andy130

iTrader: (2)

thanks for the replys chaps, reason i want to invest in house is so my money is safe, an i always have something to relie on, at least if i buy at 22/23 i dont have to work my ass of at 40/50 to pay the bank back, id probly have 15k saved up by 21/22, i would save more if i stayed away from cars ect, if/when i do buy at 22 it would be some where good so that i could rent it ect, so the money id get from the ones renting it would pay the mortgage,

vaughant

iTrader: (1)

Get on the ladder when u can.I'm old enough to remember everything James is saying and in the late eighties property prices were a bit like the boom of three years ago and when he sold it in 98 prices were well low.I didn't own my own house then but remember my parents spending near enough all their pay on a mortgage when the rates went silly,up to nearly 15% iirc?work that out at today's rates and it's silly.

However,IMHO you can't beat property for making money on,my tip is buy a house that needs a lot of work and do it while your still young enough to live at home while you do the work,anyone can do the donkey stuff like stripping out,knocking down Walls etc,just get the trades in for the stuff you can't do or need a good finish on.
If it's a property to make a profit on,which I think your first house should be,then as long as it's finished nice in neutral colours etc,you'll be on a winner,remember you can always rent it if the Market goes shitty,although it won't get much shittier than it is now.

I bought late 99,3 bed semi,huge garden,garage and a swimming pool for 95k,sold it three years ago for 280k,bit below Market value as I sold it too my mum but still a healthy profit.

It's not easy but it's deffo worth it,just don't cripple yourself and the cars can come a little later when you won't have to pay thousands a year to insure them either!!

borgie

id get on the ladder as soon as you feel right to. The earlier the better, and will help you long term. I would sooner have a mortgage than a car loan. I was 23 and felt young to be doing it. now im glad that the mortgage is nearly paid.

EssexMikeSi

iTrader: (3)

im glad no one took any notice of my post earlier coz after reading some of the replies after mine im gonna change my mind and say yeah get a house. As someone else said- get a house then rent it out. The rent money will pay the mortgage and whilst thats happening u could get another house for your own money to pay mortgage on. Before u know it u could well have a few houses with people renting off u paying the mortgages for u. Then later on in life u can sell off a couple and be very comfortable in life.

TOMMY_RS

i could be wrong on this, but if your planning on renting out a house while having a mortgauge iv herd you need a rent mortgague or something like that?

tomS2-Rst

iTrader: (1)

Only Problem with buying two houses and renting one out you got to get the bank to give you 2 morgages or 1 large 1

Im 25 and bought my house 7 months ago. It was hard because being a first time buyer I didnt have alot of morgage offers jumping at me.

I bought my house for Ł138,000 and had to put up 10% deposit which was a killer but last month 1 my nieghbors sold there house for 180,000 so its up and down really.

I say If you cant afford it do it, I rented since I was 19 and our morgage is only a few hundred more than what I was paying rent so had to be done.

But If you cant afford it and it goes tits up you will find it even harder to get a morgage in the future.

mrjenrst

You dont need a buy to let mortgage to rent a house out

TOMMY_RS

oh, like I said, wasn't sure

vaughant

iTrader: (1)

Best to get some landlords insurance though,i will be!!

STAFFY OWNER

Whilst you are making your mind up you would be wise to start saving as hard as you can. If after a few years you think to yourself "bollocks, i'm too young for a house" you'll have a nice amount saved up for something else (like a flashy car). If on the other hand you do decide to buy a house, you will have a good deposit to pay down and the more you can pay as a deposit the better the mortgage rate you can get.

My advise would be to go down the property route.

By the way how do you know that there are going to be cheap houses around in 2/3 years time.

BRAMMER

iTrader: (23)

I found a new build the best way to get on the market - private owners really only want to drop a certain % where as a building contractor will have little more the give away

wobbles

When I was 18 I was still enjoying myself but was still saving for a house etc. Then bought when I was 22. Very gladI did it now.

Rick Astley

If I was in your shoes I would do my best to purchase a property and rent it out to cover the mortgage if possible.

Then I'd carry on living at home.

I'd also be as selective as I possibly could with who I was renting to.

cossie4i+

iTrader: (15)

Bought my first house at 21

Always had cars, holidays etc

I have always gone for a fixed rate mortgage even if the % rate was a bit higher, i also get it fixed over a long term. I like the security of knowing what my outgoings are.

