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Getting my first job and home, here come the taxes!

The End Avatar
6y, 9m agoPosted 6 years, 9 months ago
Hi, I'm about to leave University and hopefully get a full-time job and house (a little later). I basically want to plan out the financial side of things so I don't end up getting a nasty surprise. I know I'll have to pay income tax (20%), national insurance (11%), plus the loans and interest I've taken out for the Uni fees.

On the buying a house side, I've got stamp duty, council tax.

So have I missed something out? What are my chances lol?
The End Avatar
6y, 9m agoPosted 6 years, 9 months ago
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#1
Chances are very very low unless you actually find a job. Find one...tell us income and may be able to help then :thumbsup:
suspended#2
Why don't you start off by renting a place? Otherwise it's going to make things very difficult for you.
#3
Ginger Hair tax
#4
You're forgetting tax on the income you've already been taxed on as well.
#5
DarkKnight
Why don't you start off by renting a place? Otherwise it's going to make things very difficult for you.


I've always thought rent comes out to the same as mortgage payments, of course with the advantage of them being more flexible.
#6
You've also then got living expenses and utilities - Food, heating (oil/gas), electricity, water (if you're in mainland UK).

And a whack of other crap that's going to be expensive.

I'm graduating this year too, but just focussing on a job for now - Happy enough to keep mooching off the parents for a few more years until I have enough saved to buy a house with the gf (might be wife by then, eek!).

Also have to be able to afford the whole engagement/wedding thing too...

*Sobs*
#7
davidn84
Chances are very very low unless you actually find a job. Find one...tell us income and may be able to help then :thumbsup:


I'm hoping to get maybe around 22k.
#8
moob
You're forgetting tax on the income you've already been taxed on as well.


Yup. I'm considering coining the term "rape tax".
#9
The End
I'm hoping to get maybe around 22k.


If you haven't applied to anywhere yet, don't hold your breath.
#10
DragonChris
You've also then got living expenses and utilities - Food, heating (oil/gas), electricity, water (if you're in mainland UK).

And a whack of other crap that's going to be expensive.

I'm graduating this year too, but just focussing on a job for now - Happy enough to keep mooching off the parents for a few more years until I have enough saved to buy a house with the gf (might be wife by then, eek!).

Also have to be able to afford the whole engagement/wedding thing too...

*Sobs*


I wanted to get the taxes out of the way first! But yeah the utilities are gonna be a problem I just need to basically know if 22k plus a house 200k + cheapo car is being realistic. Hence I needed to get the taxes sorted.
#11
The End
I'm hoping to get maybe around 22k.


OK. So when you get this job come back and tell us you have it, and how much your mortgage/rent payments are and we can possibly let you know your chances.
#12
DragonChris
If you haven't applied to anywhere yet, don't hold your breath.


I've applied to like 25+. So 'Plan A' is to get an ok graduate job with maybe £20-22k. Of course I should really apply to non-grad jobs to as plab b.
suspended#13
The End
I've always thought rent comes out to the same as mortgage payments, of course with the advantage of them being more flexible.


Sometimes there is an option to part buy and rent, where you pay a certain percentage towards the apartment, and then pay a lower amount of rent afterwards.
I'm not sure if it's a good option or not though.
#14
DragonChris
If you haven't applied to anywhere yet, don't hold your breath.


Agreed! Graduate schemes that offer 22k+ starting will have closed months ago and their selection process is extremely long and competitive.

I graduated last July and I still haven't found a full time job just part time work at a publishing company which has now ended. I didn't get anywhere on the Grad schemes only to a couple of assessment centres so I decided to apply to non-grad schemes through Jobsite, monster etc. Unfortunately it seems that the agencies advertising all seem to want minimum of two-five years experience and are reluctant to take on grads even with industrial placements because the companies just can't seem to afford it financially or take a risk on employing new grads. I've had a few interviews from it but there is always another professional who has more experience, just have to keep applying.

If I realised how this past year was going to have turned out I would have I'd honestly considered looking at the deadlines for doing a MA/ MSc/PGCE or gone on a gap year travelling & working. I guess it depends on what your degree is.
#15
The End
I wanted to get the taxes out of the way first! But yeah the utilities are gonna be a problem I just need to basically know if 22k plus a house 200k + cheapo car is being realistic. Hence I needed to get the taxes sorted.


No far, far, from it.
#16
Ha, indeed, only need an lender to give you 9x your salary!! Good luck with that! :-D
banned#17
The End;8364267
I wanted to get the taxes out of the way first! But yeah the utilities are gonna be a problem I just need to basically know if 22k plus a house 200k + cheapo car is being realistic. Hence I needed to get the taxes sorted.

you'll be lucky to get a £65000 mortgage and you'll need a 20% deposit too before they will even talk to you.
#18
This just shows how things are for the current and forthcoming generations really - it's getting tougher all the time to get started in life when you're burdened with a lifetime of debt before you even start.
#19
moob
This just shows how things are for the current and forthcoming generations really - it's getting tougher all the time to get started in life when you're burdened with a lifetime of debt before you even start.


That's why it will all change soon, youth, poulation as a general consensus, country all swimming in debt, the recession has not hit home yet...........
#20
where u getting money for this house? lol u got any money for a deposit?
#21
numptyj
where u getting money for this house? lol u got any money for a deposit?


I didn't think the deposit was that high! That's why I made the thread really, just to find out all these costs with the job and house.
#22
10% deposit and 3x income is achievable.

Rent cheap and save the deposit..wait 2 years before you think about buying.
#23
The End
I didn't think the deposit was that high! That's why I made the thread really, just to find out all these costs with the job and house.


