# Saving to buy a house - tips/advice



## tobio (Nov 30, 2010)

Hi all

Not a problem so much as advice needed...

In our house there is me, hubz, and our four children aged 9, 6, 4 and 2. Hubz works full-time Mon-Fri and I am a stay-at-home-mum. 9 and 6 year old are at school, younger two attend nursery and preschool on a number of mornings.

Hubz is on a low wage, and money is fairly tight. We agreed I would stay at home until they are all in full-time school then go back to work. At this point it is not financially viable for me to get another job - we have worked it all out and we simply have to wait until I can earn over a certain amount which would be in full-time work. We can manage, we live a fairly simple lifestyle, we have a vehicle needed to get the kids to school.

We are saving for a deposit on a house. After I looked at things and rearranged how we organise our money, we realised we have a little more left over each month than before. So we can put away a small chunk every month and have a rough timescale of when we can do this by depending on how much we want to save.

We are desperate to buy! Our current house is fine, in a nice area, but we are REALLY cramped for space. The younger two share a box room (which is tiny), which we can JUST about fit a single and a junior bed into with literally NO room for anything else, but soon enough that's not going to be feasible and they'll still be too young for bunk beds.

What we'd really like to do is buy a doer upper. Buy a cheap 3-bed in our preferred area (in which luckily houses are reasonably priced anyway) then when I'm back at work, look at extending or converting the loft space to add an extra bedroom. Buying a 4-bed would be out of our price range for a long time yet.

So from those who've been there, what extra ways did you manage to save the pennies? I'm talking about areas in which you cut back, small ways you earned extra income (I currently do online surveys), how you cut your food bills, utility bills, any lifestyle changes you made to save up?

I've read loads on my favourite websites but hearing from actual people who have actually done this (especially with a brood of children!) would be so insightful and inspiring


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## DTO (Dec 18, 2011)

tobio said:


> In our house there is me, hubz, and our four children aged 9, 6, 4 and 2. Hubz works full-time Mon-Fri and I am a stay-at-home-mum. 9 and 6 year old are at school, younger two attend nursery and preschool on a number of mornings.
> 
> Hubz is on a low wage, and money is fairly tight. We agreed I would stay at home until they are all in full-time school then go back to work. At this point it is not financially viable for me to get another job - we have worked it all out and we simply have to wait until I can earn over a certain amount which would be in full-time work. We can manage, we live a fairly simple lifestyle, we have a vehicle needed to get the kids to school.
> 
> ...


Okay - I live in the U.S. (Southern California), so what I'm saying follows from that; YMMV. Housing values are going up (at least in some places) and banks are big on making sure you can afford (everywhere). So, unfortunately, you are kind of chasing a moving target and need to work extra hard at this.

If I were you, I'd try to save 20%. You'll get better loan rates and/or avoid paying mortgage insurance. I'd also think extra hard about getting a fixer if you will move in before the work is done (I bought a fixer and I learned the hard way). Will you really have the time (with four young kids) to do it yourself? Or, will you have the money to have it done?

Beyond that, you need to about expenses as a big picture issue beyond shaving some money off the utilities and groceries. For instance, do you pay for daycare for the younger kids? If so, why pay at all when you are a SAHM?

Or, think about your preferred place to live. You said prices are "reasonable", which is a value judgment, not a financial one. Are you willing to live in a cheaper area (assuming you don't eat up any savings in driving)? Conversely, are you willing to spend the same on a house closer to the job center in your area and save of commute time and expense?

There are no right answers to these questions. I will note that you (like 99.9% of us) do not have the resources to do everything you want, and need to make choices. It will be helpful to take stock of the big picture to make as many of your priorities happen as possible.


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## unbelievable (Aug 20, 2010)

Stuff isn't all that important. You're both focusing on what is...your children. Rather than focus on a house right now (or even a down payment), I'd suggest your husband concentrate on increasing his wages. That might mean learning a new skill, getting a little education, etc. Being cramped is just temporarily inconvenient. In four years, your youngest will be in school and you can work. If you had an extra $20K today, you could put in on a downpayment on a house. You'd also be responsible for 100% of the maintenance, insurance, property taxes, pest control, etc. You would likely find the difference between ownership and rent would save you $2000 or less a year. If that $20K were used to increase your husband's earnings $10K a year, in four years, the difference would be an additional $40K as opposed to $8K. If he were trained for new opportunities, he'd have to have the flexibility to move to take advantage of them. Houses can lose value but a marketable specialized skill really doesn't.


