Associate
Oh man, I guess I need to move out of London and and start saving some cash then! Otherwise, I'll be living in the woods when I'm older.
Your chances of owning your own home?
- Thread starter PiKe
- Start date
Oh man, I guess I need to move out of London and and start saving some cash then! Otherwise, I'll be living in the woods when I'm older.
Soldato
The lifestyle, freedom and enjoyment of not having had to live with your parents your entire life. Just because you don't retain something physical doesn't mean you have nothing to show for it.
So? Going by that 90% of my spend is dead money: good food, holidays, beer, wine, entertainment. In fact pretty much everything you buy that's consumed/non-materialistic.
If you're not spending 'dead money' then you may as well be dead for all the excitement your life will have.
I'm not saying you should rent your entire life, nor do I expect to, but living at home at the age of 27 because of that reason and that reason a lone is just an excuse.
Soldato
Less than 10% is huge? The standard in a good market is to expect upto 20% off if you want a quick sale.
Caporegime
That's with the houses listed already at or under market rate, lots of stuff they've been looking at has already had several price reductions.
It is opportunity cost though. In some circumstances its cheaper to mortgage, and others to rent. Both rent, and mortgage(Interest) can give you "dead money", you take the one with the least amount of it.
So it really depends on the individual and area. You the take optimal solution, otherwise you're moron that can't do maths.
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Man of Honour
You are gaining from all the things you list. What are you gaining from paying someone else's mortgage?
Soldato
The ability to live in their nicer pad than you can currently afford to buy?
The same as you're paying a chef to cook a nicer meal than you're able to.
Man of Honour
I can't find a post where anyone is saying that.
I'm one of the lucky ones that can afford to buy but I'm renting as I'm planning on leaving the UK within a year or two for Sweden. I'm bowled over at how far my money can go in Sweden and what type of house I can get there for my budget (5 bed, garden big enough to call a park, 3 garage) vs what I can get here in London (trash basically, living amongst trash too).
Other countries manage just fine, owning a house means you foot every bill, from new windows to a new boiler, other essentials things you need in a home, thats why I said the rental market is poor because you have these BTL people doing the job of the councils use to do and are in it for the easy money!
Both my sets of my grandparents happy lived in rented homes their whole lives from the council and they are well built homes with front and back gardens and drives. Now its all tin pot homes from redrow/barret 3 stories with no room to swing a cat!
Both renting and having a mortgage has is disadvantages and advantages!
The money for a 2 bedroom flat where I live is enough for a 4 bedroom detached house with a two car garage in Wales.....The only problem is...I'd be in Wales..
A 700k house isn't a good example though as that's the high end market when the average house price in the UK is £150k~. At 700k valuation you are targetting a specific and smaller number of potential buyers.
House prices aren't increasing in most areas at present, however the vast majority of surveyors will tell you this is because people are dropping the prices to sell. At the moment, if people don't have to sell for a reason (ie relocating for work etc etc) then they are sitting on their property.
The inherent value of property hasn't changed per se, but a house is only worth what someone is willing to pay for it. Buyers expectations have changed, they know that people selling are selling because they have to. This opens up price reductions, house valuations are all tied into what someone will pay for something similar so as greater price reductions are haggled by buyers it looks like the value is dropping.
There are minimal property developments going on with the current economic climate, property is still in short supply and demand would be outstripping supply if there were more buyers around at present. Look at the bigger picture, in 6-7 years time hopefully we'll be out of the economic woods and lending availability will increase. In turn increasing the number of potential buyers will drive prices up as sellers are in turn able to obtain more for their property.
Supply and Demand is key and at present in the UK there is a massive housing shortfall. The housing market is merely subject to the economic climate at present, when it returns to "normal" as it will at some point the economics of supply and demand will result in house prices stabilising and most likely increasing.
Recent reports from this year has highlighted that even with the subdued economy there should be 200,000 new houses built per year. That increases to 280,000 if the economy bounces back. Long range predictions are set at a shortfall of about 750,000 houses by 2025 unless their is a big jump in planning applications and developments.
Last year only 123,000 houses were built, the lowest figure in 87 years! Putting that in perspective, the UK population is set to increase by 4.3million in the next 9 years. There is currently 4.5million people on housing waiting lists!
Supply and demand....
The money for a 2 bedroom flat where I live is enough for a 4 bedroom detached house with a two car garage in Wales.....The only problem is...I'd be in Wales..
Haha, yea. A colleague of mine is moving to Wales (Merthyr) to be with her boyfriend. He own a 4 bedroom with a decent view and ample land. Paid 120k for it. Oh the life I could lead in Wales, but as you said, it's Wales that is the issue.
Caporegime
Death in the family is pretty much the only way me and the missus got our house. £38k for 25% deposit would have been pretty much impossible for us to save without living poor lives for ten years. We are the youngest house owners on our street by around 20 years at least.
I was actually paying more in rent for a worse house than I am paying now for my own house.
I was actually paying more in rent for a worse house than I am paying now for my own house.
Associate
I bought a few years back with 5% deposit, still on a bad rate now because of it, but it's a step on the ladder. I know you need 20% deposit these days, but that will change, I think 10% deals will start to emerge again within the next 12 months.
Also have you considered shared ownership schemes where you own half and pay some rent (reduced) on the other half?
Also, I don't know what line of work you are in, but is there anyway you could change jobs and increase your income? Or move to an area with better work? Although you would lose money on rent initially, your income would increase and it would eventually pay off - that's another thing I did, moved to London to a rubbish flat share in Tooting, the pay rise covered the rent and then my career took off and I'm earning a lot more now.
Good luck mate!
Also have you considered shared ownership schemes where you own half and pay some rent (reduced) on the other half?
Also, I don't know what line of work you are in, but is there anyway you could change jobs and increase your income? Or move to an area with better work? Although you would lose money on rent initially, your income would increase and it would eventually pay off - that's another thing I did, moved to London to a rubbish flat share in Tooting, the pay rise covered the rent and then my career took off and I'm earning a lot more now.
Good luck mate!
a roof over your head. that's the most important thing in life bar none. it's nice that some people can "refuse" to rent while they stay at home with mummy and daddy. but for many there is no alternative. it's either rent or live on the street. paying someone else's mortgage is the last thing you'd think about in a situation like that.
oh and in before the "work harder...." response....
