What size deposit do people on here have?

WTF?_2

setmefree2 wrote: »

Your assumption is that a fair value for a house is the one found by the market during a credit crunch i.e. when the market is starved of capital. In fact, the house is at that point under valued imho, because as soon as credit is restored prices will rise.

So the government isn't really trying to prop up house prices it's just trying to restore credit. Once credit is restored market demand raises houseprices.

No, my assumption is that the price of a house should reflect the sort of money a typical person could afford if borrowing a sensible amount of money relative to their salary.

This has been shown to be historically about 3.5x a single salary or 2.5x a joint one for a couple.

As for 'restoring credit' the government has stated it wants to get lending to 2007 which was the peak of the credit bubble. Completely loony, all that lending was made possible thanks to borrowing off the wholesale markets which have now imploded due to the fact that they were built on irresponsible selling of credit which was obscured through the now infamous 'New Financial Instruments'.

Until 2000, banks largely funded their lending through deposits, not fancy financial instruments that took 100 pages to describe, no-one could understand and which ultimately turned out to be a crock of crap. That's the era of lending that is sustainable.

stevetodd

With me it's a question of value, I would like a 75/80% mortgage but will probably go for a 60/70% mortgage if it's significantly better value

setmefree2

!!!!!!? wrote: »

No, my assumption is that the price of a house should reflect the sort of money a typical person could afford if borrowing a sensible amount of money relative to their salary.

This has been shown to be historically about 3.5x a single salary or 2.5x a joint one for a couple.

As for 'restoring credit' the government has stated it wants to get lending to 2007 which was the peak of the credit bubble. Completely loony, all that lending was made possible thanks to borrowing off the wholesale markets which have now imploded due to the fact that they were built on irresponsible selling of credit which was obscured through the now infamous 'New Financial Instruments'.

Until 2000, banks largely funded their lending through deposits, not fancy financial instruments that took 100 pages to describe, no-one could understand and which ultimately turned out to be a crock of crap. That's the era of lending that is sustainable.

Well I probably agree with most/some of that.

What I actually said, however, was that the market can't establish a "proper" value for houses because the whole system is starved of credit - houses must therefore be undervalued. Hence, when normal credit resumes (at sane levels) - which it will - house prices will rise.

lynzpower

About 35% deposit I expect, but growing all the time

SingleSue

Blimey, seeing some of the figures on here are amazing!

Puts my £12 a week savings to shame.......

Edit - Not saving for a deposit, just for short weeks where bills etc come out and it is needed for food and warmth.

lostinrates

Depends on exchange rate...we're keeping quite a lot in Euros ATM, roughly half in sterling. Also depends on whether suitable plan a or suitable plan b comes up first. Suitable plan A we have probably 50-70% deposit, but thats a bit simplistic....we'd need more money to keep within that budget but not immeadiately. (confused? ) Plan B we have maybe 30% deposit at a push. Would consider, if things get very worse with purchasing power making a 90-100% deposit purchase on something that doesn't suit at all but we could 'suffer' while starting to save again is also an option now, but for reasons more complex than just 'home' is far from ideal.

No inheritance sjaypink, hard work, some luck, some very foolish 'bets' that thankfully worked well in the past. We are classed as FTBs I also should admit I raided the savings to some extent a few years ago for life saving health care. No point having a house if you are in a coffin!

ETA: oh yes, and made a big withdrawal from savings some years ago before I got ill to my parents -unrequested by them I hasten to add, but it meant they could pay off their mortgage earlier than otherwise would have done. They put me through school which was expensive, and have provided accomodation for their children and now son in law and I think it probably evens out.

Another edit: having looked at it we actually now hold rather more in Euros rather than sterling, not by design though.

gingin_2

Ours is all out of the £, I guess if we were to convert it all back now, it would be 30%. Bit fed up with everything though and would prefer our deposit was used in a different country, in which case we would have a higher percentage, if that makes sense.

sjaypink

lostinrates wrote: »

No inheritance sjaypink, hard work, some luck, some very foolish 'bets' that thankfully worked well in the past. We are classed as FTBs I also should admit I raided the savings to some extent a few years ago for life saving health care. No point having a house if you are in a coffin!

indeed! :T

just asked really as i guess traditionally, a question 'how much house deposit do you have?' would have been aimed at 20 somethings just starting out, i suppose.

now, people who are waiting to buy (on this board) seem to be a large % of str, or older ftb etc.

although that obviously still is some people waiting, and able, to buy; i think many ftb (in the traditional sense) are still way off being able to do so.

eg, of my friends whove recently bought, theyve only been able to do so with roughly 5% deposit, sometimes credit cards went towards deposits, or fees, surveys etc- not solely saving. or of course via rich mummy and daddy, or inheritence.

what im trying to say is, i think, is that theres really not a huge amount of people able to buy, even if they were willing....

mbga9pgf

Currently 24% deposit and rising to 40% deposit by next March. I am a FTB with my wife and we havent had a penny in assistance from our olds.

Will be able to afford a 250K property @ 3X single salary with this deposit (100K) and hoping to get a 10 year fix... term will be 15 years but will have it paid off in 10. Hopefully not have to save this hard ever again in my life.

mitchaa

SingleSue wrote: »

Blimey, seeing some of the figures on here are amazing!

Puts my £12 a week savings to shame.......

Edit - Not saving for a deposit, just for short weeks where bills etc come out and it is needed for food and warmth.

I suspect that most have not actually saved these amounts directly from their salaries, but either STR after a sizeable equity gain, or inherited from a relative.

I/We have a fairly good income, (comparative to a single salary of around £100k) and we manage to put £1kpm away each month after our normal expenditure. Disregarding interest gained on the savings, we would need to save from scratch for around 13/14yrs to buy the todays average property outright:eek:

So i have no idea how long an average income family with a £37k income would have to save for in order to buy 1 outright

As above, i suspect inheritance or STR are the reasons, rather than actual salary savings. (Unless of course they are a) on 'pop star' salaries, or b) living rent/mortgage free already or c) living a very very basic existance)