2 years is a long time, then we have the unknown of what house prices are actually going to do.
Your chances of owning your own home?
- Thread starter PiKe
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2 years is a long time, then we have the unknown of what house prices are actually going to do.
Caporegime
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Continue to go down.
why would you not want to own your own house though? how are you going to afford to rent after 65 if you've raised a family or not been careful with your money, are they going to let you live there 'rent free'? no, they're not.
like people who don't bother paying into a pension and think they can live off the money they make on the house they will sell when they hit old age, it is a flawed idea as unfortuanetly the chances of survival in the wild are slim.
I started looking at getting a house a couple of years ago when my parents were splitting up and I wanted out. I just couldn't afford it, adding everything up I'd have almost nothing left at the end of each month. So still living at home with my mum paying her £450 a month.
I could probably put most of what's left in to saving for a deposit but the idea that I could lose my job and in a couple of months be totally screwed trying to pay a mortgage freaks me out.
I could probably put most of what's left in to saving for a deposit but the idea that I could lose my job and in a couple of months be totally screwed trying to pay a mortgage freaks me out.
Instead of paying down the principal the money goes into savings account or other assets?
Worked for me.
You need it around here given the prices
My (wealthier than me!) partner is hopefully moving back across to Cam in January - planning to rent for a while and save up for a deposit, but probably rent a larger place in College or at the West Cambridge University site. Depends on what happens to me as I get towards the end of the PhD - if I can get a fellowship then that's another year or two bumming around in College and saving for the ridiculous house prices around here Based on the rate I have for a £30k mortgage and the fact you could get much better for a big deposit I cannot see how you couldnt afford it. A few more years of saving and you will probably be around the 50% deposit area. This gives you a lot of freedom. Even a £60k mortgage over 25 years is probably going to be around the £400 mark or even less!
Taking into account you must spend absolutely nothing at the moment to save that much then your outgoings might be tight but I doubt it would be negative. Perhaps you dont want to drop towards the 0 line and like keeping a big buffer out of your monthly salary. Unfortunately this does not work well with wanting to live in your own place on a relatively low income. Something has to give.
You could bite the bullet and look at the numbers or stay at home for another 10 years and probably save up the 100% required to buy the house you want.
Soldato
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I could probably just about afford something small in London and afford the mortgage but it would be tight to say the least.
I much prefer the idea of maybe living a bit further up north (around Leeds maybe) and putting a bigger deposit down, with lower monthly outgoings.
I much prefer the idea of maybe living a bit further up north (around Leeds maybe) and putting a bigger deposit down, with lower monthly outgoings.
go down on how big a scale though? say the op is looking at a house circa £130k, it may, may drop 10% that's still not a great deal to warrant renting and waiting and good houses don't hang about, if he ends up in a bidding war, it will go for over the asking price. the key is to find the right house, that's the only reason to wait, not an ok'ish house that is going cheap.
how much are your savings earning you?
It's hardly dead money, just a lame excuse not to move out and spend the money on beer/gadgets/whatever other vices you have instead.
How is it not dead money? You're paying someone else's mortgage.
How much is your house earning you? Really depends in what area, in some you get negative rates atm. You could go slightly riskier and invest in equities if you wanted to.
It's pretty sure fire that as the population increases the land and therefore house prices will appreciate.
But as the prices increase, no one will have the money to buy them and demand will go down?
With rent the idea is that instead of paying down the principal, you put the same money in a savings account or other investments.
Caporegime
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Who knows houses aren't really selling at the moment, my parents currently have two houses for sale and it's taking ages to shift them even at competitive market prices.
Existing discounts to be had on the houses listed price can be huge, my parents have been advised to expect upto 50k off a 700k house.
I can't see the situation improving anytime soon.
^^^^
this tbh...
Anyone who says 'but renting is just throwing money away' is either a simpleton or hasn't thought about it properly.
Further still if you're able to buy but choose to rent then you're simply taking a short view on the housing market (which isn't exactly illogical)
There's always someone with money.
You will not be able to get a mortgage the repayments of which you can't afford. You could probably afford repayments of upto £400 on your current salary, especially if you have kept some of your savings for an emergencies/big spends fund. Is there any reason why you see your salary being stuck at the amount it currently is? What do you do for a living?