When I graduated from university I had a wonderful job that paid me well. I had that feeling that it was going to be easy to pay for all the things I wanted to do, so why wasn’t it coming so quickly?
I started saving and practising thriftiness, but it just felt easier to blow the money I saved because my friends and relatives and co-workers were constantly encouraging me to spend it on fancy clothes.
I started wearing really ill-fitting jeans, wore my trainers through public transport, refused to eat out and put big tags on everything. I refused to shop online, and shunned the plethora of places that were open 24/7.
But my perfect job didn’t come knocking for long, which meant my resources started drying up. Everything that was golden had been ripped to shreds, and I didn’t want that to happen to me again.
So I took off my skinny jeans, wonky shoes and cute cardigan and started wearing trainers.
The new casual look started taking hold, I started to feel more confident and confident about myself, and it allowed me to buy some actual shoes and even let myself feel good about getting on public transport in my skinny jeans.
But not everything went to plan. Eventually, most of my friends started comparing me to their friends who still wore jeans, which had you pay for designer collaborations?
It was after this that I decided to ditch the junk clothes and get back on the right track with my money.
Thankfully, I still had a large pile of money left, so I decided to use it to invest in an investment property in London.
Picking the right deposit
Bedding manufacturer Kamere announced last week that it is opening a large manufacturing facility in Dundee.
I thought I’d get a deposit together to buy it myself and move into a new flat.
Once I’d done this, I was able to fill in the mortgage application form and save the extra money that I had been earning over the past few years.
The advantages of buying a property you want rather than saving for a deposit are obvious. Buying something outright saves you the stress of being constantly distracted from your day-to-day life by worrying about what you’re going to earn each month to afford that new flat.
You can take the investment property as a loan on the property which saves you the hassle of taking a mortgage out. It might seem too good to be true, but even the best home buyers miss out on the enormous growth in London house prices that many retirees have seen from the housing market, where prices increase 7 to 12% each year.
I went to help a friend moving into her new flat. In my opinion, and that of many economists, it was something that was avoidable.
They bought an investment property with their savings and then jumped on the housing market bandwagon. But how can they catch up if they missed out on the easy gains in property prices?
It’s not just the house prices that are increasing. There has been a 20% increase in the mortgage fees that many first time buyers will have to pay.
Additionally, property prices are more widely available, with less competition than there has been in the past. There is less competition for a house or flat as there is more to look at, with less people choosing to buy a home.
This seems like a dire situation to be facing so soon after the financial crisis, but then there is no second chance for me. There is no time to start from scratch, it’s come too late.