Depends on the interest rate you get which is dependent on circumstances and particularly on LTV ratio. £2,200/mo repayments on a 25 year mortgage for £450K I think is 3.3%. No idea if that's what a typical 95% LTV mortgage is but that might explain the difference with your own circumstances.
House prices rose 7.3% this year, average now almost £250k
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Depends on the interest rate you get which is dependent on circumstances and particularly on LTV ratio. £2,200/mo repayments on a 25 year mortgage for £450K I think is 3.3%. No idea if that's what a typical 95% LTV mortgage is but that might explain the difference with your own circumstances.
Of course not. But that £700k 2-bed flat in Camden would cost a lot less. It's simple supply and demand, If someone buys half the houses , the rest of the people would be competing for fewer houses, pushing up prices. Those who couldn't afford to buy anymore (like you) will be forced to rent from the guys who bought half the houses, paying off their mortgage instead of your own.
And I think you're enjoying that
Owner occupation is now at a historically low rate in the UK, BTL at an all time high, wages completely stagnant and declining, yet property prices keep going up and share of BTL has increased every single year in the last 10 years.
Deleted User 298457
Deleted User 298457
I think people are suggesting you buy something "roughly suitable" now to get you around your moan about BTL earning a fortune from you. You are then extrapolating that out to be "unsuitable".
I was building on your point by saying a roughly suitable house could impact the agility/ability to buy something "more correct".
And that's the problem people have been pointing out to you since the start of the thread.
What makes the cheaper property unsuitable? Is it uninhabitable? Is there some sort of dangerous problem with the construction?
It's not actually "unsuitable", it's just that you'd have to make some compromises and you don't want to do that.
Your moral standpoint makes no sense anyway:
If BTL landlords buy all the properties then the only opportunity you're taking away by buying a hosue for yourself to live in is from a BTL landlord.
Deleted User 298457
Deleted User 298457
It is all relative. If you are fighting against globalisation as well (your other ramblings) then odds are I wouldn't have the salary I have now and therefore my affordability or desire to live there would be lower.Of course not. But that £700k 2-bed flat in Camden would cost a lot less. It's simple supply and demand, If someone buys half the houses , the rest of the people would be competing for fewer houses, pushing up prices. Those who couldn't afford to buy anymore (like you) will be forced to rent from the guys who bought half the houses, paying off their mortgage instead of your own.
And I think you're enjoying that
Owner occupation is now at a historically low rate in the UK, BTL at an all time high, wages completely stagnant and declining, yet property prices keep going up and share of BTL has increased every single year in the last 10 years.
Deleted User 298457
Deleted User 298457
It is about that - I pay £1800 on £405k with £45k down (£450k total).
I haven't got time to proper research but I saw some stats that said 13% of new homes in London were bought by people overseas. I'd hypothesise if you closed the market to overseas buyers you may see prices drop as a smaller market of buyers is likely to see lower values - supply would be static but demand decreases. I imagine beyond new homes and higher up the market the proportion of overseas buyers becomes higher too in London. I don't like the idea particularly though as I side more on the concept of opening up markets for wealth creation in the UK, but maybe if the housing market is so fubared then something radical like that is necessary.
It has a ripple effect too. Overseas buyers price you out of Zone 1 so now you buy in Zone 2 which forces those people out to Zone 3 etc. etc. all the way to Suburbia in the South East.
Deleted User 298457
Deleted User 298457
And heres the story of how I went from Zone 1 to Hertfordshire
However, without these overseas buyers keeping the rental market competitive, globalisation would stall, and the opportunities would go abroad. Very difficult balance and not everyone can be happy.
£800/month equates to a 25 year repayment mortgage at 0.7% interest.
What deal are you on?
Probably a 35-40 year term
Which other major European country, where renting is common, allows a landlord to evict on as little as two weeks notice?
Germany (etc) have guaranteed 10 year tenancies where *only* the tenant can cancel early. The landlord can't.
The regulation around the rental market is very favourable to landlords in this country.
How many renters do you know who are genuinely secure in their lodging? Their landlord could come calling any week. Either to chuck them out, or to say the rent is going up and if they don't like it they can find somewhere else.
Camden is a popular area and that price is not driven entirely by BTL. But if someone wants to live and experience that, they can rent there if they want to.Of course not. But that £700k 2-bed flat in Camden would cost a lot less. It's simple supply and demand, If someone buys half the houses , the rest of the people would be competing for fewer houses, pushing up prices. Those who couldn't afford to buy anymore (like you) will be forced to rent from the guys who bought half the houses, paying off their mortgage instead of your own.
And I think you're enjoying that
Owner occupation is now at a historically low rate in the UK, BTL at an all time high, wages completely stagnant and declining, yet property prices keep going up and share of BTL has increased every single year in the last 10 years.
I own a 2bed flat in a different central London area, it's still a desireable location but a little behind Camden but it has suited our needs for work commute and social opportunities. Of course my ideal home would be a house around here but I don't expect it to be the same price I paid for a flat.
Suitable = number of rooms equal to people living in it, and within a 45 min commute to work, that will cost me a minimum £500k.
I know, I desire too much and should be happy with 3 hour commute or 3 people per room else I'm being entitled
Deleted User 298457
Deleted User 298457
You're being daft. If that 45minute commute is a car journey, then there is so much subjectivity on your criteria, no wonder you are in analysis paralysis and the market is pricing you out.Suitable = number of rooms equal to people living in it, and within a 45 min commute to work, that will cost me a minimum £500k.
I know, I desire too much and should be happy with 3 hour commute or else I'm being entitled
I wanted under an hour train journey to central London, that could put me in somewhere as far as Slough or as near as a 1 bed in Mill Hill. I chose much further distance away and got a lot more for my money.
Stop being mad at the world and participate in it instead.
I can never understand the number of people who commute for hours, especially when rail season tickets are £7k to £10k these days (daylight robbery).Suitable = number of rooms equal to people living in it, and within a 45 min commute to work, that will cost me a minimum £500k.
I know, I desire too much and should be happy with 3 hour commute or 3 people per room else I'm being entitled
I think he means if he buys a "get on the ladder" property for 300k - (the FTB SDLT limit outside of the SDLT holiday), and then looks to upgrade to a 500k house in a few years time, the SDLT payable would be 15k versus the 10k that a FTB would pay. In reality it's not a huge difference.
The idea of the FTB SDLT exemption was to help get people onto the ladder, if you're in a position of being able to afford a 500k house, then you shouldn't need a huge exemption.
Deleted User 298457
Deleted User 298457
Wrong, it is a huge difference. It is £7.5k which if you are renting could be another 12 months of saving.
12 months of saving on top of the X number of years already spent saving, you are in OPs situation and priced out of where you want to live.
Stop undermining peoples hard work because you haven't experienced it.
Yes, sorry, you're right. The maximum discount for first time buyers stamp duty is £5000, not £7500 that I said before.
Rental contracts are also typically one year long with the option to roll by month or extend by another year. You can negotiate many years. Just like a job contract - you can negotiate and get what you want for your needs. I have signed a contract for one year and then, realising I love the place, then went on to sign for two years in the past. You can't be evicted during this time.
You've never had any experience of renting right?
Edit: Also, wouldn't 10 year leases just make it harder for those BTL landlords to sell the properties? Seems you want everything even if it would hinder the things you want earlier in the thread.
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