Saving for house deposit

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Great video from the Economist about why the housing obsession is ruining the country, anyone that thought my scepticism comes from being a "bitter renter" should watch it :)

My mortgage repayments are cheaper than what I was paying to rent. We took our mortgage over 15 years too. Can't see the logic in paying more money a month to rent a smaller house than what I currently live in now.
 
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My mortgage repayments are cheaper than what I was paying to rent. We took our mortgage over 15 years too. Can't see the logic in paying more money a month to rent a smaller house than what I currently live in now.
Watch the video from the Economist :)
 
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I don't think you really get anything, I posted a simple video that a respected economic publication goes though the flaws in the argument. And you've commented without even watching
oh no, I watched it. But the thread is from someone who wants advice on how to save well for a house deposit, not whether they should buy a house at all. It just feels as though you’ve hijacked this thread trying to put any potential buyers off and that’s not really a decision you’re entitled to make on anyone else’s part and despite having made your point multiple times further up the thread you’re still changing the subject away from saving to why you shouldn’t buy at all. It just seems pushy!
 
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oh no, I watched it. But the thread is from someone who wants advice on how to save well for a house deposit, not whether they should buy a house at all. It just feels as though you’ve hijacked this thread trying to put any potential buyers off and that’s not really a decision you’re entitled to make on anyone else’s part and despite having made your point multiple times further up the thread you’re still changing the subject away from saving to why you shouldn’t buy at all. It just seems pushy!
Well if you watched it why don't you share what you thought?

I'm having an opinion on an advice forum, you seem to be taking it a bit personally. Saying something about me making a decision on someone else's behalf.
 
Well if you watched it why don't you share what you thought?

I'm having an opinion on an advice forum, you seem to be taking it a bit personally. Saying something about me making a decision on someone else's behalf.
I think a very big point made in the video was that different circumstances suit different people? For some renting is more suitable, for others buying is the best choice. Everyone has their own reasons for wanting to buy. I also understand the NIMBY concept and the issues that cause but at the end of the day it’s every individuals choice and the point has already been made that we pay more in rent than we do in mortgage repayments and with every repayment we own more and more of an asset.

And yes, I take it personally because you replied to my message further up saying that my choice of a 5% deposit ‘wasn’t perfect’ -so why wouldn’t I? :/
 
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Watch the video from the Economist :)
I've watched the video and in my situation it has been cheaper to buy than to rent. I rented for 12 years prior to buying, 10 years from the council and 2 from a private landlord. The woman in the video from Switzerland has a good deal in the sense of a long term let and no price increase etc but we don't have that where I live.
 
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My worry if renting was always, what happens at retirement age and you still have to pay rent bit you will probably be living on alot less money. Whereas if you buy and hopefully pay off by early 60's you have such security. Also renting you can be kicked out due to the landlord wanting to sell etc.
I saved and saved, no holidays etc just to get that deposit together. We only had the minimum deposit at the time we bought which meant our monthly payments were high. However it was worth the initial stuggle as now payments are much less on a lower intrest rate. We pay much less than rent for a one bed flat in our area.
 
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Great video from the Economist about why the housing obsession is ruining the country, anyone that thought my scepticism comes from being a "bitter renter" should watch it :)

The video’s interesting but the difference with their example of Switzerland is that renter’s rights were protected and they could take out decades-long leases. Renting in England gives a bad deal to renters (or it did when I was renting). I decided to buy because I was sick of renting absolute shitholes from landlords who didn’t want to pay to get anything fixed. If you ask for something to get fixed or complain to the council about poor conditions, you risk getting evicted. I don’t have that worry now and if something’s broken, I get it fixed.

If house buying is bad for the economy, the government need to make some drastic changes to make renting an appealing option. I don’t think it’s fair to guilt people who want to buy though.
 
