How I’m saving to buy an apartment in my 20s [in LONDON]
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- Опубліковано 30 лип 2024
- #ad Hopefully this video helps those of you with the same goal as mine - getting on the property ladder! 🤍 The first 500 people to use my link in the description will receive a one month free trial of Skillshare! Get started today! skl.sh/macerly06241.
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My name is Madeleine or Maddie for short, I'm a 23-year-old Norwegian in London. I make videos about interior design, lifestyle, and London life.
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This is the type of people who deserve to be called influencers. They influence you to do your best but even if you are not best at it no need to worry because they can be your friend your big sister and even your mentor and give you their piece of advice and share their knowledge for us to win together ❤️ So glad to find Maddie channel. Everytime i watch her vlogs i do feel satisfied and doesn’t feel guilty using my phone. And even if i am older than her i still learned so much from her. Thank you for that.
exactly, the title influencer is EARNED not given (at least for me). It's all about how they carry themselves and I think she is one of the only ACTUAL influencers that isn't swimming in materialism and being out of touch.
I don't watch may 'influencers' - Maddie is great! Actually useful and honest information.
@@lauracraig8110 yes I agree!!!
I don't agree nor disagree with this comment. I'm an example that it IS totally possible to buy an apartment in London when you're 25. I've done it and I'll tell you how:
I moved to London when I was 21, was a live-in aupair for 2,5 years while working full-time on the side and only had friends who were aupairs = only spend my aupair money (80 quid a week) and saved every single penny of my full-time job for a deposit. Did I want to live with a family? Nope, but that's the easiest way to SAVE a lot of money as you don't have to pay rent or food + get pocket money. After aupairing I've rented cheap accommodations in shared houses and looked for a share to buy property. I've done A LOT of research and found one I fell in love with the moment I walked down the alley.
My flat is a one bedroom flat with a garden, zone 2 in London and the area is very popular now. I've bought the flat when I was 25 and was on 30k/year. NO money from my parents, no inheritance, nothing. Yes, you've got to cut back on many things. I don't drink alcohol, I don't do drugs, I didn't buy new fancy clothes (thank god for VINTED or freecycle) and didn't change my iPhone 6 till it actually broke down 2 years ago lol. I did however travel all around europa on 25 pound return flights and normally spent 100 pounds all together on those 2-day-trips.
Anyway, I've staircased my apartment already and am looking to sell it, then buying a two bedroom flat in the same area. What MANY people don't know: Having a credit card is actually GOLD. Your credit score is the breaking point of you getting 3x your salary VS 5,5x your salary at all highstreet banks. As long as you've got a "presentation" and proof (a year of bank statements about your spendings), you can get way more than 3x your salary on the same conditions.
@@LivLebtLondon To be honest, I am not sure that there is enough time in 24 hours to work as an au-pair and do a full-time job? It strikes me as quite impossible (and I have worked 2 full-time jobs in the past, but for short periods of time only -3-4 months).
These are some great tips for saving up. But I think the biggest reason why it’s unrealistic for most people in their 20s to buy in London is not the ability to save, it’s that most people’s jobs don’t pay enough for them to obtain a sufficient mortgage (eg 3-4x your salary), as house prices are so high. Even if someone saves a 50k or 100k, if they don’t have a high salary they won’t be able to buy anything decent (I agree with previous comments that help to buy, shared ownership, leasehold etc are all best avoided).
Oh 100% agree. This is also why I’m planning buying with my boyfriend - because 2 salaries gets you there a lot faster than 1.
Or even rent
@@KS61055no renting😢
Random but I would recommend changing the yellow pillows on your sofa to navy blue . Would complement better the painting on the wall rather than having a matchy matchy feel 😅
but that would mean spending money that's not necessary to spend because the pillow cases are still in good condition and blend in well. ;)
@@Oscar-nr5lqfam
@@Oscar-nr5lq She could dye them
Something to consider as someone who spent my 20s in London and didn’t buy, and has now bought in Stockholm: if you think you might want kids and use a daycare center, this might change your finances quite a bit. Several friends with babies have also now left London because they don’t have the £2000 per month this often costs.
