Associate
You can spend anything from 60k to £500k on a flat, here in the northwest, some people prefer high-rise apartment living to houses especially in urban areas, even more in the south.
Your chances of owning your own home?
- Thread starter PiKe
- Start date
You can spend anything from 60k to £500k on a flat, here in the northwest, some people prefer high-rise apartment living to houses especially in urban areas, even more in the south.
It's in Chelmsford. £780 was quite good I thought, considering I was only putting down a small deposit. Even though it seems like a lot to me! It's a decent size 2 bed flat in a converted factory. The mortgage is about 34% of my monthly income, which I thought was pretty safe.
Associate
That's a net income of around £2300 pretty good at 25, any significant commuting costs or is everything on your doorstep so to speak?
My mortgage is just shy of £750 on my flat?
Rent on the same flat would be £1,000 though.
Not just tempted to let it and move on?
That's a nice rent on your flat NickXX although I guess you might have put down a larger deposit than me on a better flat?
Slumberbox I think I got really lucky with my job tbh. I have to spent about £100 on fuel to get to work each month. I have a lift share with a colleague.
Slumberbox I think I got really lucky with my job tbh. I have to spent about £100 on fuel to get to work each month. I have a lift share with a colleague.
Nop its still only half finished however I think I probably just feel a little down because its just been such a headache getting it finished and turned out to be a lot more expensive then we thought it would be.
Life will get easier in the next couple of years as my wife will be a fully qualified GP so will start making proper money when she has finished her training.
I will only sell if it we decide to move out of the UK or back down to london.
its a pretty dire situation. Ive been fairly fortunate with my finances throughout life and had some fairly good short term investments work in my favour allowing me to have a 70/30 ltv. I've just started to see some 5% deposit mortgages coming back on the market but down here, you can't get very much for your money. I'd hate to be married with kids and not have the security of a home (or the knowledge that I could even get a mortgage).
Out of our close group of friends, myself and two others make up the three couples we know who have managed to get a mortgage and a fairly nice house/flat. Now, here's me looking to get a villa or condo in Florida
Out of our close group of friends, myself and two others make up the three couples we know who have managed to get a mortgage and a fairly nice house/flat. Now, here's me looking to get a villa or condo in Florida
leasehold or freehold?
27, 25k a year job, Live at home, pay minimal rent.
Don't drink, don't buy expensive clothes, hardly ever leave the house. (my m8's kick off at me all the time for not coming out)
Never had a car thats worth over 5k. don't have a mobile phone (work pays for it)
don't really buy electronic toys very often.
might have 2 weekends (3-4 day weekends) away on Holliday a year.
yet i have 0 savings, end up some how spending everything i get every month.
no chance for a mortgage, my bank said don't even bother without a 20% deposit.
house prices in my area are 100k+
I do love all the people on here (who have got houses it seems) going on about how can you have no money in your position and don't rent its dead money and so on.
was chatting with a few older people a few weeks back and they were going on about the same thing only they were saying it was there fault younger people have no chance of getting a home of there own because there generation has totally messed up the market by trying to make as much out of there own houses as possible.
they were on about how they struggled on wages comparable to what i am sort of on now been skint after buying houses costing 30-40k in the late 90's
so how are we spost to buy these same houses now they are been sold for 150k with little in a boost of wages.
my dad got his 1st house which cost him 6k, he sold that a few years later for 25. they got a 40k house after that in 1993, that same house now if they still had it (one 2 doors down which is the same) is up for 275k lol
in my eyes a house should not be an investment to make as much £££ as possible in the time you have it but as a home that you and your family live in.
you HAVE to have some were to live or your on the streets, and it seems renting is going to be the way i have to go inless some one dies that i will get money from
go look in most European country and renting is the norm. and they seem to get on just fine when there in there 60's+
there are few guys i know that a building 3 houses round the corner on a plot of land they got a few years back.
when the houses are done they will be (at current pricing) 120k each.
the lads that are doing it are doing it to make £££ and they said they will be making just over 50% of what it will of cost them to build. this is one of the meny problems younger people have.