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The video’s interesting but the difference with their example of Switzerland is that renter’s rights were protected and they could take out decades-long leases. Renting in England gives a bad deal to renters
Exactly, that's what needs to change in the UK. Better rental rights. I'm not trying to guilt anyone that wants to buy, just saying that if you save like mad just to get a small deposit and buy something, it won't necessarily lead to the riches society suggests. It's a risk.
However it was worth the initial stuggle as now payments are much less on a lower intrest rate. We pay much less than rent for a one bed flat in our area.
That's great it worked for you, but interest rates are at the lowest they've ever been. They won't be there forever so it's difficult to say it's a sure bet to buy.
I've watched the video and in my situation it has been cheaper to buy than to rent.
As above, mortgages are a long term debt and house prices, rentals and interest rates do change alot. The mortgage payments are all out of sync at the moment due to the historic low rates.

All I'm saying is it isn't a sure bet to buy a house. I've lived in lots of different countries and I find the houses obsession a bit funny and with my economic hat it's not that great to have so much money tied up in unproductive assets that are ever more speculated on. The only winners here are the banks and the elite that inherited vast swathes of land.
the point has already been made that we pay more in rent than we do in mortgage repayments and with every repayment we own more and more of an asset.

And yes, I take it personally because you replied to my message further up saying that my choice of a 5% deposit ‘wasn’t perfect’ -so why wouldn’t I? :/
Only at the moment, who knows what the future will hold for house prices and interest payments over the long term debt repayment? I'm just taking a long term view on a long term debt.

That's nothing against you, 5% deposit isn't ideal and wouldn't pass most stress tests.
 
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Just cut back where you can, don’t eat out with the house, only buy clothes if something needs replacing, invest in an insulated cup if you’re a coffee drinker like me.

We bought a house almost 4 years ago (I was 27) Our mortgage is half the cost of what our rent was. Sure we are responsible for anything that goes wrong so you need to factor that in.

In this country private rent is absolutely eye watering. I live in a v cheap part of the country and my private rental was so expensive. There are not enough council houses or even housing association properties. So if you can’t buy a house and you don’t have a relative to live with your only option is the private rental market where landlords can pretty much charge what they like. You will get good landlords but there are plenty of rogues too.

Do I think that private rentals should be managed better? Absolutely. Should rent be capped and tenants given more security? Absolutely. It won’t happen though.

I work in the retirement sector and the amount of people of retirement age who are struggling with poverty and high rental costs is unbelievable. Ok you might need to sell your house to fund your care, but until that point you can be living in your own property with no stress.

I’d always over pay each month if you can. Don’t over stretch yourself either. If you can try and put the biggest deposit you can down. 10% as a minimum. If you need to get furniture etc from gumtree initially then so be it.
 
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Do I think that private rentals should be managed better? Absolutely. Should rent be capped and tenants given more security? Absolutely. It won’t happen though.
I wouldn't say that will never happen, theres huge intergenerational inequality in the UK. At the moment the type of people that own a house and a BTL are the most likely to vote and in a majority. As the countries demographic changes so will who is in the majority and who the politicians target. If most of the country is priced out renter's they will have to appeal to them.
 
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I wouldn't say that will never happen, theres huge intergenerational inequality in the UK. At the moment the type of people that own a house and a BTL are the most likely to vote and in a majority. As the countries demographic changes so will who is in the majority and who the politicians target. If most of the country is priced out renter's they will have to appeal to them.
Ok well in my lifetime then, for me personally at the moment, buying a house was better for my circumstances. By the time anything like that is passed Ill probably be mortgage free. What I’d recommend my kids to do will depend on the market at the time. We put 15% deposit on our house and have over paid every month since. We didn’t use help to buy or anything like that. I’d hope in 10 years we will be mortgage free. Il be 41. My kids will be 17 and 13. Il be happy with that, if it works out.
 
