"Homeowners" who can't afford to be "homeowners"

Orpheo

What I'm talking about here is mortgagees, not those who truly own their homes outright. I'm not talking about investors who couldn't care less about the state of a property as long as there is HPI.

Reading another thread got me to think about how there seem to be quite a lot of people who, after totting up all the expected expenses, mortgage, council tax, utilities, etc, see that it all falls within their income and determine that they can afford to buy a house. What they have failed to consider is the unexpected expenses and the cost of maintaining a house. These are the people that can't cope with a sudden plumbing/heating bill, a leaky roof, can't afford to redecorate every so often, can't afford to replace an appliance that breaks down or have fixture and fittings repaired/replace. The poster in the thread on the DFW forums commented that she had to borrow in event of unexpected expenses. This certainly measures up with my experience in viewing houses as a potential buyer. Houses that haven't been decorated in 20 years, damaged woodwork, doors missing off kitchen cupboards, roofs in disrepair, dripping taps, archaic boilers and heating systems (although I often think old boilers, while not energy efficient, tend to be more reliable!). If you are going to buy a house you should think about how you are going to pay for the maintanence of your house, if you have nothing left at the end of the month as a contingency to cover these things then your house will slowly fall down around you.

wymondham

True, it is difficult to plan and save for every eventuallity, especially if you're used to the comfort of renting, but the much bigger fear is the number of homeowners who would not cope with even a 0.5% rate rise and think this climate is 'normal'.

Orpheo

wymondham wrote: »

True, it is difficult to plan and save for every eventuallity, especially if you're used to the comfort of renting, but the much bigger fear is the number of homeowners who would not cope with even a 0.5% rate rise and think this climate is 'normal'.

I agree. And what you say about current IRs is poignant too. I suspect many of those that jumped on the ladder in 2009 were enticed in by the bait of low IRs without considering their position when IRs inevitably rise. But that's a different thread!

z1985m

I don't understand why people always moan about other people taking on mortages. would you rather they all just went into council housing? or just rented for the rest of their lives? if they can afford the mortage and bills and all then surely that is the main priority? the majority of people truley do struggle with unexpeted big things, i mean my parents live very comfortable lives, still paying a mortgage but have money in the bank but i'm sure if something was to happen to their roof or whatever it would be a burden and maybe wouldn't have all the money needed depending on the size of the job but is that any reason to not permit them the right to have their own home? i think the houses you've been looking at have just been generally owned by people who truley don't give a damn about fixing things in their homes.

Davesnave

I think you have been looking at the wrong houses, or the cheapest ones.

FTBs struggle at one end of the spectrum, and they always did. Eventually, inflation comes to their rescue.

At the other end, older people often feel quite happy with what they have, and hang on to it, even when it's past its sell by date. I have some elderly friends, not short of a bob or two, who went out into their 4 acre garden in 1973 and never really came in again. Their house is now in a time warp, but they just don't care.

lynzpower

I'm not talking about investors who couldn't care less about the state of a property as long as there is HPI.

Why not, these pose the biggest risk to health and welfare of many vulnerable people.

Why shouldnt they take responsibility for the death -trap properties they put on the market, at the bottom end ( eg dodgy hmos, crap bedsits with unsafe facilities etc)

Why should we care about the odd owner occupier who might have to take out a loan for a new central heating system instead of this massive group that ruin things for the good LL'S and threaten public health?

ess0two

Sounds more like the OP is desperate STR looking to get back into property.

Orpheo

ess0two wrote: »

Sounds more like the OP is desperate STR looking to get back into property.

phil_b_2

I think the costs of maintaining a property are way overblown by those who highlight them. They really arent that bad and you can get replacement stuff cheaply enough on ebay in many cases.

Also, a lot of general maintenance/decorating stuff can be done by the owner with a little effort, motivation and competence. Sadly many seem to lack those things though.

The only issue that would really catch me out financialy would be the roof caving in perhaps... but that doesnt happen often. I think I could deal with most other things without hammering the bank balance.

chucknorris

Orpheo wrote: »

can't afford to redecorate every so often,.

I've got an easy solution to this problem, just don't redecorate so often. Personally I can't be bothered anyway for about 4-5 years unless there is some particular reason.

PasturesNew

One of the reasons I sold my house was because I couldn't afford to maintain/improve it... or even go out of the door. After buying it, circumstances changed and I was earning only 1/3rd to 1/2 of what I'd been on when I first bought it. So it was belt-tightening in the extreme. Most of the time I had no lighting on, nor heating. When the boiler packed up I went 6 months (winter) without hot water or heating (first bloke told me it'd be £200 to fix it, then another problem in the house occurred and the next bloke I got in said it was £30, so I had it done). Blocked drains - 3 visits from dynorod ... and a huge bill. The list of "minor things I'd like to get done because they're actually quite important really" was over 100 items.