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Debate House Prices
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House Prices Simply Too Expensive For The Young
Comments
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Fool me once, shame on you. Fool me twice, shame on me
Don't necessarily wan't MASSIVE deposits but I will not make the mistakes of previous generations with 120% mortgages either. A balance must be struck. Personally I believe 60-70% LTV is reasonable to the extent that servicing the finance will be managable (assuming the FTB does not over-extended their earnings multiplier) whilst providing sufficient equity on purchase to buffer future falls.
The parameters for servicability and buffer will vary between individuals however the general realisation for an unlucky many in the past is the level of mortgage lending in relation to earnings was high risk.Hope For The Best, Plan For The Worst0 -
Show me someone who has spent their whole life stacking shelves in Tesco who owns a large houses in charming areas you really take the biscuit.
The ones that do, tended to have bought in very bad areas that over two or three decades or so become nice. Go back 40 years and Clapham and Battersea were considered very downmarket, unsafe areas. ie. the sort of place that B Blank thinks is below him.0 -
Never understood this bear idea that you have to have to have a massive deposit before considering buying? It makes no financial sense - there's no practical difference between owning 10% of a house or 70% of a house in terms of security, and personally I'd go for owning 10% with 60% in savings and investments which is just about optimum in terms of being able to ride out shocks.
The best time to buy isn't in 2 or 3 years time when we'll be well into recovery with mortgage rates rising. It was 2 or 3 years ago, and the sweet spot was mid crash somewhere between Sept 07 and Feb 08 where you could have had a +0.5% tracker and negotiated hard on price. But if you were a bear you were renting, building up your deposit and waiting for further falls which never came.
How the hell do you know? Not everyone lives in the same area. Not everyone has the same job or savings. We are all different. Thats why some of us are prerpared to wait and keep saving while watching prices in their own area fall.
Leave out the "you missed the boat" nonsense.0 -
I don't really understand putting up more than necessary either to be honest. I can see a benefit in putting in 30% instead of 10% if it means you get a much better interest rate, but past that I think its pointless. I think it probably boils down to people thinking that they put off something risky longer so they feel safer. I think that people have become overly obsessed with owning a house by the time they die. Like, as if its a benchmark of success.
Personally, I plan to sell whatever I have when I am in my last days and spend 2/3 years living in a hotel. Getting room service everyday and go out spending every penny ive ever earned/saved.0 -
The best time to buy isn't in 2 or 3 years time when we'll be well into recovery with mortgage rates rising. It was 2 or 3 years ago, and the sweet spot was mid crash somewhere between Sept 07 and Feb 08 where you could have had a +0.5% tracker and negotiated hard on price. But if you were a bear you were renting, building up your deposit and waiting for further falls which never came.
Absolutely spot on.
All they're doing now is enriching their landlords and adding to their lifetime housing costs.
Idiots.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
How the hell do you know? Not everyone lives in the same area. Not everyone has the same job or savings. We are all different. Thats why some of us are prerpared to wait and keep saving while watching prices in their own area fall.
Leave out the "you missed the boat" nonsense.
You live in Northern Ireland.
So your stories are pointless to people in the mainland UK.... Where prices are up significantly since the bottom, now rising again after winter, and not that far below peak in most places.
Not only are you irrelevant, but your advice is flat out dangerous to people's financial health.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »You live in Northern Ireland.
So your stories are pointless to people in the mainland UK.... Where prices are up significantly since the bottom, now rising again after winter, and not that far below peak in most places.
Not only are you irrelevant, but your advice is flat out dangerous to people's financial health.
Read my post again. I was criticising the posters generalization. As for me living in NI. Its just the same as you going on and on about aberdeen when 99% of poeple on this board dont live there and wouldn't want to.
Prices up significantly since the bottom? Bolloc.ks
Rising again since winter? Yeah the famous spring bounce is really taking off (just like last year)0 -
How the hell do you know? Not everyone lives in the same area. Not everyone has the same job or savings. We are all different. Thats why some of us are prerpared to wait and keep saving while watching prices in their own area fall.
Leave out the "you missed the boat" nonsense.
Good for you. So tell me, why are the bears still blathering on about average savings and average prices?0 -
The best time to buy isn't in 2 or 3 years time when we'll be well into recovery with mortgage rates rising. It was 2 or 3 years ago, and the sweet spot was mid crash somewhere between Sept 07 and Feb 08 where you could have had a +0.5% tracker and negotiated hard on price. But if you were a bear you were renting, building up your deposit and waiting for further falls which never came.
Oh yes. Those magical 0.5% trackers that were availiable....erm....nowhere.
Great, fantastic. Thanks for the advice. Some people missed the boat that never actually existed. Bravo.0 -
If you have 60% loan to value to buffer falls, who do you think you are protecting? You, or the lender?
You'll get repossessed just as quickly if you fail to make payments on a house you own 40% of as one you own 10% on. I wouldn't argue against offsetting savings, but I wouldn't be sinking money into bricks and mortar, especially if I believed it to be likely to fall in value. Worst case you get reposessed, are forced to sell at a discount, and lose the value of your equity. Keep it in cash and you can use it to support yourself for a considerable period.0
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