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Ok well in my lifetime then, for me personally at the moment, buying a house was better for my circumstances. By the time anything like that is passed Ill probably be mortgage free. What I’d recommend my kids to do will depend on the market at the time. We put 15% deposit on our house and have over paid every month since. We didn’t use help to buy or anything like that. I’d hope in 10 years we will be mortgage free. Il be 41. My kids will be 17 and 13. Il be happy with that, if it works out.
And that's great for you if it works out.

But it sounds like you haven't overstretched yourself and are benefiting massively from paying down the debt when interest rates are at the lowest they've ever been in the 300+ year history of the bank of England. It might not be the same for other people and who knows what the future holds.

I just get a bit sad seeing people straight out of uni, not enjoying life and concentrating on getting into debt and thinking as soon as they get a mortgage they're winners in life. Sure it's worked out for other people, but it could also be a huge mistake. Ponzi schemes never last forever and someone always gets burnt. The future is uncertain. People should be on the streets with how renter's in the UK are treated like a second class citizen, it's almost seen as an underclass.
 
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And that's great for you if it works out.

But it sounds like you haven't overstretched yourself and are benefiting massively from paying down the debt when interest rates are at the lowest they've ever been in the 300+ year history of the bank of England. It might not be the same for other people and who knows what the future holds.

I just get a bit sad seeing people straight out of uni, not enjoying life and concentrating on getting into debt and thinking as soon as they get a mortgage they're winners in life. Sure it's worked out for other people, but it could also be a huge mistake. Ponzi schemes never last forever and someone always gets burnt. The future is uncertain. People should be on the streets with how renter's in the UK are treated like a second class citizen, it's almost seen as an underclass.
Oh definitely, I had my first child v young so had a heap of responsibility on me anyway. I probably wouldn’t be on the property ladder if I didn’t have a baby when I did. You need to weigh it up, and they do speak to you when you buy a house, if interest rates were to go to 12% then this is what your repayments would be.

It’s all a bit what came first the chicken or the egg. I can see why the weight of a mortgage around your neck might seem preferable to private rent where the landlord can just turf you out with v little notice. Neither are ideal, unfortunately.
 
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Sorry just jumping back in here! I actually sat and worked out my outgoings yesterday (can't believe I have never done that before!! So embarrassed!) and I have around £700 left after all bills. I get this may not seem a lot to some people but it is for me and I have no idea where I'm spending that money scarily!! How much would you guys try and save from that £700 ? I still have to do food shopping with that money but it's different every week so I'm not sure how much to minus.
I also did this last week and cancelled loads of subscriptions for things, silly things like paying for netflix when it's discounted, and paying for separate spotify accounts instead of a family one, I know it's minor but it's still money I'm paying. I've also gone on a strict 'take a shopping list' with me whenever I go for a food shop!

I think £100 a week is more than enough if you can budget that way and save the remaining £300 🙂

I have to say though, if renting was more secure I would have no problem continuing to rent and would not be too worried about buying.

My rent is currently way cheaper than what a mortgage would be and I am very happy where I am but I really want to size up to somewhere bigger. But it is a constant worry having to resign the tenancy each year, and worrying if the landlord is going to sell up or increase the rent.
 
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Buying a house was the best thing we have done. Our mortgage is a lot cheaper then local rent and knowing we will have nothing to pay out in 20 years is a really good feeling.

As for saving, just cut back on everything, knowing it's not forever helps!
 
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We are also saving for a deposit! Not going to get into the renting v buying debate but I just can’t wait to be able to decorate and deal with things for ourselves after 10 years of renting.

What has worked for us is treating the help to buy ISA as a bill. So we each put our £200 in at the start of the month and that’s gone, we can’t see it to spend it. We’ve also cut out takeaways and eating out... we were spending about £250-300 a month on a takeaway and a meal out a week which is ridiculous. You don’t have to feel like you’re missing out if you buy nice things like a fancy pizza or steak from the supermarket for a treat... it’s still a lot cheaper than a single takeaway we’ve found.

In this way we’re saving about £700 a month, plus whatever else is leftover at the end of the month, if anything 😊
 
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