So if the average FTB age is 37......

tara747

Originally Posted by Degenerate
There's an interesting psychological phenomenom at work with many housing bears. Generally they came to the desire to buy at some stage in the late 90s or early 2000s after prices had been appreciating for a few years. Seeing how prices had risen, they resented paying so much more and regretted not acting sooner, so they determined to wait it out. The problem is that as prices continued to rise it created a sort of feedback loop where the longer they waited, the bigger their theoretical losses became, and the more they dug their heels in. This continues until they either have a watershed moment, cut their losses and buy, or go completely loopy like many of the HPC nuts.

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p.s. there is a 4th option... they wait it out patiently and keep saving their deposits, then buy at the right time and have a nice short mortgage (or maybe none at all if they're lucky)... and live happily ever after. :):)

IveSeenTheLight

musicmaker29 wrote: »

I disagree as I think it depends on who/where you are. I'm 25 and bought my house when I was 22. At that point I had a straight choice - stay living at home, move into a rented house with my o/h for about £500 a month or buy a house where the mortgage worked out at the same. So it made sense for us to pay for our own house together (as you can't live with your folks forever!). The house has needed a bit of work, so I suppose I wouldn't have had to spend that money but its hardly a big deal.

I'm not saying that is the 'right' way to do things, just that everyone is different and for some it works out.

Your no different to many people getting their first rung on the property ladder.

I was almost in the same position other than I was buying a 2 bed flat for the same prices as I had previosuly paid for renting a 1 bed place.

No brainer really.

IveSeenTheLight

PasturesNew wrote: »

Where I grew up, it was always too expensive. I was always £5-10k short of the cheapest house price. It was 3x salary back then, but even so couples could just pip past me with their extra "+1x other salary"

I thought you did buy and then sold and have plenty in the bank to show for it.
You must have afforded at some point.

IveSeenTheLight

geneer wrote: »

Indeed. Your 20's aren't for saddling yourselves with mortgages.
It really is that simple.

That may be your way of thinking, not for many others.
I first bought when I was 26, my wife was 22.
Upsized 4 years later

11 years since purchasing my first property, I'm practically mortgage free (if I sold off one of my BTL's at current valuation)

Schedule is that I will be mortgage free on all of my properties (3 in total) in the next 5 - 6 years.

So buying in your 20's makes very good MSE sense as you then have a much easier life to bring up the kids (my wife can stay at home instead of farming out our kids to nursery / childminder), enjoy life, put away extra for early / retirement.

On the otherhand, you could be frivolous as you infer and not put away the same for a pension, pay rent for longer and have mortgage costs that go beyond your childrens natural time at home.

I know which one I prefer and has been proven to be the right choice

musicmaker29

tara747 wrote: »

Very good points.



IMHO, in 2007 the renting option may have been the more sensible one (if you really wanted out of your parents' house). Negative equity has affected almost everyone who bought from the mid-2000s onwards - what a sad, stifling legacy of the boom. I wish you all the best and I hope that you *really* like your house (and its location) because you may be stuck with it for longer than you intended.

yeah, we've watched many who bought a few years back struggle with negative equity. Luckily though, our house was bargain (although slightly 70s in decor - ok VERY 70s in decor lol) and I'm in an area where we didn't get the massive rises and haven't had too much of a fall (yet....) - I do wish the prices had stayed up but in reality it hasn't locked me in my house, i bought it for 35k less than the 'going rate' on our street at the time and that means that propert prices need to drop a third or so before it meets my original mortgage price.

i just wonder if a number of wouldbeFTBs (not necessarily the ones on here) just want to buy a 'new' or 'ready and done' house to the point where there is not even any papering to do...when they see this is not attainable on their salary they then make out that house ownership is impossible/the world is unfair/etc.

although a mate of mine has done something that is working well for him - he bought a wreck of a house, very quickly did up the key areas and painted two of the 3 bedrooms white then rented them out - the rent covers his mortgage/or thereabouts and he has a roof+spending money - git lol.

musicmaker29

IveSeenTheLight wrote: »

Your no different to many people getting their first rung on the property ladder.

I was almost in the same position other than I was buying a 2 bed flat for the same prices as I had previosuly paid for renting a 1 bed place.

No brainer really.

exactly! the amount of thought required when thinking 'shall I pay someone else's mortgage or my own?' is practically nil lol.

ultrawomble

IveSeenTheLight wrote: »

your childrens natural time at home.

That's a very interesting concept. What is the natural time? Has our society really benefited from the loss of multi-generational occupancy. I can see several big negatives, and no positives.

twirlypinky

My OH didn't buy a house until he was 35, because he was single and didn't earn enough to put down enough of a deposit or pay a mortgage. Unfortunately by the time he did scrape enough together it was 2007 and he bought at the peak and is now in negative equity.

Another reason why people leave it so late is if they move out of the family home into rented. Saving a deposit while you're renting is fricking hard, especially if things like childrren crop up. Expensive little plumbers children.

twirlypinky

musicmaker29 wrote: »

yeah, we've watched many who bought a few years back struggle with negative equity. Luckily though, our house was bargain (although slightly 70s in decor - ok VERY 70s in decor lol) and I'm in an area where we didn't get the massive rises and haven't had too much of a fall (yet....) - I do wish the prices had stayed up but in reality it hasn't locked me in my house, i bought it for 35k less than the 'going rate' on our street at the time and that means that propert prices need to drop a third or so before it meets my original mortgage price.

i just wonder if a number of wouldbeFTBs (not necessarily the ones on here) just want to buy a 'new' or 'ready and done' house to the point where there is not even any papering to do...when they see this is not attainable on their salary they then make out that house ownership is impossible/the world is unfair/etc.

although a mate of mine has done something that is working well for him - he bought a wreck of a house, very quickly did up the key areas and painted two of the 3 bedrooms white then rented them out - the rent covers his mortgage/or thereabouts and he has a roof+spending money - git lol.

I'm not sure all FTB want a perfect home. My OH and i (if we ever sell his "house") will be buying something in a state because we can't afford anything better. I realise we're not FTB, but we'd be doing the same even if we were.

Out,_Vile_Jelly

IveSeenTheLight wrote: »

That may be your way of thinking, not for many others.
I first bought when I was 26, my wife was 22.........

......So buying in your 20's makes very good MSE sense as you then have a much easier life to bring up the kids (my wife can stay at home instead of farming out our kids to nursery / childminder), enjoy life, put away extra for early / retirement.

On the otherhand, you could be frivolous as you infer and not put away the same for a pension, pay rent for longer and have mortgage costs that go beyond your childrens natural time at home.

I know which one I prefer and has been proven to be the right choice

I'm glad to hear your life has worked out so perfectly for you.

Buying in your 20s clearly makes sense if you are fortunate enough to be absolutely certain of your career, location and life partner. Lucky you if that all falls into place while you're young.