Just a bit of a rant really

sparklewing

Sorry this thread has no real purpose except for me wanting to vent.

I bought my little(very little) 1 bed flat 2 years ago for 45k. Last week I was feeling nosy so asked an estate agent to give me a rough valuation for after I have had the windows and bathroom replaced.

He said I'll get about 70-75k!!!!!!! Not bad considering it's only going to cost about 5k to get stuff done.

So duly excited and buzzing I started looking at property sites with grand ideas of moving somewhere which might be big enough to swing a cat.

Now obviously on my income bank will still only give me 45k mortgage, maybe 50k at a push. Then got that lovely 25k approx profit from this place.

But of course I can't afford anywhere bigger or better than the flat I'm in already. Of course I know it makes sense if my flat has increased in value so has everywhere else, BUT IT'S JUST NOT FAIR!!!!!!!

This was meant to be my starter flat for a couple of years and I was lucky and bought in a cheap up and coming area. But I'm going to be stuck here forever unless I miraculously find a new job willing to pay me treble what I currently get.

I know I'm in a rubbish paying job but I enjoy it, don't really want to do something I hate that pays well just cos the nasty housing market is evil.

Any rant over apologies for the totally unrelevant thread.

whambamboo

yep, you've just worked out the big property con....

Dinner party chatter

"Oh we've done so well, our 1 bed in Brixton we bought for £60k is now worth £250k"

Er no, that's not good at all, because the family house that cost £150k is now £650k.

So you're less able to afford for it than you were before.

It's a big con, rising house prices benefit no-one except people close to the grave who can sell up and trade down, or people leaving the country.

Everyone else wants somewhere bigger, and it will cost them even more.

So who's the only person that benefits?

Gordon Brown.

Zammo

Sell up, bank the profits and wait for the coming crash, only then will you realise your dreams.

sparklewing

I did suggest to dad that I sell up and move in with him until the market dies. He was less than enthusiastic at the prospect surprisingly enough.

Suppose I'll just do this place up a bit and get used to it. Or find myself a husband purely so I can move somewhere bigger(possibly not best reason for finding a partner).

Better phone Mr Mortgage provider and ask for a bit of the equity to be released so I can actually do some work.

whambamboo

sparklewing wrote:

I did suggest to dad that I sell up and move in with him until the market dies. He was less than enthusiastic at the prospect surprisingly enough.

Suppose I'll just do this place up a bit and get used to it. Or find myself a husband purely so I can move somewhere bigger(possibly not best reason for finding a partner).

Better phone Mr Mortgage provider and ask for a bit of the equity to be released so I can actually do some work.

What is 'releasing equity'?

This is an insidious term.

You cannot 'release equity'.

You can 'borrow money at 5% interest'. Releasing equity is nonsense. Think of it as borrowing money.

You are releasing nothing.

clutton_2

every single person i have ever spoken to (hundreds) wanting to sell their house quickly, - the reason has always been that they were getting threatening letters from either their lender, or the local court, and without exceptin they had remortgaged, often several times.

remortgaging = taking on more debt - how can that possibly equate to solving debt ?

runs off screaming pulling hair out !!!!!

mi-key

I love the term 'releasing equity' - its a lenders con to make you borrow more money ( often for really stupid things like buying a car or having a holiday ), at the same interest rate as a loan, but because you are paying it off for the same term as your mortgage, they end up getting loads more off you in interest, and you end up paying loads more than getting a bank loan would have cost you. And the cherry on the cake is that the house you have actually paid some off of, and therefore own, you now own even less of.

Its up there with Carol Vorderman etc.. offering to 'consolidate your debts into one easy payment' as a surefire way of ending up much worse off than you were before.

An old boy I was talking to put it very well - he was saying his son had badgered him into getting an estate agent to value his house, just out of interest as he had no intention of selling.

As his mortgage was paid off, and his house was worth £250K, in theory he had £250K equity - except he didnt because as he said, the house was only worth anything once he died, and then his kids would get the money ( or if he sold it and moved into a cardboard box ).

lynzpower

Mi-key

Hope you dont mind, but im going to bookmark this and use your comments when people suggest doing this on the DFW board. Youve put it in a way Ive hoped to for ages :T

RHemmings

lynzpower wrote:

Mi-key

Hope you dont mind, but im going to bookmark this and use your comments when people suggest doing this on the DFW board. Youve put it in a way Ive hoped to for ages :T

Agreed. Lots of good comment in this thread. :T

mi-key

lynzpower - please feel free !

Bluelad_2

What I cant understand is what's the big rush to move?

I think you answered you're own question when you mention the husband.

I, like yourself, bought a property when I was on my own earning a 'very' low income. I am now moving 7 years later, having a wife, higher earnings plus my wife's income and Savings.

Whilst I didn't 'Get a wife' to make progress on the property ladder, this together with savings and equity obviously is the way and reason people move up