We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
What multiple would you borrow?
Options
Comments
-
We are currently buying a house and are taking out a mortgage of 3.2x joint income. Our monthly mortgage payment is 28% of our takehome pay. For us that is a very affordable figure, we don't really want to borrow more.
CC debt at 8/7/13 - £12,186.17
Barclaycard £11,027.58
Halifax £1,158.59
5 year plan to live unsecured debt free and move home0 -
Hippychick wrote: »We are currently buying a house and are taking out a mortgage of 3.2x joint income. Our monthly mortgage payment is 28% of our takehome pay. For us that is a very affordable figure, we don't really want to borrow more.
if the recession has had any benefits its that maybe more people are going to be sensible with their money like yourself.
But i doubt it, i suspect you're the minority and within a few years we'll all be jumping on the excessive borrowing bandwagon0 -
I'm single, mid 40s, hoping to retire is less than 15 years, and my outstanding mortgage is about 1.5 x my salary with about 10 years left to run. I really don't plan on moving, I have a home that I really like, and though I do sometimes wonder about retiring nearer the coast, I doubt if I'll ever be bothered - depends on my health really. Though my mortgage has cost a fair bit more, and I've coped, I do like having the extra money as it is has helped make life a bit easier.
My 'fear' would be not having enough money to live on, to me more important than having a bigger/grander/better house. I'm happy in my current home, which is only the 3rd I've ever had, and only the 2nd that I've owned (or co-owned with the building society at least!)0 -
I voted < 3x salary, as a future first time buyer.
I don't plan on getting myself into massive amounts of debt, and have been building a juicy deposit. I'm not in a rush to buy though, as I'd prefer to see my investment money go up in value and spend some seeing the world to settling down.0 -
JonnyBravo wrote: »Really? How old are you?
I wouldn't bet on it.
I'd agree with most of everything else you said though.
Perhaps I should have qualified that a little. I'm in my early 20's and so will probably see a couple of crashes in my lifetime, but I doubt that I'll ever be in a better position to take advantage of it. I'm currently renting with my girlfriend and apart from the obvious desire to get our own place and settle down, we're in no hurry to move out of rented accomodation and buy.
Years down the line when the next crash occurs, we might not be able to sell before the crash and STR (if you jump too soon, you do more damage than good, some people STRd in 2003 and may wait a decade for it to have paid, if ever) or we'll have children and selling up and moving is a lot more difficult.
As a childless couple who are living in rented accomodation with deposits in place, we'll never be in a better position to take advantage of a HPC, so we're going to make damn sure we do our best out of this one!
"I can hear you whisperin', children, so I know you're down there. I can feel myself gettin' awful mad. I'm out of patience, children. I'm coming to find you now." - Harry Powell, Night of the Hunter, 1955.0 -
I'm single, mid 40s, hoping to retire is less than 15 years, and my outstanding mortgage is about 1.5 x my salary with about 10 years left to run. I really don't plan on moving, I have a home that I really like, and though I do sometimes wonder about retiring nearer the coast, I doubt if I'll ever be bothered - depends on my health really. Though my mortgage has cost a fair bit more, and I've coped, I do like having the extra money as it is has helped make life a bit easier.
My 'fear' would be not having enough money to live on, to me more important than having a bigger/grander/better house. I'm happy in my current home, which is only the 3rd I've ever had, and only the 2nd that I've owned (or co-owned with the building society at least!)
I hope you don't mind me asking, but I've had a lot of angst recently because I am not saving towards a pension. I always thought that retirement at 55 was a pipedream for ordinary people, so could you give me some insight how you're going to manage it, because once I've been in my house for a couple of years my next step is going to be blitzing the pension and any pointers I can gain will be invaluable."I can hear you whisperin', children, so I know you're down there. I can feel myself gettin' awful mad. I'm out of patience, children. I'm coming to find you now." - Harry Powell, Night of the Hunter, 1955.0 -
Harry_Powell wrote: »I hope you don't mind me asking, but I've had a lot of angst recently because I am not saving towards a pension. I always thought that retirement at 55 was a pipedream for ordinary people, so could you give me some insight how you're going to manage it, because once I've been in my house for a couple of years my next step is going to be blitzing the pension and any pointers I can gain will be invaluable.
Not at all! It is down to pure luck on my part. I work for the civil service, and have done for more years than I care to remember, and am in one of those lovely and soon to be extinct final salary pension schemes.
Many moons ago when I was applying for pretty much any job I could get, they were the only ones to offer me a job.
I can't say it was my dream job, but as things have turned out, it was fairly fortuitous, at the time, but alas no more. New joiners have a whole different type of pension. Bet MPs don't though...:rolleyes:
Mind you, I'll be pretty much 60 - when I say mid 40s...0 -
Harry_Powell wrote: »
As a childless couple who are living in rented accomodation with deposits in place, we'll never be in a better position to take advantage of a HPC, so we're going to make damn sure we do our best out of this one!
So wait and take proper advantage.
Prices are nowhere near the bottom yet.
Time and patience are your best weapons."The problem with quotes on the internet is that you never know whether they are genuine or not" -
Albert Einstein0 -
So wait and take proper advantage.
Prices are nowhere near the bottom yet.
Time and patience are your best weapons.
House prices are decided by people..
People aren't rational..
It's therefore not possible to predict with certainty which way house prices are going to go.
A lot depends on what the Government and BOE decide to do with sterling.Favourite hobbies: Watersports. Relaxing in Coffee Shop. Investing in stocks.
Personality type: Compassionate Male Armadillo. Sockies: None.0 -
House prices are decided by people..
People aren't rational..
It's therefore not possible to predict with certainty which way house prices are going to go.
A lot depends on what the Government and BOE decide to do with sterling.
I don't care how anyone responds to this post or what economist they quote, I can confidently predict that average house prices will be lower this time next year.
100% correct and gauranteed."The problem with quotes on the internet is that you never know whether they are genuine or not" -
Albert Einstein0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.2K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.7K Spending & Discounts
- 244.1K Work, Benefits & Business
- 599.2K Mortgages, Homes & Bills
- 177K Life & Family
- 257.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards