Deposit vrs. Salary

Graham_Devon

Harry_Powell wrote: »

For someone who lives his life on MSE, you seem to have an awful lot of 'mates/friends/aquaintances' that you regularly quote. Two questions come to mind...

Are these all internet 'friends'?
Do you actually know anyone who is doing ok? All your 'mates' seem to be on their uppers and either struggling along on minimum wage or getting by with benefit scams.

Does saying all this stuff make you feel better or something? Try and put someone down on the internet to make you feel better about yourself?

To respond to your points. I work with around 80 people. I manange around 15, all from different backgrounds and know them well. I work with the public, so get to know the intimate public background as I work with their very confidential information.

I have 4 proper close mates, all from school and we have been good friends ever since. We were all out last night having a christmas meal at one of their places and a few games on the computer. I have a child on the way. I have parents and a small family around me. I spend time on the internet as I enjoy discussing things with other people, and the people I am mostly around are more interested in X-Factor and Strictly, of which I have absolutely no interest in at all. I used to gamble heavily which is my biggest downfall to need something to distract away from that as it's an easy trap to fall back into, hence using this I guess as I have succesfully stopped that. I'm not a big drinker, wouldn't really care if I never saw alcohol again. All those 4 mates have kids now, so we can't go pubs anymore. I've just put a load of washing in the machine, and am about to do some hoovering, you know, normal stuff, and the laptop is sat on the coffee table and I can read things that interest me inbetween being bored cr*pless by a hoover and washing tablets.

So what exactly would you suggest I do Harry? As obviously you seem to think I have issues by usiung the very same site that you spend your spare time on also.

I'd suggest you take less interest in trying to figure my life out, of which you know nothing of just keep assuming, and more time on yourself not caring what anyone else thinks.

Cleaver

mbga9pgf wrote: »

Currently have 2X main breadwinner deposit saved. Will have 2.5X Main salary by next christmas, but hopefully intend to buy. If prices dip significantly, towards the back end of next year, I will be using "Seller Fear" to cash in I think. And a tiny mortgage.

And if prices don't dip? And I thought your plan was to buy at the end of 2009 / start of 2010, or have I remembered that wrong?

Apologies, but I have you on a vague list in my head of posters on here that will never buy due to one or all of the following:

1) a huge amount of over-analysis
2) "when x happens I'll buy" syndrome
3) severe risk aversion.

However, ad9898 bought recently so I guess anything is possible.

mbga9pgf wrote: »

16K is achievable for most, it means no holidays, no going out on the lash and no presents at Christmas.

Indeed. Or just going camping instead of an all-inclusive cruise, doing free (or cheap) stuff like art gallaries, museums and walks rather than restaurants and going out and maybe thinking of how to treat friends and family at Christmas in a different way than just buying some stuff from a shop.

mbga9pgf

Cleaver wrote: »

And if prices don't dip? And I thought your plan was to buy at the end of 2009 / start of 2010, or have I remembered that wrong?

1) a huge amount of over-analysis
2) "when x happens I'll buy" syndrome
3) severe risk aversion.

.

Prices will dip, its obvious really isnt it? We are barely keeping prices level with all the stimulus. I reckon we are sweet for another 15% down, on top of the 15-20% locally. Lots of CS jobs locally and a large motor industry to suffer once stimulus finishes I am afraid. once we hit 25% off real 2007 peak prices, I will move. Looking for 30-35% off. Its a gamble, yes, but one I believe has more risk in purchasing now than waiting. Best case we can all agree on I think is long term stagnation and a devaluing of prices with very slow wage growth. I am also expecting to see a change in the planning regs within the 1st year of a Tory government based off discussions I had recently with a Tory staffer, along the lines of sorting out the problems highlighted in the Tory housing white paper. Expect easier planning apps for self-Homebuild, especially for FTB homebuilders. This may even include green belt if the app is appropriate, and at the least will include the vast acreage currently looked to be disposed owned by the Government. Uxbridge in London as well as a n umber of Army and RAF sites nationally are contenders. Cost -very little, apart from NIMBY complaints... reward? Affordable housing for those middle class FTBs priced out and looking to put the effort into homebuild. It will also give the building industry a major boost, with very little collateral required from central government. The whole planning system I was led to believe, will be getting a major overhaul.