I would go for it

Steve

james kiely

iTrader: (5)

ah good someone who remebers the bad times,as most guys on here who say to buy are pretty young and have not seen what happened in the late eighties to the mid/late nineties ,and have only seen property prices go up .i was just letting andy know its a slog at the best of times .as i said andy build your own house mate ,its definatley the way to go .

rabmc

Well im 29 just, bought a house with the other half 2 and a bit years ago had to put down 13k deposit but if I were to do it again I would buy at 23-24 max!! over 25 is too late tbh IMO, we could be living back at home loaded but you need to move on and get a life really you are a bit young though but you would benefit come towards 30 for sure

Get your own gaff sorted the rest will fall into place down the line!! cant beat your own space.

Psycho Warren

iTrader: (5)

over 25 isnt too late to buy just means youll be paying it off into your 50s.

rabmc

There no "too late" warren but in my opinion 23-24 is a great age too buy for the long term. I will be 51-52ish when mines is paid if iit goes the term which will hoopefully not be the case anyhoo.

Have you got your own place?

Ginger Will

The way I see it is regardless of whether it makes money or not. If you buy in 25 years you will be rent free. If you rent you will always pay rent. Do the maths and decide whether you are better staying at home or renting and get as much deposit as you can. I bought at 19 and haven't looked back. As long as you are happy in the area you buy it is no worse than renting cost wise and YOU will own it.

TrevCos

iTrader: (1)

I'm the older generation and have a mortgage, but I would say don't do it yet, enjoy yourself for a few more years before you saddle yourself with a mountain of debt. You've got plenty of time to be sensible.

arch

I'm 40 now, and a small part of me wishes I had bought a house at an early age, I was nearly 30 when I finally did!!!!

Then I remember why I didn't, cars,holidays,piss ups etc etc and think back to what a great time I had in my 20's. I couldn't have done those things if I'd had a mortgage.

Not advising either way, just my two pence worth.

Psycho Warren

iTrader: (5)

sold it so i can move away from the shit hole that is stoke when i finish uni!! I dont fancy being stuck in stoke trapped by the pathetic wages, low skilled work and employment discrimination in other local areas against those from stoke. Stay here too long and i will get trapped!

twoblacklines

I wouldnt buy a house at my age (24) unless i could afford to buy it in cash with no mortgage.

Have fun whilst your still below 30 tbh.

jammerrs

well im 17 now and the way i see it is get a house as soon as you can and yeah you might struggle for a few years but when your 30/40 and got a family you are a bit comfier money wise

id love to buy a house then get a 2nd one to rent out or sell on etc as soon as i can so i can get more money for when im older. yeah its fun getting slashed everyday now but when you have kids/misses etc surely its better to be in a nice relaxed finacial state rather than still owing the bank 10s or even 100s of thousands?

Alan_D

I really don't think the housing market has bottomed. Infact I'd say there is going to be a pretty severe down leg again at some point. Possibly up to 30% off where prices are now. That doesn't mean necessarily in nominal terms, but certainly in real terms I think it could happen. Remember, houses are not always an investment; what we've been through over the last decade was a speculative bubble. They're an investment if you buy them to let and actually get a decent yield from them. But in the sense that the price should rise... forget about it. It will rise in paper value, but not real value.

It's a place to live. So it doesn't matter if you rent or buy to be honest, you're not throwing your money away renting, because it's giving you somewhere to live, which is the purpose of a house. Lol

Whatever you do though, don't buy on an adjustable rate mortgage that you can barely afford at the moment, when interest rates are at record lows. They're going to go right up and ruin everyone who's done that.

danneth

Theres pro's and con's to buying or not buying just decide whats right for you, i bought my house when i was 23 and my outgoings went from around Ł400 a month to Ł1400 im glad i got on the ladder while i did but at the same time i do wonder what i could have done with all the spare money i would have had if i had waited a few more years

mrjenrst

alot of that didnt make any sense to me? 30% decrease to come, who say's? Worth on paper?!?

STAFFY OWNER

+1.

BIGMATT1

i would think very carefully about what u want to do with your life, my house has fucked my life, i bought for 176k 3 years ago and spent another 10 ish k on it, now its only worth about 140-150k due to economic climate and my life circumstances have now changed, we now have another kid so more child care, the cars we run have become old and starting to need money spent on them just to keep em on the road, cost of living has gone up and missus has now lost all intrest in the house and would rather spend her money on other things! im always at work as much as i can be and when im not im stressed about earning money just to pay the bills. Cant afford to sell the place but it does take all my time and money, leaving me with fuck all time or money to spend with the kids hence why i hate the house, a lot of people have made a lot of money on property and im sure plenty have lost as well!

mrjenrst

bigmatt not been funny mate but it's down to your circumstance's. You still pay the same amount on the mortgage yeah?

