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

Jimmy_31

HAMISH_MCTAVISH wrote: »

Sure they did......


http://www.guardian.co.uk/money/2011/apr/12/house-prices-up-february

Hamish hates the fact that i have refused to pay a bubble price for a home over the last few years and also hates the fact that my decision not to buy is turning out to be a very wise move.

Oh wait a minute are the banks and newspapers saying house prices havent dropped that much or they are going to go back up to peak price, oh dear i better buy a house asap.

Hamish also hates the fact that i couldnt care less what banks or newspapers tell me is happening with the average price of a home as i have a clever method of just looking in the estate agents window to see where prices are at and if i am happy to pay them yet.

My system is working very well so far.

Jimmy_31

jamesd wrote: »

Depends on how much you're paying in rent, how much you would be paying in mortgage and how much prices fall. Around here at the moment you can save 4-5% or so of the property value in rent payments, after interest only residential mortgage costs.

You can do better than that if you buy a place that needs work and do it up.

Luckily i dont pay rent as i work away for most of the year so i get my lodgings paid for by my boss, also i will be looking for a place that needs lots of work doing to it as i work in the construction industry so will be able to do most of the work myself.

myhouse_2

HAMISH_MCTAVISH wrote: »

So your 'solution' to some people being priced out of the market, is to prevent even more people being able to buy through refusing to give them mortgages.

Genius.

So your solution to the FTB problem is to keep them paying excessively high prices on part of a house using money from their parents?
Might work (actually it isn't judging by the volumes) for the short-term, but it's hardly a long term solution.

NPowerUser

"The good news is that there is a light at the end of a very long tunnel for those with property-owning aspirations"

Any article, such as the one that the guest writer has given us, that helps maintain the property bubble, has to be welcomed by the property owning public.

Dear Martin, can we have more guest writers to help ramp up property prices?

Jonathandb1972

I am so bored with the attitude that if you want something you are entitled to it. Life is not like that.:(:(
Buying anything is a priviledge not a right. So why shouldn't you give something up to get it?
Why should you have a summer holiday, your car, the £300 a month that you spend on clothes, the endless expensive posh coffees and the many nights out AND the best house, full of brand new furniture?
For those who won't sacrifice and save I am astounded by the number of parents prepared to dig deep.
For those without wealthy parents to help, there are schemes such as shared ownership to help more people buy - yet you still moan.
Why should you be able to buy anything you want? I can't afford a yacht or a Rolex but I have learnt to live with this.
So please stop telling people their house price is too high simply because you can't afford it.

Jimmy_31

Jonathandb1972 wrote: »

I am so bored with the attitude that if you want something you are entitled to it. Life is not like that.:(:(
Buying anything is a priviledge not a right. So why shouldn't you give something up to get it?
Why should you have a summer holiday, your car, the £300 a month that you spend on clothes, the endless expensive posh coffees and the many nights out AND the best house, full of brand new furniture?
For those who won't sacrifice and save I am astounded by the number of parents prepared to dig deep.
For those without wealthy parents to help, there are schemes such as shared ownership to help more people buy - yet you still moan.
Why should you be able to buy anything you want? I can't afford a yacht or a Rolex but I have learnt to live with this.
So please stop telling people their house price is too high simply because you can't afford it.

I can easily afford to get a mortgage and buy my first home now, this is due to me giving up luxuries and saving up a 40% deposit.

I am not yet willing to buy my first home because housing in my area is still overpriced.

Therefore some people are not saying housing is overpriced just because they cant afford to buy, some people are saying housing is overpriced because quite simply its overpriced.

Getting value for money still matters to some people even in this day and age so just because i can afford to buy something doesnt mean that its a fair price to pay.

Jonathandb1972

Jimmy_31 wrote: »

I can easily afford to get a mortgage and buy my first home now, this is due to me giving up luxuries and saving up a 40% deposit.

I am not yet willing to buy my first home because housing in my area is still overpriced.

Therefore some people are not saying housing is overpriced just because they cant afford to buy, some people are saying housing is overpriced because quite simply its overpriced.
QUOTE]

Well done Jimmy for your prudence in saving. However I can't help feeling that your caution has gone too far. I don't live in your part of the country but I do know that most areas are bouyant and rising in cost. You indicated in an earlier message that you have the skills to develop run down property. Had you started this several years ago you could now be well on the way to mortage free living and the price of housing would be irrelavent.

Please accept this comment Jimmy, not as critisism, but as an urge to buy a house and be closer in your repayments to owning it outright.

brian_723

This article is terrible ,shared ownership and the possibility of 90 to 95% mortgages are a very bad thing as it encourages people to buy property without savings for it .It will increase the prices of property for first time buyer and erode all the hard work of people who are and have been saving the proper way to get on the ladder and it will create a bubble that may well burst and no one wants this .I am going to be a first time buyer and for me I am happy for prices to stagnate allowing my saving towards a good deposit count, where in the past prices were rising faster than you could save .

I will never enter the market on shared ownership and I think we should be made to have 20% deposit at least by law . Patience is not a bad trait and if more people had this trait the market would be more stable for us all and future generations to come .

milliebear00001

Interestingly, there was an article today that stated it's now, on average, cheaper to have a mortgage on a property in Scotland, than to rent the same one.

I'm not happy about it, but I am inclined to agree that rather than forcing prices down, all that's happening at the moment is sellers sitting tight and holding out for offers close to asking while FTB who really want to buy are prevented from doing so because of the bank's lending criteria (about which I make no comment!)

Properties at the bottom of the market are going to BTL's - people who have the equity to afford them - rather than the FTB they should be going to.

I don't see prices dropping. Not enough distressed sellers. The banks will ease up before the sellers give up. Only way to really reduce house prices is to increase supply. We live on an island where there are too many people chasing too few homes. That will always equal inflated prices.

milliebear00001

Jimmy_31 wrote: »

I can easily afford to get a mortgage and buy my first home now, this is due to me giving up luxuries and saving up a 40% deposit.

I am not yet willing to buy my first home because housing in my area is still overpriced.

Therefore some people are not saying housing is overpriced just because they cant afford to buy, some people are saying housing is overpriced because quite simply its overpriced.

Getting value for money still matters to some people even in this day and age so just because i can afford to buy something doesnt mean that its a fair price to pay.

Can I ask what you mean by 'overpriced'. Is it based on any comparison?