It really depends on cost of house, mortgage agreement. Might be an offer whereby they'll pay half of deposit etc.
banned#24
go speak to a financial advisor.

your aims on your projected income are not feasible.
#25
OK...22K per year will give you AROUND £1400/month salary.

Now then...it's impossible to be able to accurately predict your outgoings, but I'll try to be "realistic".

Council tax (paid over 10 months but I'll say over 12) - £80/m
Electricity/Gas - £50/m
Water - £20/m
Car tax (presuming this cheap car will probably be higher vehicle tax) - £10/m
Car Insurance - £20/m (maybe)
Petrol (of course - I can't tell how much you'll use, so say £20/week) - £80/m
Mobile phone (cheap) - £10/m
TV license - £12/m

Now to the nasty one...this £200K mortgage (even if you could somehow get a 100% mortgage)...that'll probably set you back around £700+ per month.

Course - you'll have to eat, and that'll probably cost you a minimum of £100/month.

So - the original £1400 is now down to £318...and that's very, very, very, very conservative because I've probably missed LOADS of outgoings...
banned#26
You have no hope of getting a £200k + mortgage on a salary of £22k - assuming you actually get a job
banned#27
white_hart
Now to the nasty one...this £200K mortgage (even if you could somehow get a 100% mortgage)...that'll probably set you back around £700+ per month.

..


Add at least another £500 to that
#28
dimebars
Add at least another £500 to that


I was gonna say that's cheap!!!!!!!!!
#29
When I left home I had to choose between a car or a flat - chose the flat but even then I rented for 6 months so I could get used to having the responsibility of paying bills and managing my money. I also had my name down on a housing association list as a lot of our ones in Edinburgh had a mix of new builds and tenements. I finally got offered a part buy-part rent new build flat and after a few years I earned enough to buy the other half from the HA. Eventually I sold it for a profit and bought somewhere else. It may be worth thinking about as it certainly helped me get on the property ladder - couldn't have afforded it otherwise.
#30
A lot will depend on the area you live in and property prices, my sister recently bought a really nice 3 bed terraced house in a city area for £140,000, and she has two friends renting the other 2 rooms off of her, which is earning her £500 a month (not inc bills) which amounts to about 80% of her morgatge. I thought this was a great idea to rent out her rooms, maybe this could be a good route to go down...? And £200,000 for a first time buyer is a hell of a lot of money......?
#31
£200k mortgage on £22k you having a laugh? You couldnt even afford the repayment let alone anything else basically!
On £22k the maximum you will probably get is around £65-70k. You also need to consider if buying service charges, solicitors, registry searches, surveys, mortgage setup fees, etc.

No where does 100% LTV, your be lucky to find 90% LTV as most are looking at 85% LTV minimum which means your need 10-15% deposit as well.

Then you will find that a mortgage lender will probably want you to have had the job for at least 6months and inside contract before they lend you anything.

I'd consider looking into the HomeBuy Scheme, so party buy part rent, or intermediate rent. As it will allow you to get on the ladder, especially if you are a key worker.

All the best, just be realistic.
#32
no chance of a 200k house thats just cloud cuckoo land, depending where you live its called property ladder for a reason you move up a rung a time until you get to a level your happy with.
Here is a site to work out takehome pay

http://www.thesalarycalculator.co.uk/salary.php
#33
Any lender that may be prepared to loan a high percentage of property value will impose further restrictions. These may present as witholding part of the monies unless repairs or suchlike are carried out. They will also tend to only loan at a less competitive interest rate. They may encourage you to take on additional insurance policies to ensure they are protected if you default. You will need to factor these items in as additional costs.

Also work out what the repayment costs would be if the interest rate was to be increased. It is quite likely that it will increase over the next year imo. Cheaper to get an interest only mortgage as you only pay the interest and rely on an additional policy to finally have enough funds to cover the loan at the end of the loan period. This can however be worrying if the house price falls as you can quickly find that the loan is for a greater value than the house.
Lots to consider.

Oh, btw travel costs are unlikely to get cheaper in the future so work out what its going to cost you to get to work.
And decorating/furnishing costs unless you are extremely self disciplined. Best to consider DIY where possible and dont be too proud to accept furniture gifts or be prepared to wait for the sales or start with second hand stuff.
#34
Of my monthly wage, around 35% goes straight into the joint account to pay for rent, water, power, tv, phone, internet, home insurance, council tax etc.

On top of that, I try to save 5% minimum each month into an ISA, just to make sure I have some savings.

Then there is the food shopping which is around £100-£150 a month for two of us (just depends what we buy really).

Renting a 2 bed house at the minute for £450 a month. Before that, I left home and moved in with the OH into a studio flat at £325 a month. The place was a shoebox, but it helped to save enough money to move elsewhere.

Main problem is I don't have anywhere near enough for a deposit. If you don't have a deposit, you're knackered.
#35
On a related note, what's the deposit required for e.g. a 200k house? Isn't it 20% or something?
#36
DragonChris
On a related note, what's the deposit required for e.g. a 200k house? Isn't it 20% or something?


As I pointed out majority of high street lenders will want 15% deposit as a minimum, and yes most prefer/want a 20%. Although we have managed to source a 10%, but only through a IFA, and are paying a higher rate because of it.
#37
seriously what are you wanting for £200,000? I live in the south (where prices are generally higher) and first time buyers houses are far less than that, either your living in a hell of an expensive place or your setting your sights waaaay to high for a first house.....?
I mean I've got no idea what area of glasgow you live in (if it's even glasgow at all) but...
http://www.rightmove.co.uk/property-for-sale/property-22975129.html
banned#38
The End,

I wish you luck with finding a graduate job.
I have applied to 'hundred's of Graduate jobs/schemes, practices.

It is not as easy as I will get a job, it's hard work..

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