Some of you are vultures

geoffky

I got wiped out in the last crash and ended up owing 50k and had to start all over again and had bought my first house at 18.the next few years where hard but not the end of the world.so anyone who is facing repossession will just have to get on with it..my house went to auction as a repo and hence the shortfall.here i am many years later having decided not to pay stupid house prices as i knew it could end in disaster for me again so decided to wait and wait but then it went insane and every alarm bell in my body went off so i sat the madness out.. i am now in the position where i will be buying a nice four bed detached for cash and maybe it will be a repo who knows but who is the vulture? the one who bought my house as a repo or me buying now?
both of us are very sensible because we are not going to doing our brains in buying some bricks and morter..repossesion is not the end of the world by ant stretch of the imagination...it just hurts some peoples pride....

a11waysindebt

rumbaba wrote: »

Is there much work for cleaners in the present climate? I would have thought not but maybe I am wrong.

It is something I have had on the cards for a while.Hopefully it will go ok.

GracieP

Anne3333 wrote: »

This has always been the case and is nothing new today.

This has most certainly not always been the case. The whole "property ladder" is a relatively recent concept. And is little more than a pyramid scheme as the whole premise is about gaining equity to trade up, but as equity rises the gap between what you have and what you want widens. So you are worse off to be trading up than if you saved a bit more and bought your last house first.

neverdespairgirl

Anne3333 wrote: »

With respect MrsPitcher2b, you are still very young and very few people can expect to start on the housing ladder in anything but a small property. This has always been the case and is nothing new today. Your mortgage plus your deposit of £160k should buy you a reasonable property on the outskirts of London, what exactly are you expecting as a First Time Buyer?

£160k for a small "typical FTB" place on the outskirts of London sounds very expensive, to me.

It hasn't always been the case that people moved frantically. Moving house carries high transaction costs, and significant stress.

My parents' first place, bought when they were 25 (my Dad) and 27 (my mother) was a 3 bed maisonette in Blackheath. They bought it in 1974.

pickledpink

GracieP wrote: »

This has most certainly not always been the case. The whole "property ladder" is a relatively recent concept. And is little more than a pyramid scheme as the whole premise is about gaining equity to trade up, but as equity rises the gap between what you have and what you want widens. So you are worse off to be trading up than if you saved a bit more and bought your last house first.

It would take a lot of years to save up for a 4/5 bed detached wouldn't it?:rotfl:

You're not thinking clearly.

mustrum_ridcully

neverdespairgirl wrote: »

£160k for a small "typical FTB" place on the outskirts of London sounds very expensive, to me.

It hasn't always been the case that people moved frantically. Moving house carries high transaction costs, and significant stress.

My parents' first place, bought when they were 25 (my Dad) and 27 (my mother) was a 3 bed maisonette in Blackheath. They bought it in 1974.

Indeed, there are plenty of people out there in their 50's+ that still live in the same home that they bought when first married, a typical 60-70's 3-bed semi.

My parents could afford their 3-bed semi on a single salary, a factory workers salary. I don't know if a factory worker today could buy the same property on a single salary...

Have a look around at the so-called starter homes the 1-2 bed houses, the majority (as far as I can tell, so I could be wrong) were built from the 80's onwards - i.e. started being built during the last property boom. Could it be that propery prices had been pushed up so much that a new class of house had to be created?

carolt

Yes, growing up in the 70's, everyone I knew in my nice, safe, zone 3 London suburb lived in owner-occupied 3 (or more) bed semis, all bought on multiples of single wage, and with my schoolfriends' dads working in a wide range of average jobs - this was not private school, just ordinary, average state primary. No-one was priced -out.

Same houses now - £500K plus.

Average single salary in London now £150K plus/annum?

I don't think so.

SingleSue

Same with my parents carolt, dad was a construction worker (ok so more highly paid than some) but the house was purchased based on his salary alone.

The same house now would need a joint income and a high multiple.

caveman38

London Suburbs, London Borough of Havering
1976 1938 3 Bed Semi. £13,200
My salary £3,000, wifes £2,000
Abbey lent 3.5 X my salary + 2.5 X third wifes salary.
Deposit £1,200 borrowed £12,000
Similar property 2007 £325,000, today £275,000.

granville_2

Similar story for my father who purchased his first house (located in ouskirts of N.London) in 1968. He was aged 22 and worked (extremely hard) in the building trade.

House was 3 bedroom semi and cost £5K. He put down 20% deposit that he had saved. The rest was mortgaged.

Similar houses (according to Rightmove) are now worth ~ £350K. I wonder how many 22 year olds could afford to purchase it (without a large amount of financial help).

This is why I believe house prices are way out of kilter and need to fall to much lower levels.