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## tobio (Nov 30, 2010)

DTO said:


> Okay - I live in the U.S. (Southern California), so what I'm saying follows from that; YMMV. Housing values are going up (at least in some places) and banks are big on making sure you can afford (everywhere). So, unfortunately, you are kind of chasing a moving target and need to work extra hard at this.
> 
> If I were you, I'd try to save 20%. You'll get better loan rates and/or avoid paying mortgage insurance. I'd also think extra hard about getting a fixer if you will move in before the work is done (I bought a fixer and I learned the hard way). Will you really have the time (with four young kids) to do it yourself? Or, will you have the money to have it done?
> 
> ...


Great advice.

I'm in the UK. Atm it's a buyer's market but of course there's nothing to say that'll be the case when we're ready to buy.

The minimum we'd need is 5%. Only a few banks offer a mortgage with that however; for a decent deal we'd be looking at 10% minimum and the closer to 25% the better. We don't have mortgage insurance per se but life assurance is mandatory when you buy a mortgage which I assume functions in the same way.

The fixer upper is partly to do with cost, and because hubz has worked in construction for years so would be able to do a lot of work himself and knows people who can do the rest at mates rates. We picture it as being something we'd do bit by bit rather than all in one go.

Expenses I'm pretty on the ball with. The example you gave, we don't pay for daycare, is all funded by the government, for example.

Saying prices are reasonable was in reference to comparable properties in other areas of the city. We want to stay near to where we are currently, which is close to schools, family and easy travel to hubz's work. Even when I get back to work, we're ideally placed even if I have to travel, good job prospects locally.

Thanks for the thoughts - really useful.


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## tobio (Nov 30, 2010)

unbelievable said:


> Stuff isn't all that important. You're both focusing on what is...your children. Rather than focus on a house right now (or even a down payment), I'd suggest your husband concentrate on increasing his wages. That might mean learning a new skill, getting a little education, etc. Being cramped is just temporarily inconvenient. In four years, your youngest will be in school and you can work. If you had an extra $20K today, you could put in on a downpayment on a house. You'd also be responsible for 100% of the maintenance, insurance, property taxes, pest control, etc. You would likely find the difference between ownership and rent would save you $2000 or less a year. If that $20K were used to increase your husband's earnings $10K a year, in four years, the difference would be an additional $40K as opposed to $8K. If he were trained for new opportunities, he'd have to have the flexibility to move to take advantage of them. Houses can lose value but a marketable specialized skill really doesn't.


Good thoughts again.

I agree with your thinking. However... Hubz has always worked fairly low-paid jobs and is of the mindset that
that is "what he is." He didn't do well academically at school and thinks construction work is his lot in life. Thing is, he's far from stupid like he thinks he is. He is great with practical skills

I have encouraged him that if he wanted to go back to college and learn a new skill, either as an evening class or to completely change career, I would support him all the way. Thing is, he just thinks he's too old. He's only 32. It makes me sad.

Personally I have always felt what is the main concern is a husband who is a good, solid worker and he is that. My dad went to work in the same job from age 16 to retiring, he never made a lot but he was reliable. Dependable. Hubz is like that. I would LOVE him to expand and test himself but he doesn't have the confidence.

Academically I am way more qualified and we know I have a better earning potential. So that's the way it's going to pan out with what we have right now.


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## pb76no (Nov 1, 2012)

Just two suggestions - er.. questions.

1) Do you have any debt at all (credit cards, etc)? If so pay those off first. Interest, particularly short-term interest is a financial killer.

2) Are there any rent-to-own options where you are?


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## alisa (Dec 28, 2012)

we bought a house after saving up for 3 years and were lucky enough to get one in the town we wanted! but my situation was different from yours! we dont have any kids but we saved up doing these things:

* we did gorcery shopping every fortnight...its amazing how much "junk" you buy just because you step your foot in the shopping centre each week! (with kids, it may be hard...not sure! just a suggestion!)

* also is it possible for you to work for a few hours in a nursery? one of my friends has a young daughter and she takes her to work free of cost and by the time her older ones are back home, she is finished as well! Not sure if its your choice of work! 

* give yourself a target....and save it up for every month no matter what....there is a good saying.... saving is not what you have left at the end of the month but what you save first, before spending 
your salary! 

* we worked on a timeline, so we invested money in funds (if you or your husband understand the finance system, you can look for investing in funds as there is less risk if you are talking about a few years till you get the house! we were lucky as we invested when the market was booming but the economy is on recovery, so it is not a bad option if you have a few years!

* instead of putting your savings in savings account, get an ISA, as you intend on saving for longer, you can go for ones that give out better interest rates!

* we literally didnt eat out during that time (good way to save money - again, with kids, its a bit difficult!)

