Will I Ever Buy A House?

I’m nearing 25, and I should be saving for a house, but instead, I’m saving to go travelling! 50% of my friends are putting money in to help to buys, which is something I should have done years ago, but never did. As a single gal it leaves me wondering will I ever be able to afford to buy a house?

What’s Your Credit Score?

To be able to get a mortgage your credit score will be checked, giving a number as to how reliable you are, checking any debt you’ve had, how many places you’ve lived, and so on. I got my car on finance in 2015 as I couldn’t afford to get a brand new car in one lump sum, I always made sure I had enough money in my account to pay my monthly fee. Showing those who look at my credit score that I am on top of payments. 

I also had laser eye surgery last year, which again I couldn’t afford to pay off all in one go, again, ensuring I’ve got enough money each month. Also helping with my credit score, I got a credit card, which not only helped when I didn’t work for a few months but has helped my credit score. I always ensure to pay off my account fully every month, so that I don’t have added interest on top. 

The Deposit

Usually, you have to put a 20% deposit down to secure a house, more if you want your mortgage payments to be cheaper. With the forever growing cost of house prices, the deposit is rising. I’ve looked at house prices where I want to live, and although I’d love to buy a house, a flat is looking like more of a viable option. For where I’d like to buy for a flat, I’d probably looking at around 20K+ for the deposit, which seems like it will take forever to save up! 

Why Didn’t They Teach Us In School?

We learned so many pointless things in school, but did we learn how to budget? How hard it would be to buy a house? Or about taxes? No, we didn’t! I’ve always been rubbish at saving, I’d rather treat myself. I thought by the time I was 25 I would be married, have a house and a dog, I’m not close to any of those. 

Hidden Costs

On top of paying for the deposit, you have to pay for the mortgage arrangement fee, valuation fee, legal fees, stamp duty (unless you’re a first time buyer) etc. The list doesn’t stop and then you’ve got furnish your new place. After all those costs, how much would you actually need to be able to afford to own your own place?

You’ve Got The Place Then…

Once you’ve got the place and sorted out your monthly mortgage payments, you’ve got to think about the bills and how much you’d have to put into living each month. At present I don’t think I could afford to have my own place, I’d be spending around half of my wage on the mortgage and bills, leaving me with very little to get out, travel the world and buy more clothes than I actually need! 

So…

Thinking about how much I’d have to save up to buy a house is quite daunting, especially because right now I would be buying a place on my own. I like to travel the world and see new places, which unfortunately does cost a lot. I also really like shopping, buying new clothes all the time (although I have been better recently!). 

I know that in order to be able to have my own place within the next few years, I’d have to cut back on spending which means less travelling and less clothes shopping, which is a struggle as I think you should treat yourself and do everything that you want to do. It sounds morbid, but what if I only had a few years to live? I’d want to see the whole world, go to all the festivals while wearing new clothes! It is something I’m going to have to do in order to have my own place, but first I want to spend a year travelling the world!