Your chances of owning your own home?

Well after reading this i figure unless i get myself a wealthy cougar im skrewed.
Currently im only earning about 18000k and have no option to live at home so i rent with a mate, i pay around 500 a month on rent and most bills, food and car and all that other crap comes extra. I dont have any savings and even if i was to cut all my possible out goings i dont need (which im about to do) i will still struggle to ever manage to save even enough for a 95% mortgage. I hate renting due to it not been my place, i cannot do what i want to make myself feel at home and trying to get landlords to part with cash to fix things or getting workers out costs me more time in A/L days from work than anything else! I have never had a holiday and with car insurance in Bradford shooting through the roof im pretty much stuck to renting for the rest of my days!
 
Yosiah said:
Just popping in to say that anyone trying to defend rent as not being Dead Money is a retard. That is all.
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I love renting, i pay a good sum of money every month to someone lady who is usually abroad for the use of a few rooms. I cannot do as i please and any work i report that needs to be done is usually ignored, done cheaply or at times that cost me money. I like the fact that this will never be 'my home.'

/sarcasm
 
I stay with my parents and really don't intend on moving out anytime soon lol im 19 going on 20 and tbh I have NO plans of moving out at the moment. Less bills, More pc upgrades :D
 
daz said:
Only if you're financially illiterate, or enjoy making blanket statements about a topic that requires a variety of data to determine the best course.
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Ok then, explain to me in what situation (barring the obvious) would renting be a better alternative to buying?
 
coupe69 said:
Ok then, explain to me in what situation (barring the obvious) would renting be a better alternative to buying?
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??? barring the obvious???

The obvious situations are reason enough to show that renting isn't necessarily throwing money away.

The previous poster was correct tbh...
 
coupe69 said:
Ok then, explain to me in what situation (barring the obvious) would renting be a better alternative to buying?
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* When the value of property is falling, or is expected to fall
* When you're not sure whether you want to stay in an area or settle down (even if property values stay the same, buying/selling a property can be very expensive as a percentage of the house price in some circumstances)
* When the cost of renting in a particular area is substantially lower than the cost of a mortgage on an equivalent property (this is very often the case in London)
* Interest rates are high, or a mortgage is difficult to attain

Conversely, buying makes sense when:-

* You expect house prices to go up
* Interest rates are very low, or a mortgage is otherwise easily attainable
* Rents are nearly as expensive, as expensive or more expensive than a mortgage (seems to be the case in a lot of Northern places)
* You'd like to settle down, or you'd like a property you can make modifications to, or "do up".

It's not as simple as "renting is dead money, lol". :)
 
daz said:
Only if you're financially illiterate, or enjoy making blanket statements about a topic that requires a variety of data to determine the best course.
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The problem is that lots of people are not particularly 'literate' when it comes to finance so just see things in a simplistic fashion.

rent = money you don't get back = throwing it down the drain etc...

Despite it being explained in various posts people still make retarded comments...
 
Surely, whether you rent or buy at a particular moment in time depends on how financially secure and solvent you are.
Remember a mortgage is a 25 year (on average) commitment on a loan.
Now assuming you aren't the type of person who takes a loan out intending to default and get away with paying £5 a month to a debt agency.....
The days of getting a mortgage and assuming your house will rise in value massively (and hence paying off the mortgage with profit to spare) after a couple of years are gone.
Therefore, this option is not really open to the buyer on a budget without a long term career income (ie. most of the population).
This is why renting is a neccessity to most rather than a choice.
Obviously, programs like Location Location Location havent helped the situation making normal people think they can make a fortune just by buying a run down house and selling it for a fortune.
Here ends my 2 pence worth lol
 
daz said:
* When the value of property is falling, or is expected to fall
* When you're not sure whether you want to stay in an area or settle down (even if property values stay the same, buying/selling a property can be very expensive as a percentage of the house price in some circumstances)
* When the cost of renting in a particular area is substantially lower than the cost of a mortgage on an equivalent property (this is very often the case in London)
* Interest rates are high, or a mortgage is difficult to attain
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All very valid, good points but I did say "barring the obvious" and all your points are, well, fairly obvious, at least they are to me anyway :p I didn't realise we were having a discussion with total retards tbh, present company excepted of course :)

At the end of the day throwing money away on rent is exactly that, it can be good for a stop gap as you've highlighted above but it's not really anything I'd think about doing as a long term solution. The sooner you can get your first step on the housing ladder the better imo, providing of course the "obvious" points are adhered ;)

EDIT: Having said all that you'll notice by my location that thankfully I don't live in London or indeed anywhere near the capital. I'm sure renting down your neck of the woods is the only solution for a hell of a lot of people, so perhaps my view on this matter is a little skewed?
 
