anyone else want a CRASH...?

manhattan

IMO house prices are sensible when:

the average person or persons on average wages in their area should be able to buy a suitable property in a suitable area without overstretching and living on beans on toast for 25 years.


i look forward to the day i can buy a suitable house at a sensible price for my wife and two children.

mr.broderick

manhattan wrote:

IMO house prices are sensible when:

the average person or persons on average wages in their area should be able to buy a suitable property in a suitable area without overstretching and living on beans on toast for 25 years.


i look forward to the day i can buy a suitable house at a sensible price for my wife and two children.

Im an average person on average wages and just bought a suitable property in a nice area without overstretching ourselves.Not a massive deposit either. Mind you i do like beans on toast, very healthy. Good luck manhattan i hope you get a house soon. No chance of relocating to a cheaper area? I trust you are saving hard for a good deposit?

cupid_s

manhattan wrote:

IMO house prices are sensible when:

the average person or persons on average wages in their area should be able to buy a suitable property in a suitable area without overstretching and living on beans on toast for 25 years.


i look forward to the day i can buy a suitable house at a sensible price for my wife and two children.

I earn less than a third of the average wage in my city. Hubby earns less than half the average wage. We have bought a 'suitable' house. It's a three bed townhouse with plenty of room for us, all our pets (our lizards need their own bedroom!), and our first kid when we have him/her. In a thoroughly suitable area for us (admittedly it's not very good but it has so many amenities it is great for us).

james3333

mr.broderick wrote:

Mind you i do like beans on toast, very healthy. Good luck manhattan i hope you get a house soon.

as long as its brown bread toast my friend, white bread is terrible for you.
beans have a LOT of salt in them too, just to add insult to injury....
i myself am quite partial to tomatos on brown toast... less salt and healthy delish!

manhattan

mr.broderick wrote:

Im an average person on average wages and just bought a suitable property in a nice area without overstretching ourselves.Not a massive deposit either. Mind you i do like beans on toast, very healthy. Good luck manhattan i hope you get a house soon. No chance of relocating to a cheaper area? I trust you are saving hard for a good deposit?

yes, i do have a large deposit saved, but even with that it is hard to find anything suitable without stretching and budgeting for the future as a ftb'r for two adults and two children who need seperate rooms.


if it was just me and the wife we could afford to go for a one bed flat/apartment, but in our situation that would be a bit like buying a two seater convertable car,but need to transport four people! and there are lots more families in the same situation as myself.not all ftb'rs are young professionals with no children.

PJD

Seeing as no-one knows me on here from Adam, I'll put a snippet of my finances on here to make an example:

I have a large deposit, over £50,000.

I am on around £30,000+ a year, which is a bit above average wage.

If I were to buy a property, lets say I take out a £90,000 mortgage, minus fees, I could buy a £135,000 property. In Surrey where I live at the moment that *might* get me a small one bed flat. Similar story if I brought in Essex (where most of my family live).

I am nearly 32 years old.

Aren't small one bed flats for FTB'ers?

How many FTB'er are on £30,000+ PA with a £50,000 depsosit?

(yes, I know the answer is to find someone to settle down with & get a joint mortgage, but i'm yet to find that person, so i'm forced to slum it meanwhile!

cupid_s

PJD wrote:

Seeing as no-one knows me on here from Adam, I'll put a snippet of my finances on here to make an example:

I have a large deposit, over £50,000.

I am on around £30,000+ a year, which is a bit above average wage.

If I were to buy a property, lets say I take out a £90,000 mortgage, minus fees, I could buy a £135,000 property. In Surrey where I live at the moment that *might* get me a small one bed flat. Similar story if I brought in Essex (where most of my family live).

I am nearly 32 years old.

Aren't small one bed flats for FTB'ers?

How many FTB'er are on £30,000+ PA with a £50,000 depsosit?

(yes, I know the answer is to find someone to settle down with & get a joint mortgage, but i'm yet to find that person, so i'm forced to slum it meanwhile!

I know circumstances are different, but currently me and OH have a joint income of 21k, this is after tax so not too far from your single wage I imagine.

We could afford to pay a mortgage of 180k at our current rates (5.39%). If we had less holidays we could afford more. If we're sensible and allow for the fact that mortgage rates may go up to, say 8%, we can still happily afford a mortgage of 140k.

We could afford to pay a mortgage of 6 times our salary. So the days of allowing 3x your salary in mortgage are outdated. If you were to take out a mortgage of about 6 times a 30k salary, add this to a decent deposit, you would be looking at buying somewhere for 220k plus, a bit more likely to buy a more sensible property.

And banks now are offering 6 times salary mortgages easily.

PJD

So assuming your mortgage term is 25 years, that means your monthly repayments are around £1,093 a month. That's just far too much for me to be honest. And obviously this figure would of course rise if/when the BR goes up again...

I dont want to stretch myself that far really

cupid_s

I was counting on a 30 year mortgage. We currently pay £1017 pm (so we can pay off our mortgage asap) which I suppose is an awful lot on our salary but we still have everything we want. Luckily we dont want all that much!

And say if you did take out a 180k mortgage and repayments were about £1000 per month, chances are you could rent somewhere similar for less so why bother buying? If there is a crash you should be sorted though!

manhattan

PJD wrote:

So assuming your mortgage term is 25 years, that means your monthly repayments are around £1,093 a month. That's just far too much for me to be honest. And obviously this figure would of course rise if/when the BR goes up again...

I dont want to stretch myself that far really

also add the compulsary council tax, bills and insurances etc