Buying a house in the mob

Discussion in 'Joining Up - Royal Navy Recruiting' started by FistFullOfNails, May 27, 2009.

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  1. Hi whats the best course of action when going into the mob regarding buying a home.

    I'm thinking of buying a flat in September when I go in as an AET and have my brother rent it.

    Are there any financial surprises I'll get in the mob? Or is it *BOOM* fat paycheck all to myself?

    Is this a wise decision?

    I only ask because a lot of people in the mob must be doing a similar thing

    Cheers big ears
     
  2. The following could be helpful as an aid to your calculations:

    At HMS Raleigh, you will get roughly £820 a month net - i.e. after all deductions have been made - in your pocket.

    You will stay on that money for 26 weeks; at that point, you will get an automatic payrise to the first Able Rate pay of approx £16,500 (roughly £980 in your pocket).
     
  3. You could alway "Flip" you address and claim of the Tax Payer, try it on JPA when you get in!
     
  4. Flip addres and claim FPA? lol wtf are either of those 2 things.

    Seeing as you have a paycheck all to yourself with almost no expenses do a lot of people buy houses to rent in the mob?
     
  5. Paycheck?

    Eh?
     
  6. Buying is def a good idea, especially in the current climate. Getting a lodger is a good way to help pay the bills and get the house looked after whilst you're away.
    I will be buying as soon as I get settled in I think.
     
  7. It all depends how much of a risk you want to take. Personally, I work in an economics job these days and I wouldn't buy for a good 18 months to 2 years at the moment. The horror stories about house prices having another 20-30% to go yet if the economy drops again (3rd wave) mean that you could be laying yourself open to instant negative equity.

    Also, almost no-one is lending these days, no matter how secure your job, and when they do you are looking at at least a 20% deposit and a 4x salary mortgage (5x is pretty hard to come by at the moment).

    What that boils down to is, say you want to buy at about £140k (a reasonable average house price). You're looking at putting down £28k cash and then borrowing (say you earn £16k pa) £64k, which means you're not even close.

    The current climate is great if you've got the cash upfront and are middle aged with a good disposable income and possibly your own home already to secure rental purchases against.

    Now is the time when property portfolios are buily up by speculators. The tough part as a first time buyer is to call the bottom of the market about 3 months before it actually happens and then buy. Unfortunately, now is the time to start saving for your house, but not really the time to buy.

    For what it's worth.
     
  8. well im only 18 and im seriously condisidering buying a house before im 20 with the wage i can put towards and with someone else paying a bit towards the morguage , i think its a great thing to do
     
  9. The worst scenario would be if your brother were to become unemployed and not be able to afford the rent. You would then be in a financial hole so to speak and probably torn about what to do, i.e; evict him or let him stay rent free. Big decision if it did happen that's for sure.
    Think long and hard about this one and good luck whatever you choose.

    P.S. By the time you are ready to buy, the market should be ripe for a bargain in my opinion. But as has been stated, you will need a hefty deposit.
     
  10. as has been said before, wait it out a bit, at least til you've finished training and you know 100% that your job is secure (the failure rate for AETs isn't massive, but there's no use chancing it).

    Once you're settled and secure the navy will give you a LSAP (Long service advance of pay), it's essentially a loan you can use to put down a deposit on property, I think it's about £9,000 at the moment and will help greatly towards a deposit on a small place.
     
  11. LSAP is up to a max of £8500 or 10% off your house plus a bit for fees which ever is cheapest. I got £7900 last month. If you are going to rent the property out you cant apply for it.
    I got a £64,500 mortgage off the halifax, and only need 10% deposit but the intrest is fixed at 7% but you cant shop arround at the moment you have to take what you can get. I figured i could afford 7% just. And i was willing to take it for the security of it being fixed for the next 5 years.
    Although £800 might sound a lot or even £900 to an 18 year old it really isnt. If you are wanting to enjoy navy life then it isnt a lot at all. Maybe wait out a few years and just piss it up the wall for the first few?
    I had to buy a house or face living onboard.
     
  12. Is it legal for brits to move abroad and get a job with just a british passport?

    May sound stupid but i would love to move and work in Spain or Italy or even germany in the future
     
  13. Why bother buying a house when you can reside in one of Her Majesty's Palatial War Canoes. Where else will you be able to aquire 24hr security, personal chef's, all the electricity and hot water you require and a hareem of good looking Wrens for your pleasure?
     
  14. it was all convincing til you hit my bold...
     
  15. Nothing beats getting foreign and bumming a sweaty Wren. Preferably one thats just done a watch down the engine rooms and forgotten to have a shower!!
     
  16. I got my house while i was serving, but if you intend on renting it out, a few mates got some cracking places in Dubai and Eastern Europe at great prices and got a hell of alot more for their money as oppose to buying in the uk and had no problems find people wanting to live in them.
     
  17. Open a building society account and start saving as much as you can afford. Not only will this give you some idea of how much you can 'do without' but it will also provide money for any unexpected contingencies, build up a track record with a potential lender and eventually amass enough for a decent deposit. Don't forget the extra outlays for fees, stamp duty, house & house contents insurance, council tax, utilities, redecorating/renovation, furniture, pots & pans, etc. In the meantime, take advantage of free board and lodgings on board your ship (it costs to live in shore accommodation) and wait for house prices to bottom out.
     
  18. Cheers you lot, really helpful advice. I had not idea you could get a loan off the Navy for a house. I love the Royal Navy already.

    Yeah I'm not too worried about if my brother loses his job or anything. My dads place is still welcome for me and my bros to live at so I'd boot him out and he could go back there. Lol.

    That's interesting about a 3rd wave, negative equity sounds about as much fun as rape.

    I think I'll take my saved money, bash it in an ISA and just wait until my training is over, safeguard my pennies then take it from there :)
     

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