Good luck to you! ☺️
Being such a cryptic topic, thank you so much for taking the time and preparing a clear briefing on how savings actually work! Very useful!
I love watching your videos, Maddie, and I hope you have a wonderful weekend!
An important point about the Lifetime ISA (or its predecessor the Help to buy ISA) firstly I’m fairly sure you CAN use the money saved in them for property more than £450k, you just wouldn’t get the government bonus, which is pretty hefty. But more importantly- when you do come to buy, make sure you let both your bank and your solicitor know early, because there is a lot of paperwork both will need to do to claim the bonus from the government, and if you leave it too late, there might not be time for the bank to release your bonus to you before the sale! We had this problem last year, where my bank was pretty speedy and released the bonus within days, but my partner’s bank told him it would take weeks, and so we’d miss the deadline that the seller wanted to exchange. Luckily my partner didn’t have so much in there so it didn’t make a huge difference, but I had saved the maximum so it would have been £££ problem if my bank had been so slow.
I really love watching your financial videos! I always learn so much and I always apply what you teach in my daily life.
takk for at du lager undeholdende og lærerike videoer. Ønsker deg en god sommer og masse lykke til med å kjøpe en leilighet i London når den tid kommer❤
Loved the video, you are so mature and disciplined! Congratulations!
Thanks for sharing this knowledge, Maddie!
Thanks for the info! So helpful
Amazing content
Wow.. you said that out loud. You're really courageous to think and execute it. Can you share how come you decided to decide London is the the place you wanna be living in future too ?
This video is amazing I just moved to london and it’s so helpful !!!!
Love these videos, living myself in UK from another country, and no one tells you 😅 Credit Score etc. I would love to see how you try to save money on a daily basis or by doing cuts, groceries etc
Hi Maddie I love your videos! Do you think you could do a video about your clothes? Where you shop from and your style, I assume you like to invest in good quality peices and would love if you shared your favourite clothes and the brands you love!! ❤❤
I love how you explained this that seems so complicated with such simple words! I'm from Argentina, the situation is veeeery different from yours jaja but anyhow I think it's important to still try and save money, even if you feel like you aren't earning enough. Lovee
Could you explain how it’s different? I live close to London, so everything Maddie is talking about applies to me, too. I’d love to know what the process is like in Argentina
@@ebl36Hi, I'm from Argentina too, and although I don't know much about the housing market here, I can tell you that saving is complicated with so much inflation. Our local currency (peso) is so unstable that we actually save in dollars, but because of the inflation, the amount of dollars that you can buy with some amount of pesos can vary depending on when you buy them.
Now buying dollars is on itself another whole topic (we have parallel exchange rates, technically most people buy dollars in the black market, etc), but you get the idea.
The main problem with inflation is that people's wages aren't raised accordingly to the inflation rates (mostly because employers can't sustain those increases on a monthly basis), so people's ability to save is compromised. I hope I could make myself clear, as this isn't my first language and I don't know anything about economy 😂
@@antoniaplebani3674 You’ve made yourself perfectly clear - and given a most excellent explanation! Thank you.
@@antoniaplebani3674 It is very much the same in Turkey. When working there, I was initially able to save £300-400 (GBP) a month. Then, my salary increased tenfold (over a few years), but so did inflation, to the point where it was better to travel around the country, rather than try to save £100. Very sad for the people there, who have no options.
Great motivation for us😊
Could you maybe make a video about your daily spending, to show where and how often you compromise? I used to do that a lot and it got me in such a better position in life. But now I just have the urge to travel and go out with my friends all the time, which is costing me a lot. So I thought we could all use a kind of motivational video, where you show how much of a difference "compromising" can make. Thanks for the great tips on this video by the way!
I wish you all the best in your savings and buying your home one day. I'm 29 and have almost zero savings... but that's due to my medical expenses :(
I hope that you are ok and have all the love and support that you need on your journey ❤
@@MsLoma1212 Thank you, Love, I do have a ton of support from my boyfriend and family! It wasn't a life-threatening thing, thankfully (well besides anesthesia 2 times which is always a bit of a threat).