* if you have your own garden and you live in a good part of UK, you can grow your own vegs as well... good hobby, fresh organic veg and good saving ... i am not into gardening but some members of my family do it and its a great way to save money and enjoy good food (no risk of E-coli! )

* if you have good knowledge of a certain subject, try tutoring (coming from a teacher....lol...but its really good money and for one hour, you will get from £20 to £30)... I tutor 5 kids each week and its £120 for a week... and no tax...

* I know its very stressful to save up for a house but prioritise your relationship over everything...its better to have a small home than a huge house! wish you all the best!


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## Wiltshireman (Jan 23, 2013)

OP,

Have a look at the govenment backed Shared ownership plans,

https://www.gov.uk/affordable-home-ownership-schemes/shared-ownership-schemes


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## tobio (Nov 30, 2010)

pb76no said:


> Just two suggestions - er.. questions.
> 
> 1) Do you have any debt at all (credit cards, etc)? If so pay those off first. Interest, particularly short-term interest is a financial killer.
> 
> 2) Are there any rent-to-own options where you are?


1- On it. Only have a small amount of credit card debt being swapped around for 0% offers.

2 - Yes, but only through the local council AFAIK. Trouble is you have to be on the council housing list and a while ago they closed it due to the sheer number of people on it.



Wiltshireman said:


> OP,
> 
> Have a look at the govenment backed Shared ownership plans,
> 
> https://www.gov.uk/affordable-home-ownership-schemes/shared-ownership-schemes


Thanks - I was reading this linky the other day. Difficulty with that is we rent privately so we're not eligible


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## tobio (Nov 30, 2010)

alisa said:


> we bought a house after saving up for 3 years and were lucky enough to get one in the town we wanted! but my situation was different from yours! we dont have any kids but we saved up doing these things:
> 
> * we did gorcery shopping every fortnight...its amazing how much "junk" you buy just because you step your foot in the shopping centre each week! (with kids, it may be hard...not sure! just a suggestion!)
> 
> ...


Thanks for the tips. I have found the best approach so far that works for us easily is like you say, what you save first. After our initial deposit into our savings account at the start of the month, I compartmentalise different expenses, then look to save within these. So anything ELSE left over at the end of the month can get moved over to the savings.

I plan for everything that I can, save monthly for annual expenses, that kind of thing, but it's the kids' things that always take a chunk. Not that it surprises me of course... well it does that a nine-year-old can grow two clothes sizes in a few months, not only do I have to catch up with normal clothes but it means new school trousers, skirts, tops and cardigans too!


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## ginger-snap (Apr 10, 2013)

> I have encouraged him that if he wanted to go back to college and learn a new skill, either as an evening class or to completely change career, I would support him all the way. Thing is, he just thinks he's too old. He's only 32. It makes me sad.


My husband was several years older than yours when he quit his job to go back to school full time for a degree which he obtained 3 years ago. We don't have kids and I work, so that made it easier, but one is never too old (which you already know). 

Since you are in the UK, at least you don't have to worry about healthcare. Do you have at least 6 months of living expenses saved up? I would make sure that in addition to a down payment, you have enough savings to fall back on for repairs, unexpected expenses, or whatever else life could throw at you. Houses are expensive to maintain - more than you can plan for before you buy - so don't over extend your budget just to buy a house. It's good that he's able to do any projects, but realistically, would he have the energy to fix up a whole house after work and family obligations? Just some food for thought.


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## turnera (Jan 22, 2010)

I have a friend who makes a living buying stuff at garage sales and then selling it on eBay. You can easily do this as a SAHM.


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## tobio (Nov 30, 2010)

Ginger-snap.
Thanks for the thoughts.

I was thinking about the expenses of maintaining a house. Going into buying, I would definitely like money put aside for such things that will inevitably come up. 

Hubz really likes the idea of doing up our own place. I agree it may be a lot to take on. It does seem a shame to not utilise his skills which could save a lot of money but I will definitely think now about when we DO buy somewhere, what amount of work we would be looking at and what we could realistically expect to achieve in what timescale around work and children and gauge it then.
_Posted via Mobile Device_


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## tobio (Nov 30, 2010)

turnera, I too have a friend that does that.
Is something I will look into.
_Posted via Mobile Device_


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## Dollystanford (Mar 14, 2012)

I guess you've been on moneysavingexpert.com? brilliant at showing you how to cut out any excess spending and also the best deals on utilities, etc.

