one way of getting on the property ladder

dippy

Negative equity is not much fun. No more credit cards, extra loans, etc. How is one to live?

dougk_2

bert wrote:

Teehee I love winding people up

The purpose of these forums is to discuss as adults, daily living issues and try to find ways of saving money - its not here as a wind up board. I suggest if you want to do that you find somewhere else.

bridiej

Thanks dougk, couldnt have put it better myself!

pickle

hoskins wrote:

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

When did he buy in Liverpool?
I'm looking to buy and had sold up a year ago but decided against it due to the outrageous prices being asked, which inflated while i was looking. The estate agents were only interested in investors and didn't have the time for owner-occupiers like myself. The situation now (in an area which was selling like hot-cakes last year) is now completely dead. The estate agent has even put old "Sold" properties onto the website to create the illusion that properties are being sold (I know because i check it daily). I don't intend to buy for another few years now, it is obvious that anyone buying now will end up in negative equity and that is a luxury i cannot afford.

kinster_2

Wicker_Man wrote:

There certainly are Below Market Value properties around - though I've never been able to get one half price (yet!!!)

I used to do buy-refurb-sell. Not any more.

I have a close relationship with a few estate agents in my area, and also have a small advert in the "property wanted" saying I can buy fast.

That's what I do now, and make more money than the refurbing earlier.

Example: House on the market for £144K. Owner was relocating due to work, had found her ideal property to buy but house sale fell through twice and she was frightened she would lose the house she wanted. We agreed a price of £108K (75% of value), exchanged in a week with a completion date "within 6 months, or earlier should the seller require". She is happy, and has just exchanged on her new purchase 6 weeks after I bought hers. All it needs is new carpets, removal of an overbearing brick fireplace in the sitting room, some cosmetic decoration and dressing. Should sell quick as I will be asking £139K, and it will be dressed properly. After costs, should net me £20K.

I do about 10 of these deals a year, and have almost no stress compared to earlier when I had the sparks booked then the plumbers let me down, then the sparks went to another job, then the plasterer turned up unexpectedly and started to plaster too soon as the electrics weren't all fitted.

Okay, I do have an advantage that I normally have around £200K cash available, plus another £100K when needed (through my home and its flexible drawdown mortgage).

yeah, most people do the same thing... there's an even easier way

nicki_2

Mini rant follows:

People who buy houses within Liverpool when they live elsewhere, or buy to let while still living in the area are the people who have prevented my family buying a house anywhere. The only places left in Liverpool who are within our price range are "bad" areas IMHO, they're either right on top of Anfield/Goodison (the events at the weekend should be explaination enough as to why I don't want to move into that area with a 3year-old daughter) or in Bootle (from our tours around there recently I wouldn't buy a house there even if it meant we would have to move in with my parents. The areas are scruffy and don't look like a pleasent place to live. Its not the kind of place I want to bring my daughter up in)

I know I sound bitter but when you have been looking to buy your first home for 5 years and can't afford to because 95% of the houses available are out of you 99% mortgage range or are in areas that are not nice to live/bring a child up in (Just my opinion mind, I'm not having a go at people who live there...it's just below the standards I've been brought up to expect) you do end up bitter at people who buy these houses to rent out. Its a case of "I'm alright Jack f*ck you" attitude prevailing and those of us who want somewhere to live so we aren't throwing money away on renting, those of us who want to own our own bricks and mortar even if its only through having a mortgage but can't raise the money due to other commitments and paying the rent that suffer.

Since I moved in with my partner in October 2000 we have paid out £16,584 in rent plus another £300 as a deposit for this place. That money would have paid all of our debts off two fold and is more than 5 times the deposit we have for our own place. It just bugs me that people buy all the cheap houses and leave us FTB struggling to even find a place.

Dan29

kinster wrote:

yeah, most people do the same thing... there's an even easier way

Is there? Care to share?

m00nie

nicki,


i think it was a great move where as they bought a property elsewhere to rent out to eventually give them some capital in a place to use as a deposit or whatever at a later date as the prices where there currently are are to much for them.

you say you started renting in 2000, if you had bought a property back then chances are it would have at least doubled in value giving you a good chunk to use on a more suitable property.

there are plenty of avenues you could have took in the 5 years of renting but they wasnt to your liking, so that was your choice.

wouldnt we all like to get a nice house in a nice area for a nice price straight away.

FJSRiDER

nicki wrote:

People who buy houses within Liverpool when they live elsewhere, or buy to let while still living in the area are the people who have prevented my family buying a house anywhere.

I know I sound bitter but when you have been looking to buy your first home for 5 years and can't afford to because 95% of the houses available are out of you 99% mortgage range or are in areas that are not nice to live/bring a child up in you do end up bitter at people who buy these houses to rent out. Its a case of "I'm alright Jack f*ck you" attitude prevailing and those of us who want somewhere to live so we aren't throwing money away on renting, those of us who want to own our own bricks and mortar even if its only through having a mortgage but can't raise the money due to other commitments and paying the rent that suffer.

It just bugs me that people buy all the cheap houses and leave us FTB struggling to even find a place.

Fine rant!

However..... this is a problem everywhere. Where I live there are a lot of city folk buying weekend houses in the country, that not only raises the property prices but is fast killing small villages - which are fast becoming 'ghost towns' during the weekdays in the off season. This causes local shops and post offices to close which makes life for those that live there much harder. I'd love to be afford to live in the small market town my family are from - but have to live in a town 30 miles away that I can afford.

But there is a bright side to this. My 80 year old mother, whose house was 'worth' perhaps just £90k 4 years ago, is now living in a £300k asset!