Don't drink, don't buy expensive clothes, hardly ever leave the house. (my m8's kick off at me all the time for not coming out)
Never had a car thats worth over 5k. don't have a mobile phone (work pays for it)
don't really buy electronic toys very often.
might have 2 weekends (3-4 day weekends) away on Holliday a year.
yet i have 0 savings, end up some how spending everything i get every month.
no chance for a mortgage, my bank said don't even bother without a 20% deposit.
house prices in my area are 100k+
I do love all the people on here (who have got houses it seems) going on about how can you have no money in your position and don't rent its dead money and so on.
was chatting with a few older people a few weeks back and they were going on about the same thing only they were saying it was there fault younger people have no chance of getting a home of there own because there generation has totally messed up the market by trying to make as much out of there own houses as possible.
they were on about how they struggled on wages comparable to what i am sort of on now been skint after buying houses costing 30-40k in the late 90's
so how are we spost to buy these same houses now they are been sold for 150k with little in a boost of wages.
my dad got his 1st house which cost him 6k, he sold that a few years later for 25. they got a 40k house after that in 1993, that same house now if they still had it (one 2 doors down which is the same) is up for 275k lol
in my eyes a house should not be an investment to make as much £££ as possible in the time you have it but as a home that you and your family live in.
you HAVE to have some were to live or your on the streets, and it seems renting is going to be the way i have to go inless some one dies that i will get money from
go look in most European country and renting is the norm. and they seem to get on just fine when there in there 60's+
there are few guys i know that a building 3 houses round the corner on a plot of land they got a few years back.
when the houses are done they will be (at current pricing) 120k each.
the lads that are doing it are doing it to make £££ and they said they will be making just over 50% of what it will of cost them to build. this is one of the meny problems younger people have.
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Soldato
Really the big issue on property prices is that over the last 15 years or so the multiplier from average wage to average property has gone from around four to at its peak around six. Thats a massive increase, its never as far as I can see been even close to that level and no one knows if it will sustain or drop back. Last 2 years its slowly falling to about 5.5 times now.
Normally in a high inflation (current rate is high for the short/medium term we have had) wages increases rapidly rebalance any over priced property, which is why people say that inflation reduces the value of debt. BUT we are not seeing wage inflation really , current level is about 2% but plenty of people are getting sod all. So the "normal" inflation effect of rebalancing is much lower, ie borrowers are actually likely to be worse off rather than gaining through inflation. The rebalancing is coming from slow slight downward selling prices on most houses. London hasnt had the same trend as the majority of the country its seen some recovery of pre crash prices.
So really we are in uncharted waters, we really cant say if the average wage to average house price ratio has found its new point. We cant say that there will continue to be a under supply of housing so the current under supply isnt a guaranteed factor we can assume it is but cannot say for certain it is.
Then the killer to possible house price deflation is the deferred position of people in arrears, this is very hard data to find. The lenders (banks and building societys) are always very coy about the amount of people in arrears (which is normally people more than 3 months behind in payments), all figures you can find lead to this being at a record high yet reposessions are low. That was previous government interference, again attempting to keep it all looking rosy for as long as possible. Those people are struggling now, let alone should interest rates rise at any point soon..
In summary the market is over priced, by how much we dont know. If it wasnt over priced you would see a lot more house sales than are happening, remember something is only worth what someone is willing to pay for it, the fact that so few houses are selling is proof that people aren't willing to buy at the price people want.
My local prices clearly show a lot of over priced houses that just sit for sale, the reasonably priced ones sell very quickly.
Renting short term is not a bad place to be, its got less medium term financial risk as you really do not want to be reposessed thats a quick way to lose loads of money, and sooner or later I still think we will see some more rebalance between average wage and average house price, to what multiplier though I am not sure.
Normally in a high inflation (current rate is high for the short/medium term we have had) wages increases rapidly rebalance any over priced property, which is why people say that inflation reduces the value of debt. BUT we are not seeing wage inflation really , current level is about 2% but plenty of people are getting sod all. So the "normal" inflation effect of rebalancing is much lower, ie borrowers are actually likely to be worse off rather than gaining through inflation. The rebalancing is coming from slow slight downward selling prices on most houses. London hasnt had the same trend as the majority of the country its seen some recovery of pre crash prices.
So really we are in uncharted waters, we really cant say if the average wage to average house price ratio has found its new point. We cant say that there will continue to be a under supply of housing so the current under supply isnt a guaranteed factor we can assume it is but cannot say for certain it is.
Then the killer to possible house price deflation is the deferred position of people in arrears, this is very hard data to find. The lenders (banks and building societys) are always very coy about the amount of people in arrears (which is normally people more than 3 months behind in payments), all figures you can find lead to this being at a record high yet reposessions are low. That was previous government interference, again attempting to keep it all looking rosy for as long as possible. Those people are struggling now, let alone should interest rates rise at any point soon..
