Saving for a house deposit, how does anyone do this now...

So most Millenials don't have the latest phone,
they don't have takeaways and nights out and they don't buy takeaway coffees, they don't have a foreign holiday or Sky TV
The ones I know? Most of us have had the same phone for about 4 years and it costs about 20 quid a month. Nobody has Sky, its pointless. Maybe one takeaway coffee a week. Make our own lunch or heat a tin of soup for 50p.

You haven't been able to have a night out for about 2 years, if you hadn't noticed, but even before Covid millenials were going out way less than was the case in the 90's and early 00's. Ditto holidays.

When you're paying over half your month's salary to rent somewhere, you have to scrimp elsewhere.
Piece of piss if living at home with parents.
Trouble is these days most of tje youngsters want all the luxuries etc and still think they can afford house deposits etc
:lol:
This.

Especially if you’re renting somewhere. Which if you’re in your 30’s you’re going to be.

I know a lass who has managed to put in the hard yards. Has about 15k saved up, took her 8 years, majority of that she’ll have been on minimum wage. Bank has just declined her for a mortgage based on affordability.

This is despite the fact the mortgage repayments would be about 90 quid a month less than the rents she’s been paying for the better part of a decade.

f***ing shit crack whenever I see anyone come out with the ‘stop buying coffees and takeaways’ line.

My parents bought the house I grew up in in 1989 for 35k. 3 bed terrace. It’s now worth 3 times that. My dad won the deposit playing blackjack in the casino and walked into an estate agents the next day with it.

30 years ago it was a different world
My friend saved up 20k for a deposit which just about got her into a 95% mortgage three years ago round Edinburgh (wouldn't now). Every time she found somewhere within her means, someone with a portfolio came in and just bid 15-20k over the asking price.

Bottom line is people who bought houses in the 70s-90's, had the same conditions been in play as now, most folk wouldn't have managed it then either
 
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I wasn't trying to lecture, I gave examples of what things cost, now going back to the 70s, For a year we saved by not going out, we never had a holiday, we only bought clothes when we had to and I mean had to! I remember having a hole in my shoes for a month, we got no help from family.
Yes if you really want a house of your own then you need to make savings, being F***ING miserable as you put it might be a price worth paying.

I was giving examples
I didn't think you were lecturing mate, but I get so f***ing tired of being told that if I cut my coffee out or didn't buy my lunch I'd manage to get a house. It depends where you live. I work in a big city. We're not talking 80-120k terraced houses.
 
Few posters on this thread with their head up their arse. Average housing costs have massively outstripped average wages since the 70s/80s so its not exactly a simple matter of stopping in or cutting back on the avocado toast.
exactly.
I know some people blow it out of proportion but its definitely a lot harder than some people put it. $500 a month is a big stretch to save every month. So even if you can manage that, after a year you have 6k. That would only be 5% deposit on a 120k house.

On another thread i started, the outgoings that are necessary these days are frightening.
Just to live a normal life.
Rent
Council Tax
Food
Electric
Gas
Car/Bus fare
Mobile
Internet/TV

When i was a kid my mam paid 40 quid a week rent. She bought her house for 18k. So i wish people would fuck off with that "in the 80's we managed. They also managed to have 1 person in the house hold working and be ok. In my household i work a full time 60 hour week. My missus has 2 jobs, equaling around 50-60 hours. Yes we're in a decent position but that is mental when you really think about it
 
The ones I know? Most of us have had the same phone for about 4 years and it costs about 20 quid a month. Nobody has Sky, its pointless. Maybe one takeaway coffee a week. Make our own lunch or heat a tin of soup for 50p.

You haven't been able to have a night out for about 2 years, if you hadn't noticed, but even before Covid millenials were going out way less than was the case in the 90's and early 00's. Ditto holidays.

When you're paying over half your month's salary to rent somewhere, you have to scrimp elsewhere.

:lol:

My friend saved up 20k for a deposit which just about got her into a 95% mortgage three years ago round Edinburgh (wouldn't now). Every time she found somewhere within her means, someone with a portfolio came in and just bid 15-20k over the asking price.

Bottom line is people who bought houses in the 70s-90's, had the same conditions been in play as now, most folk wouldn't have managed it then either
This last bit is exactly it. We're competing with companies and people that started 15 yards ahead. It implies there's a level playing field and there simply isn't - even more so if you come from a poor family or your parents can't help. I just got my head above water recently and had HMRC on the blower about now owing student loan. that's over a grand a year.
 
