MSE News: Guest Comment - Glimmer of hope for first time buyers

HAMISH_MCTAVISH

Jimmy_31 wrote: »

It seems that you base a lot of what you say on the (fact) that potential FTBs are paying rent to a landlord.

I am a potential FTB and do not pay rent and i am guessing there are thousands upon thousands of potential FTBs who dont pay any rent either.

I don't disagree that for people living rent free in their mum's spare room the equation is different.

Most adults don't do that though.

neas

HAMISH_MCTAVISH wrote: »

I don't disagree that for people living rent free in their mum's spare room the equation is different.

Most adults don't do that though.

Indeed... id say majority of people live away from parents... id hope so anyways.

IR_Fudger

HAMISH_MCTAVISH wrote: »

I don't disagree that for people living rent free in their mum's spare room the equation is different.

Most adults don't do that though.

Well the equation is different by approx 162,000 on average.

Most adults don't care though.

Edit: Care about the insinuated name calling that is. I care about house prices as much as fuel, water etc. It affects me but no sleep is lost

tara747

My replies in red:

HAMISH_MCTAVISH wrote: »

The mortgage market has been severely restricted since Feb 2009, yet prices have risen by 10% or so since then. - I take it that's the DCLG 'sold prices' data, not asking prices? Care to provide a link?

Every sensible person agrees that FTB-s should spend as little time possible paying someone else's mortgage instead of their own. - yawn, yawn. I intend to spend as little time as possible paying my own mortgage, as we will have saved a very good deposit by the time we buy. Cash purchase or a >10-year mortage are very real possibilities for us. Unlike our friends who bought during the boom. They're in it up to their necks for up to 35 years. Shudder.

Look, I've said it before and I'll say it again. I don't mind paying rent as long as house prices are falling faster than our annual rent. And at the moment they most definitely are. So it's my LL who's losing out, not me.


Ahhhh, so you support millions of people being prevented from buying houses so a few people who you determine are "prudent" can buy them at a lower price.

Why does that not surprise me.... - yes, I do support exactly that. Homeowners are always saying (rightly) that owning a home is not a right. 100% mortgages are a very recent (and insane) development, and it is right that buyers should save a decent deposit before buying. It will also help to keep house prices stable.

Math isn't your strong point, is it?

The leading edge of that generation have already turned 30. None of the new higher student fees generation have graduated yet. They're a decade or so away from average FTB age anyway.

I can see them being still in Uni in the next few years..... They're a decade away from being average FTB age.....

But as has already been pointed out elsewhere, the new regime will actually result in lower repayments and a greater ability to get a mortgage!!! :cool:

From the Adam Smith Institute:

-The truth of the reforms is that there will be a fall in graduates' annual repayments, with the threshold for repayments being raised to £21,000 from £15,000.

-annual repayments are completely income-dependent and set to fall

-The proposed rise in the threshold of repayment would make it easier to get a mortgage

-The article's calculation gives the figure of current annual debt repayments for a graduate on £30,000 per year at £150 per month. What it fails to mention is that with the Browne review and government's proposals, this will fall to £105 per month.

- Really? Most of the mid-20s graduates I know owe between £15,000 and £20,000. Not an insignificant amount of money, and it does affect their purchasing power. Most of the future students I know are planning to emigrate after graduation rather than repay their ludicrous tuition fees (I don't blame them). That'll upset demand a little, won't it?

Yeah, riiiiight...

The recession of the early 90's, with worse youth unemployment than today, didn't stop the housing boom of the late 90's. Just like the recession of 2007 won't stop the housing boom of the mid 2010's...;)

- Oh, so now the next boom won't be till 2015? :rotfl:

HAMISH_MCTAVISH wrote: »

The decision around deposit level and interest rates varies massively according to rental yields and local area price performance. And besides, this rate-apartheid for FTB-s is an abomination that will ultimately reduce over time.

But regardless, in general terms, the best thing anyone can do is spend the least amount of time possible paying someone else's mortgage instead of their own.

And if that involves using a gifted deposit, or borrowed from BOMAD, etc, then that's exactly what they should do.

BOMAD has shut up shop recently. Not many parents are willing to see their money go down the drain of negative equity.

p.s. rate-apartheid? Don't you mean better rates for those with a higher deposit? And do you see that as a bad thing???

Jimmy_31

HAMISH_MCTAVISH wrote: »

I don't disagree that for people living rent free in their mum's spare room the equation is different.

Most adults don't do that though.

I see what you did there hamish.

Unlucky for you though because I work away from home for roughly ten months of the year so I get free lodgings and when I am home it seems quite stupid to rent a place for 8 weeks.

Your little dig doesn't change the fact that thousands of potential FTBs are not paying rent to a landlord so have no reason to rush out and buy an overpriced house.

So if you are an FTB who is saving up a deposit and choosing to stay at home with your parents so you don't have to fork out hundreds of pounds a month to a Landlord, then according to hamish (AKA captain fantastic) you are a loser.

bit of a strange way of thinking for a money saving website don't you think CF

neas

Jimmy_31 wrote: »

I see what you did there hamish.

Unlucky for you though because I work away from home for roughly ten months of the year so I get free lodgings and when I am home it seems quite stupid to rent a place for 8 weeks.

Your little dig doesn't change the fact that thousands of potential FTBs are not paying rent to a landlord so have no reason to rush out and buy an overpriced house.

So if you are an FTB who is saving up a deposit and choosing to stay at home with your parents so you don't have to fork out hundreds of pounds a month to a Landlord, then according to hamish (AKA captain fantastic) you are a loser.

bit of a strange way of thinking for a money saving website don't you think CF

Surely for 10 months of year you'd be paying rent or are you in an industry (army etc) that gives you free digs?

Jimmy_31

neas wrote: »

Surely for 10 months of year you'd be paying rent or are you in an industry (army etc) that gives you free digs?

I work in the construction industry and get my digs paid for by my boss.