House Pricess

DB_SamX · 31 Jul 2006 at 14:45

I am only 22 and still at uni, but house prices are always at the back of my mind. Is there a solution to dealing with high house prices as a first time buyer?

Is buying a house/flat as early as possible (if you have enough for a deposit and can sort a mortgage out) better than renting for a few years and then purchasing?) Does that work out better in the long term? :confused:

nin9abadga · 31 Jul 2006 at 14:46

Borris said:
If these folk are taxed, and it becomes more expensive for them to service the mortgage on their rental properties, it would be the renters that foot the bill.

or they would have to sell up. i hate to think how much rent i've paid, but i'd gladly pay more if i could see a chance to buy a house in the future. atm i can't. i'm not poor, but i hate to think how low income couples/families/individuals can afford to buy property.

nin9a

Borris · 31 Jul 2006 at 14:47

daz said:
Chancellor of the Exchequer.

In that case, the Church of England has more say in the setting of the base rate.

Since 1997, the MPC has had independence and autonomy from the Chancellor. If it were thought that Gordon had any influence over their decision at all, they would lose the ability to affect changes in the economy.

PaulStat · 31 Jul 2006 at 14:48

It's deff better if you have two or more people saving, for example I think in a years time i should be able to save 7k+, my partner would perhaps be able to save 4k+ and my dad has already said that he would help towards a deposit, so that's probably another 3k+.

So paying 10% up front on a first property, your talking about 140k property? Or does it not work that way? :confused:

Dave M · 31 Jul 2006 at 14:49

Borris said:
In that case, the Church of England has more say in the setting of the base rate.

Since 1997, the MPC has had independence and autonomy from the Chancellor. If it were thought that Gordon had any influence over their decision at all, they would lose the ability to affect changes in the economy.

He doesn't tell them what to do, but he does tell them why they're doing it.

e.g. keeping inflation in a set range - they will raise and drop rates to ensure this stays in the range they are instructed to.

daz · 31 Jul 2006 at 14:49

Borris said:
In that case, the Church of England has more say in the setting of the base rate.

Since 1997, the MPC has had independence and autonomy from the Chancellor. If it were thought that Gordon had any influence over their decision at all, they would lose the ability to affect changes in the economy.

Gordon has massive power over who is in the MPC, and also he sets the inflation rate targets. To say that the Church of England has more power than Gordon is rather silly.

Visage · 31 Jul 2006 at 14:50

DB_SamX said:
I am only 22 and still at uni, but house prices are always at the back of my mind. Is there a solution to dealing with high house prices as a first time buyer?

Is buying a house/flat as early as possible (if you have enough for a deposit and can sort a mortgage out) better than renting for a few years and then purchasing?) Does that work out better in the long term?

It depends on a lot of things.

Do you have much in the way of a deposit? You can get 100% mortgages, but they tend to be more expensive. You can club together with friends to buy a place, but should take steps to protect youself if the friendship goes sour.

Maybe you can rent for a few years while you scrimp and save for a deposit.

Another option is to go for a 30 year interest only mortgage, but you can get royally screwed if property prices drop....

memphisto · 31 Jul 2006 at 14:52

whay tax second homes ? I heard some idiot on the radio the other day saying people with a second home should pay 500% council tax ?

I have nothin against anyone owning 2 /3 /5 homes at all, they earnt the money, they paid tax on it to save it and buy the home why should they be forced into paying higher taxation.

Theres something seriously wrong in this country in as much as the answer to everything seems to be tax the rich more.

The housing crisis (if it even is that) has been brought about by a number of things suchs as the rise in single occupancy, immigration (legal and otherwise) etc etc

Bulding more houses suprisingly may noy be the answer either because we dont have the infrastructure in the areas where homes are being built to support them.

SourChipmunk · 31 Jul 2006 at 14:57

memphisto said:
Theres something seriously wrong in this country in as much as the answer to everything seems to be tax the rich more.

I don't know you well enough to know where you're from, but here in the US they are doing the same thing. They give people with low income HUGE tax breaks, whereas the higher-income peeps get punished. Middle-class is the only way to go, it seems. Basically, it seems they want people to be poor -- or accept the fact that they're poor. I don't understand it at all.

Skiddley · 31 Jul 2006 at 14:57

You do get taxed on a second home. Its called capital gains. Not to mention any profit made over mortgage interest payments being added to your income and taxed (40%!). And then there is the new ledislagation forcing landlords to use approved 3rd parties to hold deposits (and pay for it)...and then.......