In summary the market is over priced, by how much we dont know. If it wasnt over priced you would see a lot more house sales than are happening, remember something is only worth what someone is willing to pay for it, the fact that so few houses are selling is proof that people aren't willing to buy at the price people want.
My local prices clearly show a lot of over priced houses that just sit for sale, the reasonably priced ones sell very quickly.
Renting short term is not a bad place to be, its got less medium term financial risk as you really do not want to be reposessed thats a quick way to lose loads of money, and sooner or later I still think we will see some more rebalance between average wage and average house price, to what multiplier though I am not sure.
how.
You should be saving shed loads on that wage..
And try a different bank. No one needs 20% that's just been a load of rubbish talk over the last few years. What people should be saying is that they aren't willing to pay the marginally higher interest rates, rather than you must have 20%.
also where do you live, so often I hear people say they are x-amount. Then find houses for a 1/3rd less within a 5-10mile radius.
It's called inflation. My parents first house cost something like 9k, but it took every penny they had to buy it. They had no furniture, no electronics, couldn't decorate it, didn't even have carpets for a long time. It hasn't got harder to buy. People just expect to be able to buy a house, have nice things and still have loads of disposable income. Because one generation was able to do this, which isn't what history says is the norm.
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Caporegime
Luckily I met my gf and together we have been able to get a 1-bed brand new flat.
Mortgage is £560, and service fees are £100, so it's actually £40 cheaper than the room I was renting in a 3-bed flat.
Sure, bills are a bit higher due to being split between fewer people, but that's more than a fair compromise to actually having our own place.
A newish 1-bed nearby is £750 to rent.
Mortgage is £560, and service fees are £100, so it's actually £40 cheaper than the room I was renting in a 3-bed flat.
Sure, bills are a bit higher due to being split between fewer people, but that's more than a fair compromise to actually having our own place.
A newish 1-bed nearby is £750 to rent.
You need to make a spreadsheet and track your incomings and outgoings. Your money is going somewhere.
Associate
That's a fallacy, house prices have consistently outstripped inflation by a significant margin. Plus what about depreciation, any other asset you purchase loses value over time, but for some reason we're supposed to accept that houses go up in value instead?
And it's all driven by a British conviction that owning your own home is some sort of necessity, and getting yourself into barely-manageable levels of debt for a large proportion of your working life is somehow a good idea
Soldato
28, 21K a year, live alone in a rented flat near Bury, According to my spreadsheet I can save around £300 a month if I really push the savings boat out, but realistically I save £200 into my ISA and £50 into my emergency savings fund.
I have a car and not much else so probably looking at 10 years to save up say 20% of a deposit for a 100K house.
My savings I did have have been dented recently after moving into a new unfurnished flat, but I guess it's furniture and the like I don't have to buy if I do ever buy a house
I have a car and not much else
so probably looking at 10 years to save up say 20% of a deposit for a 100K house.My savings I did have have been dented recently after moving into a new unfurnished flat, but I guess it's furniture and the like I don't have to buy if I do ever buy a house
Man of Honour
This keeps getting spouted.
If you are paying the same amount of money renting as you would paying your own mortgage, you are paying someone else's mortgage when you could be paying your own.
Hence the term dead money.
If it was much cheaper to rent I would agree with you.
27, £25k job and brought my first house a few months back, on my own, saved on my own. Decided when I was 23 that I wanted to buy my own house by the time I was 30. So what did I do? Stayed at home with my mum, saved, didn’t go blowing my money on useless crap. Had the motivation of, I couldn’t afford it then I don’t buy it. So no taking out of loans, credit cards or over drafts. Every time I got a new job earned more, more money went towards saving to a deposit. Still managed to buy my car and keep a healthy social life throughout the years of saving.
When the time came, slapped down my 10% deposit, which rates weren’t the best but I will start to overpay my mortgage next month so the interest is lower at the end of my 2 year fixed.
So if you plan ahead and look at your finances properly, saving to buy can be done. Just too many people are not willing to sacrifice certain luxuries or were simply silly with their money at a younger age.
When the time came, slapped down my 10% deposit, which rates weren’t the best but I will start to overpay my mortgage next month so the interest is lower at the end of my 2 year fixed.
So if you plan ahead and look at your finances properly, saving to buy can be done. Just too many people are not willing to sacrifice certain luxuries or were simply silly with their money at a younger age.
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