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Buying a flat/apartment

Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
Hey the poll the other day asked who here would own their own house before 30. Just wondering, if you're a student, and renting in halls etc, do you put money away each month to save up for a deposit on a flat after you graduate? Or will most people just take out loans from banks to pay for a house? Any replies are welcome because I'm trying to put away a set amount of money each month.

I am not very property savvy and it's kind of scary. :blush:
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Comments

  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Getting a loan from a bank for a desposit isn't usually the best idea. Some mortgage lenders will tell you to sod off.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    I can't afford my rent as it is, let alone saving for the future :(
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    i won't be saving for living after uni while i'm at uni - i can't afford to. plus i'll no doubt end up at home when i've finished my degree so i can find a decent job. then i'll think about saving for a house!
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    I've got a bit stashed away for when I leave uni :)

    although that depends entirely on when I eventually leave uni...
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Plenty of people just rent, unless they're settling down, getting married etc. Remember with the housing market the way it is buying tends not to be a great idea in terms of investment.

    Personally, i'd only buy property to rent.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    if i could afford to then i would save some each month but i really cant.. although i do have a savings account from when i was younger where my mum used to pay money in every month which has quite a bit in which im not going to spend until after uni.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    While I was at uni I always knew I'd end up moving back to my parents for a bit. I have done but I'm aboiut to move in with my boyfriend, only renting we're gonna save up what we can for a couple of years then look to buying somewhere once we are settled with jobs.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Just wondering, if you're a student, and renting in halls etc, do you put money away each month to save up for a deposit on a flat after you graduate?
    now... how is any student supposed to be able to afford to do that... :confused:

    i think once i graduate from uni and have a secure full time job, then yes. i'd probably look at maybe buying somewhere... it'd be a proper house though. not a flat. i live in a flat atm and its not exactly ideal imo. 'nuff said.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Some flats are nicer than terraced houses.

    I want to buy as soon as I can, but wouldn't get a 100% mortgage to do so.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Kentish wrote:
    Some flats are nicer than terraced houses.

    I want to buy as soon as I can, but wouldn't get a 100% mortgage to do so.
    ... you'll be a doctor. the banks will love you! :p
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    We got a 95% mortgage for this rather nice terrace in a rather nice part of town. The rest came from the Parental Banking Corporation plc.

    It's probably a good idea to save a bit if you can. We've tucked away money for the deposit, but then went and bought a house before the ISA matures. Oops.

    The 95% mortgage isn't a problem- it costs us just about the same than if we were renting in our poky flat.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    otter wrote:
    ... you'll be a doctor. the banks will love you! :p
    Possibly. But without a decent deposit, buying a house even with a well paid job can be financially unwise. My bank certainly doesn't love me at the moment.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Kentish wrote:
    Possibly. But without a decent deposit, buying a house even with a well paid job can be financially unwise.

    I don't really think so- no more financially unwise than renting.

    At least when you own the place you're not pissing the money away into some thieving landlord's pocket. In theory the money you pay is going straight back into your pocket, as at the end of 25 years you have a shiny house.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Kermit wrote:
    I don't really think so- no more financially unwise than renting.

    At least when you own the place you're not pissing the money away into some thieving landlord's pocket. In theory the money you pay is going straight back into your pocket, as at the end of 25 years you have a shiny house.
    But it's not as simple as that. Renting is unltimately a waste of cash, but depending on the interest rate you manage to get off the mortgage provider, it can be better to rent a cheap place for a while in order to save up for a bigger deposit on your first purchase.

    And taking out a bank loan to pay for the deposit is definitely unwise.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Kentish wrote:
    But it's not as simple as that. Renting is unltimately a waste of cash, but depending on the interest rate you manage to get off the mortgage provider, it can be better to rent a cheap place for a while in order to save up for a bigger deposit on your first purchase.

    And taking out a bank loan to pay for the deposit is definitely unwise.

