First time buyers priced out...

Jimmy_31

Loughton Monkey are you seriously saying that i should be sat here hoping for the houses that i want to buy to increase in value.
Its not about wanting lower deposit requirements for most sensible FTBs, i do not want the banks to start accepting low or no deposits again because look at the mess that has made, if house prices rise i have to give the sellers and banks even more money for doing absolutely nothing and if house prices go back to normal then the deposit ive currently got in the bank suddenly gets bigger and bigger. Theoretically i could go and buy my first home tomorrow if i wanted to but i wont be doing that because prices are too high.

Jimmy_31

WayneB73 wrote: »

I build new houses for a living and sales are so slow at the moment, I agree first time buyers are hit the worst..

I think the salary to house value, cost of living and how much you need to pay for a mortage of around 100k is a strugle for most people. even earning a 30k salary you have nothing left at the end of the month once you pay all other bills and there are far more people living alone and single now than 20 years ago..

If the govurment go about it in the correct way they could make a killing by creating deals with banks and social housing to help people onto the housing market, after all there is such a demand for social housing, they want to build more houses so there is more choice in the hope propery prices will fall allowing people to buy. That has a negative effect as it would cause negative equity for some people..

in a nut shell, house prices are to high and wages are way way to low for the cost of todays living and with the cost of inflation we will be worse off in 5 years than we are now..

On the BBC news last week, they said most people in construction are earning on average £99 less per month, well my self alone am more than £100 a week worst off after a paycut not to mention the amount of work available to me is down at least 5/10%..

I work in construction too and all my prices are being cut month to month and im losing a similar amount to you so i know how you feel, you are also correct about the government being in a good position to help FTBs and the economy.

The government own a lot of land and own portions of banks that own lots of land so why dont they sell plots of land to FTBs at a reasonable price and let us all build our own homes because i know for a fact it wouldnt cost me over 100k to build a 2 bed terrace, not even close to 100k.

HAMISH_MCTAVISH

B_Blank wrote: »

If they dont come in line with what I PERSONALLY think they are worth then I wont buy in my lifetime. If they do then I will buy.

Even when renting for life will cost you two or three times as much as buying at peak in 2007????

That's by far the best example of cutting off your nose to spite your face we've seen in months around here.

Well done. :T

Graham_Devon

B_Blank wrote: »

Affordability is something that each and every person has to decide for themselves. There is no hard and fast rule for affordability.

Value for money, and affordability, in terms of suggesting houses a "perfectly affordable" on several threads, are two different things.

I went into Ford today, to buy a ford focus, a new shiny one. I suggested to the salesman it was perfectly affordable for me, and I shall pay £200 a month.

He agreed to my monthly payment, but asked how I was going to pay the despoit.

I said I don't have one, but the car is indeed perfectly affordable. At that point, he started disagreeing, and I could sense that I may have difficulty in purchasing the car.

So I got my wage slips out, and suggested I can pay £200 a month, and again, he agreed, but stated I need a deposit of £3,000, can I afford that.

I said no, I don't have the deposit. At that point he told me I'd need the deposit to proceed and if I can't afford the deposit, I can't purchase the car.

Again, I said the car was perfectly affordable, and started getting annoyed in all truth, as I feel Ford were rationing Ford Focus's...afterall, the guy next to me who DID have a deposit, was proceeding with his sale, but they seemed to deny me. Focus rationing appears to be happening, which is absolutely crazy and in all honesty, I found it quite rude, as surely, if I can afford the monthly payments, and want the car, I have a personal right towards having the car. However, seems not, and what with rationing, only the man with the deposit could have the car.

The dealer told me to save for a few months and come back later when I could afford the car. At that point, I got up in disgust and left.

I plan to go to Renault tommorow and try again....see if they are rationing their cars.

Loughton_Monkey

the.ciscokid wrote: »

So that is 10% less you need to borrow, which over the life of the mortgage is significant? Plus, you need to borrow even less, since you saved a larger deposit.

