The housing boom

[platypus]

There is always a choice
Renting isnt so bad. Or you could move back in with parents, pay them less rent and then work/save hard. When I was saving for my deposit, I was living in a studio flat in Queens Park. It was the cheapest self contained flat I could find and I looked for about 5 months. I lived there for 2yrs, when many people said it was very small, but it allowed me to save up nicely. You just have to make sacrifices.

But, I know what waiting for a crash is like - putting your life on hold. Not nice.

I rent at the moment, no other choice. I can't move back to my parents house as they retired to a vineyard in Greece. I'm paying £400/month rent in Cambridge, which includes all bills - believe me that is a good price. I've not bought anything valuable since my boat last year (alright that was an extravagance but it's my only real one - the two cars I have cost a total of £300 (one was a gift) and are necessary for work). I'm on a good salary, but cannot get a mortgage enough for a property in Cambridge. The hunt is now on to find someone for a joint mortgage, not something I really want to do.

I'm not sure I want a crash. I'm certain my job would be safe, but what it would do to the country as a whole..

 

[Wicksta]

Which was what I was talking about in the first place. Some of us don't have much of a choice..

Of course you've had a choice, you've even admitted it:

- You can get a mortgage if you go in with someone else
- You can get a mortgage if it's outside of Cambridge

Unfortunately that's the way the market is at the moment, sacrifices have to be made by some people in order to get onto the property ladder. If you're planning to be on the property ladder for the rest of your life then waiting for a crash that may or may not happen is the worst thing you can do.

 

[platypus]

- You can get a mortgage if you go in with someone else
- You can get a mortgage if it's outside of Cambridge

The top one I'm resigned too, as much as I loathe the idea.
Second one isn't a choice, due to my job.

Have actually started looking at property in France, as I know I can afford something quite nifty out there, and I'm quite keen to move there. And I guess I could buy elsewhere and rent out, but given that I loathe buy to letters for having killed the market I don't particularly want to go down that route.

Not really much of a choice, are they.

 

[Haircut]

no it's afforardable housing that they are short of. Not that makes any sense tbh.

We've just had 10 new homes built round the corner from us and they have been empty for 3 years. Why? because the developers are trying to attract buyers from the city not local buyers. Buyers from the city are normally sitting on large equities. This means they can ask a lot more than the local market. Those coming up from the city think they are getting a bargain.. country house, garden, easy commute, cash in their pockets etc.. Of course it's going to be attractive to them. Unfortunatley, this means the houses are out of reach for perspective local buyers and actually forces the market upwards.. "If they are asking that for theirs, then our is worth that at least"...

The houses i mentioned above are 4 bedroom semi detached No gardens and they are asking aroung £550k-£650k.... I live 100 meters away on the same road and I too have a 4 bedhouse (detached) with a garden and we had ours valued at £350k.. and there's the problem.

Indeed, when people talk about supply and demand causing the problems in the housing market they generally think of this as a shortage of houses.

The demand comes from people willing to pay stupid amounts of money for houses. This happens because people believe that house prices will carry on rising, hence a speculative bubble.
If people stopped behaving like this then demand would fall rapidly, even though there would be the same amount of properties on the market.
Houses only cost what people are prepared to pay for them, too many people thinking that prices will go up and up forever will lead to the situation we're currently in.

This is compounded by people getting deposits from their parents, interest only mortgages, 40 year mortgages or buying with friends as they think prices will be beyond them soon enough.

 

[Felix]

I don't think you're alone by any means.

I'm looking to buy here in Edinburgh and the market is very slow. Good for buying but not so great for those selling

I've seen many nice flats in the centre of town that are on the market for two weeks plus without any notes of interest. Some have been on for 6 weeks without getting any interest. All of these are nice 1 and 2 bed flats in very popular areas of the city.

Because they are over priced! I am looking around Edinburgh too and looking at the prices they are going for there isn't much increase in the year I have been looking.

 

[sunama]

I rent at the moment, no other choice. I can't move back to my parents house as they retired to a vineyard in Greece.

It would be one heck of a commute.

I'm paying £400/month rent in Cambridge, which includes all bills - believe me that is a good price.

That is a good price. I hear Cambridge prices are similar to that of London, so that sounds reasonable. I used to pay £515pm (doesnt include electricity).

I've not bought anything valuable since my boat last year ...

No comment.

I'm on a good salary, but cannot get a mortgage enough for a property in Cambridge.