    Rental prices are linked to interest rates (via the landlord's mortgage) anyway, aren't they?

    Trying to save for a deposit while renting is almost impossible. I'm going to have a go, though...in case my wage gets doubled suddenly (haha) or something.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Kentish wrote:
    But it's not as simple as that. Renting is unltimately a waste of cash, but depending on the interest rate you manage to get off the mortgage provider, it can be better to rent a cheap place for a while in order to save up for a bigger deposit on your first purchase.

    It is really as simple as that, to be quite honest.

    Renting is pouring money away. It doesn't give you any more security. If I don't pay my mortgage I get evicted; if I don't pay my rent I get evicted.

    You'd be saving a very very long time to get a 25% deposit on anywhere. It would have taken us 25 years to save the £25,000 that is a quarter deposit.
    And taking out a bank loan to pay for the deposit is definitely unwise.

    Yes. But I don't think a 100% mortgage is unwise.

    If you can pay the rent, you can pay the mortgage payment. That's all there is to it.

    Tenants aren't safe from interest rates. If interest rates go up to 10%, do you seriously think that rental prices won't go up accordingly? I'm actually safer with this mortgage, as its fixed rate for a good while- certainly longer than the six months which most tenancies last for.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    You're likely to get a different mortgage rate on 100% than, say, a 90% mortgage. And you don't have to rent somewhere of equal cost. The extra costs of owning include buildings insurance, life assurance and all maintenance works.

    Rental prices are linked to property value, but are much more dependent on demand than the property value.

    And, yes, saving is always difficult but if you want to own a home, you have to make the initial sacrifice.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Just renewed a lease, renting is a stitchup, even if the landlord's a nice bloke. But it's the only option you have if you don't earn a significant amount, or have two incomes.

    Do all banks still do it on the 3x salary thing, or some on affordability? I know (some) used to be more flexible.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    It's all done by affordability nowadays because houses are disproportionately expensive.

    3x salary for most people is not enough, and in London probably wouldn't get you anything on an average salary of 25k.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Kentish wrote:
    It's all done by affordability nowadays because houses are disproportionately expensive.

    3x salary for most people is not enough, and in London probably wouldn't get you anything on an average salary of 25k.

    Thank the Lord.

    Even the scruffy bits of London are silly money.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    bad seed wrote:
    Do all banks still do it on the 3x salary thing, or some on affordability? I know (some) used to be more flexible.

    some banks do graduate loans and will lend 4 or 5x your salary. i went to see an independent mortgage advisor (for free!) and she was worth her weight in gold. she knew exactly how to get the best possible deal for me, however i wanted to work it.

    and i am totally for buying, if it's even slightly possible. for the monthly payment on our 2 bed semi, you couldn't even rent a flat in leeds. of couse, you do have expenses and unexpected things to deal with, but in the long term i think it's always a better deal.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    kaffrin wrote:
    and i am totally for buying, if it's even slightly possible. for the monthly payment on our 2 bed semi, you couldn't even rent a flat in leeds. of couse, you do have expenses and unexpected things to deal with, but in the long term i think it's always a better deal.

    I'd find it slightly possible to buy, but only in areas that you'd avoid like the plague. Shame, because Manningham was so nice once. :p
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Kentish wrote:
    You're likely to get a different mortgage rate on 100% than, say, a 90% mortgage. And you don't have to rent somewhere of equal cost. The extra costs of owning include buildings insurance, life assurance and all maintenance works.

    Renting anywhere decent or popular costs money.

    A two-bed flat in Heaton costs more to rent than our two-bed terrace in x (which isn't Cruddas Park, either) cost to buy.

    Buildings insurance is about a tenner a month. It's actually cheaper for us to have buildings + contents than it was to just have contents in our rented flat.

    tenants are actually responsible for minor maintenance anyway. OR it says so in the contract, anyroad.
    Rental prices are linked to property value, but are much more dependent on demand than the property value.

