 20% of their deposit.

They needed to raise £12,500, which was 5% of the house value, plus other fees. Ellie says they wanted somewhere they could "grow into".

Critics and Labour say the scheme still doesn't help poorer people who can't afford to raise the deposit in the first place.

"We both grew up in detached homes. It's hard to explain without sounding like a huge snob. We were just used to having our own space."

Help to Buy in England has two different elements, although similar schemes are available in Scotland, Wales and Northern Ireland.

You can either use the mortgage guarantee scheme or the equity loan scheme.

Mortgage guarantee means people with a small deposit get government backing on their ability to repay the rest of the loan.

It enables lenders to offer young buyers a 95% mortgage.

In the equity loan scheme the government lends 20% of the deposit for a house, which borrowers must pay back after five years.

This opens doors to better mortgage deals because buyers can put down a 25% deposit.

There is a catch - this arrangement is only available for new-build homes.

They both saved £500 a month

Even with Help to Buy, Ellie and Rory still needed £18,000 in savings to cover the deposit and stamp duty. So they got saving.

"It was just being really strict with myself," says Ellie.

"I was on an apprentice wage last year. It was a case of always putting a certain amount away."

They both saved a minimum of £500 a month and lived with parents instead of renting for over two years.

Here's the really tough bit - they also restricted their social lives.

Rory earned £27,000, the national average full-time wage, when they bought the house.

"It took being very disciplined sometimes," he explains.

"It is hard but I don't think it is impossible, as some people make out.

"Being an estate agent I see plenty of first-time buyers who've just got their heads down and done the graft.

"I also see plenty of people coming into rented houses complaining to me that they can't get a deposit together and I'm thinking, 'Say no to the night out mate.'"

New help for homeowners

First-time buyers can now get a Help to Buy ISA.

This gives you a 25% cash boost on your savings, to help you own your own place.

Anyone aged 16 and over can open one for any property costing under £250,000 (£450,000 in London) and any mortgage.

You can apply through your bank:

- You can save up to £1,200 in the first month, then up to £200 a month after that

- The government adds 25% tax-free to what's in the ISA when you use it for a deposit

- If you manage to save £10,000 over a few years then the government will pop in another £2,500

- You'll earn interest like a normal cash ISA as well as getting the bonus at the end

The average age at which people are buying their first home has been getting older - it's now 31.

Labour reckons more still needs to be done to make housing more affordable.

"This scheme will provide a welcome help to some aspiring homeowners, but frankly the government has got to do much, much more," MP John Healey, shadow cabinet minister for housing and planning, told Newsbeat.

"It's a scandal that over the last five years the number of young people owning a home has plummeted by more than 20%, while Conservative ministers have halved investment in new affordable homes to rent and buy."

And there was me thinking we were in a housing bubble, clealry everything is fine, the BBC say so, so it must be true.

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What BS propaganda.

Here's the really tough bit - they also restricted their social lives.

Rory earned £27,000, the national average full-time wage, when they bought the house.

"It took being very disciplined sometimes," he explains.

"It is hard but I don't think it is impossible, as some people make out.

"Being an estate agent I see plenty of first-time buyers who've just got their heads down and done the graft.

"I also see plenty of people coming into rented houses complaining to me that they can't get a deposit together and I'm thinking, 'Say no to the night out mate.'"

New help for homeowners

First-time buyers can now get a Help to Buy ISA.

Typical EA tw@t.

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"In the equity loan scheme the government lends 20% of the deposit for a house, which borrowers must pay back after five year"

Well I assume they've got a plan for that.

Wonder if they'll still be together in five years. They might be.

If they've stuck to their guns so far and saved and not gone out and bought ipads and alcohol then they might be ok.

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They both saved £500 a month

Hmmm, so they could save £500 a month each whilst living with parents and not paying any rent. Now they've got a £187,5000 mortgage and owe the government £50,000.

At 4% their repayment on a 25 year mortgage will be £1000.18 so there's nothing left in the pot to put aside cash to pay the government back (£833.33 per month if they want to do it before paying interest), nothing for utilities, insurance, maintenance...

So they're ******ed then eh.

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Sad if true.

Only just out of apprentice wages (doesn't say how much she earns now, or how secure) and he has the secure regular income of an EA! which is usually commission based.

Should be out having fun.. in five years time their mortgage will have to increase by 50k, re-mortgaging into a higher LTV bracket, higher interest rate, with possibly same earnings as now, or even less. That's assuming they will qualify for a re-mortgage.

Lambs to the slaughter, not forced but probably no wise words from older relatives either.

Edited by Andy T

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Sad if true.

Only just out of apprentice wages (doesn't say how much she earns now, or how secure) and he has the secure regular income of an EA! which is usually commission based.

Should be out having fun.. in five years time their mortgage will have to increase by 50k, re-mortgaging into a higher LTV bracket, higher interest rate, with possibly same earnings as now, or even less. That's assuming they will qualify for a re-mortgage.

Lambs to the slaughter, not forced but probably no wise words from older relatives either.

... but would you buy a house off him? It seems he wants you to.

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"Being an estate agent I see plenty of first-time buyers who've just got their heads down and done the graft.

"I also see plenty of people coming into rented houses complaining to me that they can't get a deposit together and I'm thinking, 'Say no to the night out mate.'"

Lolz.

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Large new build - does not compute.

They both saved a minimum of £500 a month and lived with parents instead of renting for over two years.

So presumably zero rent effectively for 2 years. BOMAD by another name. Wonder how they'll manage with mortgage payments.

£50k to pay back to the Gov in 5 years...

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Bloody hell - no wonder the headline's in quotes, that makes it merely delusion instead of lie.

They don't own anything, if you have to borrow the "deposit", you've just got debt - which I'm hard pressed to figure out how they can afford to service. They've spent 18k to owe 237,500. Good luck to them, they'll need it

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Large new build - does not compute.

So presumably zero rent effectively for 2 years. BOMAD by another name. Wonder how they'll manage with mortgage payments.

£50k to pay back to the Gov in 5 years...

The capital appreciation will take care of that. In 5 years it should have gone up 40%.....

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Looks like we have found to answer. Stop going to university and getting into loads of debt instead become an estate agent and earn 27k at 22 years of age.

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An EA in his 40s I know of earns a vast some of ~20k/year.

I know as his wife whinges to my mine about his lack of earnings.

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I know we see through this rubbish. However, how many tweenies are excitability whatsapping their BAEs to tell them they can buy a 250k house, life is great, where doing what everyone else is doing, then we can get a French bulldog and tattoos!!

FML

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