Missing the point! You were almost there. Now you're 15 miles away. That's disaster. 13.5 miles doesn't really change the issue does it? And yes, repayments might be smaller, but repayments (historically) are much less than house price inflation. I'd rather have 10% extra house inflation in the longer run.

the.ciscokid wrote: »

If cheaper stuff doesn't make it more affordable, what does it do?

Same as above. OK, the 10% makes it marginally more affordable. Why can't you understand that it's the 'giant leap' in deposit requirement that suddenly makes them unaffordable in the short term?

If we had a Stock Market crash of 20%, are you the sort of person who would say "Brilliant. Good News. It was only 18%"?

the.ciscokid wrote: »

More debt! That's the solution! Why haven't we thought of this before!


So what does that do for affordability? Better to buy in a high interest rate environment, and expect interest rates to fall, than the other way round.

Still missing the point. Where did I say buy in a high interest environment? I said we are in a low interest rate environment and that if you are worrying about affording in the futre, then double it because they will doubtless go up.

You can sit there 'hoping' rates will go down all you like. But it won't happen.

the.ciscokid wrote: »

What is extremely 'cheap'?

Obvious isn't it? Living at home on 'free' rent and buying while base rate is 0.5%. As opposed to renting at market rate, so you cannot save easily and by the time you have the deposit, base rate will be 2.5%

the.ciscokid wrote: »

What was wage inflation like in your day? How quickly did that "half our income" reduce, and out of interest were you a household of 2 working people?

These things don't happen, or reduce quickly. They creep up and then you notice it. In my own case, my wfie was working but earning probably 1/5th of my own salary.

Inflation peaked at 27%. Never got pay rises anything like that.

the.ciscokid wrote: »

I don't understand the last bit, are you saying you used to be able to save 15% deposit in 6 months? I think you are out of touch.

I'm saying that if (when) you are spending half your income on a mortgage, then your friend who doesn't could save a deposit in 6 months by taking the same pain.

Graham_Devon

The low rates, for FTB's don't really make any difference.

I bought in 2006, 90% fixed at 5.25% for 2 years.

If I was to do the same again now, I'd be looking at paying 6.49% for the same thing.

It's not quite right to suggest that low rates make buying now, for new buyers, the best thing they can do.

Dave101t

i wish houses were still 30k like they were 10 years ago, happy times...

Loughton_Monkey

B_Blank wrote: »

Loughton Monkey doesnt believe lowering the price of something makes it more affordable! What a genius.

B Blank stands for Brains Blank, as obviously applies to you!

Tell me where I am saying that lowering the price doesn't make it more affordable?

Please try to understand!

If you once needed to 'afford' 5% deposit. Now deposits have gone up. Whilst deposits stand at 15%, there is only one way to they can be 'more affordable' and that is a drop in price of the house by 66.6%. Once yesterday's £100K house (£5K deposit) drops to £33,333 (£5K deposit at 15%), the deposit is just as 'affordable'

You have just proved yourself to be the same type of idiot to which I was referring. Those who are capable of no clarity of distinction between on the one hand total house prices, and on the other hand, the massive increase in deposit (%) now required. From 0% to 5% - up to 15%/20%

bizarebazaar

Well last time we had a recession, I seem to remember house prices falling :-O And thats exactly what should be happening, but sellers, banks and estate agents have conspired to greedly keep prices up.
Heres a statistic to base the figures on.
10 years ago my run down ex council house was £65k, 3 years ago £132k and now £135k ?????
My income 10 years ago was £14k and its still the same.
Fact:- the price of a house should only go up with inflation, ie for 10 years 25% max and not double in price within 7 years.

Jimmy_31

Dave101t wrote: »

i wish houses were still 30k like they were 10 years ago, happy times...

Me too but the long con worked so now everybody has to pay the price. anybody who calls me out on this and then i respond to it, feel free to ignore the reasoning behind my statement if it does not sit well in your mind.

In the space of a couple of days i have learnt how to come up with methodologys that get no response, does this mean im doing it right ?:rotfl::rotfl::rotfl::rotfl::rotfl::rotfl: (this is not directed at the quoted poster)