    To an extent, yeah.

    But landlords won't let for less than their mortgage payment.
    And, yes, saving is always difficult but if you want to own a home, you have to make the initial sacrifice.

    I know it'd take me years to save ten grand, let alone twenty-five.

    Andy, if you can get five grand from somewhere, you could afford to buy, if you had a lodger. A two-bed terrace in Queensbury is only about £85,000-£90,000, and Queensbury is very desirable.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    bad seed wrote:
    I'd find it slightly possible to buy, but only in areas that you'd avoid like the plague. Shame, because Manningham was so nice once. :p

    fair point. the only affordable places for first time buyers in leeds are the kinds of places you lock your doors when you drive through in broad daylight. think basra but without the weather :nervous:
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Kermit wrote:
    Andy, if you can get five grand from somewhere, you could afford to buy, if you had a lodger. A two-bed terrace in Queensbury is only about £85,000-£90,000, and Queensbury is very desirable.

    It's alright up there.
    Only problems are the extra commute, 5 grand, and another housemate :p
    Could parachute to Halifax station, though!

    Will start seriously considering buying in about 3 years when I have got rid of my bloody car loan (argh), and earn more.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    kaffrin wrote:
    fair point. the only affordable places for first time buyers in leeds are the kinds of places you lock your doors when you drive through in broad daylight. think basra but without the weather :nervous:

    I found Beeston rather "bohemian". Haha, or so Wikipedia describes it. Christ.
    Bet it was pleasant a while ago, too :(
    Nice view of the city centre, though.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Kermit wrote:
    A two-bed flat in Heaton costs more to rent than our two-bed terrace in x (which isn't Cruddas Park, either) cost to buy.
    I shall assume you're in Walker then....

    Heaton, Sandyford, Jesmond and any other student-dominated areas in any other city in the country will have expensive rental properties if you're on your own, or on one income.

    I'm all for buying, but unless you manage to get an excellent fixed rate 100% mortgage, you'll end up paying more in interest over the 25 year term than if you had saved up a smallish deposit and shopped around. Of course, a mortgage broker or financial adviser is the best person to ask about that.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    bad seed wrote:
    I found Beeston rather "bohemian". Haha, or so Wikipedia describes it. Christ.
    Bet it was pleasant a while ago, too :(
    Nice view of the city centre, though.

    some choice neighbours, too ;)

    beeston actually is still dirt cheap, though you would expect that, cause it's a shithole. although some of the affordable parts of south leeds are not bad at all for the price. we were seriously looking at parts of morley when we were househunting.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Kentish wrote:
    I shall assume you're in Walker then....

    :p

    I'm on the edge of the city, going the other way. But I'm not going to broadcast my address.
    Heaton, Sandyford, Jesmond and any other student-dominated areas in any other city in the country will have expensive rental properties if you're on your own, or on one income.

    Yeah, but even in the arse-end of fenham (I used to live opposite Slatyford bus yard) it was the same as what we pay now. And it's the same in that haven of desirability Wallsend.
    I'm all for buying, but unless you manage to get an excellent fixed rate 100% mortgage, you'll end up paying more in interest over the 25 year term than if you had saved up a smallish deposit and shopped around. Of course, a mortgage broker or financial adviser is the best person to ask about that.

    Probably, although the Northern Rock are very good with 100% mortgages. And you wouldn't keep a 100% interest rate for very long, either, given that you pay off a bit, and house prices rise about 2% a year anyway.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    kaffrin wrote:
    some choice neighbours, too ;)

    beeston actually is still dirt cheap, though you would expect that, cause it's a shithole. although some of the affordable parts of south leeds are not bad at all for the price. we were seriously looking at parts of morley when we were househunting.

    I must admit, I'd probably not live in Leeds, just commute (because it's so bloody quick) from one of the surrounding towns.

    When this lease is up, I'm probably going to try and escape Bradford, though.
    Not enough trees round here.
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