one way of getting on the property ladder

hoskins

My son who works and rents in London decided last year that he would never be able to afford to buy there, instead bought a little house in Liverpool rents it out which pays his mortgage, at least one day he will own it outright so its something better than nothing

bert

Best way to get on the property ladder is to not get on it or buy a property when the market conditions are not as inflated and silly as they are now. A FTB is going to get seriously hurt if he/she bought now with anything more than a 30% mortgage.

Milky_Mocha

bert wrote:

Best way to get on the property ladder is to not get on it or buy a property when the market conditions are not as inflated and silly as they are now. A FTB is going to get seriously hurt if he/she bought now with anything more than a 30% mortgage.

Haven't people been saying that for years and years now but it looks like if you don't get on it now you might never?

frugal_dougal_3

Milky_Mocha wrote:

Haven't people been saying that for years and years now but it looks like if you don't get on it now you might never?

Absolutely.

And the above advice is timeless. It could have been written ten, twenty or thirty years ago.

The first few years of buying your own property are not easy. They never have been. But if you wait for a good time to buy it will either be harder still or you will lose out altogether.

Woby_Tide

it's also curious as a couple of weeks ago when he joined all berts posts were about his plans to buy a house, you'd think he was trying to tallk down the market.....

philuws

'Best way to get on the property ladder is to not get on it or buy a property when the market conditions are not as inflated and silly as they are now. A FTB is going to get seriously hurt if he/she bought now with anything more than a 30% mortgage.'


It must be great to see into the future Bert. Do you have any basis for your comments?

dougk_2

mmmmm 30% mortgage.......

Does bert think that house prices are going to drop 70%! I don't think so!

Personally I don't think it matters when you buy a house if you want somewhere to live - if you are investing then its a different matter, but then there is never a perfect time.

moneymatt_2

dougk wrote:

mmmmm 30% mortgage.......

Does bert think that house prices are going to drop 70%! I don't think so!

Personally I don't think it matters when you buy a house if you want somewhere to live - if you are investing then its a different matter, but then there is never a perfect time.

I wonder if those people who are still paying off their negative equity from over a decade ago would agree?

http://www.housepricecrash.co.uk/forum/index.php?showtopic=5973

http://money.guardian.co.uk/property/mortgages/story/0,14426,1277949,00.html

jat100

hoskins,

I think what your son is doing is an excellent idea. I bought a flat in London 15 years ago but couldn't afford to buy here now if I was just starting on the property ladder. I was one of those who had a lot of negative equity a decade ago but currently have made a profit in excess of 200%. Even if house prices fall, the area I live in is in a regeneration site and I expect prices here to be maintained if not increase. My intention is to sell up in about 5 years time, take the profit and buy somewhere in the North of the country because I won't be able to afford anything in London then. I should be able to buy a property a few hundred miles away with little or no mortgage.

dougk_2

moneymatt wrote:

I wonder if those people who are still paying off their negative equity from over a decade ago would agree?

http://www.housepricecrash.co.uk/forum/index.php?showtopic=5973

http://money.guardian.co.uk/property/mortgages/story/0,14426,1277949,00.html

Had they stayed put and continued to pay the mortgage they would be fine now and well in profit!

It's all down to individual circumstances. I still don't see prices sver dropping by 70% (i.e. a £200k house selling for £60k...again if prices drop stay put and wait)

frugal_dougal_3

OH Dear !

We seem to have got onto the old "price crash" debate again.

There's a separate board for that.