Could you afford to buy your own house today?

Chris2685

If I were to buy the house I am currently renting for the price it is valued at on Zoopla (£182k) and assuming I actually had a 25% deposit, I could certainly afford to buy it. But even after I fork out my 46k deposit, the monthly repayments would still be more than I pay in rent!

Unfortunately, I don't have nearly 50k in my back pocket, and even if I did, I wouldn't fancy spending it all at once on this place.

Assuming I can save £100 a month, £1200 a year... We could afford the place in maybe 20 years time if we wanted to.

Depressing stuff eh

molerat

We bought ours in 1990 with a 30% deposit and a 2.5 multiplier (at 14% :eek: ) on a single income. Now with a 30% deposit it would need a 4 times multiplier on the wage for the same job but as interest rates are so low I probably would be able to. I now have an income of half that new wage so wouldn't be able to afford it but as the house is all ours and paid for I don't care.

nembot

Bought my first place about 10 years ago on just over the local average wage, since then my salary has more than doubled and I'd still need a substancial deposit to buy at a 3.5 multiple.

jamespmg44

Yes - we put down a 25% deposit when we bought as FTB in 2004.

Since then, my salary has increased 75% through pay rises and promotions and my wife's has doubled.

House has probably gone up about 20% since then so could comfortably afford it.

Fortunately we pushed the boat out to get this place and have no need to move any time soon so we're overpaying every year and hope to be paid off by 2016

Running_Horse

Orpheo wrote: »

No. Current property. Current income. 25% to put down.

I'll give you current income, but ours is not a first time buyer's house and we have worked our way up the ladder. £120,000 price. £30,000 down, £90,000 mortgage is just over three times income, so yes. Obviously I earn a lot more now than then, and only had a small deposit at the time. So not really a true comparison. But yes. It helps that Medway will always be more affordable than the rest of Kent. And if you want a comparison for our current property, I assume we would still be able to trade up in a few years.

blueboy43

Afford yes, but when we bought we both knew our incomes would rise over the next 5 years and that combined with inflation would erode the relative value of the debt. (bought in 1999 - hopefully will leave in a wooden box > 40 years time).

silvercar

With only a 25% deposit, I couldn't afford my current home, but then its my "forever" home, the deposit funded partly by previous HPI and partly by years of savings. Quick calculation, ignoring inflation and interest, HPI has contributed £11k per year averaged since I bought my first place decades ago.

LilacPixie

Yes I could. 25% deposit and rounghly 2.1x single income or less than 1 x joint income

vivatifosi

I really like living here and looked at buying one of these houses when they were new and the market was depressed in 1994/5. As DH was studying for his PhD at the time and we only had one income we couldn't afford it. Ironically we could now, providing we had a reasonable deposit (which we would).

mark5

I bought my current house in 2006 at £216,000, it would probably cost about £190,000 now, so yes I could afford to buy it at todays prices.