I know people who drop £40 a week on coffees.
Thats crazy. If im feeling lazy i pick up a Mcdonalds coffee on the way to work and its like $2. Maybe 10 times a month. I will never ever buy coffee from starbucks unless im doing something with the company and it goes on their card. Fuck ever paying $5+ dollars for 1 coffee
 
Unless there’s two of you, you live with parents, have no kids and can hammer overtime, it ain’t happening.

Going to be canny funny in twenty years time when the care crisis results in a housing crisis which results in plummeting values of homes and new builds, freefalling into negative equity
 
I think if you really want to save up then you must start by looking at what you spend your money on.
2 Takeaways a week=£1000 a year,
1 Takeaway coffee a day £900 a year
Nights out, 1 less a month will save £800 a year inc. taxi home
Sim only instead of a contract will save £600 a year.
Sky? = £600 a year
Netflix = £120 a year
It soon mounts up, those will save £4000 a year.
The idea is great, but in todays world you cant live like that. You'd be depressed as fuck living like that for 2-3 years
Is it possible to acknowledge that home ownership is less attainable then it used to be with higher deposits, lower wages relative to house prices and the absurd situation that someone spending £500+ on rent is denied a mortgage for nearly half that amount because they “can’t afford it”, whilst also acknowledging that younger people spunk money away to “live their best lives” on social media?

It isn’t one or the other. It’s both.
This.

I spend $1650 a month on rent. I have seen a house i like that is $900 mortgage (plus $3500 a year property tax) so i would be saving over $400 a month. It has taken me almost 3 years to get myself into a position to make this happen. If i was allowed to buy with a 0 down or even a 5% down I'd be 3 years into a mortgage and possibly be better off financially as i would be saving money every month. However i need 10%. I'm not in a terrible position, i can totally see why others struggle/find it impossible
Unless there’s two of you, you live with parents, have no kids and can hammer overtime, it ain’t happening.

Going to be canny funny in twenty years time when the care crisis results in a housing crisis which results in plummeting values of homes and new builds, freefalling into negative equity
It's just getting hoovered up by companies. We all have to live somewhere, so they hold the cards
I mean at a minimum, we have to pay for water, electricity, food and rent. Without them 4 things we wont be able to work. None of that stuff is cheap anymore.
 
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Lowering expectations did it for me. Accept that your first house isn't going to be your forever home and is just a vehicle to get on the property ladder.

You can get a mortgage with a 5% deposit on a 2 up 2 down terraced house in Hetton for around £70k. It doesn't really matter if you get a high interest rate, it's still going to be proportionally chicken feed and much better than renting. Plus you'll likely be remortgaging/selling after a few years anyway.
Unless when you come to move the value has dropped....which happened to me and that was after spending a fair chunk to solve issues with it being older.

I'd say use the ISA available and help to buy if it is still a thing. But anyone paying bills already (rent or board) on a lower wage will struggle to save imo.
 
I’m not deriding anyones efforts to save up for a house deposit but in my experience it’s nothing new. Mrs K and me bought our first house in 1995 when I left the army. All the financial experts back then were saying that it would be almost impossible to get on the housing ladder for young first time buyers yet we did it fairly easily.
Six months before I left the army I took on a second job at the weekends driving trucks. Mrs K had a second job waiting on at a local Harvester restaurant. We saved what we could.
Anyway, best of luck to the op and anyone else in a similar situation, I’m sure you’ll find a way.
 
It’s the same now as it was in 70s 80s etc
you have to do without simple luxuries and save your money
This , I never had a proper holiday after getting married for ten years, unfortunately most people have always had to make a lot of sacrifices to manage buying a house and other ‘luxuries’ were non existent,it’s really nowt new even though that narrative is very popular now.
 
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We were renting for 4/5 years and after all our outgoings and absolutely zero luxuries, we still could not really get anything substantial saved. We were very fortunate in that my grandparents were looking to sell their house and sold it @ £15k undervalue which effectively secured us a mortgage without a saved deposit. It was a bit of a fart on going down that route, but got there in the end.
 
This last bit is exactly it. We're competing with companies and people that started 15 yards ahead. It implies there's a level playing field and there simply isn't - even more so if you come from a poor family or your parents can't help. I just got my head above water recently and had HMRC on the blower about now owing student loan. that's over a grand a year.

It really isn't. There was a period from mid 90's to early 00's when it was easier. Then it became harder between '04-'08. The rest of the time between 70's to now price to salary ratios have been fairly consistent. Of course I'm just talking about the North, and prices down south have gone silly, but if you've moved from up here to down there you can't really complain as it's a choice you've made.
 

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