Parents, you're just making it worse! Please STOP!

vishpatel

dougk wrote:

My definition of afford is if after monthly paying for your house (mortgage etc), clothes and food (i.e essentials) have you got any money left? If yes you can "AFFORD" it. .

Here we go again dougk. A mortgage is a 25+ year commitment. It's not just whether you can afford it now. You have to factor in your future wage projections, job security, interest rates etc..

Please try to stick to the main point of the thread thanks.

[Deleted User]

I don't know many people who are renting because they are waiting for the market to drop. They rent because they can't possibly afford to live in the areas they want to. Because the cost of housing has risen far faster than salaries have. Because large amounts of the low cost (FTBer) housing has been bought by their parents generation trying to recover their lost pensions.

I'd rather pay X thousand a year in interest to a bank for my own home than to a landlord. I have moved cities/reskilled in order to find the money to buy my first home - not everyone can do that.

Do people who BTL have to pay capital gains tax on their properties when they sell them?

vishpatel

ringo_24601 wrote:

Do people who BTL have to pay capital gains tax on their properties when they sell them?

Yes, but many aren't even aware of this fact - and many don't pay it.

Besides, property is for the 'long term'. Not to sell.

lynzpower

vishpatel wrote:

Here we go again dougk. A mortgage is a 25+ year commitment. It's not just whether you can afford it now. You have to factor in your future wage projections, job security, interest rates etc..

Please try to stick to the main point of the thread thanks.

God, you really dont like anyone disagreeing with you do you vishpatel -

Whats the point in starting discussion threads if you are going to clamp down on anyone who contributes differently to your POV?

dougk_2

vishpatel wrote:

Here we go again dougk. A mortgage is a 25+ year commitment. It's not just whether you can afford it now. You have to factor in your future wage projections, job security, interest rates etc..

Please try to stick to the main point of the thread thanks.

Ok the main point is I disagree with the title of this thread - Its been happening for donkeys years and will continue just as long.

But to answer you statement - These days fewer people live in a single house for 25 years so a 25 year mortgage is largely irrelevant. Situations change, peoples jobs change (I believe the average time in a job now is about 2-3 years). IMO buying a house in many cases is no longer a long term commitment and so there is no need to look 25 years ahead. At any point you are free to sell you house if things change. If you are looking for security get a 5 or 10 year fixed rate.

vishpatel

lynzpower wrote:

God, you really dont like anyone disagreeing with you do you vishpatel

Where did you get that from? I think I touched a nerve when I asked why you couldn't save for a deposit yourself...

vishpatel

dougk wrote:

Ok the main point is I disagree with the title of this thread - Its been happening for donkeys years and will continue just as long.

But to answer you statement - These days fewer people live in a single house for 25 years so a 25 year mortgage is largely irrelevant. Situations change, peoples jobs change (I believe the average time in a job now is about 2-3 years). IMO buying a house in many cases is no longer a long term commitment and so there is no need to look 25 years ahead. At any point you are free to sell you house if things change. If you are looking for security get a 5 or 10 year fixed rate.

It's not really that simple though is it? The costs of buying & selling are quite large.

eg. some rough figures on buying:

stamp duty - 1%
solicitors - £500
land registry - £200
local authority search - £60
Surveyor’s Fees - £500
Lender's Valuation - £200
= stamp duty + ~£1500

so it's not quite as easy as buy and sell.

lynzpower

vishpatel wrote:

Where did you get that from? I think I touched a nerve when I asked why you couldn't save for a deposit yourself...

I got that from the snipey comments you are making from people who dont agree with you.

What nerve? I didnt save cos I didnt want to. Horses for courses mate :beer:

vishpatel

lynzpower wrote:

I got that from the snipey comments you are making from people who dont agree with you.

The only snipey comments I see are coming from you and Tassoti with a pat on the back from Ems*Honie.

The rest is just debate. Don't take it personally

BobProperty

BobProperty wrote:

One of the things that I believe has skewed the market in the last few years has been the increasing availability of IO mortgages and the increase in the limits on the income multiples that are being allowed. These days it appears you can get an IO mortgage of 5 times income, a product which wouldn't have existed 5 years ago. The only way a crash is going to be postponed is by lenders offering American style "exotic" mortgages and god help anyone who takes one of those out in the next 5 years. If we go along that route, the crash will be more like an earthquake when it happens.

Just found this while looking for something else:

LTV______________________Income Multiplier

Up to or equal to 85%_______5 + 1 or 3.5 x joint
Over 85 %_________________4 + 1 or 3.25 x joint

I wouldn't have got 3.5 x single when I took out my first mortgage.