How I Plan to Buy a House

Owning a house is something my partner and I are highly interested in doing. We've been together since the age of 16 and know we want to live together.

I was the one in the relationship who wasn't bothered about whether I bought or rented a house as my first home. But he was a firm believer of buying over renting. So that's what we've been looking into, and what we plan to do.

Now, there are two ways to go about buying a home, and I'm going to briefly cover these before diving into my (our) plan.

Mortgage

"A legal agreement by which a bank, building society, etc. lends money at interest in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt."

A mortgage is figured out in one of two ways:

1. 4 times the largest income, plus the second income.
2. Both incomes added together, times three.

It is usually the largest amount of money that gets offered to you. When you get a mortgage, you then have the next twenty-five years to pay it off. This'll happen with automatic payments going out each month—although, should you want to, you are able to pay more than required each month, meaning you can pay it off quicker. It's not necessary, but it is an option.

Save Up

Now, I know this sounds like the crazier compared to the last one. Saving up over a hundred thousand, just to buy a house. But, to me, this is the better option.

This will most likely work for those who are still living at home. If you want to save up over the next couple of years, put nearly all of your monthly income into your house funds. When I get a full-time job I'll be striving to add £1k–£1.5k a month to save up.

Doing this method seems far better to my partner and me purely because we won't have to worry about paying off a mortgage. We can pay in full, and should we need to move for any career-related reasons, we can sell without having to worry about giving the money back to the bank.

We get what we earn.

We've figured out between us, that should we want to buy a house around £120k-£125k, it'll take 4-5 years of both of us adding £1k-£1.5k a month. But we both live at home, we don't have other expenses to worry about - except keeping one car on the road.

We're both also highly interested in getting some passive income between us - have you seen my post on different types of passive income? You should give it a read! So, should we be able to earn a good amount of passive income, as well as active, we'll be able to add more to it. Meaning, less time required to hit our goal!

I don't think there's anything wrong with going down the mortgage route, but with saving up we know we'll be given that financial freedom when we live together. Should we need to redecorate? The money we'd have put towards the mortgage one month can go on paint and supplies.

Planning to move out is such an exciting thing for me. Even if it is several years away. I have a bottom drawer in the works—which I do plan to write about—and it helps me feel at least a little more grown up.

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