If you think it's all about skanking the tennants and pushing house prices up think again. If no landlords existed, many people on low incomes would be messed up. Not to mention the conveinence of professionals being able to move about without the commitment of ownership. Its a service and benifits the economy.

Trust me, when you lot keen on moaning eventually buy a property and shock horror even buy a BTL property or two you'll have a very different set of opinions.

Rosbif · 31 Jul 2006 at 14:59

it doesnt matter what you do in england there is always someone or something standing in your way ... you wanna build houses but people whinge about losing a few fields... you wanna build more hospitals but people whinge about the cost and the location ... you build more roads .. no no cant do that pollution ... you cant do anything here without someone kicking up a fuss about something

Borris · 31 Jul 2006 at 15:00

Telescopi said:
He doesn't tell them what to do, but he does tell them why they're doing it.

e.g. keeping inflation in a set range - they will raise and drop rates to ensure this stays in the range they are instructed to.

I was being simplistic and flippant.

My point works on the micro, rather than the macro level - GB / Treasury set the inflation target in the annual budget (and the Government sets other targets), but it's entirely up to the MPC how this is reached (unless the circumstances are exceptional) on a monthly basis.

daz said:
Gordon has massive power over who is in the MPC, and also he sets the inflation rate targets. To say that the Church of England has more power than Gordon is rather silly.

The CofE has God on it's side.

nin9abadga · 31 Jul 2006 at 15:09

Skiddley said:
Trust me, when you lot keen on moaning eventually buy a property and shock horror even buy a BTP property or two you'll have a very different set of opinions.

i would love to moan about the rate of CGT after i've sold my 2nd, 3rd or 4th home. unfortunately buying my first is the problem

nin9a

greengiant · 31 Jul 2006 at 16:37

nin9abadga said:
i would love to moan about the rate of CGT after i've sold my 2nd, 3rd or 4th home. unfortunately buying my first is the problem

nin9a

Likewise.

Maximum I could afford for a mortgage is £around £45K.

Why is there so much emphasis on developers building expensive houses rather than affordable flats / houses?

Rosbif · 31 Jul 2006 at 16:44

greengiant said:
Likewise.

Maximum I could afford for a mortgage is £around £45K.

Why is there so much emphasis on developers building expensive houses rather than affordable flats / houses?

dunno where you live mate but where i live there are endless amounts of apartments going up

Wolf11 · 31 Jul 2006 at 16:46

I look back now and wish I had got on the property ladder a few years ago but didnt and now I can see I'll be with my rents for years ,the only way it seems to get a decent mortgage figure is to have a partner but I like being single ....I might have to settle for a caravan or tent lol ...the cheapest flats in my area now seem to be around £80k plus and a basic house £110k or so these same houses were £40k about 4 years ago (boo hoo)

I think the UK will end up like Japan where you have a 75 year mortgage so in effect you never fully own the property but I suppose a member of your family could then carry it on etc. or its sold once you die.

Borris · 31 Jul 2006 at 16:47

greengiant said:
Why is there so much emphasis on developers building expensive houses rather than affordable flats / houses?

Because town planners have still not recovered from the out and out catastrophe of 50's and 60's social housing - Specifically the quick fix concrete jungles that sprung up after the war, and that remained far beyond their sell-by date.

Skiddley · 31 Jul 2006 at 16:51

Rosbif said:
dunno where you live mate but where i live there are endless amounts of apartments going up

And most developments are forced to build a % of 'affordable' units too in order to receive planning. But I get that most are more than 45K.

Supply and demand, if you can't keep up with the market do something about it.

kitten_caboodle · 31 Jul 2006 at 16:51

Wolf11 said:
I think the UK will end up like Japan where you have a 75 year mortgage so in effect you never fully own the property but I suppose a member of your family could then carry it on etc. or its sold once you die.

That's exactly the way its heading. Lifetime mortgages and a return to old fashioned communities because families grow up in the same property and then take it on when the older members of the family cannot fund it anymore. Hopping from house to house is seriously a thing of the past unless you're on boodles of cash.

kitten_caboodle · 31 Jul 2006 at 16:52

Skiddley said:
Supply and demand, if you can't keep up with the market do something about it.

I'm interested to know what you mean by this?