It was something I had to do to have an easier and healthier life in upcoming decades. But it ate up all of my savings, and it sometimes gets me, as it's sad I'm that late to starting saving for a house. Sometimes I think I won't be able to and I''ll forever stay on rentals (which I don't like more and more) but well at least I'll try, better late then never, right? ;)
I hope you're feeling better now and on the path to recovering
Love this!
So inspiring and informative even if I don’t live in London.
You would actually have more in your HYSA, as it factors interest on the monthly balance rather than the starting balance.
this is exactly what i needed , i am 18 in brussel and my main project oiutside of career it's to buy an appartement before my 30's in the european parliment area , i have been saving for some few years but i needed a kick , i hope this video will help ;)
I'm also more focused on saving; however, purchasing a home is not possible just yet. Great tips!
Hi Maddie. I find your videos extremely helpful! Could you make a video about saving up for being a first-time homeowner i Norway, as a lot of your viewers are norweigans?
Hi girly! Unfortunately only 1-2% of my viewers are Norwegian vs 40-50% UK at least according to my UA-cam analytics, so I feel like that would exclude a lot of my biggest audience :(
Is this like a trial month on Skillshare or is it the first month off of the annual membership? If it’s the former, by when do I have to cancel to not end up with the annual membership if that first month doesn’t suit me? I‘ve been a little confused by the info that I found. Thanks, Maddie, for the link! Hope somebody has found out and can share the info. Many thanks!
Good job. I did the same by maximising my ISA each year on a modest income in London. Sold my equity in the ISA and placed a big deposit on an apartment. I don’t think I could have done the same in any big European city.
Great job! I saved and diversified my money to finally buy a condominium (a flat in the UK,) in New York. Best investment ever😊😊
Thank you very much!❤
Super helpful and easily understandable, thanks Maddie
I'd love a video on why you are looking to buy in London and not Oslo - perhaps you could do a comparison of the two.
Having lived in Oslo for several years, it seems way nicer - never once was I ever concerned for my safety, whilst the UK seems like it's in a death spiral.
this is helpful! i'm 28 and live in Toronto, notoriously expensive as well. I need about 1 million dollars for an old bungalow lmao... maybe one day!
Nah, we're just not saving hard enough, to quote the CEO of a UK bank
Me watching this as an unemployed person in London 😅
Don't buy leasehold, don't buy shared ownership and don't buy help to buy. Those would be my tips
Do you have any advice re leasehold, as most new flats come with it?
@@marcythedarcy01 Yes don't buy a new flat. Plenty of period flats come with share of freehold. Either that or simply buy a house not a flat.
@@garethsmith1436 Sound advice 👍 Buy a house instead 👌
Truer words have never been spoken!
I think the first question one must ask is "Why?" Why do you think you need to own a property?
I've never had the "dream" of owning a house, but with rental prices going higher and higher for apartments in very mid condition in all major cities of Europe, I've started to think about it. Salaries are not increasing at the same pace and in many countries (UK for instance) the law is not protective enough of the tenants - they can kick you out of a place you have been living in for years
Because that way you invest the money for housing for yourself and spend it only for like 10 years instead of giving some rich a**ho**, who doesnt care about your wellbeing, a ton of money for like 50 years.
Please consider reading Ray Dahlio if you are investing. We are in a Big Cycle now, things are going to look very different already next year!
It's not hard to save up when you have a significant other to split the bills and rent with, where it's difficult is when you're single.
It can still be done. I have been cohabiting(flat sharing) for the past 17 years, yes it may seem like a long time, but if you start early (I was 23 when I started) you could own a home by the time you are 40.
@leiawhites I didn't say it wasn't possible, I managed to buy my flat own in zone 2 at 26 whilst also renting all my myself. I managed to achieve it because I'm a high income earner. I'm not saying that what she's saying isn't achievable but she certainly leaves out a lot of important information and oversimplifies. She lives in a nice flat in London, in a nice area with a boyfriend she splits the bills with and she's probably earning 100k or more. She's not being transparent.
