Any reasonable property prices in the London area??

WalkinX

I am going to a first time buyers show on the weekend and they have advisors and such of a variety so will get advice there.

greenmoneysaver_2

I worry about your faith in this FTB show.

It will be full of Housing associations trying to find people who can afford their over priced Joint ownershp schemes, which failed to attract key workers as they couldn't afford them.

Avoid signing up for anything.

If you genuinely are in a rent free situation on low salaries, one which i unpredictabel, then stay put and save, or shelve the dog idea and by for cheaper than you can afford - i.e one bed flat in zone 3/4.

WalkinX

I am not getting draw in to some shared owenrship scheme and I'll be listening hard to the independant experts, especially regarding mortgages rather then the variou housing companies that might be there pushing their wares.

I don't see why we should get some crappy flat that we can't do what weant with or be happy in just to be in the zone areas. I doubt we could get anything in those zones anyway.

If there is something out there that gives us what we want for an afforable price I reckon we will go for it.

I think its ridiculous people are in their 30's and 40's befor ebuying their first home.

If martin wants a cause then why not change the entire way we view housing - high prices are not a good thing and we should be able to to afford places no matter where you live - london, newcastle, Leeds, glasgow, cambridge - anywhere. We all have a right to live independantly, we shouldn't be stopped by such short sightedness and didctation of estate agents and profieteers.

hazyjo

Maybe you're trying to jump in a bit quick. I lived in 2 flats before I could afford a house and that was on a good London salary. Even now, I'm only in a 2 bed house. Now I'm with hubby, we can afford to pretty much double up on what I had on my own, but it's taken me 20 years of being on that 'ladder' to reach that stage. The whole house, dog and space thing tends to come a bit later down the line. If you can go for it, go for it... but, for your budget, especially considering the fact your OH's salary probably won't be taken into consideration for the mortgage, I think it might be a way off yet.

I don't think it's all down to investors, etc that desirable areas are expensive. The fact they're desirable dictates their price IMO. Things are more expensive in nice/desirable/popular areas. It's how it's always worked and how it always will.

Jx

WalkinX

There is a limit.

How can prices more then double in just over 10 years?

How realistic is it that people need deposits of a mimimum 15k (unlikley to be enough) to as much as 60K or more?

Nice areas, nices houses of course you pay more. But over a quater of a million for your basic semi or terrace? hell for a flat in anywhere near London.

It's ridiculous is what is and I'd think that no matter what.

hazyjo

On average, history has apparently shown that, on average, house prices double every 10 years. Not sure how far back those figures go, but it's what I've read (not saying it's true, just that I read it, probably on here).

I think that 10% of the purchase price is a more than fair deposit. For FTBs with no proven track record, I'd expect it to be higher.

The banks were lending ridiculous amounts a couple of years ago - back up to 100% mortgages. If people weren't in negative equity now, we'd not have half the problems we do when it comes to property. I have enough equity in my house not to be too affected by a downturn in the market. I saw it all happen last time round. Can't believe it's happened again. Don't blame the banks for asking for at least 10-25% deposit. Should have done it a long time back.

Jx

BitterAndTwisted

The high property prices in London and its suburbs are not a new thing: it's always been nigh-on impossible for a single person on an average wage to be able to afford to buy anything. Prices were out of reach for me 30-odd years ago and still are. Luckily, there are two of you earning a salary so it won't be impossible but it will entail some hard decisions and rather a lot of time squirreling away savings. You are in a better situation than most as you are currently living rent-free. You try saving up a deposit when half of your take-home pay is spent on rent and fares and then you might understand how it is for the majority.

WalkinX

We are in this mess for a numebr of reasons - one being the obession of high house prices.

Everyone wanted high house prices to make "easy money" and the buy to let market also fuelled this.

You couple this witht he big factor - cost of living increasing, wages stagnant or decreasing and you have your crises.

The banks are to blame as they did do 100% mortgages - reckless true but it would've been ok - accept they borrowed th emoney from each other.

Something has to give.

A bunch of people can't pay their mortgages becasue they can't afford to due to looming recession and cost rises. The bank loses the money, they have no money to back them up as they borrowed it form another bank who in turn borrowed form another bank. The domineo effect takes place and the banks fall or need a major bailout.

The prices crash a bit. Great news right? It would be but the banks got bailed out and instead of lending again they hoard the money - no one get a loan or a mortgage. The deposits rise and conditions become stricter. FTB that fuell the market and keep it moving can't affrod to buy and so those in the market can't move on and upgrade and what you have is a stalemate.

The banks were also to blame when they refused to cut the interest rates. The interest rates went up and people couldn't afford them, cost of living rose and so they got the bank of england to cut the rates but the high street banks took no notice - delaying passing on the cuts or not passing them on at all - people can't afford it and so it continues.

The banks continue to be hold back, wages are still not on the increase, jobs are on the decrease - so FTB can't afford to buy - they can't get a mortageg for the house prices, the banks won't give them one and they can't get a deposit together.

Nothing will change unless they fix these issues.

WalkinX

BitterAndTwisted wrote: »

The high property prices in London and its suburbs are not a new thing: it's always been nigh-on impossible for a single person on an average wage to be able to afford to buy anything. Prices were out of reach for me 30-odd years ago and still are. Luckily, there are two of you earning a salary so it won't be impossible but it will entail some hard decisions and rather a lot of time squirreling away savings. You are in a better situation than most as you are currently living rent-free. You try saving up a deposit when half of your take-home pay is spent on rent and fares and then you might understand how it is for the majority.

Already are. Still buy shopping and car costs and transport - we both have to commute to London. It's not cheap.

Even not paying rent it's hard to save. I do have savings - most came back form when I lived at home and didn't spend my student loan plus the wages I accumlated through various jobs.

People in the news go on about people living at home in their 30's - no wonder as it is pretty much encouraged to do so.

BitterAndTwisted

You can be as indignant as you like but not much will change when you are both on such low salaries. You are only in your 20s so in my opinion you are being a tad too ambitious in expecting to be able to buy something reasonable in one of the most expensive cities in the world, banking crisis and the current recession notwithstanding