Hey guys, 18 year old Britbong here

haveahappyday
haveahappyday

Hey guys, 18 year old Britbong here.

Today was my last day of schools & exams, and I'm now having a gap year. Within this year I plan to save £10,000, in which a friend and myself plan to put a deposit down on a house prior to going to university.

So if you had 1 year and 2 months, with around £5,000 capital to start with, what would you do?

Looking for general advice really.

Current plan is to work at job (got one which allows me to 'lightly run' a business and pays £10 an hour.)
I'm also trying to gain work experience in high-finance and investment banks, in which I'd like to progress to eventually.

Are there any particular skills, activities, clubs etc I should look into?

Thanks for any help.

All urls found in this thread:
https://www2.deloitte.com/content/dam/Deloitte/lu/Documents/operations/lu-intelligent-automation-business-world.pdf
BlogWobbles
BlogWobbles

You still wont be able to afford a house in a year. I'd suggest finding a fat bitch to fuck that will let you live with her and feed you while you save all the cash you can. Then move on and repeat.

StonedTime
StonedTime

@haveahappyday
Need more information.

How did your exams go? I assume you did A-levels.
What university are you going to?
What will you be studying?

Regarding the job who are you working for?
What exactly will your duties be?
When will you start and how long will you work for?

Fried_Sushi
Fried_Sushi

@haveahappyday
Working at The Gap for a year? Kind of a short time to have on your resume to begin your career.

takes2long
takes2long

Find a disparity in a market and capitalize. Such disparity are often caused by legislature and entry level of skill.

Methnerd
Methnerd

@StonedTime
Need more information.
Exams went Okay, but felt i underachieved. Likely got BBB, however I'm going to take 2 further a levels at the end of next year, in which I should be able to get As in both.

I'm reapplying to uni last year after getting and offer from Exeter, as my aim is to go to Durham.

I will be studying Finance BSC.

Job is a small start up company which is a subsidiary of a US company. I speak to the owner on a 1 to 1 basis.

the duties of said job are still slightly promiscious, but it has been indicated that I will be having networking meetings with the London chamber of Business, meeting clients, managing finances (although that's not difficult for this business) as well as other more general activities.
I will be starting in a couple of weeks, and will be working for 12 months minimum.

TalkBomber
TalkBomber

@BlogWobbles
Assuming I got into my intended university, Durham, one can get a 4 bedroom house for around £200,000 in an okay area. Assuming I managed to save £10,000 which is possible, and my friend also saved the same amount, that's 10% of the mortgage covered. (Although you only need 5% for first time buyer mortgages.)

The repayments will be around 700 per month, in which 2 of the rooms will be rented out, bring outstanding deficit of circa 250 per month + bills. Assuming we sustained a job, or more preferably had a small business at the time, we hsould have ample funds between us.

This also gives us the bonus of getting on the housing ladder at 19/20, and results of leaving university with less debt (discounting mortgage), and a property.

Perhaps i'm being too naive about this, but i'm sure I could save £10,000 easily, as i'm currently living at home with little to no overheads. Furthermore i'm making around £200-£300 a week matched betting alone, and a little more with my mutual funds, but nothing really of note.

PackManBrainlure
PackManBrainlure

@TalkBomber
It's very late, so i'm gonna miss shit here, but have you factored in other costs associated with the purchase and rent collection?

Stamp duty for instance. Lowest rate SDLT kicks in at £125,000 at 2%.
So you have an extra £1,500 payable there if the house costs £200,000.

You also have solicitors fees to consider, which up north where I live is usually around £1,000 for a simple purchase agreement. Since you want shared ownership and might not live in the godless north like me you might end up paying more.

You're getting a mortgage, so the bank will demand a property survey be done. That'll cost you at least a few hundred quid or possibly more, depending on the property and the bank.

Because you and your mate are both students you don't have to pay council tax on your residence. However, if one of your lodgers is not a student or otherwise council tax exempt then you will have to, either in whole or part.

Also, as you plan to share living space with your lodgers they will count as excluded occupier status rather than tennants. In this case you would normally not pay tax on the rent you collect as long as it is less than £7,000 per year. HOWEVER. Because you plan to share ownership I believe this tax-free allowance is halved. So you will want to check that.

There's more I won't go into now, like you will need specialist insurance and you will be legally responsible for making sure the property meets certain building regs.

All of this is probably academic because I don't think any bank or building society will be up for giving two 20 year olds a £180,000 mortgage. But good luck.

Sir_Gallonhead
Sir_Gallonhead

Thanks for the input, has thrown a few things into the mix I hadn't really considered.

whereismyname
whereismyname

@Sir_Gallonhead
No problem, i'm not trying to discourage you.
You and your mate might have some exceptional financial circumstances such that some banks might be willing to consider a mortgage up to £200,000.
It'll just be a bit more expensive, slightly more complicated and a shit-ton more time consuming than I think you're imagining.

It's not a bad idea in general, and it's great that you're exploring your options. Lots of students get absolutely fucked by landlords and estate agents because you're usually easy uninformed targets. Do your homework and you can avoid this.

