Could you afford to buy your own house today?

Elaine_Wilson

Orpheo wrote: »

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

I have been in this house for quite a long time so I doubt my figures have any real relevance.

But, no, I could not afford to buy this house now. Not sure about it's current value but conservatively it is somewhere between 30 and 35 times my annual gross income. So even with a 25% deposit I would still need a mortgage of 20 to 25 times earnings. Don't see how to fund that.

Of course, that's a bit unfair as my income had dropped in recent years. It is now currently about half of what it was at it's peak.

tara747

Oldernotwiser wrote: »

Having a lodger/sharer in isn't the buy to let market.

Oh dear oh dear oh dear. Need a lodger to pay the mortgage? Then why not just rent??? I would hate to have to rent a room out.

And, with wage inflation static, it's not going to be short-term arrangement either... you could be looking at sharing for years. Not for me, I'm afraid. :eek:

OH and I will wait till we can afford the right house for us, in the right area, with a mortgage we can comfortably afford. Till then, we'll keep saving.

incher

No, we couldn't afford our house now. We have about £50k equity in it, only because house prices rose a lot during the period after I bought my first flat (which was on a 100% mortgage) and this house.

We'd be stuffed if we were FTB now.

nearlyrich

We could probably buy ours again at it's current price and for cash, might wipe out most of my retirement savings but that's where my spare cash has gone since the mortgage was paid off and the kids became independant.

On my current salary with a retired DH I could probably just about manage it on a 3 x mortgage and a 25% deposit( roughly what we paid for the house in 1992) but I would hate to spend so much on repayments. There are some advantages to being a little older and having made some good decisions about money over the years.

andyboyo

wymondham wrote: »

I could but I would'nt. Not worth anything like it's 'market' value.

Same here, insanely overvalued

Blitzwing85

Yes i could buy my house if it cost more than twice what mine cost with 25% deposit.
I only bought it in 2009, and since then i've received a pay rise, and 2 loans have finished which were the same monthly payment as my mortgage!! (damn cars).

It was only £90k, with 0% deposit (shared equity)...so i'm currently just waiting to see what the market does and in 2011 buy a much bigger house

chucky

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.

i bought mine in Jan 2009 - why would i not be able to buy it 18 months later?

JonnyBravo

Yep.
25% deposit would leave a 2.4x joint mortgage

System

25% deposit would be a 1.8x joint mortgage for me. or 2.8x on my own.

ninky_2

bought for 150k in 2004. valued at 210-235 in 2007 but slipped down now i think. maybe worth 200k? i've made massive overpayments into the mortgage so assuming i could have saved some of that as deposit - yes. plus my OH is now earning so we could now do a joint application for greater affordability.