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PiKe said:
Is anyone in a similar situation to me?
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Sort of. I'm 25, still living in my parent's house. They intend to sell it in the next two or three years so I'll have to find my own place eventually.

I definitely won't be buying a property any time soon. At the moment I can't even afford to rent a place by myself.


It doesn't really bother me. I've got no interest in owning any property.
 
House prices are only as high as they are because of a decade of cheap, easy, fraudlent credit - now that this era is over, the bubble will burst, just like all economic bubbles burst - house prices will easily fall 50% in coming years. They already have in ireland, spain and parts of the USA, we are next. Bide your time, save your deposit, and when people are telling you NOT to buy a house, you will know it is the perfect time to BUY.

Those who think renting is dead money are not taking into account the interest repayments to the banks, costs of purchasing (stamp duty, agents fees) as well as property maintanence and insurance. Not to mention having your cash tied up in a depreciating asset....

Finally, interest rates are at an all time low, if you think that will be the case permanently, then you are obviously very young - Interest rates have often been double digits in the past, and I remember the effects higher interest rates had on the sheeple who bought in at the height of the last bubble. (reposession)
 
culvers said:
House prices are only as high as they are because of a decade of cheap, easy, fraudlent credit - now that this era is over, the bubble will burst, )
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Actually, house prices have increased due to short supply and the fact that the cost of building new houses has increased massively in the past 30years.

Ps llol, you're only 31. The last crash was 1989, you were 9. You must remember it real good ;)
 
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im likely to be buying a flat for around 100k within a year or two (depends how much deposit i wish to put down). i currently earn 28.5k gross so i imagine im not that hard done by. the gf and i rent a flat for 450 a month. shes currently paying the rent and bills etc while i shove what i can into deposit money.

for people earning say under 18k a year gross it will be hard doing it alone as essentially you will have to save about half the wages over 3 maybe 4 years to get near a 20k deposit for a place worth around 90k id guess. to then pay up 70k i dont think would be THAT much more than renting.

i think a problem for most 18-25 yr olds is they may live at home or rent a place but you'll go spend 1000's possibly on a car or motorbike instead of owning your own 'turf'.

i have been able to drive since 2005 when i was 19 and at the age of 25 now i still dont have or had my own car. i travel regulary by train to and from glasgow to arbroath. i would love to have a nice audi or something similar. point is you need to be sensible. if i live and work in the city why have a car or think about one. same if im going to uni its just an extra cost.

Another thing people could save on is booze and fags, having sky tv bundles and such but i guess really its up to the individual.

/old man sensible choices rant over
 
culvers said:
House prices are only as high as they are because of a decade of cheap, easy, fraudlent credit - now that this era is over, the bubble will burst, just like all economic bubbles burst - house prices will easily fall 50% in coming years. They already have in ireland, spain and parts of the USA, we are next. Bide your time, save your deposit, and when people are telling you NOT to buy a house, you will know it is the perfect time to BUY.

Those who think renting is dead money are not taking into account the interest repayments to the banks, costs of purchasing (stamp duty, agents fees) as well as property maintanence and insurance. Not to mention having your cash tied up in a depreciating asset....

Finally, interest rates are at an all time low, if you think that will be the case permanently, then you are obviously very young - Interest rates have often been double digits in the past, and I remember the effects higher interest rates had on the sheeple who bought in at the height of the last bubble. (reposession)
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Except that demand massively outstrips supply in the property UK property Market - which is why prices have actually continued to increase in many areas of the UK.

If you're referring to the high interest rates around the ERM era, then they won't be repeated. Why do you think interest rates will definitely go up? They haven't in Japan since the early 90s.
 
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