Buying a house as a singleton - almost impossible

[bimbleuk]

I can see the difficulty as I bought my 1st house on an average single salary and in 18 years the value has more than tripled. I was in the last year of free uni grants and recently my niece and nephew have both left uni with £50k+ student loans. To say the least I feel very lucky.

I'm sure they will both do well, my nephew certainly is but still that's not a nice way to start your career with large debt already.

I only wish I took advantage of the silly mortgage ratios at the time but I wanted to be sensible and stay within my means.

 

[ShotInTheAss86]

Bought my 1st house 3 years ago, had to move for better work and cheaper houses. Took me 10 years to save up enough to do so though and the house I got is very much bottom run of the ladder for price - 130k when bought 3 bed semi. It's ex-council 1950's build but has large gardens, solid walls, gd views from the front of the property, both my neighbours to the side of me are privately owned along with about 60-65% of the 'council estate' based on the new roofs that just went up over summer on all the council owned properties still in the area.

Regardless what the banks say with their affordability calculator i knew i could have afforded more and the 24yr mortgage term my repayments are based on will hopefully be fully paid off after 10yrs. I'll look to move up the ladder when that 10yr mark approaches.

Like you've said I found as each year went by the window for what I could afford seemed to narrow, as the same type of house on a street I viewed a year after missing out on previously had gone up in valuation by a large % compared to my annual salary increase. I would recommend getting on to the property ladder in any form as it beats paying rent if that is your goal. Only other option is if you have free accommodation short term such as family to allow you to boost your savings quickly

 

[dan958]

In March, I purchsed a 2 bed flat in Kent. Came with a a garage, a parking space, and access to the visitors parking spaces. It is also a 5 minute walk to my work, and a 10 minute drive to my parents. A house was totally out of my budget.

The flat was 165k, 60k of that being in cash. It is sickening to know that in 1995 my parents house was bought for £68k, and is now probably around 325k.

 

[Rroff]

Some of the posts in this thread are incredibly depressing - what is so wrong with (a) being able to afford a basic house of your own on circa. 30K (b) what is so wrong with actually owning a house of your own (c) what is so wrong with not wanting to live in a ****** flat when you are earning OK money (d) why should someone have to move around the country to try and afford to live on a middle of the road salary (or any salary really) - I'd make some exceptions for certain parts of London - generally moving isn't a solution anyhow. Some people seem to be almost celebrating the **** situation society has made for itself!

As someone mentioned these terraces were originally the houses of the lower end working class - something has gone very wrong when someone on a reasonable wage is struggling to afford one - because that also puts it out the reach of a couple on lower wages, etc.

If people stopped buying for a bit price might go down. Could you imaging the impact of this? But we all know that isn't going to happen anytime soon unless the bubble bursts.

If it was almost any other commodity it would happen but things like having a roof over your head are less optional - housing it is much harder for people to exercise the option of not buying.

The thing is - by the time I get to a figure near what is required, house prices will have gone up again, therefore shifting what i need further and further away from my grasp.

Prices seem to have gone down a little possibly starting to stagnate at the moment but I feel your pain - I moved back to my parents a few years back partly to save for a house just before the prices shot up and the first 3 years I was basically treading water - back at square one relatively despite saving hard for 3 years :s

 

[Mason-]

To the people saying "just move" or "just earn more", shove off. I sympathise with the OP, it's hard. All I can say is, try to get over the situation and be a bit more positive. Getting frustrated and angry about it and feeling like your parents generation had it easy, won't do anything for you. Stay at home (and enjoy the time with your family), keep saving up lots of money, and keep trying with women. They're not all narcissists or have big egos.

I managed to buy somewhere for £200k in Essex, 15 min bike ride from a station that gets you to Liverpool Street in 30 minutes. It's a nice 2 bed flat in a nice area. The catch? I have to drive 40 miles to and from work every day. You've got 2 options really, be patient and save, or compromise on location.

 

[Quartz]

How is that in any which way affordable?

I had to wait until my mid 30s before being able to afford a house.

 

[Psycho Sonny]

buy interest only - sell in 30 years time and move north

 

[DarrenM343]

We're obsessed with owning property and that's why they'll go up. People don't think "is it really worth that", just cough up anyway in their desperation to own a home.
I remember buying my first property for 44k while on £12k a year. I think before I moved in I had a pay rise up to £22k - woohoo. Those were the days. It was only a fairly small one bed flat but easily affordable. I kept it until 2016 too - was great for letting to peasants, I mean tenants (just kidding, I've rented myself a few times before).
Can't be very helpful but if something is unaffordable it's best to save more. It's surprising what people can save if they cut back to the minimum spending. While some say you shouldn't have to do that, and I agree to an extent, but if you really want something then it has to be done.
I've always said there;s something wrong when someone earning an average salary cannot afford to buy somewhere to live. Bad times IMO. TOo many people in the UK, not enough land, everyone wants to own their own home = sky high prices. Few who own a property want to see lower prices either - including politicians

 

[Puzzled]

Thing is if you don't own your home it makes retirement incredibly difficult. Rent is equal to or even more expensive than mortage repayments and constantly increase. You'll need a good pension to cover that while someone who has paid off their mortage just has bills and maintenance with the potential option of downsizing.

