In a muddle! No Cash Saved, need mortgage

dopester

Fly_Baby wrote: »

Renting privately INDEFINITELY is not good nor it is right.

Ok then and what is the alternative?

110% mortgages.. 120% mortgages... 200% mortgages... generational-mortgages passed on to your children.... so you can buy at whatever price, without having the real means to afford except for that borrowed money?

All the while making house prices more expensive with ever greater credit extended to people who such mortgages shouldn't be extended to. Push property values up to orbital-heights, and when the system itself recoils against it... it brings down banks?

I don't need lectures from someone about the unfairness of not owning, when I've saved hard for many years for my deposit, in order to buy. That is because I'm in the real world whereas you're championing all peoples right to own who have no savings and no job.

toby3000

My German grandmother rented until she was about 65. The result of German's general disinterest in buying property is that outside the big cities you can easily buy a house for less that 40,000 euros

cattie

Ducati wrote: »

I'm not sure about renting but maybe it is our only option. Rent to me means paying for something that will never be yours! but I suppose beggars can't be choosers:(

I can never understand this line of thought. Renting actually means putting a roof over your head. For most people it's the difference between having somewhere to live as opposed to not.

I know what I'd prefer if in your situation & at least with renting, if your incomes are low enough or you lost your job you get help with the rent or the whole amount paid.

With a mortgage you only get help with interest if qualfying for income support & you still have to find the cash for the repayment part of the mortgage as well as the essential & mandatory buildings insurance. The help with interest doesn't kick in straight away either, there is a qualifying period to have to see out first.

superfran_uk

dopester wrote: »

I don't need lectures from someone about the unfairness of not owning, when I've saved hard for many years for my deposit, in order to buy. That is because I'm in the real world whereas you're championing all peoples right to own who have no savings and no job.

Excellent post :beer:

tek-monkey

dopester wrote: »

I don't need lectures from someone about the unfairness of not owning, when I've saved hard for many years for my deposit, in order to buy. That is because I'm in the real world whereas you're championing all peoples right to own who have no savings and no job.

Exactly. All those who can afford to buy, should be able to buy. If you can't afford to, who is supposed to pay for you to do so? Things have a price, that price is determined by what people will pay for it. House prices would not be as high as they are now, if people on low wages weren't suddenly able to borrow beyond their means.

In 2001 I could (wish I had) purchased a property with a 105% mortgage, because lots did the prices shot up. If the demand hadn't been there, fuelled by the availability of credit beyond peoples means, we would not have seen the boom we did. That boom only helped homeowners, those renting (like myself) just saw the ability to own spiral away from them. House prices doubled in a few years, wages certainly didn't.

I want to buy, I am looking into ways I can do so, but I am under no illusion that I can do so until I improve my financial situation. When I can pay what something costs, I shall do so. Until then, or if I feel the benefit is not worth the cost, I shall rent. I can't afford a PS3 but would like one, should I also get assistance with that? Should a bank give me a loan to get one? Thats all a mortgage is, someone lending you a big wedge of cash to purchase something you can't afford.

barnaby-bear

tek-monkey wrote: »

A mate moved to Germany recently, he said owning a home there just isn't a reality. People rent. Take a look here for example, or if you look at historic trends ownership has risen sharply. Surely this is bucking the norm, the idea that everyone can own a home is just blatantly incorrect. Some people earn too low an income to ever buy a house that meets their needs, its just a sad fact.

As for what they do when they no longer earn, they go into the benefits system. Isn't that what a huge proportion of my tax goes towards? How would they pay their mortgage if they no longer earned? Its not a free ride.

As one who's done it renting in Germany is a whole different ball game:
- a lot of property owned by a building owner/commercial companies/pension funds etc - well maintained and in it for the long run; properly financed - not amature one-man accidental landlords
- strong TENURE very strong tenure, you can stay years and have the certainty you can and rent rises controlled
- setting up a rental far more expensive than here because such a long term commitment in general
- can be very hard to find short term rentals and you can't give a months notice and leave - more like years...
- because assumed long term, rentals treated as homes and people assume the tenant want to put in their own kitchen/bathroom and this is gneerally down to the tenant (and bizarrely most germans choose to DiY)..... it's hard to find a rental with a kitchen - usually the tenant installs it and then TAKES IT WITH them :eek: I found this quite bizarre
- LL criteria for renting can be bizarre - they seem to prefer mom+dad+kids wanting to stay 20years as long term prospect so not having kids can limit your choice

when Germans buy they tend to do it mid-40s outright buying a house in a village outside the city after living in the city in a flat.....

some generalisations but the general trends above hold true.... short term a bit easier in the the big university cities for example....

It's so different to the UK in:
- the type of LLs, their professionalism
- tenure - people can set up home and stay long term and make things home in Germany - 2 months AST security here or less if LL repossessed doesn't make a home - plus rent level certainty
- flexibility - here you can move for work easily
- what you can do while renting - you can gut the place in Germany - here a picture hook can require weeks of LL/LA negotiation/lost deposits

superfran_uk

Quite. Some of you may know me from the Ownhome thread and that I was lucky in that I managed to get government funding to buy a house - so you may wonder why I hold this view...but both my partner and I work hard, get good wages, but live in an expensive area - which is expensive largely because of the irresponsible lending of the mid 2000s. We could afford a house if they were still at 2003 prices, we could not have afforded one now! However we never saw it as 'our right' to own, and we did have some savings and stable jobs, the OP has neither.

barnaby-bear

tek-monkey wrote: »

And yet in many countries it is the norm.

Countries with strong tenant protection and tenure.... renting in this country doesn't offer security in countries like Germany/Switzerland people can stay long term and rent levels controlled meaning a state pension when not earnign will pay the rent....

LittleMissAspie

Fly_Baby wrote: »

a roof over their head which can never be taken away no matter if you are sick, unemployed or alone with young children.

A mortgage won't give you that either. Only owning outright gives you that.

When renting is cheaper than mortgage interest, which I believe is still the case in many parts of the country, you are further on your way to owning outright by renting (and saving the extra, obviously).

barnaby-bear

LittleMissAspie wrote: »

A mortgage won't give you that either. Only owning outright gives you that.

When renting is cheaper than mortgage interest, which I believe is still the case in many parts of the country, you are further on your way to owning outright by renting (and saving the extra, obviously).

But you can plan your own destiny - you know if the mortgage has been paid - what and when your payments will be and can plan and work your butt off to keep up the payments, have a contingency plan etc..... with private rentals the lack of security in an AST in this country can mean two months or less (repo with no consent to let on mortgage) you have to move regardless of what you do... LL wants to move his kids in instead/wants to sell/is repossessed/puts rent up - can be quite wearing after several moves - as can being at the whim of a LLs ideas of prompt repair or the nutters who want to control every aspect of your life (whether you hang pictures/check it's tidy enough/let themselves in/no pets/can't paint your kids bedroom)..... the logic makes sense but the emotions and human need for nesting/stability is why people override it