You can not afford to buy a house if...

Running_Horse

This thread is dead. Let it lie.

spadoosh

poppysarah wrote: »

• You have to have a gifted deposit. partly, parents helping with 5% :-D
• You whinge about not being able to afford stamp duty cant afford stamp duty ... o wait dont have to pay it
• You extend the mortgage term over 25 years. im 24, dont see why i shouldnt have it for more than 25 years? Surely the fact ill be paying more than i should susuggests i can afford it
• You can afford it on the fixed rate but not if it went up. can afford anything upto about 16% (touch wood it doesnt go higher... eeek!!)
• you can't save a deposit yourself like i said, had help from parents
• you are looking at interest only mortgages actually amazed these still exist!?!
• you can only afford to be a % of a property yup only gonna (technically) own 10%

Uh oh, guess i cant afford my house.... see you in 6 mths on DFW!!

CloudCuckooLand

"im 24, dont see why i shouldnt have it for more than 25 years?"

FTB? Because, most first homes are not where you want to end up in your 50s. Flat/terrace/small semi, most likely.

So you need the other years as leeway, to re-mortgage to get that bigger place you move to, to start a family in your 30s.

And/or, when you are 50, its a good idea to be easing down on the amount of mortgage outstanding, so you can start setting aside what used to be mortgage money, as your nest egg for a comfortable retirement.


On the wider thread; In isolation going ahead with 1 or 2 of original list is not the end of the world. The trouble is, that so many of the elements are now commonplace, that we risk storing up the next big financial crisis. When today's 25 year olds get to 50 and realise they have paid no capital on IO, or only have 25% of SO, or realise they want to move and already hit age 65 as their end of mortgage period, etc etc, there will be a raft of people claiming "I was never told there were risks to this"...we had a thread in February about SO risks not being explained...so its already happening to a degree...

At the end of the day, people can choose to try and inform themselves, or not. A degree of risk is involved in most aspects of life. Its about balancing those risks and having a fall-back should you need it.

poppysarah

spadoosh wrote: »

• You have to have a gifted deposit. partly, parents helping with 5% :-D
• you can only afford to be a % of a property yup only gonna (technically) own 10%

Uh oh, guess i cant afford my house.... see you in 6 mths on DFW!!

So your parents give you 5% towards owning 10% of a property?