House prices rose 7.3% this year, average now almost £250k

[HACO]

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).

As we've seen in the topic, to some people wanting a commute that's shorter than an hour and doesn't cost £10k in season tickets is considered being entitled and unreasonable.

I'm very interested to hear your numbers then.

500k property, 50k deposit = 450k mortgage.

Most lenders are offering in the region of 4.25-4.75x annual salary - so your earnings would need to be in the range of 95k-106k.

I didn't necessarily mean you were on 100k, but even if you and your wife/partner were on 50k each, which lead to my follow on questions of how can you both be on that much but have only saved up a 50k deposit.

How much you save up is a function of your income and time. So I refer back to my answer, it wasn't always that high. That's a relatively recent thing. It was a lot lower even 2 years ago.

£500k for a first house. Just lol.

Sounds like someone is triggered.

 

[Deleted User 298457]

As we've seen in the topic, to some people wanting a commute that's shorter than an hour and doesn't cost £10k in season tickets is considered being entitled and unreasonable.



How much you save up is a function of your income and time. So I refer back to my answer, it wasn't always that high. That's a relatively recent thing. It was a lot lower even 2 years ago.



Sounds like someone is triggered.

All points very valid and definitely some folks in here need reminding of them.

Hopefully you get over your vendetta and find something suitable that ticks as many boxes as possible.

 

[Vanilla]

The fact remains that there is no such thing as long-term security in rental.

You can still use Section 8 to retake possession on grounds of "refurbishment" with only two months notice, regardless of how many years are on your contract.

I thought it was two weeks for landlord returning to occupy the property but happy to concede that might be two months.

In any case, if you have a 5 year contract, or two year, or 10 year... it's not worth the paper it's written on given how easily the landlord can get you out with two months notice.

This is not what I call "security dwelling". Two months to uproot yourself completely and find somewhere else to live.

You still have to provide proof that you are returning to the property. With refurbishments there are still a LOT of hoops to dive through - again - proof is needed. You can't just say 'i'm refurbing you have to leave'

https://landlordlawblog.co.uk/2016/03/02/grounds-for-eviction-ground-6-substantial-building-works/

You make it sound like the landlord just sends a letter and it's done. It's not like that.

Especially if you thought you had a long term contract and had found a job, enrolled your kids in school, etc.

Look at it on the flip side. Let's say the landlord lost his job and needed the house. You can always find somewhere else in the area, but the house is all he has otherwise he is on the street. Not unreasonable is it? He has to prove this.

And no, I disagree that the landlord values long term stability. If rent prices rocket and the landlord now sees he can charge 1.5x what he's currently charging, he takes any and all action necessary to get his rent in line with the maximum the market will bear.

And then in some cases will mean getting the existing tenants out, in order to push that rent up.

None of this is theoretical. I've seen it, spoken to people who have experienced it. Being a tenant is brutal. Zero security, lots of risk, needing to get out at short notice.

And all of that whilst paying much, much more than you would for a mortgage, if you could get one.

I know the alternative is "communism", but I despise the idea of leaving housing to purely market forces. I really do.

Well i'm a landlord and I disagree. The biggest headache is people moving out. You have to advertise, show people around, background check, get new certifications. The only way that rent is going to jump 50% is if the property has been let for about 15 years without a rise in rent.

The average tenancy is about 4 years,

 

[Vanilla]

Perhaps you've been lucky.

I probably don't need to remind you that ministers recently* found 1/3 of rental housing was not up to "minimum habitable standard".

I'll find a link to the news story at some point. It was big news.

*Might have been up to a year ago now.

Lucky? You know you can visit properties before moving in? Have check in services that check the place?

 

[mattx2]

And all of that whilst paying much, much more than you would for a mortgage, if you could get one.

Maybe it's more common in the south east with the higher house prices but this is generally not the case in most areas you pay less for rent than you would a 90% ltv mortgage

 

[Psycho Sonny]

Of course because we're all communists, you already said this many times

P.S. Didn't you inherit your entire portfolio from your family? I seem to remember you saying this before. Must be nice to have that sort of inherited wealth huh.

Wrong. Not received a penny of inheritance my dad is still alive.

 

[Psycho Sonny]

As we've seen in the topic, to some people wanting a commute that's shorter than an hour and doesn't cost £10k in season tickets is considered being entitled and unreasonable.



How much you save up is a function of your income and time. So I refer back to my answer, it wasn't always that high. That's a relatively recent thing. It was a lot lower even 2 years ago.



Sounds like someone is triggered.

