FTB expectations too high?

mbga9pgf

Really2 wrote: »

In all seriousnes I know their is a portral of plenty of property but as you said family homes are stagnent.
Old people have a habbit if staying in a house untill they are carried out. So I do think in the future an older population is going to store more housing problems for the next gen of home makers.

A lot of them have to downsize as well though... big home = big bills.

Really2

mbga9pgf wrote: »

A lot of them have to downsize as well though... big home = big bills.

As a % less than 10% I would say and they still go to a 2 bed + in a cheaper area.

Not trying to prove you wrong but just opening your eyes a bit to why houses are holding up better and will do than flats etc.
Also highlighting the next HPI and HPC.;)

don't forget retired = no mortgage, pension income etc. So only heating and food for 1-2 people.

mbga9pgf

Iveseen, those figures are from back in 2004. And look at the mortgage debt as a % of GDP. Not good.

IveSeenTheLight

mbga9pgf wrote: »

A lot of them have to downsize as well though... big home = big bills.

Not generally.

I have two granparents who both live singularly in 3 bed houses
My wife also had a grandparent who lived in a 3 bed house till she had to go into a home

mbga9pgf

http://www.thisismoney.co.uk/retirement/article.html?in_article_id=440443&in_page_id=6

1/3 actually,

Really2

mbga9pgf wrote: »

http://www.thisismoney.co.uk/retirement/article.html?in_article_id=440443&in_page_id=6

1/3 actually,

Ok but still not into a 1 bed flat.;)

Really2

This must be the longest MSE jousting session without an insult.:)

mbga9pgf

Right, out for a walk! Far too nice to be in here debgating all day long!

neas

the whole argument is flawed...cause instead of growing by 1% every month (during last 9 years or what not).. they are now falling by 1% every month.


So sure maybe the Interest only is same or bit better for a house but... you also lost 1% of the equity in the same month?

on a 100k house thats 'paying' interest and the loss of equity.

If you just rent for 2 years you would 'save' this loss of equity which being around 20-30% of a total house price would net you at least 20k on a 100k property.

I just dont get the logic behind people justifying buying, even now when interest rates are low.. and when they go up you will be screwed even more lol.

Alot of us are renting 1 bed flats, to lower rent and maximise savings, so a 1 bed flat rent vs Interest Only on a 3 bed property is still better for me methinks.

Really2

neas wrote: »

the whole argument is flawed...cause instead of growing by 1% every month (during last 9 years or what not).. they are now falling by 1% every month.


So sure maybe the Interest only is same or bit better for a house but... you also lost 1% of the equity in the same month?

on a 100k house thats 'paying' interest and the loss of equity.

If you just rent for 2 years you would 'save' this loss of equity which being around 20-30% of a total house price would net you at least 20k on a 100k property.

I just dont get the logic behind people justifying buying, even now when interest rates are low.. and when they go up you will be screwed even more lol.

Alot of us are renting 1 bed flats, to lower rent and maximise savings, so a 1 bed flat rent vs Interest Only on a 3 bed property is still better for me methinks.

I purchased in 01.

You are saving for a deposit so you are not living in a house you would want to buy (you make do with a 1 bed but want a 3 bed)
So if you live in a 1 bed all your life you would be better off as it will still be cheaper than buying?

You want the bottom of the market you are an FTB but it is not the same for people who have already got a property and looking to upsize.