The current market situation sucks and needs to change but I don't see how you can change it without screwing current homeowners, particularly those who have bought recently

 

[azazl187]

Suck it up and save that bit longer

 

[DarrenM343]

Thing is if you don't own your home it makes retirement incredibly difficult. Rent is equal to or even more expensive than mortage repayments and constantly increase. You'll need a good pension to cover that while someone who has paid off their mortage just has bills and maintenance with the potential option of downsizing.

The current market situation sucks and needs to change but I don't see how you can change it without screwing current homeowners, particularly those who have bought recently

It wouldn't be screwing anyone over but of course everyone expects to make a profit from property these days. Primarily it should be somewhere to live, with long term growth potential. Lower prices for those selling and upsizing will often work in their favour as the more expensive property they buy next should have dropped by a similar amount if not more.

 

[flibbage0]

Genuine question, thinking long term, if you get married and have children would you not want to be close to your parent/s?

I do, that's one thing that's stopping me from moving to the other side of the country. Might sound a bit soppy but I would want my children to be around their grandparents.

 

[Puzzled]

Genuine question, thinking long term, if you get married and have children would you not want to be close to your parent/s?

I do, that's one thing that's stopping me from moving to the other side of the country. Might sound a bit soppy but I would want my children to be around their grandparents.

Doesnt need to be soppy reasons, its practical as well. Plenty of families cant afford childcare and have to rely on grandparents / family.

It's going to cause problems with elderly care in the future as well putting even more stress on social care budgets.

 

[Psycho Sonny]

It wouldn't be screwing anyone over but of course everyone expects to make a profit from property these days. Primarily it should be somewhere to live, with long term growth potential. Lower prices for those selling and upsizing will often work in their favour as the more expensive property they buy next should have dropped by a similar amount if not more.

No it won't.

House price fluctuations don't effect all areas or price ranges the same.

For example houses in Scotland over the 350k mark lost out massively when the recession hit. Unless those houses were in very sought after areas. Those weren't effected much at all.

In my area homes priced 350k plus aren't gaining value at all. However all homes under 300k are.

So you can't drop the price of cheap houses unless in a terrible area and that doesn't mean that their upgrade will be cheaper unless it's also in a terrible area or the house was overpriced to begin with. If you drop the price of expensive houses then that doesn't mean lower end will drop also as the market is much more competitive with demand outstripping supply. Especially in decent areas.

It's completely wrong to say that if house prices drop it's good for people looking for a upgrade. That's only true if the house they are looking to buy is also substantially less which isn't always the case as it's never as straightforward as all houses dropping. Plus bottom end doesn't drop as much or at all so it makes no difference to first time buyers.

The smaller house next to me has gained 30k in value in the past 3 years. However the bigger house around the corner has lost 30k over 20 years. So prices are good in the higher bracket in this area.

 

[krooton]

Genuine question, thinking long term, if you get married and have children would you not want to be close to your parent/s?

I do, that's one thing that's stopping me from moving to the other side of the country. Might sound a bit soppy but I would want my children to be around their grandparents.

My parents are in another hemisphere, so not possible. And to be honest, as an adult with my own life, things like commute and what-have-you would be higher on my list of priorities than being near my parents.

 

[flibbage0]

My parents are in another hemisphere, so not possible. And to be honest, as an adult with my own life, things like commute and what-have-you would be higher on my list of priorities than being near my parents.

But in terms of your kids being near their grandparents, whilst you might have spent enough time with your parents and have your own life, I'm pretty sure your kids would love to spend time with their grandparents and vice versa

 

[krooton]

But in terms of your kids being near their grandparents, whilst you might have spent enough time with your parents and have your own life, I'm pretty sure your kids would love to spend time with their grandparents and vice versa

Maybe, but that wouldn't be worth subjecting my children to growing up in South Africa

 

[Rroff]

Genuine question, thinking long term, if you get married and have children would you not want to be close to your parent/s?

I do, that's one thing that's stopping me from moving to the other side of the country. Might sound a bit soppy but I would want my children to be around their grandparents.

Everyone is going to have different circumstances, needs and mentality to this - some people have always lived a relatively nomadic lifestyle have varying attachments in terms of friends and family and mobile career wise others have a significant local family and friends network that they may in some capacity rely on or be relied on i.e. caring for elderly relatives or for various reasons have limitations career wise where they can realistically live, etc.

And moving itself is rarely a solution even for those able to - to a degree it only shuffles the problem around and you have balances in terms of employment opportunities in cheaper areas, etc. sometimes even the more reasonably priced areas can change i.e. with upgraded transport links and see sky rocketing prices resulting in the people who used to live there being increasingly priced out (not everyone will be able to take advantage of better job opportunities, etc.).

It ain't a pretty bed society has made for itself.

 

[Buffman]

You live in the South East. That is your problem.
In the Midlands (where there is actually industry) you easily get a 3 bed semi for <£150. I
An example of why relocating is an option:
https://www.rightmove.co.uk/property-for-sale/property-77299013.html

What industry is there in stoke? This isn't a loaded question more out of interest.

I think its a balance of
A) earn more money (can you upskill? Etc)
B) move to cheaper area / lower expectations
C) get a partner

 

[Jonnybmac]

I'm on the other scale. Terrace houses can be had for 50-60k here but I want a semi-detached with a drive which is around 100kish min. Reading this I should really just bite the bullet and get a terraced house