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

[West_Winger]

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.

Well we don’t have any takeaways, work from home and don’t have nights out so that’s your idea fucked.

 

[Seaham Towny]

I got married. A lot of people gave us money.

We had savings in H2B ISA as well. We got said savings mainly through not going out and stuff.

It is hard, it’s doable certainly.

 

[zwartekat]

Just did the math, it's a 660 per month increase

It sounds a lot but it's about £80k over ten years which would probably be a bit disappointing if it was a property in the South East.

 

[42]

Respectfully, this thought process falls down in two ways.

1.) It implies that every 'luxury' is just that. I work a job whereby my hours vary massively. Sometimes I'm done at 2pm in the afternoon, others I'm working 11am-11pm. I don't work shifts so there's little warning for these things. I get a takeaway more often than not out of necessity than desire to have decent food at an inflated price.

2.) That £4k a year gets you maybe halfway towards a decent ish starter house so you'd be doing it for two years and that's with absoulutely no unexpected emergencies. It would also have you f***ing miserable. You'd be eating in everyday, with no form of entertainment at home, no way to watch the football. I also don't get a daily coffee.

My issue with being lectured by people about what us young-ins need to do is the clear and apparent fact that it's not what previous generations went through. There were no tuition fees. Jobs paid fairly, offered security. Houses weren't priced out for first-time buyers. To a man everyone I know has had to have help with their deposit. Maybe question why that's the case instead of telling young people they should eradicate anything deemed a luxury including a night in front of the telly with a pizza.

1) I fail to see how that's a necessity? Just hoying some frozen food in the oven is actually more convenient than takeaways (and a lot cheaper)

2) I think the £4k was meant to be over & above what they were already putting away. Although it's somewhat overstated as as my Sky & netflix combined costs half of what is suggested. Although in the NE £4k deposit can get you a 95% mortgage for a canny starter home

3) depends what you say as previous generation, as those who bought houses prior to mid 80's most certainly did make those kind of sacrifices. My parents made do with deck chairs for their living room furniture. And much of the other household stuff was 2nd hand when they bought their 1st house.

 

[Darlo1973]

Just did the math, it's a 660 per month increase

Think mine is more than that. It has gone up in value around £100,000 in 11 years which is £750 a month which is a lot more than my mortgage has been. It has to be the best investment ever.

I got a big helping getting my deposit together when the company I was working for was acquired so we all got a cash windfall based on length of service. It meant that I could go in with a bigger deposit and lower interest rate which kept my repayments reasonable.

 

[TexasMackem]

Delaying getting on the housing ladder for a bit longer shouldn’t be a big deal.

Depends on circumstances that though. If the o/p is paying £500+ a month rent for example, while waiting to accumulate a bigger deposit/earn a promotion, that could prove to be counter-productive in the long run.

 

[wisemensaysteve]

Respectfully, this thought process falls down in two ways.

1.) It implies that every 'luxury' is just that. I work a job whereby my hours vary massively. Sometimes I'm done at 2pm in the afternoon, others I'm working 11am-11pm. I don't work shifts so there's little warning for these things. I get a takeaway more often than not out of necessity than desire to have decent food at an inflated price.

2.) That £4k a year gets you maybe halfway towards a decent ish starter house so you'd be doing it for two years and that's with absoulutely no unexpected emergencies. It would also have you f***ing miserable. You'd be eating in everyday, with no form of entertainment at home, no way to watch the football. I also don't get a daily coffee.

My issue with being lectured by people about what us young-ins need to do is the clear and apparent fact that it's not what previous generations went through. There were no tuition fees. Jobs paid fairly, offered security. Houses weren't priced out for first-time buyers. To a man everyone I know has had to have help with their deposit. Maybe question why that's the case instead of telling young people they should eradicate anything deemed a luxury including a night in front of the telly with a pizza.

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.

Well we don’t have any takeaways, work from home and don’t have nights out so that’s your idea fucked.

I was giving examples

 

[UpTheDuff]

Respectfully, this thought process falls down in two ways.

1.) It implies that every 'luxury' is just that. I work a job whereby my hours vary massively. Sometimes I'm done at 2pm in the afternoon, others I'm working 11am-11pm. I don't work shifts so there's little warning for these things. I get a takeaway more often than not out of necessity than desire to have decent food at an inflated price.

2.) That £4k a year gets you maybe halfway towards a decent ish starter house so you'd be doing it for two years and that's with absoulutely no unexpected emergencies. It would also have you f***ing miserable. You'd be eating in everyday, with no form of entertainment at home, no way to watch the football. I also don't get a daily coffee.

My issue with being lectured by people about what us young-ins need to do is the clear and apparent fact that it's not what previous generations went through. There were no tuition fees. Jobs paid fairly, offered security. Houses weren't priced out for first-time buyers. To a man everyone I know has had to have help with their deposit. Maybe question why that's the case instead of telling young people they should eradicate anything deemed a luxury including a night in front of the telly with a pizza.

Respectfully, if you finish at 2pm on occasions you have a lot of time to cook with cheap ingredients and do batch cooking. One afternoon you could cook a whole load of bolognese, curry, shepherd’s pie, lasagne, daal, etc etc and fill up half the freezer. Then on those 11pm finishes rather than a takeaway you can pop a homemade ready meal in the microwave or saucepan in just as much time ordering a takeaway takes.