I would be wary of a 'doer upper' - I bought this house from my dad's great uncle 13 years ago and we had to do the whole thing in six months. It was a slog - both working full time, frankly I'm sick of DIY even now. We got it to a stage where we could cope with it and then moved in - once you're in it's so hard to get motivated to make more changes. And the costs really build up. So do think carefully - do you really have the capacity to take on a project like that?


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## I'mInLoveWithMyHubby (Nov 7, 2011)

Try and put 20% deposit down if you can. Also make sure you have your future house inspected. You don't need to use the realtors inspectors if you don't want to. My hubby does home inspections on the side and he charges a low price. He is very thorough as well and he teaches on the side(night or online classes) two colleges housing/commercial inspection for those wanting to get into the field. We will often lower our already low prices if they don't have much money.

If you really fall in love with a house and don't have it inspected, you could be stuck with repairs you can't afford like pluming, septic(if there is one), roof, cracked foundation, window replacements, electric, ect.... The list goes on.

Good luck! This still is a good time to buy a house. The mortgage rates are very low right now(here they are). Don't let the realtor talk you into buying a house that is over your budget. I had that happen in my first marriage. Be firm with your price.

When my husband and I moved, we did all the work finding the exact location of the house and we ended up building. The realtor was trying to find us a home, but everything she showed us wasn't what we were looking for. I'd love to move right now and live on a farm, but selling our home for what we paid would be impossible. The market for housing went down years ago.

Good luck! I hope you find that perfect home!


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## tobio (Nov 30, 2010)

Dolly, moneysavingexpert has been my saviour! I love love LOVE it!

Lots saying the same about a doer-upper. Having serious second thoughts. We're in a bit of a bind with that because we desperately need more space but finding a house with three double-bedrooms is a no-go frankly - they just don't exist around here! We have four kids and the youngest share a box room atm.



I'mInLoveWithMyHubby said:


> Try and put 20% deposit down if you can. Also make sure you have your future house inspected. You don't need to use the realtors inspectors if you don't want to. My hubby does home inspections on the side and he charges a low price. He is very thorough as well and he teaches on the side(night or online classes) two colleges housing/commercial inspection for those wanting to get into the field. We will often lower our already low prices if they don't have much money.
> 
> If you really fall in love with a house and don't have it inspected, you could be stuck with repairs you can't afford like pluming, septic(if there is one), roof, cracked foundation, window replacements, electric, ect.... The list goes on.
> 
> ...


Thanks!

In the UK, you HAVE to have a survey (inspection) done as a condition of having a mortgage. There are different levels of survey so that can determine what you find out about the house.

We're on a moderate budget anyway what with me being a SAHM so it's going to be impossible to go over budget. We have to be strict.


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## ginger-snap (Apr 10, 2013)

I don't think anyone is saying it can't be done, but with your very tight budget, a single income and four small children it would be a big undertaking. It's much more difficult to work on projects while trying to simultaneously live in the house. It can be dangerous with little kids, too with tools laying about, rough edges and sharp objects. But it can be done. Try to find a house that is livable but maybe only needs cosmetic updating. If it's at least fully functional, then if projects go a little slower, you won't be living in a total construction zone. 

I would very seriously recommend that you have a healthy sum saved on top of the money you use to purchase the house. Take your time to find what you really need. Good luck!
_Posted via Mobile Device_


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## Toshiba2020 (Mar 1, 2012)

What are you skill set? maybe you have more earning potential? One of my guy friends quit his $70k a year engineering job to stay home with his kids, his wife would have rather been with the kids but she was a pharmacist and was making $150k a year.

Honestly, avoid online surveys like its the plague, they are a waste of time, most people make about $1-2 an hour if theyre lucky, that barely pays for the electricity you computer uses.

Instead spend that time hanging clothes out to dry instead of using the dryer, plant a garden, find coupons online, setup storage and buy food in bulk, change your own oil, rotate your own tires, shop at thrift stores, often you can find brand new clothes, with tags that are from name brand stores like Macy, Abercrombie, etc... ive even heard of parents who will save bags from those stores and put the thrift shop items in them, that way their kids wear them without making a fuss. Mow the elderly ladys lawn next door, mayeb she will offer $20 bucks each time or something.

Most importantly learn to use Ebay! i make a couple hundred dollars a month selling on ebay. Usually just clothes and toys i see in stores on clearance that i know i can sell on ebay.

A 30 min hot shower costs roughly $0.25, if everyone in your house took a cold short shower you could easily save $50+ a month.


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## tobio (Nov 30, 2010)

We don't have a water meter so doesn't matter how much we use, still costs the same.

The ebay idea I am liking. I think I could do this.


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## Brooklynqueen (May 22, 2013)

Since you are home with your own kids you might want to think about watching other children too.


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