Is it the right time to buy??

missk_ensington

You can make an educated guess when the last 10 houses same type, same beds, same street, etc etc have sold quickly and for £115-155,000 over the past year. I could probably get nearer £120,000 but I'm aiming for 110 and anything else is a bonus.

There is a high demand for the property Ive bought, when the valuation report came it was currently valued at just over 100k and I paid 92k. You just ahve to pick the right properties and be prepared to be a bit stressed and spend time stripping wallpaper!

missk_ensington

Yeah but what if your parents and the in-laws decide to downsize and used the money to spend their older years having good fun. Or what if, God forbid, they have to go into a nursing home? By law they have to give their assets to the Gov to pay for it.

meanmachine_2

Since when has a 30 year mortgage become the standard?!

Sorry, did I miss something?

Talk about the lowering of standards...

Yes, you can afford you buy, just get an IO.

Yes, you can afford to buy, just get a 30 year IO.

Yes, you can afford to buy, just get a 30 year IO guarantor mortgage.

And so it goes on.

missk_ensington

If you're young enough why not get a 30 year mortgage?? I don't intend having my mortgage 10 years, let alone 30 so for all I care it could be 70 year mortgage it makes no difference. It isn't lowering the standards, its giving help to people who cannot get on the property ladder and just reflects the current market

lynzpower

Miss K,

My parents financial circumstances have nothing really to do with whether we sell/ buy/ rent now. I simply brought this info in in respect of what we will do in our retirement, if in fact we even live that long ourselves. Actually, no they dont have to give up thier assets to go into a nursing home, as they have made provision for this in thier savings. I am NOT reliant on what we will be left, indeed they may choose to have even more holidays than they do now, or pi55 it up the wall or whatever, that is thier choice. What this has really got to do with whether to buy now or rent now, the issues remain the same- its cheaper for us to rent, so thats what we are going to do. :beer:

lynzpower

Miss K

If I took an IO mortgage for 30 years, where is the money going to come from to pay off my property before my own retirement. I might have 6 years left of working. I doubt I would be able to put 200k in an ISA as they recommend, are YOU able to save that money? If not, then where will you live in retirement?

meanmachine_2

So the average age of the FTBer is now 34. They get a 30 year IO mortgage on a one bed flat - taking them to 64.

That's not much of a life.

I'd rather not thanks.

missk_ensington

Perhaps so, I was looking at it as a long term issue though. I'm hoping to release some equity from my house in 5 ish years to start a business and I was hoping to get the money from property rather than borrowing on a business loan. For me its not whats cheaper at the time, its what it leads to and the doors it opens

lynzpower

"For me its not whats cheaper at the time, its what it leads to and the doors it opens"

Me too. But doenst mean all of us want to open the same doors though does it?

Besides having read about some of your experiences, they seem rather high risk to me and Id rather keep everything above board

missk_ensington

Meanmachine-I think 'average' is the operative word here, but I don't want to be average. Im not 34, Im 20 and I know many others alike. As your mum probably used to say to you 'dont compare yourself with the worst!'

Lynzpower- Why do you have to buy for 200k there must be something less than that!? I dont intend staying in my house for years on end, I intend developing and selling, developing and sellling.... and I hope to be mortgage free in under 10 years, which will be my pension.

Say you bought at 200k, when you retire it might be worth 500k, by then you might wish to live elsewhere in the country that is cheaper than London and buy for 300k, pay back the 200k you borrowed and be mortgage free. Or move house from time to time and try and make some money to pay off the mortgage.

Or, when you retire sell the house, you might ahve made 100k above what you paid, or more, repay the mortgage 200k and you can spent your later years renting with 100k in your back pocket!