If you want, you can get a mortgage for any amount you want. Dont ever be told that you "cant" get a mortgage as that is nonsense. The right mortgage broker can get you any amount. The problem is that once you get the mortgage, can you afford the payments? Have you thought about looking further away from where you work, rather than the ideal loaction? You might also think about buying something that requires work. As you have a car, you can choose an area that has no train station or amenities nearby, hence, the house price will be cheaper. Its your first home, so dont expect to get exactly what you would like - for most people, their first home will always be a compromise.

The hunt is now on to find someone for a joint mortgage, not something I really want to do.

I wouldnt do that. Before you know it, you are shacked up with someone who you dont really like, but are with them just so you can pay the bills. Not good.

I'm not sure I want a crash. I'm certain my job would be safe, but what it would do to the country as a whole..

Same here. A lot of people will be in a world of hurt, should there be a property crash and while personally, I would like one to happen, for the sake of many people out there, I would rather this were not to happen.

 

[sunama]

Because they are over priced! I am looking around Edinburgh too and looking at the prices they are going for there isn't much increase in the year I have been looking.

Small price to pay for the most desirable place to live in the UK

 

[Felix]

Ha, Phil and Kirsty were presenting that from one of the new penthouses in the old royal infirmary. http://www.qmile.com/ Where prices start at about £260k for a 1 bed. Cheap by London standards but not value for money here.

Right next to the uni its very handy for the wealthy students who are buying them up, I wonder if the older inhabitants know this! Roll on the student parties!

 

[platypus]

It would be one heck of a commute.

That is a good price. I hear Cambridge prices are similar to that of London, so that sounds reasonable. I used to pay £515pm (doesnt include electricity).

Aye, it's far from ideal because it's a room in a family house. So, no guests, have to be quiet, but it's a sacrifice I'm prepared to make. Cheap accommodation and a nice family.

No comment.

It's probably not as bad as you think - it's not a 60 footer that's moored outside Monaco . It's a Vespoli 1x, and along with a set of Croker Ultra-Light Sculls cost a total of £4,500, which includes the roof rack, and racking in Clare College (subsequently that will be £120/year though). Alright I perhaps shouldn't have bought it, but I had the money saved specifically in a separate bank account that I started when I was 18 specifically as a boat fund that was paid into on a monthly basis.

If you want, you can get a mortgage for any amount you want. Dont ever be told that you "cant" get a mortgage as that is nonsense. The right mortgage broker can get you any amount. The problem is that once you get the mortgage, can you afford the payments? Have you thought about looking further away from where you work, rather than the ideal loaction? You might also think about buying something that requires work. As you have a car, you can choose an area that has no train station or amenities nearby, hence, the house price will be cheaper. Its your first home, so dont expect to get exactly what you would like - for most people, their first home will always be a compromise.

What you're saying is all good advice, and I'm very prepared to accept something far from my ideal location for my first property. I've made a promise to myself that I won't get a 100% mortgage though.

I wouldnt do that. Before you know it, you are shacked up with someone who you dont really like, but are with them just so you can pay the bills. Not good.

Pretty much exactly why I don't want to do it. But I'm getting desperate .

 

[div0]

Because they are over priced! I am looking around Edinburgh too and looking at the prices they are going for there isn't much increase in the year I have been looking.

Yeah, noticed the same myself over the last year. Edinburgh prices have been 'overpriced' for a long time. Just that people used to be able to get huge mortgages and scrape by due to the low interest rates. Since the rates have increased, people can't afford to borrow as much any more. Also I've noticed that lenders are a lot less keen to lend stupid multiples of peoples salary, again making it harder for people to get the nessesary mortgage.

Ha, Phil and Kirsty were presenting that from one of the new penthouses in the old royal infirmary. http://www.qmile.com/ Where prices start at about £260k for a 1 bed. Cheap by London standards but not value for money here.

Right next to the uni its very handy for the wealthy students who are buying them up, I wonder if the older inhabitants know this! Roll on the student parties!

I never saw the program when it was on, but a few people have mentioned it. Didn't know that was the area they showed though. It is a perfect area of town for many people to live in - great location. Probably a bit to student'y for me these days, not that I could afford it anyway

 

[Raumarik]

As I'm moving in with my fiancee just now and selling my house I should make about 18% on it after two years, 15% or so after fees etc.

That money will be eaten up when we sell her flat though and go on to buy a bigger house, so I'm not "gaining" money really, it'll be put away in another house so we can't actually use it for anything fun!