Wrong to buy?

flutter_2

I can't believe what those single people just said - "can't possibly save up because it would take me 4 years" - welcome to the real world - I saved up for 5 years for my deposit - and I am fairly certain my parents and grandparent did too! They just want to have their cake and eat it, spending all their money on entertainment and gadgets - they will get no sympathy here.

LilacPixie

minnie123 wrote: »

I'm watching this at the moment and their has just been a couple on it who earn 60k between them looking at houses in the region of £170k and they have 15% deposit - they are saying they are unable to get a mortgage.

Do you think they must be leaving some info out such as bad credit/Debts etc... as a couple I know who earn approx 50k between them have just got a mortgage to buy a house for £165k and have put down a 10% deposit their mortage offer came through this week??.

I think they must be. that would be a 144.5k mortgage so less than 2.5 x joint. They must have afordablility issues or something

minnie123

LilacPixie wrote: »

I think they must be. that would be a 144.5k mortgage so less than 2.5 x joint. They must have afordablility issues or something

Yeah it must be - makes the programme a bit misleading if they don't tell you the full situation!

Loughton_Monkey

Loughton_Monkey wrote: »

Let's watch the program and see what's said. However, I predict that any "changing attitudes" do not constitute any real or lasting change. It will simply be 'justification for why I rent' from people who basically have no choice - either because of being evicted from own property, or can't get on the mortgage ladder.

Well, I watched it. The program was not really about any real or lasting 'changing attitudes'. It was simply 'justification for why I rent' from people who basically have no choice - and can't get on the morgage ladder.

Who would have predicted that?

ukcarper

One thing that I noticed they say that in most of the country it’s cheaper to buy than rent. Then use as an example of the benefits of renting someone who say they are paying a third of what a mortgage would be in rent. If normal rents were that cheap it would make sense to rent.

PasturesNew

In the example of rent -v- buying, they didn't mention the costs to get in/out of both. Nor the cost of building insurance/maintenance on one you buy.

Whether somewhere's cheaper to buy or rent will vary enormously from area to area and house type too.

They said you can afford to rent somewhere better than you could buy. I'd dispute that for the shabby 1-bed end of the marketplace in a lot of areas. Here I could buy a 1-bed for £80k at £420/month for a repayment mortgage at 5% over 25 years, or I could rent one for £550/month. To rent a nicer one, as they indicated, would cost £650/month. So here, the statement probably works best on 2-3 bed places.

Cheap seats are usually a bad deal for renters.

PasturesNew

The couple were unmortgageable for the amount they'd like because one, or both, were self-employed. You could hear the blonde advisor woman talking of "another year's accounts" when they were sitting round the table.

Surely they should have found out how much they could borrow - and what the rules were etc BEFORE they started looking round at places. And, the house they looked at wasn't really FTB was it, a 3-bed semi they could stay in for life was their chosen entry point.

LilacPixie

ukcarper wrote: »

One thing that I noticed they say that in most of the country it’s cheaper to buy than rent. Then use as an example of the benefits of renting someone who say they are paying a third of what a mortgage would be in rent. If normal rents were that cheap it would make sense to rent.

I've not watched it yet but is there really places where rent is a third of what mortgage payment would be presuming its a private rent and not LA or housing association??? Where I am renting privately compared to mortgage costs seem alot closer.

Loughton_Monkey

This was typical "Tabloid Television" again. Usually it's the BBC, but not in this case.

When BBC Panorama did pensions charging, it is most ironic that there may well have been an issue there, but they simply used entirely ridiculous figures and arguments to support it. This irony was parallelled here. There may well be valid arguments about, say, whether or not the banks have swung the pendulum too far in the other direction for FT Buyers. There may well be arguments about the cost of renting v. cost of buying, but no coherent argument was made.

There may well be another argument about lack of council or other 'affordable' rented homes but (a) that's a completely different debate than 'culture change towards renting rather than buying', and (b) therefore, why just stick in a couple of minutes anecdote about some fat couple who made £260K from buying their council house 25 years ago?

So a rather disjointed and confused program, from which I would think none of the viewers gleaned any coherent message.

doire_2

Rubbish programme. Not once did they mention that house rpices were too high.

Even the FTB's at the end said "we will have to wait until they loosen the regulation before we can buy"

Did they ever think that if prices fall they could have a chance to buy?