If they dont fall, well, I will be investing the lot in other asset classes, prob a mix of commodities, forex and foreign shares. Germany is looking pretty attractive at the moment as a country with low debt levels (talking about combined consumer/State debt here, not just state debt) and innovative thinking.

Commodities will be due another fall, and will buy in on the downtrend if and when they do.

If prices dont fall and I cannot afford a home, I will be moving to sunnier climes on my 38th birthday, with a 1 year salary tax free gratuity and final salary pension.

Oh, I will be taking my experience with me. If the UK isnt sorted by then (9 years from now) it never will be. I refuse to bring up my kids in a country that has F*cked up priorities.

1) a huge amount of over-analysis - I am sure Warren Buffett suffers from this too!
2) "when x happens I'll buy" syndrome - Erm, if it wasnt for QE, where would prices be now? Its not going to last forever and all the benefit we have gained from it will need to be paid for in extra pain at a later date.
3) severe risk aversion - Not a chance! I am not scared to invest, have done before, will do again. Lost some, gained some. Risk aversion- More like the D*ckheads that bought because they were told if they didnt buy now, they would miss the boat forever, and are now (locally) in 15-20% negative equity, on a 5% mortgage, whilst I am sat with nearly 100K in the bank! :j:rotfl::rotfl::j(Earning 3%)

Cleaver

tommy75 wrote: »

I earn over the average wage, have had one holiday in the past ten years (paid for by parents). We go out about three or so times a year, otherwise save what we can and I believe that I should be entitled to something better than a run down council house saying I have a large deposit. So I continue to rent until there is some sort of value again.

You use the term 'we', so I presume there are two of you, and you say you earn above the average wage. I don't want to get personal, but if you earn okay money, only go three times a year and never paid for a holiday in ten years so where does your money go? Lots of kids? Coke habit? PS3 games?

I remember you saying you're in the Manchester area too, so earning above average wages in a below average house price area should surely mean that you can save a deposit? How much have you managed to save over those ten years?

At the risk of being really harsh, I don't think you're "entitled" to anything.

tommy75 wrote: »

People also forget that you have to pay back the interest on your house loan over the course of your mortgage as well meaning that if I was to buy an average home for 160k, I would be paying well over 300k back to the banks over the term.

I don't think people do forget that you have to pay back the interest: most understand how a mortgage works.

Paying back more that you borrow is just the deal isn't it? You pays your money, you takes your choice. I'm not starting a rent vs buy debate, because it's like comparing apples and pears, but at the end of your 25 year mortgage you own a house and don't need to give anything to the bank. So some might see the £300k as a good deal.

Most people look at affordability. If your payment for your £160k mortgage is, on average, 6% over the term then the monthly repayments will be about £1,000 a month in 2009, but will also be the same in 2025. I bet that £1,000 looks a lot cheaper then than it does now.

Harry_Powell

Graham_Devon wrote: »

So what exactly would you suggest I do Harry?

Perhaps read more and post less? You may learn something if you actually read some posts, rather than just posting nonsense that tangles up the board and wrecks threads.

Just my opinion you understand, but I either think you deliberately enjoy going off at a tangent, introducing irrelevent argument and muddling up threads, in which case you're a genius troll. Or you do these things because you're so keen to 'machine gun' post that you don't take the time to read the post you're responding too nor to understand the subject matter you're commenting upon.

Graham_Devon

Harry_Powell wrote: »

Perhaps read more and post less? You may learn something if you actually read some posts, rather than just posting nonsense that tangles up the board and wrecks threads.

