Aargh! House prices are so low but we don't have a deposit!

brit1234

Dharma_Bunny wrote: »

Aargh! House prices are so low but we don't have a deposit!

Wrong house prices are very high but luckily are falling. Save a deposit for a few years and prices will be a lot cheaper than today.

cashbackproblems

Its funny how people (mainly who are not on the property ladder) will ALWAYS tell you prices will keep falling for yrs and yrs, if u come back in 2yrs people will say the same thing. Fact is that we are past the worse but i dont see a sharp rise/correction in house prices anytime soon, just steady rises in the South of UK especially in and around London where prices never fall if its a good property in a ok area.

RE your situation just save for that deposit over the next 12-18 months, you say "not sure if we should save" does that mean if u dont go for a property you will just waste that money? It doesnt sound like u have any financial sense.

Jimmy_31

cashbackproblems wrote: »

Its funny how people (mainly who are not on the property ladder) will ALWAYS tell you prices will keep falling for yrs and yrs, if u come back in 2yrs people will say the same thing. Fact is that we are past the worse but i dont see a sharp rise/correction in house prices anytime soon, just steady rises in the South of UK especially in and around London where prices never fall if its a good property in a ok area.

RE your situation just save for that deposit over the next 12-18 months, you say "not sure if we should save" does that mean if u dont go for a property you will just waste that money? It doesnt sound like u have any financial sense.

Its also funny how people (mainly who are on the property ladder) will ALWAYS tell you prices will keep rising for yrs and yrs.

The fact is we are NOT past the worse, how is it anywhere near possible to be past the worse when interest rates are still at the historic all time low of 0.5 percent? what do you think will happen to all the people currently paying their mortgages by credit cards and the banks are told to stop lengthening the term of their mortgages.

What is it i hear people calling it, ah thats it "the perfect storm".

Dharma_Bunny

I was expecting more flaming. :rotfl: Thank you for the advice and encouragement.

We have to move soon, our current rented house is unhealthy, so that is making me think that if we can then maybe we should go for buying sooner rather than later.

We're probably going to have to wait out the lease at the next place we can rent, saving up a deposit/fees etc. and hope the market holds or keeps dropping.

It's years since prices have been in the region of what we could hope a lender to offer, very exciting.

00ec25

it is good that you are being realistic about how much you expect a bank to lend you and even better that you are now proposing to wait

as you have not given an indiciation of your income (and why should you on a public forum?) but you have said you have no money then you have made the ONLY sensible decision given your current circumstances - so take a new rental and save like mad

geoffky

cashbackproblems wrote: »

Its funny how people (mainly who are not on the property ladder) will ALWAYS tell you prices will keep falling for yrs and yrs, if u come back in 2yrs people will say the same thing. Fact is that we are past the worse but i dont see a sharp rise/correction in house prices anytime soon, just steady rises in the South of UK especially in and around London where prices never fall if its a good property in a ok area.

RE your situation just save for that deposit over the next 12-18 months, you say "not sure if we should save" does that mean if u dont go for a property you will just waste that money? It doesnt sound like u have any financial sense.

:rotfl::rotfl::T:T your age shows through along with your naivety,,,prices never fall in London....oh dear...

ukcarper

If rent is £500 a month and you buy a house for £50k with a 10% deposit interest rate would have to go to 13% for you to be paying more in Mortgage payments than rent.

GDB2222

ukcarper wrote: »

If rent is £500 a month and you buy a house for £50k with a 10% deposit interest rate would have to go to 13% for you to be paying more in Mortgage payments than rent.

That's true, even if you count other costs involved in owning a house that you don't have when renting - insurance and maintenance, plus cost of furniture. If that is say £100 a month (to pick a nice round figure), the 13% comes down to just over 10%. Still much higher than current interest rates, ofc. The mortgage capital needs to be repaid, too. But, you've hit the nail on the head. If I were the OP I would be doing all I could to save a few thou in the old-fashioned way by cutting expenditure and looking for new forms of income.

BTW, the OP's rent is very high as a percentage of house value at 12%. Around here, rents tend to be down at 5% or so.

flecker

cashbackproblems wrote: »

Its funny how people (mainly who are not on the property ladder) will ALWAYS tell you prices will keep falling for yrs and yrs, if u come back in 2yrs people will say the same thing. Fact is that we are past the worse but i dont see a sharp rise/correction in house prices anytime soon, just steady rises in the South of UK especially in and around London where prices never fall if its a good property in a ok area.

I am on the property 'ladder' and it's pretty obvious to me that prices must keep falling for years. There is no credit available to prop them up any more. It's just taking (most) vendors a long time to realise this. How much they'll fall is the question.

To the OP, I actually thought this thread was going to be an April Fools when I saw the "house prices are so low" bit But, like harrup, I find myself rooting for you - best of luck!

ukcarper

GDB2222 wrote: »

That's true, even if you count other costs involved in owning a house that you don't have when renting - insurance and maintenance, plus cost of furniture. If that is say £100 a month (to pick a nice round figure), the 13% comes down to just over 10%. Still much higher than current interest rates, ofc. The mortgage capital needs to be repaid, too. But, you've hit the nail on the head. If I were the OP I would be doing all I could to save a few thou in the old-fashioned way by cutting expenditure and looking for new forms of income.

BTW, the OP's rent is very high as a percentage of house value at 12%. Around here, rents tend to be down at 5% or so.

His rent does seem high if he can buy for £50k, where I am £500 would get you a 1 bed flat and you wouldn’t be able to buy one for less than £100k.