imaginative ways of getting on the housing ladder....

sjaypink

......Ok, so we've had self cert and shared ownership (my rm search currently brings up 2 SO homes in my area, 2/3 years ago you were easily looking at 30+).... whats next?

Not that I'm thinking the next 12/24 months will be the time to buy and am getting twitchy and am wanting personal advice on how a £30k total gross pa household can buy somewhere with only £10k dep and the cheapest possible suitable property being £150k..... :cool:

I think there are a lot of people like me who thought house buying would always be beyond them- average prices tripling every 10 years etc- so have had [STRIKE]too many[/STRIKE] kids and not really saved, now find they could afford something, just nothing anywhere near suitable for their families

Buy to Let? Need 25% deposit....

Renovate your way up a la Miss S Beany? Need to possess a sledgehammer, 5000 litres of magnolia (or is it pure brilliant white nowadays?) paint, and still probably need a 25% deposit

The thought of actually saving the required 50k does not grab me, particularly given the length of time it would take to save, we'd then still be 50k short (more like £250k according to the triple theory) :A

brit1234

sjaypink wrote: »

average prices tripling every 10 years etc

Only tripled in the 1997-2007 decade due to too low interest rates, selling off the mortgage debt through securitisation, ever laxer lending standards and mass mortgage fraud. It has been one hell of a freak decade.

Me personally I have saved my 20% deposit. Now just nealy finished saving fees and furniture. :beer:

PasturesNew

Only one thing for it: marry well.

If it's a couple you'd have to both marry well, then divorce and take half ... then pool resources and buy.

PasturesNew

Option B: Move where houses are cheaper.

sjaypink

Ever the voice of reason PN :A

I'm not sure which is the least appealling option: semi-professional gold-digging or merthyr :cool:

Both noted as options though, thanks
(I will however admit at this point I was more hoping for a pointer towards a 95% BTL mortgage)

Cleaver

brit1234 wrote: »

Only tripled in the 1997-2007 decade due to too low interest rates, selling off the mortgage debt through securitisation, ever laxer lending standards and mass mortgage fraud. It has been one hell of a freak decade.

That isn't true though. You can download the figures from Nationwide to look at what happened to house prices decade on decade from 1962 to now. The graph below shows the multiple of real house prices for each quarter compared the same quarter a decade ago (source: Nationwide).




The 1997 - 2007 period did see house prices treble, but it doesn't really seem a 'freak decade', more just a peak in a graph full of peaks and troughs.

You can see from the graph that house prices trebled (or quadrupled or even quintupled) in the following decades:

1962 - 1972
1963 - 1973
1964 - 1974
1965 - 1975
1966 - 1976
1967 - 1977
1968 - 1978
1969 - 1979
1970 - 1980
1971 - 1981
1972 - 1982
1973 - 1983
1974 - 1984
1975 - 1985
1976 - 1986
1977 - 1987
1978 - 1988
1979 - 1989
1994 - 2004
1995 - 2005
1996 - 2006
1997 - 2007

carolt

Higher paying job in the short term? Or patience in the medium term? Assuming that (like me) you think the direction of house prices can only be down, unless we all face a period of high inflation including wage inflation. Either way, more affordable relative to incomes.

PasturesNew

sjaypink wrote: »

Ever the voice of reason PN :A

I'm not sure which is the least appealling option: semi-professional gold-digging or merthyr :cool:

Both noted as options though, thanks
(I will however admit at this point I was more hoping for a pointer towards a 95% BTL mortgage)

It doesn't have to be Merthyr... plenty of other cheap places that aren't Merthyr.

£30k income, looking at £100k ... loads of places in the country that are lovely.

Cheapest 4-bed house in Cornwall at the moment (excluding plots, renovations, retirement, SO, holiday homes, auctions) is on at £109,950 in Bodmin http://www.rightmove.co.uk/property-for-sale/property-15335742.html

If you want to go to 3-beds, but detached, cheapest is £130k in Liskeard: http://www.rightmove.co.uk/property-for-sale/property-13735326.html (fully renovated and good to go!) Cheapest 3-bed detached in Merthyr's £99k, so not that much different

sjaypink

carolt wrote: »

Higher paying job in the short term? Or patience in the medium term? Assuming that (like me) you think the direction of house prices can only be down, unless we all face a period of high inflation including wage inflation. Either way, more affordable relative to incomes.

No no no! You're being far too sensible!

I was trying to set the theme with 'self certs, shared ownership...' :rotfl:

I will wait, seems I have no choice, just impatient seeing several 'bargains' around recently, and am of the impression there are plenty more to come, but I'm also of the impression the window of opportunity (oooh, get me, I sound like a life coach or summat) will be fairly limited.... I hope not though

PasturesNew

sjaypink wrote: »

...cheapest possible suitable

Maybe your search area's not large enough, or you're being too sniffy.



You're supposed to start in a slum and drag yourself up!

Cleaver

Just looking at that graph again and it's interesting to note that house prices doubled from 1960 to 1970 then quintupled from 1970 to 1980. So if a house was worth £3,000 in 1960 it had rocketed to £30,000 just twenty years later. And yet we only see the last decade as the time when house prices went mental.

Isn't the average house worth about £160,000 now? If the same thing happens in the next twenty years as it did in the twenty year example above the average house will be £1.6 million in 2030. Can't see that somehow, but I'm sure your average person in 1960 didn't see it coming either...