How to get onto the housing ladder
- Thread starter OpenToSuggestions
- Start date
Soldato
Not really. if u earn enough to pay 1.2k for mortgage and pay your bills and still enjoy life a bit then why not?
Also, get married, that helps
if both of u earn 25k then a 10% mortgage on a 25 or 30 year plan is more then doable.i am in London as well
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Not really - on the financial side it depends on the rent level versus maintenance costs, depreciation, mortgage interest and loss of earnings from savings or alternative investment vehicle.
From the lifestyle view it depends on whether you place flexibility and ability to move for work (and improve your earning potential) above fixing roots, limiting your employment prospect but gaining the right to decorate and have pets or not
Soldato
Mortgage is also good if u have a family. Do u want to keep moving places when u have kids?
Generally having kids would mean roots/stable jobs and an end to the renting days.
Depends on the area. The market peaked in 2007 and fell quite shapely afterwards. Some areas at back at (or close to) 2007 levels but most aren't.
Associate
i know i left Reading a few years ago now live in derbyshire in a 4 bed semi that cost £124k, friends all still live reading/tilehurst calcot and aree looking at £250-300 for same sort of size houses.
best of luck buddy
Associate
It doesn't even exist unless property is getting cheaper relative to wages, not by it increasing due to the cheap credit rocket fuel that was poured everywhere 1997-2007
Soldato
I'll be going on a first buy scheme on a new build and pay 5% deposit the they loan you 20%. You then only need a mortgage for 75% of the property value.
Associate
The question there is, when do 'they' want the loan back? It's not likely you could even give it back in any sort of reasonable time frame imo, unless you inherit money or we go Weimar Republic style hyper inflation in Britain.
Associate
I think that the 'property ladder' is more often talked about when property prices are outstripping wages. It still exists though, and paradoxically, the best time for a first time buyer to buy is when other people aren't, which ought to mean prices go lower. Since the collapse of the property market in 2007, property prices have perhaps not adjusted as sharply downwards as I had hoped, but they have dropped below the curve of historic house price inflation. It's possible that the long term curve may be an illusion, or that a big downward correction is still to come. Nevertheless, I reckon that prices would have to fall by perhaps more than 5% per year to make it worth waiting before buying if you can get a mortgage on a property equivalent in value to what you can afford to rent.
The thing people sometimes forget when comparing renting with owning your home, is that once you have paid off the mortgage, you can live mortgage/rent free for the rest of your life.
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Soldato
Interest free for 6 years, then must be paid back within the 25 year mortgage. Guess it's just in with the rent payments per month.
Associate
Too tempting for people to overstretch themselves I reckon. Also, these deals tend to be offered on overpriced new builds.
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