Questionably Bad Advice Given on here!!!!!! FTB Look HERE!

silvercar

Another biased thread making massive generalisations. You do wonder if some people have their own agenda.

I bought in 2006. Had I rented the rent I would now been paying would be much higher than my costs on mortgage + maintenance etc. Also, I managed to get a lifetime tracker mortgage at BOE +0.75%, to get the mortgage I would need, if I bought the house now, would cost me a much higher monthly payment even allowing for a lower house price.

So I'm not saying that everyone should buy now, just that it is wrong to tell everyone not to buy.

Munk3h

pandamonia wrote: »

Regarding the rent issue -

Ok, lets take a look at this post...

There are more buy to let houses up for lease than ever before. Just about every man and his dog and trying to rent out their house due to not being able to sell.

Where do these people move to? Surely the net number of houses for rent stays the same if they move into rented accomodation... ?

alot of people are buying a second home and renting out their old one.

Surely this contradicts what you say in your first post about nobody buying and anyone who did buy would take a massive hit? Why would they buy a second home instead of renting it much cheaper?

City centers are flooded with emtpy investment flats which are "unsellable" The over supply will force people to rent them out cheaper and cheaper just like houses!

But as investment flats they were going to get rented out anyway? So can't be considered as extra supply to the market?

also you think £600pc a month is bad? well in areas of higher value the rents should also be higher yes? so if you wanted to buy a £300k home now which is say maybe 3 bed, then over the next 12 months it will lose a possible 45k! london prices are also very very shakey, renting in the financial district as fallen buy 1/3 !

Now 45k over 1 year is £3750 per month!!!!!!! and you think 600-800 is bad?

So here you compare a home 600k rental to a 300k house falling 45k. Can I rent the 300k house for 600-800 pcm? You also need to look at the potential returns of the money in the bank to give a fair comparison.

This is a financial crisis we are in here people

Yes it is, but scaremongering using baseless opinion is just as bad...

pandamonia

silvercar wrote: »

Another biased thread making massive generalisations. You do wonder if some people have their own agenda.

I bought in 2006. Had I rented the rent I would now been paying would be much higher than my costs on mortgage + maintenance etc. Also, I managed to get a lifetime tracker mortgage at BOE +0.75%, to get the mortgage I would need, if I bought the house now, would cost me a much higher monthly payment even allowing for a lower house price.

So I'm not saying that everyone should buy now, just that it is wrong to tell everyone not to buy.

The flaw in what you are saying is that you have a 0.75% tracker for life. well thats great but no one in this country can find that deal now and 10% deposits are looking at 5-6% SVR or 2-4 year fixed at 7%.

Also regarding interest payments from the post prior to this one, Mortgages are always going to cost you interest and that 21k you mention is pointless as you will most likely move from 4-7% about 4 times or more during your mortgage. Timing of mortgage buying is useless it has no effect in the long run. only the price at which you purchase will have a true effect on the future of the asset.

You can potentially lose 30% of your homes value in the next 2 years and not see a recovery till 2011 and then it will be minor at best.

Point i am making is that you must be a very well off FTB to be able to wipe 30% off the value in 2 years and not care. people who are in the market their house values are relative so what the will lose they will gain else where.

Check out this story - http://www.thisismoney.co.uk/mortgages/house-prices/article.html?in_article_id=464149&in_page_id=57

maybe it will make you think twice about purchasing as a FTB this year.

pandamonia

Munk3h wrote: »

Ok, lets take a look at this post...


Where do these people move to? Surely the net number of houses for rent stays the same if they move into rented accomodation... ?



Surely this contradicts what you say in your first post about nobody buying and anyone who did buy would take a massive hit? Why would they buy a second home instead of renting it much cheaper?



But as investment flats they were going to get rented out anyway? So can't be considered as extra supply to the market?



So here you compare a home 600k rental to a 300k house falling 45k. Can I rent the 300k house for 600-800 pcm? You also need to look at the potential returns of the money in the bank to give a fair comparison.



Yes it is, but scaremongering using baseless opinion is just as bad...

Houses are still changing hands and their is not a shortage of houses in this country as gordon brown would like to tell you.

the problem is oversupply.

Its a perfect storm of Recession, Financial crisis, Over supply, Over inflated prices, Job losses and Extra tight credit.

What we are seeing is a market correction of a global magnitude, Repossessions are going through the roof and more houses will be coming on to the market in auction forcing prices down further. Billions of ££ worth of writedowns in value aqre happening.

Also Buy to Let Dell boys are going bust as their 50 house portfolio fails to generate enough return to cover mortgage payments.

There will be an influx of houses into the market back up for sale which will push prices lower.

if your still determined to buy now after taking all this into consideration then its your choice.

penguine

Pandamonia makes some very good points. Although there are some well-informed hopeful FTBers out there, there are many, many others who have absolutely no idea of the risk they are taking by buying their first property in this market. They have been priced out so long, they see prices falling and think it's a great opportunity to pick up a bargain -- they don't realise houses have been overvalued for years and are still overvalued.

I know, because I've been there, we almost bought a house last summer and whenever I think about how close we came to going through with that purchase I have a sense of sick relief.

FTBers were screwed when the market went up by having to take out massive mortgages to get a foot on the property ladder. FTBers will get screwed on the way down as they will in most cases be the first ones to go into negative equity. Buying a property at the wrong time can blight your life for years. The great travesty of the boom and bust cycle in the property market is that it is the younger generation who end up paying the heaviest price each time the wheel turns.

pandamonia

For the person who said my opinions were based on baseless fact and scaremongering.

Read this - http://www.thisismoney.co.uk/mortgages/article.html?in_article_id=466131&in_page_id=8

fimonkey

For what its worth, I, as a potential FTB, agree with the OP.

I also would like to add, that the housing market is like a HUGE ship, it cannot turn around overnight and change direction so the upturn won't be an overnight thing either. Just like the crash didn't happen overnight, there was no definite overall date at which the market turned.

So, to other potential FTB's out there, just sit and bide your time. You'll know when the bottom is because prices will stabilise (bar the odd enthusiastic FTB who jumps in a bit early) and vendors will fnially accept that their intended pension is worth much less.

Similar to the stages of greif, Denial/Anger... through to acceptance. When vendors reach acceptance, that's the time to buy.

Slowly slowly catch a monkey.

poppy_f1

as a single person just on rent v mortage payments it works out the same
i can buy a 2 bed flat for about 57k mortgage payments about what 320 a month
renting a similar 2 bed flat is 450 a month
only difference is the area in livingston they are but not that far apart for it to be a major price difference

so what would i do, buy of course however im still at my folks as not big enough deposit yet

Munk3h

pandamonia wrote: »

For the person who said my opinions were based on baseless fact and scaremongering.

Read this - http://www.thisismoney.co.uk/mortgages/article.html?in_article_id=466131&in_page_id=8

Did you actually read my post? It was relating to your comments about the rental market not about buying and its funding.

Thrugelmir

pandamonia wrote: »

For the person who said my opinions were based on baseless fact and scaremongering.

Read this - http://www.thisismoney.co.uk/mortgages/article.html?in_article_id=466131&in_page_id=8

The article purely relates to the London market which in the main is far above the national average for house prices. If FTB's are paying £250k for a property then the market has a long way to fall.

Locally here FTB's are still able to buy on reasonable mutiple's of salary, deposit etc permitting.