Mis advised- FURIOUS

Courtmill

I think you all need to lighten up... seriously guys!

These are tough times, and yeah owning a house isn't the be all and end all, but your doom and gloom is part of what's making things so difficult.

I'm buying a house with my boyfriend, we are confident and happy in what we are doing. There is reasonable doubt, and reasonable questions regarding any transaction on this scale... but the juice as far as I can see is worth the squeeze.

I want a home, and one day a family. I figured it was best to start with the home... get something for all that money I would be throwing away in rent, just like I have done for 6 years!

Southcoast- I've got plenty of tissues

Arby- you're dead right there... but also more and more people realise that if they want to live a long and fulfilling life- owning a property outright by the time you retire will be a massive benefit. It's a long term thing.

Let's hear some positivity and some success stories shall we?
My boyfriend's parents paid off their mortgage 7 years ago, after about 25 years. They've been in the same house from day 1 and have worked hard to pay off their mortgage. Now they own their own house, and have security for the rest of their lives, which should be another 35 years!

Hooray I say... life's too short for all this misery

Thrugelmir

LittleMissAspie wrote: »

After 2 years of repayments you will have repaid approx 3k of your 112,500 debt.

Closer to £2,550 of capital repaid (and £11,000 of interest).

Conrad

Fora attract lots of grumpies.

Most of us start out as FTB with all the risks and little behind us, and guess what, 99% do not get repossessed and most do prosper long term.

The bodyshop was founded using a car loan - can you imagine theadvice that she would have had from here - tut tut you cant start a business with a car loan and the Bank will find out.

Muddling through and beating the system is what living is all about. All wild animals take risks and battle to prosper - tis life.

Thrugelmir

Courtmill wrote: »

I think you all need to lighten up... seriously guys!

These are tough times, and yeah owning a house isn't the be all and end all, but your doom and gloom is part of what's making things so difficult.


Hooray I say... life's too short for all this misery

The timing of buying a house, and the level of associated risk, is one of those life changing moments.

What you are hearing is from those that have collected the teeshirts and haven't only known the property bubble. When I completed on my first property, the month after I moved in, interest rates rose 1% for 4 consecutive months. Yeah I survived. But I learnt a salutory lesson , never over extend.

So in 30 years time I suspect your views will reflect your own experiences as you navigate lifes ups and downs.

Waldir

Just a quick note: With these schemes, check VERY carefully how much you will need to pay when you want to buy the last 20%.

When I considered it 3 years ago, I discovered a small fee multiplied by a number of months, that finally amounted to several thousands of pounds. Sorry, I can't remember exactly what it was though...


Edit: A quick search led me to the fees shown on page 12 of this document: http://onlineapplicationadmin.plumlife.co.uk/DevelopmentFiles/3_HCA%20HomeBuy%20Buyer%27s%20Guide.pdf
I "think" it was those fees that took me by surprise a few years ago...

Wutang_2

Courtmill wrote: »

I think you all need to lighten up... seriously guys!

But you said you were "FURIOUS"!

Thrugelmir

Wutang wrote: »

But you said you were "FURIOUS"!

And if house values drop 15% ?

Then they'll have no one else to blame either.....

arby

Conrad wrote: »

I was reading a short version of a Shakespear tale a while back - one of the main characters was a landlord with 4 small properties.
Shelter is a key commodity and those than own will always enjoy equity in the long term.

Take me; I could invest in a pension that dies when I die (in retirement) and have all the worry of stock markets and whether the annuity provider would survive a serious world crash - or I can carry on gradualy building my own equity that will always have a value in terms of rental. Depsite the odd hassle I'm in the driving seat and I can pass it on to my children.

People who think property has had its day are truly delluded.

the only reason you made money was lots of people lost money previously. And in the future people will make money on it too, and it may be from money that you lose. (notice i said 'may'- i'm not predicting anything here, just making a point, that it's cyclical). Housing over the last 15 years has just been a pyramid scheme, with people 'on the ladder' (further up the pyramid) enjoying the benefits of the new entrants, like the poster of this thread. It cannot carry on, logic dictates that, but also banking solvency requirements show that lending HAS to be reduced. The only reason the last 18 months have been so pain-free is the government has been directly funding the mortgage market. This won't and can't continue. Severe restrictions on mortgage lending will lead to the pyramid starting to crumble (or the ladder turning into a snake )

arby

to the op, I agree, you can't make every decision with the worry in your mind of what happens if we're both fired, are paralysed in an accident, die horrifically etc, however I personally think that sensible risk mitigation in your situation would be to ask yourself if the two of you could survive if just one of you lost your job coupled with slightly higher interest rates? If so, then you're probably going to be ok, if not, then you're almost certainly going to end up with literally decades of pain ahead.

edit: is this what you want to buy into?

"according to PwC: "Housing is a risky asset that is not guaranteed to generate positive real returns in the future even though this has been the pattern in the past."
In fact, PwC says, there is a strong possibility that house prices continue to fall for the next five years and could drop further even beyond 2020."

Read more: http://www.businessinsider.com/price-waterhouse-uk-property-2010-7#ixzz0tlDbmQnc

Lance

It's a pity you didn't buy 3 years ago...... Northern Rock had some great deals called 'Together' which helped people with no deposit and on a very tight budget to get a house, unfortunately they seem to have stopped it now..... think there was a problem. If prices fall, and for a new build they drop 10% when you buy, you are stuck there. In a few years time when 2nd baby comes and clutter builds will you sell and get a bigger place? Will you be able to with a growing family and selling expences and can you get another mortgage with neg equity? There are a few threads here regarding kids in 1 / 2 bed new builds. Is this home big enough for your future, next 5 years, plans? If not you may have problems selling. Prices drop your in negative equity / prices rise then so do the bigger houses but more so. You are stretching yourselves to the limit, visiting grandparents again, and buying a new build apparently overvalued. If you are happy to live in this place with your family for some years then fine because getting out will not be easy. Is it handy for good infant schools or will you look into that later? Persimmon are desperate to sell and you are desperate to buy so you should both get on well.