@@ajb1876 yes I would agree, it's easier that way. I was just trying to be encouraging 🙂. Although i don't think it's wise buying with a boyfriend/partner. Maybe if you're married it's different. You never know what might happen and it's best to have your own place especially if you are a woman.
as someone who is born n bred in London and single, decent job and grown up in zone 2, this is absolutely impossible for me
It’s so odd seeing someone from Norway willingly going to live in London
Perfect
Where is your sofa from if you don’t mind me asking? X
Could somebody tell me where I can buy that sofa?
Yes spending less than you earn is important.
Very! 🥰
❤ Excellence ❤
What is a notion board?
Does anyone know where her sofa is from? Thanks
You can tell me what price your apartment??
Does leasehold bothers you?
Hello. Let me tell you of the dangers of a leasehold, which I know from my dear friends who purchased flats (okay, apartments) in the same building. It was a period building. Beautiful thing in a central location (Manchester). All perfect until the building owner informed them they need to increase the building insurance premium to a silly amount. Pretty pointless trying to negotiate with the management company, they didn't care that it could have been obtained cheaper. They were simply not interested, and there was NOTHING my friends could do to keep the cost reasonable. The thing went to court. Ruling in favour of the building owner / management company. As a leasehold home owner, there is absolutely nothing you can do about stuff like that. It doesn't even matter if you own the apartment outright (another person in the building did) - these costs will affect you anyway.
Hi, I’m moving to london to study, what bank would you recommend?
Best that u google that as bank interest rates and products are ever changing
Actually kinda cute how disconnected to the rest of the world people in the global north are. So funny to see the generalisations. Good luck to you though!
what do you mean? I’m from
the global south and thought the video was fine. I mean it’s clearly only for Europe, not even the US, but she lives there so it’s fine i guess???
@@thanos7449 people in my country are getting into huge credit card debts to by food. And I don’t even live in one of the most precarious countries in the world. Some disclaimer on how this is her reality but definitely not anyone else’s would be nice. Not mandatory, but definitely empathetic. Our economic system already puts so much pressure on people and money is such a personal thing and a delicate subject. Generalisations like “if I can do it then so can you” only make it worse. Personally, that doesn’t sound like responsible money talk in an in international platform unless you’re only considering your reality. Hence my comment.
@@anamartins6491OMG so sorry to hear that. Which country is this, if you don't mind me asking? Hope things get better.
What are the average salaries in London?
£44370/year
Can you share the notion template with the moving tracker please 💌
Here you go! 💕 dazzling-save-a08.notion.site/Money-hub-template-774ca007a7d74b8198842e906887f63a?pvs=74
@@macerly thank youu💌💌
Hey,
I am interested in joining you as a video editor,i am working from last 3 years on various projects as a freelancer.
My daughter saved hard for 5 years straight whilst still living at home. She just bought her own home. Saving is a discipline.
Girl you're speaking in questions
"i was thinking you could run a online business you have your own site some half done"
A tip I can give you as a now 31 year old home owner in zone 2 of London who has done it without help from parents at 25:
Don't buy with a partner you're not legally married to. Many of my friends have done it in the past and 3months - 3 years later broke up, had to sell it at a loss as one party couldn't keep it on their salary.
My actual tips: I've bought my one bed garden flat on 30k when I was 25 (with savings worth 2,5 years of a full-time job while I had no living-expenses as a live in aupair). I know not everyone can do this, but I moved to London at 21 and didn't know anyone, didn't have a job etc.. It was the best decision of my life. Anyway, back to the mortgage: If you've got a presentation and can proof that you're not living 30-30-30-10 (30% of your salary for mortgage, 30 for day-to-day necessities, 30 for living your lifestyle, 10 for emergency fund), the average high street bank will give you a mortgage even up to 5,5x your salary, but don't talk about it publicly.