Just my opinion you understand, but I either think you deliberately enjoy going off at a tangent, introducing irrelevent argument and muddling up threads, in which case you're a genius troll. Or you do these things because you're so keen to 'machine gun' post that you don't take the time to read the post you're responding too nor to understand the subject matter you're commenting upon.

Take one step back.

Look at my first contribution to this thread and following contributions.

Then look at your 2 contributions.

Then, kiss my ar*e

Cleaver

mbga9pgf wrote: »

Prices will dip, its obvious really isnt it? We are barely keeping prices level with all the stimulus.

I think predicting that prices will "obviously" go in any direction over the short to medium term is lunacy. 2009 should be pretty good evidence of that.

You seem pretty sure though, which is good. I'm clueless. If I had to bet one way, I would agree and say they will dip. I'd have about as much confidence in this as I would when trying to predict first goalscorer in a football match.

mbga9pgf wrote: »

If they dont fall, well, I will be investing the lot in other asset classes, prob a mix of commodities, forex and foreign shares. Germany is looking pretty attractive at the moment as a country with low debt levels (talking about combined consumer/State debt here, not just state debt) and innovative thinking.

Commodities will be due another fall, and will buy in on the downtrend if and when they do.

If prices dont fall and I cannot afford a home, I will be moving to sunnier climes on my 38th birthday, with a 1 year salary tax free gratuity and final salary pension.

Oh, I will be taking my experience with me. If the UK isnt sorted by then (9 years from now) it never will be. I refuse to bring up my kids in a country that has F*cked up priorities.

Sounds like a decent plan, fair enough.

mbga9pgf wrote: »

1) a huge amount of over-analysis - I am sure Warren Buffett suffers from this too!

True, but you understand what I mean don't you? There are quite a few on this forum who have been here for literally years, talking about the tens of thousands they have saved and yet still talk of only buying when the runes line up, it's a full moon on the third tuesday in March and when the government gilt index hits exactly 3.47% against the yen.

I'm not saying any of that is a bad thing, I just can't see them ever buying a house.

mbga9pgf wrote: »

2) "when x happens I'll buy" syndrome - Erm, if it wasnt for QE, where would prices be now? Its not going to last forever and all the benefit we have gained from it will need to be paid for in extra pain at a later date.

As I say, I really have no idea. I can't predict property prices with any accuracy so I don't really try.

mbga9pgf wrote: »

3) severe risk aversion - Not a chance! I am not scared to invest, have done before, will do again. Lost some, gained some. Risk aversion- More like the D*ckheads that bought because they were told if they didnt buy now, they would miss the boat forever, and are now (locally) in 15-20% negative equity, on a 5% mortgage, whilst I am sat with nearly 100K in the bank! :j:rotfl::rotfl::j

That's a good point point well made. Again though, if that isn't the case for you, do you see quite a few risk-averse traits in some of the posters on here?

mbga9pgf

Sorry, Cleaver, edited the original post considerably since you posted.

mitchaa

mbga9pgf wrote: »

If prices dont fall and I cannot afford a home, I will be moving to sunnier climes on my 38th birthday, with a 1 year salary tax free gratuity and final salary pension.

22yrs service surely makes you 40 giving pensionable salary starts on 18th birthday or am I missing something?

Cleaver

mbga9pgf wrote: »

Sorry, Cleaver, edited the original post considerably since you posted.

No worries.

I've just read through a couple of my posts on this thread and my spelling, grammar and general ability to make sense of words is shocking. I'm not like this in real life folks, I assure you. Think I rush a bit when I type on here.

Interestingly, when I am typing something really quick I sometimes type completely the wrong word when I fully know what the correct word should be. For example, I typed 'government guilts' earlier in a post. Now I know that the word in that context is 'gilt' and that 'guilt' is an emotion. But when typing fast my brain somehow picks the wrong word. Is this a form of something like dyslexia or something, or does everyone do this? I would never, ever do it when writing something by hand, only when typing. I often type the word 'think' instead of 'thing' too. I wonder if it's something to do with your fingers just forming words that you type more often than others?

Sorry, this has nothing to do with house deposits.