And it's not me.

It's the renter. Pretending he's looking out for the future generations. When he wants to have his cake and eat it too.

 

[jaybee]

The best is when you hear people say the classic reaction to how much rent you pay "but you can get a mortgage for that". Then you ask them if they have the equivalent deposit amount needed in the bank and they stfu.

 

[HACO]

The best is when you hear people say the classic reaction to how much rent you pay "but you can get a mortgage for that". Then you ask them if they have the equivalent deposit amount needed in the bank and they stfu.

Especially true in London. For your mortgage to be similar to that £1500 rent you sometimes need a £200k deposit.

 

[Deleted User 298457]

The best is when you hear people say the classic reaction to how much rent you pay "but you can get a mortgage for that". Then you ask them if they have the equivalent deposit amount needed in the bank and they stfu.

TBH the places I have rented have been a real novelty too. Wouldn't want to live there forever.

 

[mid_gen]

Wrong. Not received a penny of inheritance my dad is still alive.

This you?

How to protect my house from a greedy sister?

In fact my dad just bought a flat and my name is on the title on the deeds.

 

[Vanilla]

This you?

How to protect my house from a greedy sister?

Well he's right then. Having your name on a title does not mean you have received inheritance.

 

[FoxEye]

Wrong. Not received a penny of inheritance my dad is still alive.

But it's your family's portfolio ("estate") that you manage and derive an income from?

And will naturally inherit.

And you're calling us "communists", lol.

 

[FoxEye]

Maybe it's more common in the south east with the higher house prices but this is generally not the case in most areas you pay less for rent than you would a 90% ltv mortgage

South West here, where a room in a shared house will set you back £600-£700 pcm in my town.

 

[mattx2]

South West here, where a room in a shared house will set you back £600-£700 pcm in my town.

And I'm guessing the whole house would be worth ~800k so a discount from the mortgage rate at 90% ltv

 

[Psycho Sonny]

This you?

How to protect my house from a greedy sister?

Yes and?

But it's your family's portfolio ("estate") that you manage and derive an income from?

And will naturally inherit.

And you're calling us "communists", lol.

I don't manage my family's portfolio at all. My dad manages his own portfolio and he has an agent in place for day to day running and an accountant for filing tax returns.

Again you don't have a clue what my set up is what my earnings are or where they come from. Up until circa 6 months ago I used to work 40 hours a week. In the past I've worked 2 jobs at points sometimes 3. I've got an honours degree from uni and worked for at the time the second biggest IT company in the world.

If I need to make it any clearer to you. I haven't taken a penny from anyone. I bought my home, cars using my own cash which I earned from employment.

I have been a company director fyi in the past for several years.

I managed to buy my home with a healthy deposit thanks to living at home. I also made quite a bit of money from an investment I made into gold. I took every penny I had in savings and invested into gold bricks and sold it a month or so after the Brexit vote when the pound tanked and gold went up considerably and had already been rising for some time. I bought my home 2 weeks later. So I made a healthy profit in a short space of time on that one.

 

[mid_gen]

Haven't taken a penny from anyone, just gets gifted properties from daddy

 

[Simon]

I’m still interested in how someone who is taking several years to save £50k is going to get a £450k mortgage and pay £2k a month on the mortgage ?

do people even realise how much interest they are paying to the banks ?

You are going to need to be on £100k a year.

however fear not. You can rent for less without needing a deposit.

 

[Deleted User 298457]

I’m still interested in how someone who is struggling to save £50k is going to get a £450k mortgage and pay £2k a month on the mortgage ?

You are going to need to be on £100k a year.

however fear not. You can rent for less without needing a deposit.

I won't post it on a public forum but I can run you through very detailed finance trackers of mine for the last few years. (nb. it includes lots of lifestyle choices which delay getting there as it seems so far away, but when d-day of finding a house creeps up you feel the squeeze!).

As previously said as well, OP wasn't on £100k for the last 5 years, it has been a variable amount.

Based on your post and attitude, presumably a problem you'll never have to worry about

 

[Simon]

What do you mean sorry. I think attitude is hard to convey in words sorry.

I have a child I worry about the future of them getting on the market in the future and hear the frustrations in here. But just sitting on the side and not getting into a property whilst you wait for a house drop will just end up with a sad face as you will miss the boat and regret not buying earlier. On this it’s easy to blame others for this like BTL.

What should I do? Sell BTL and let someone else (every time I do look to sell I get investors interest only). Or keep it so I can give it to him ?

ps never heard of two week notice.