STAFFY OWNER

At the moment most mortgages have come down by a huge amount so unless he took out a fixed rate mortgage he should actually have more money in his pocket.
If he took out a fixed rate mortgage 3 years ago and is still paying at the fixed rate then it's not really the mortgage that is causing his problems because this hasn't actually changed.

mrjenrst

exactly, he's still paying the same/less as the mortgage he took out and was happy with at the time. So i dont really see the relevance?

johnandhissaffy

iTrader: (1)

do what you want mate all the best to ya always good to have dreams

Psycho Warren

iTrader: (5)

I will be buying again ASAP after uni when out of stoke as long term its always better to own. in the long run you will ALWAYS make money on property unless we have a sudden population cull by about 30% and even then it would recover eventually.

plus i like the idea of being old and not having to worry about paying for the roof over my head. especially in this day and age where the state pension just wont exist for us young'uns and private/company pensions are getting shitter by the day.

Mitch2.0

Bought my property 4 years ago when I was 18, Ł122k 1 bed buy to let. In fairness it's probably only worth about 130k now, despite going up to Ł150ish. I'll keep it for a while I think, probably borrow off the strength of it for my first place of my own. I could of spunked the money like a lot of people my age do, but at least I've got something to show for it.

I love these idiots I work with who don't drive (or if they do it's a KA), have no rent to pay, and seem to run out of money before pay day. Losers, what do kids spend their money on these days, crack?

POPEYE

I bought a year later than you James and know excatley what your talking about, Everyone thought the market couldn't get any lower so bought places, trouble is it kept going down,lol

AGAR-COSWORTH

Good thread - I'm looking to buy my own place in 6-9months time at the age of 23.

From a personal point of view, my reasoning behind buying property rather than renting is that I'd rather be paying money towards something that I own (ie investing), than be paying rent and effectively pissing money down the drain with zero return. It doesn't make sense to me to be renting somewhere when you can afford mortgage repayments towards something that you will actually own.

I'd only ever buy a property if I intended living in it, and not "buying to let". For me the property market is just too unpredictable to merit the risk of potentially making a profit on such a purchase for someone at my age. I know someone (similar age as myself) who has bought a second property with a view to "buying to let" who honestly thinks they'll see a healthy profit on it in 5 years time, even though the property is in one of the worst areas in Glasgow and he'll have to pay 40% capital gains tax plus lawyers fees etc when he sells. Some people have made very large amounts of money "buying to let", but its not been good for everyone. I get the impression sometimes that some buyers forget that if they buy property in bad areas there may be little chance of it increasing in value by any significant amount.

percybigun

the economy is supposedly picking up at the moment, which usually means that in a year or two's time house prices will start climbing at a fast rate again (assuming the economy keeps going in the right direction!)

so if you plan on waiting a few years to buy, the house prices will have gone up.

i made that mistake, financial advisors and "experts" were telling me in 2000 that house prices would crash very soon - but they went up another 50-100k round our way so i ended up paying 70k more for a house than i should have done.

Alan_D

Just my opinion mate. House prices haven't corrected like they should have after the bursting of the bubble, because the government kept everything propped up by 'printing' money and lowering interest rates right down. Didn't really tackle the source of the problem. The low interest rates encourage spending, which keeps the GDP figures up with phony 'growth', but the spending was what got us into this mess, so how can it possibly be the way out?

I just think there's more trouble down the road. And by the paper value I'm just talking about the 'printed' money creating inflation, because everytime the money supply in increased, the result is inflation - or the dilution of the currency's value. I think either there will be a lot of inflation down the road that just hasn't worked its way through yet, or it's here now and the government figures don't tell the whole story. If a house's price stays the same for a year, but during that period there was 6% inflation, then the house has lost 6% of its value, even though in terms of money it's priced the same.

daviddunlop83

iTrader: (7)

I would say buy a house if you can

I bought mine 6 months ago now when i was 24 and the best thing i have ever done. Somehow i seem to have more money now than before, i must have just been drinking it all and spending it all on the car.

To rent it tho im sure it said somewhere you need to own a certain % before you can rent it IIRC.

Also as far as losing money if the market drops again, i did a wise move thing the developer was offering which meant he basically deferred 25% of the value of the house for 5 years, if the market drops he looses the first 25% and its interest free. Its not like co-ownership as with that you have to pay rent etc plus the way it works i own 100% of my house, it made it very easy to get a mortgage also as i have 10% so i only mortgaged my property for 65% of the value which meant the bank was very happy to lend me the cash.