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Debate House Prices


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Could you afford to buy your own house today?

Orpheo
Orpheo Posts: 1,058 Forumite
edited 8 September 2010 at 9:02AM in Debate House Prices & the Economy
Let's assume that you are a FTB with a 25% deposit. At its current, perceived value, could you afford to buy your own house today? By "your own house" I am referring to the one that you currently own.
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Could you afford to buy your own house today? 118 votes

Yes, I could afford to buy my own house.
52% 62 votes
No, I couldn't afford to but my own house.
47% 56 votes
«134567

Comments

  • lewisa
    lewisa Posts: 301 Forumite
    Yes, I could do it with 10% deposit, so long as interest rates stay under about 8-10%
  • In the case of my parents who bought in 1985 - not a chance that they themselves could or that a younger version of themselves doing the same job they were at the same age could.

    I could but then I didn't buy that long ago and I was very young/at the very bottom of my career ladder when I bought.
    FACT.
  • Orpheo
    Orpheo Posts: 1,058 Forumite
    As I sold my house (completed January 2009) and am currently in rented, I will refer to the house I sold. My answer is yes, with a 25% deposit, but only just. The only thing that allows me to securely and easily re-enter the "property ladder" now is that I have a much larger deposit through money that I have made by HPI.
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  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Yes, I could. But then I only bought in 2006 :)
  • Blacklight
    Blacklight Posts: 1,565 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    We're a couple earning £25k each (the average wage, apparently). We are happy to pay 50% of our income in rent/mortgage.

    With a Lloyds 95% FTB mortgage at 4.99% we could afford anywhere up to £255,000.

    So that's two nice first time, two beds. I could rent one out.
  • Barneysmom
    Barneysmom Posts: 10,136 Ambassador
    Part of the Furniture 1,000 Posts Photogenic Combo Breaker
    I couldn't , we bought ours in 2001.
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  • mitchaa
    mitchaa Posts: 4,487 Forumite
    edited 8 September 2010 at 9:21AM
    If you bought post 2005 then I imagine the majority of people could. If you bought pre 2000 then I suspect the majority of people could not.

    There are people living in £500k homes with a <£50k household income just because they bought at the right time a decade or so ago and paying peanuts on their mortgages. You would need closer to a £150k income today to buy the same house and it would cost you a great deal more.
  • Orpheo
    Orpheo Posts: 1,058 Forumite
    I suppose there is a psychological factor in affordability. We would be allowed to borrow about 60% more than we would consider ourselves to be able to afford when taking into account planning for our future and daughter's education.
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  • Pete111
    Pete111 Posts: 5,333 Forumite
    Mortgage-free Glee!
    Yes with ease.

    (but I did buy with perfect timing in 2007!!!)
    Go round the green binbags. Turn right at the mouldy George Elliot, forward, forward, and turn left....at the dead badger
  • Strings
    Strings Posts: 150 Forumite
    Orpheo wrote: »
    Let's assume that you are a FTB with a 25% deposit. At its current, perceived value, could you afford to buy your own house today? By "your own house" I am referring to the one that you currently own.

    Today I couldn't only because the money I had is tied up in it.
    But assuming all being equal then yes I could , in fact we'd probably be able to afford something bigger given the current interest rates.
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