Also don't take everything I've said as fact, ask around. I've been out of the property game for a few years now.

As general advice, i'd say use your money to live in the most expensive student halls available for your first year at least.
Become friends with the kids there who have connections and who're on the same degree-career path as you.

GoogleCat
GoogleCat

>>1314804
You don't need a job to get a mortgage. You just need provable regular income.
It sounds like OP has this already or at least has a way to get it.

Lord_Tryzalot
Lord_Tryzalot

@haveahappyday
Finance BSc

"I'm going to study finance and I am going to be earning 6 figures a year and I will be a big boy and own all the properties!"

Yeah enjoy never getting a job m8

https://www2.deloitte.com/content/dam/Deloitte/lu/Documents/operations/lu-intelligent-automation-business-world.pdf

Nojokur
Nojokur

1315111
Actually, I'm choosing to do finance as i'm interested in it. Amazing isn't it?

I also know that doing the degree from Durham University will give me decent ground to stand on, as it's one of their target universities.

I don't understand why you're criticizing my choice? If you're going to, at least provide an alternative.

1314813

Income shouldn't be an issue. My friend and I are also in the process of developing a small business. It has potential to grow massively, but in realism I know it's unlikely to be successful. More for experience & contacts rather than money.

but yeah, I'll be able to float the mortgage & bills with rent and supplemented income, would likely need to get a job to support myself and any repairs on house etc.

Flameblow
Flameblow

@haveahappyday
Within this year I plan to save £10,000
HOW?
Seriously. Most entry-level jobs won't even PAY 10k a year.

Either go to university now, or get a real job, Which, given your lack of a degree, is going to be entry-level retail.
A-levels are worthless unless going to university.

eGremlin
eGremlin

@Flameblow
Because i'll be earning around 1400 a month, and can earn more in my own time?

Nude_Bikergirl
Nude_Bikergirl

You won't get a mortgage. They won't accept rental income as proper income and you need a full time job to get a mortgage. Until you get your first job out of uni they won't consider lending you money. You probably have almost no credit rating at this stage too. Get a mobile phone bill and make sure you get the utilities in your name and pay them on time to build up your credit score.

takes2long
takes2long

I'd suggest getting your credit score to see where you're at now. You can try experian free for 30 days but remember to cancel it or clearscore which is permanently free. It should give you an idea.

BlogWobbles
BlogWobbles

Your first small business will fail
Your friend won't pull his weight
Your mortgage will be at least 6%
That's $12,000 a year kiddo
Your renters will wreck the place and NOT pay rent
You'll never go back to school after your gap year, just like 80% of people who take a gap year
No school, no job, wed to a $190,000 a year debt that's growing $12,000 a year

You'll live in poverty the rest of your days, literally the worst plan I've ever heard in my god damn life. Don't buy property unless you can put 25% down, get a 15 year fixed, and can pay that 15 year fixed by yourself where the payments are less than 25% of your take home you RETARD.

There, that was your one warning .

SniperGod
SniperGod

@Nude_Bikergirl
They won't accept rental income as proper income and you need a full time job to get a mortgage.

This isn't true unless things have dramatically changed in the last few years.
The entire buy-to-let market is based on using rental income to secure a mortgage.

Dreamworx
Dreamworx

@TalkBomber
@PackManBrainlure
@Sir_Gallonhead
Property investment is a tricky ladder to get on.
There will be additional purchase costs, banks can be tight with credit for people who only have one property and a loan/value ratio that is high.
They may require you to buy lenders mortgage insurance, or simply not approve the loan.

I worked as a consultant earning >$100k AUD but because I only had two years of tax returns showing this they wouldn't lend.
I was told that they would prefer if I make 30k stacking shelves at a supermarket becsuse it's perceived as lower risk.

I ended up doing what I was doing and with a larger deposit got in the game, I'm two properties deep and looking to buy a third this year. I trade shares but you can take so much leverage on property that the smaller gains are bigger numbers.

JunkTop
JunkTop

Are you sure your friend is stable enough to trust on something like this? You're young and will change a lot in the next few years.

Fuzzy_Logic
Fuzzy_Logic

@JunkTop
Also what happens if one or both of you moves away for work?

Illusionz
Illusionz

Don't buy a house with your friend. Unless he's your boyfriend and you're absolutely certain you get on. It will be painful, otherwise.

Spazyfool
Spazyfool

@Methnerd

promiscuous

Ah, I know the feeling OP. Twinks gotta rent out their assholes sometimes just to get ahead.

Garbage Can Lid
Garbage Can Lid

Sorry, one more thing OP. I just wanted to warn you about something. When I was 18 I thought I was hot shit and made some dumb financial decisions, such as investing a hefty chunk of my savings (only $2000 NZD, but a lot to me at that time) in the sharemarket.

I'm not saying this is you, but at 18 you tend to think you're invincible, or special, before your time. Really, success is skill and charisma and a bit of luck. There are few people who just genuinely get it.

You sound very intelligent and will probably succeed in the future, but you should be doubly cautious now.

Disable AdBlock to view this page

Disable AdBlock to view this page