Wife wants to buy now, I want to wait 5 years+. Advice?

ossie

longtimelurker wrote: »

If I were you, I'd take advantage of the fact your rent is ridiculously low. Start saving, as others have said by calculating what a mortgage would be and setting that figure minus current rent aside, and start getting used to the cost that higher accommodation outgoings will incur. Think of it like a trial (with the added benefit of building a deposit) for when you get a mortgage.

This seems most sensible to me .......but definitely pay off your debts first....Credit cards exist to make money from you so deny them that privilege as you have a windfall........

Ian_Griffiths_Halifax

Glen0000 wrote: »

Not an option or else we would have bought it. Tenancy is in joint names.

Why is it not an option? Even if they don't want to sell that particular property (if it's tied to a job for example), couldn't you apply for a move and then look at the Right to Buy for then new property?

LilacPixie

It might bea silly question but why if you rent is so low and you like your home/area so you want to buy at all?? Just being nosey really.

I would imagine that a 85k mortgage would cost you £590-600 is a month (based on a 100k house - 15k deposit) because 85% LTV mortgages are still coming with a quite high interest rate. 6.79% with woolwich.

I don't have a crystal ball but going on previous crashes house prices can take almost a decde to recover to 'peak' of 2007. I think prices will fall until 2010/11 at the earliest then stagnent for several years.

I feel that many lenders refusing to lend past 85% indicates that the market has another 15% to fall so a guesstimate of 85k from me.

diamonds

clear cards, save what you would have paid to them for a 6months/year....re-evaluate then

why cant you buy your council house ? is it sheltered or special needs ?

wymondham

jm28cardiff wrote: »

How are you in a council house when you have a combined income of £42k?

Sounds like good circumstances to keep it and not buy at all!

whathavewedone

If you like your house and the area I'd stay where you are. You're very lucky to have a house with a secure tenancy at such a low rent.

It's a bit worrying that even with such a small monthly rent you have got into debt with credit cards. Do you think that you and your wife are really prepared to take on the responsibility of a mortgage and the upkeep of a house? As things stand you must have a load of disposable income yet you've still managed to get yourself in debt.

Blimey, ten years ago I was paying more rent than that on a cramped little room in a shared flat in a run down part of London and I only earned 20k a year. And I wasn't in debt.

If you like to have holidays every year, nice clothes, cars etc then you will probably be miserable if you spend the next few years saving like mad to pay off your debts and scrape up a deposit just for the luxury of owning 25% of a house that's identical to the one that you live in but for double the "rent" and full responsibility each time the boiler goes, roof leaks etc etc etc. Houses eat money. You always need to have a bit put by to pay for emergencies.

Sorry to sound harsh but you have said by your own admission that you are both bad with money.

spence

Hi Glenn,

Good luck with your financial future mate, but your past earning/spending ratio has been way out of control. It sounds like your inheritance is already burning a hole in your wife's pockets!

Also you also don't have £15k deposit you have £5k.

Now all the bad news is out of the way its time to rise the phoenix from the flames. Pay off your debts and invest the rest as best you can. Your money will now start earning money instead of costing you. Forgo all holidays and big spends for 2 years and stop her indoors from spending on catalogues for the same time. This will teach you both the discipline needed to service a mortgage in the longer term, plus you will have saved an excellent deposit in this time which will open up the cheaper deals (my feeling is these will improve over this period of time).

My best piece of money advice is to earn more in the first place thus making everything easier. Challenge your spouse to improve her input as owning a house isn't a dream but a hard earned reality. Two years of hard work now will improve both your lives forever.

Hope I don't sound too harsh and I wish you all the luck with your plans.

Squish_21

My advice pay off your debts and save save save for another deposit! It will help you both become better with money in the short term and prepare you for a hefty mortgage compared to your VERY low rent.

Glen0000

whathavewedone wrote: »

If you like your house and the area I'd stay where you are. You're very lucky to have a house with a secure tenancy at such a low rent.

.

Yes, but maybe not for much longer.
http://www.timesonline.co.uk/tol/news/politics/article5120047.ece
This news worried the wife a lot

Also a lot of stigma associated with HA/council housing. DD is very lucky to go to a good comp, but several of her friends not allowed to play at our house as we live on a council estate.

Wife gets very depressed about this and has led to the overspending as she wants DD to have the latest phone/ clothes to show her friends parents we are not poor/chavs.

Usury_up_and_wear_it_out

Stay renting. You are not in a position to buy.