There are normally two routes when getting a mortgage in London and I went down both: 30-30-30-10 is their standard procedure and the system will most likely fail most applicants. Done that when I was 25 and bought my share to buy property. Then paid off the mortgage & staircased up. The second one is the year worth presentation and a route to 5,5x your salary and you can own your property. Now I'm looking to sell either back to housing association who puts it up as a share to buy property again or on the open market.
Whoever says Share to Buy is hideous hasn't done their research right: If you get a new-build and the rent is 800 quid & service charge is 300 quid / months, obviously it's waaaay to expensive as you've got to add council tax, bills and mortgage on top. In my case: I went for a one bed garden flat in a 3 storey house in north east London, fancy area now, no lift and service charge is 100/month. PLUS rent was 350 when I first moved in, my mortgage was like 400. All combined it cost me like 1.000-1.200 a months to live in my own apartment with a new 125 year lease. As long as it doesn't go below 100, you're good to sell it on market value. 6 years and a staircase have passed, I changed jobs, got promotions and poured everything I had spare into my mortgage. My monthly costs are 1.000 pounds (even council tax and bills included) and it all started on a 30k salary with no financial help from friends or family.
Soooo whoever says it's not going to happen simply doesn't want it enough.
I agreed with everything you said until I got to the part about shared ownership. Like you, I did a ton plus of research. My adult children both bought without government schemes after that research. Without large handouts from family, but with improving their financials / salary and saving their own deposits. However, what worked for you is valid. I would never encourage shared ownership to anyone.
Shared ownership would not work for most people, I don't think.
@@InBulgarian How come? It benefits most people who can't get a mortgage for 400k (living in london, you'll need that). The problem is: Most people don't do their research, pick a new built and then worry about making ends meet. If your rent is already 800-900 pounds/months, obviously it wouldn't work out.
@@LivLebtLondon Because when you are ready to staircase, the property is re-evaluated at the current market price,, costing you more? Isn't that the case? At least that was my understanding of it.
@@InBulgarian Yes, that's correct. But if you're paying off your mortgage step by step plus maybe the additional 10% you're allowed to each year AND you get a promotion at work, you'll be able to get a bigger mortgage 5 years later and buy more percentages. Personally I think it's a win-win-situation
Ya sen ne anlatıyorsun be abla gözünü seveyim be abi
😀😍😍🤩🤩🙂🙂
Not to buy, to be more in debt
Or to be at the mercy of a landlord where you have little to no rights…I’ll take the debt
@@emu9520exactly ... people are not thinking of the term of renting... it's for life.. if you are renting at 60....rent still has to be paid...same for 70 and 80...whereas a paid off mortgage has a final payment day. See how many pensioners that have rented all their lives have become homeless.
Menit 0:01 dan 0:02 tersenyum tersenyum .. tersenyum 😀 cantik
I hate saving
It seems like the best plan is to be attractive and have a wealthy partner.
WOW. Thank you for this incredibly tone deaf comment after a 15 minute video of me pouring 3 years of research to answer one of my most asked questions. How I’M planning on buying - not parents, not any partner. ME.
Now regarding your question. In London, 70% of properties are purchased with a partner, and 58% have help from parents. I don’t have financial support from my parents. However, if I can get onto the property ladder a few years earlier by committing to a mortgage with my partner, because 2 salaries and 2 savings are worth more than 1. Of course I would do so. That still means I have to save for 50% of a mortgage, which takes time and a good savings strategy.
Pathetic and jealous comment
@@macerly girl yes! you ARE gonna be the wealthy partner!
@@macerlyyou are right... if a person can...its better to buy with a partner ..however that needs to be a solid partner😊. However, if a person has the means to buy on their own, ie have a very high salary and savings, then there are huge benefits there. But most don't have that kind of salary so 2 will be better than 1.
Remember you can only open one ISA a year 🪙
This is true for LISA and Junior ISA, but not for other ISAs. As of April 2024 you can now subscribe to as many ISAs as you want and contribute to them as long as you don't go over the £20k allowance per year among all of them.
Edit: Government newsletter about this: www.gov.uk/government/publications/tax-free-savings-newsletter-11/tax-free-savings-newsletter-11