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

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HACO said:
Well, my rent is cheap (3% of the value) and as @touch said, I'd be paying more than that in just interest alone. Right now I'm saving £2750 per month for the future deposit so I'll get there sooner or later.
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You are saving £2750 and putting 25% of gross into a pension? Wowza. High roller.

You buying GME?
 
HACO said:
I wish... Only heard about it when it was already too late.
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But seriously, are you putting 25% gross into your pension, and saving £2750/mo? And paying rent? Something isn't computing. Unless you mean £2750 includes pension.
 
dLockers said:
But seriously, are you putting 25% gross into your pension, and saving £2750/mo? And paying rent? Something isn't computing. Unless you mean £2750 includes pension.
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I'm making six figures and spend like I'm still a university student. Covid makes it very easy to avoid spending.
 
HACO said:
No, low six, after pension comes to around the £100k mark. I don't have student loans though.
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Just did the maths. I think you are a wise man. I should definitely reassess my life decisions :p

Pension makes sense to offset the 100k tax problem as well.
 
dLockers said:
Just did the maths. I think you are a wise man. I should definitely reassess my life decisions :p

Pension makes sense to offset the 100k tax problem as well.
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Yeah losing personal allowance gradually after £100k effectively turns your marginal tax/NI rate to 62% which is absurd. Pension helps avoid that mess.
 
What I find ridiculous is, you can clearly afford to pay the rent but the lender won't give you a mortgage due to low income. I think the mortgage industry differently needs to improve, take into account of rental payments you make. I want to buy a house near my mother, live close to my family but a 3 bedroom house cost near £300k, a 1 bedroom flat, freehold cost £180k+. Even a studio rent cost more than a mortgage monthly payment. I have no idea how the market will be in the future, but hopefully within 5 years, I will be able to purchase my own house.
 
neocon said:
Leave everything as it is and just build more homes.
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There's a lot of developers down here sitting on land but not building. Apparently it's just not profitable enough to build.

The council here had to buy some of the land from the developers to get the ball rolling, and start getting houses built.

One of the developers had shareholders vote to sell up and wind up, last I read. They decided that the numbers just did not make sense to actually build anything.

Besides, all the resulting houses have to be sold for £300k+ it seems to be worthwhile, and that's more money than most people down here can afford.

Prices being like they are is really screwing us over, at least down here. Nobody wants to build and nobody has the money to buy the new houses.
 
FoxEye said:
There's a lot of developers down here sitting on land but not building. Apparently it's just not profitable enough to build.

The council here had to buy some of the land from the developers to get the ball rolling, and start getting houses built.

One of the developers had shareholders vote to sell up and wind up, last I read. They decided that the numbers just did not make sense to actually build anything.

Besides, all the resulting houses have to be sold for £300k+ it seems to be worthwhile, and that's more money than most people down here can afford.

Prices being like they are is really screwing us over, at least down here. Nobody wants to build and nobody has the money to buy the new houses.
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And this is one of the many issues stemming from a capitalist motivation being the root of everything.

People having somewhere decent to live that they can afford shouldn't be determined by whether it's profitable for someone to provide.

Which, yes, is socialism, which isn't the same as communism for a start but either way my own personal view (and my perspective comes from being in a similar position to HACO BTW, this isn't a worse off person wanting to take anything off the rich) is that we have a housing crisis, we need the government (A government, clearly not going to be this one) to step in and aggressively make the decision. It's what government is for, to be outside of short term financial interest.

An aggressive land acquisition and building plan creates jobs, stems house price increases, provides safety and security to these "hard working families" they bleat about but do **** all to support.

So... why does the party of the landed gentry do nothing? Well this problem is clearly too complicated to tackle so maybe it's time for a stamp duty holiday and VAT rise right?
 
mumihp said:
What I find ridiculous is, you can clearly afford to pay the rent but the lender won't give you a mortgage due to low income. I think the mortgage industry differently needs to improve, take into account of rental payments you make. ,
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I thought there had been movement on that? I know it was being discussed a couple of years ago and some (?) credit agencies had set up a scheme and were taking rent payments into account.

Has this not been accepted universally by now? Seems silly not to take your rental payment history into account.
 
Freakbro said:
I thought there had been movement on that? I know it was being discussed a couple of years ago and some (?) credit agencies had set up a scheme and were taking rent payments into account.

Has this not been accepted universally by now? Seems silly not to take your rental payment history into account.
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Yeah I agree, I mean so long as a deposit is there and we're not talking about some 100% or 95% mortgage or something along those lines then frankly the affordability criteria, instead of just some generic calculation should use the rather obvious prior knowledge of your own rent payments for the past few years... like that gives a good idea of whether you can you make those payments. Obvs they need to also look at how you might handle some rise in interest rates (unless you're fixing for some long period) but meh.
 
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