 

[Wilfy]

I've just sold my house on Monday. It increased in value over the 10 years we've owned it by around 550 a month.

Mental.

Ours went up £50k in just under six years. Was expecting it to have gone up about £15k at most when we had it valued. One wanted to try for an extra £20k on top of that but we were realistic.

 

[NorthCountryBoy]

Depends on circumstances that though. If the o/p is paying £500+ a month rent for example, while waiting to accumulate a bigger deposit/earn a promotion, that could prove to be counter-productive in the long run.

~[90%] of an equivalent £500 mortgage payment will be going on interest rather than capital though, so the difference in ‘wastage’ between that and renting isn’t huge.

Obviously house price appreciation/ deprecation kicks in too but that’s impossible to predict either way.

 

[EreManYaLittleDivvy]

Turn wherever ya living now into a farm.

Get a new job

I've heard blow jobs pay well.

 

[scotch]

Are you on a low wage? If so, look into a help to save account. 50% bonus.

Sell some crap you don't need on eBay, or wherever and save it.

Definitely going to look at opening the lifetime isa this month

 

[sonson]

Respectfully, this thought process falls down in two ways.

1.) It implies that every 'luxury' is just that. I work a job whereby my hours vary massively. Sometimes I'm done at 2pm in the afternoon, others I'm working 11am-11pm. I don't work shifts so there's little warning for these things. I get a takeaway more often than not out of necessity than desire to have decent food at an inflated price.

2.) That £4k a year gets you maybe halfway towards a decent ish starter house so you'd be doing it for two years and that's with absoulutely no unexpected emergencies. It would also have you f***ing miserable. You'd be eating in everyday, with no form of entertainment at home, no way to watch the football. I also don't get a daily coffee.

My issue with being lectured by people about what us young-ins need to do is the clear and apparent fact that it's not what previous generations went through. There were no tuition fees. Jobs paid fairly, offered security. Houses weren't priced out for first-time buyers. To a man everyone I know has had to have help with their deposit. Maybe question why that's the case instead of telling young people they should eradicate anything deemed a luxury including a night in front of the telly with a pizza.

It also implies people do those things to start with. Most folk I know in their 30s without a property don't get takeaways, don't but lunch or coffees every day etc. Because they can't f***ing afford it.

Saving 4k a year on luxuries is working on the assumption that people have 4k a year to toss off on these things. Most millennials looking to get on the housing ladder don't. That's the whole point. They're already incredibly thrifty, but without wages rising and inflation outpacing wages, that thrift disent grow into capital. It can't.

 

[Edinburgh Black Cat]

Respectfully, this thought process falls down in two ways.

1.) It implies that every 'luxury' is just that. I work a job whereby my hours vary massively. Sometimes I'm done at 2pm in the afternoon, others I'm working 11am-11pm. I don't work shifts so there's little warning for these things. I get a takeaway more often than not out of necessity than desire to have decent food at an inflated price.

2.) That £4k a year gets you maybe halfway towards a decent ish starter house so you'd be doing it for two years and that's with absoulutely no unexpected emergencies. It would also have you f***ing miserable. You'd be eating in everyday, with no form of entertainment at home, no way to watch the football. I also don't get a daily coffee.

My issue with being lectured by people about what us young-ins need to do is the clear and apparent fact that it's not what previous generations went through. There were no tuition fees. Jobs paid fairly, offered security. Houses weren't priced out for first-time buyers. To a man everyone I know has had to have help with their deposit. Maybe question why that's the case instead of telling young people they should eradicate anything deemed a luxury including a night in front of the telly with a pizza.

Cooking in batches can partially solve issue 1. Bolognese/curry/pizza - can be prepped and cooked when you have time and reheated with minimal effort.

 

[Tadger]

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.

 

[Edinburgh Black Cat]

Definitely going to look at opening the lifetime isa this month

Get as much in as you can before the end of the tax year (start of April)

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.

Totally. You even get bizarre situations where people fail affordability checks for a remortgage and could get stuck on a higher Standard Variable Rate

 

[Silly Point]

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 is very true. I've realised I'm getting nowhere fast so spent my savings on a trip to Antigua for the cricket

Think it's something you can only really have a chance of doing on an average to below average wage if there's two of you and as there's no chance of that happening unless I have a major change of heart or meet someone completely worth it, I thought what's the point, just enjoy life while I can.

 

[wisemensaysteve]

It also implies people do those things to start with. Most folk I know in their 30s without a property don't get takeaways, don't but lunch or coffees every day etc. Because they can't f***ing afford it.

Saving 4k a year on luxuries is working on the assumption that people have 4k a year to toss off on these things. Most millennials looking to get on the housing ladder don't. That's the whole point. They're already incredibly thrifty, but without wages rising and inflation outpacing wages, that thrift disent grow into capital. It can't.

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

 

[Seaham Towny]

It also implies people do those things to start with. Most folk I know in their 30s without a property don't get takeaways, don't but lunch or coffees every day etc. Because they can't f***ing afford it.

Saving 4k a year on luxuries is working on the assumption that people have 4k a year to toss off on these things. Most millennials looking to get on the housing ladder don't. That's the whole point. They're already incredibly thrifty, but without wages rising and inflation outpacing wages, that thrift disent grow into capital. It can't.

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

 

[Its Him Again]

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