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

ess0two

poppysarah wrote: »

• You have to have a gifted deposit.
• You whinge about not being able to afford stamp duty
• You extend the mortgage term over 25 years.
• You can afford it on the fixed rate but not if it went up.
• you can't save a deposit yourself
• you are looking at interest only mortgages
• you can only afford to be a % of a property

You missed a side order of sour grapes also.

Random_User_Name

HAMISH_MCTAVISH wrote: »

...

In 2010 there were just 733,000 33 year olds (FTB age) in the UK....

That is the absolute trough of the demographic cycle....

However this age group will now rise inexorably for every year until the early 2020's, when there will be almost one million people reaching FTB age annually.

http://www.statistics.gov.uk/populationestimates/flash_pyramid/UK-pyramid/pyramid6_30.html

So just as the biggest generation in history reaches FTB age, ...

Sorry to hijack, but are you saying that there is a large ("biggest generation in history") coming along?

Why am I being told that there is a pension crisis for older people like me - not enough young people coming along to pay taxes?

What have I missed here?

poppysarah

daisymay2008 wrote: »

agreed, complete drivvle, alot of people retire 60-65 so whats wrong with 30-35 yr terms, and most will reduce terms anyway when remortgaging etc

Interest.


Don't you end up paying double back by extending 10 years?

poppysarah

quantic wrote: »

We took a 30 year mortgage, and our mortgage payments are only about 16% of our income. Not everyone chooses a longer mortgage because they cant afford a shorter one .

Have you worked out how much interest you are paying?

poppysarah

ess0two wrote: »

You missed a side order of sour grapes also.

It's true i've never had a mortgage.

I also have no sour grapes.

celyn90

quantic wrote: »

We took a 30 year mortgage, and our mortgage payments are only about 16% of our income. Not everyone chooses a longer mortgage because they cant afford a shorter one .

Same for us. Our mortgage is 30 years, we will have unlimited fee-free overpayments and intend to pay it off in under 10 years. Our repayments will also be about the same percentage of our salary.

We chose a longer product in case we took a drop in income, in case we decided to have a family, in case we wanted to go and do something different, in case one of us lost a job or got relocated - so our total of what we are oblidged to have to pay each month is lower. What we actually pay will of course be different what with the overpayments. The bank were happy for us to do it that way as for us the actual term doesn't matter (there is also no early redemption fee). cel x

HAMISH_MCTAVISH

celyn90 wrote: »

Same for us. Our mortgage is 30 years, we will have unlimited fee-free overpayments and intend to pay it off in under 10 years. Our repayments will also be about the same percentage of our salary.

We chose a longer product in case we took a drop in income, in case we decided to have a family, in case we wanted to go and do something different, in case one of us lost a job or got relocated - so our total of what we are oblidged to have to pay each month is lower. What we actually pay will of course be different what with the overpayments. The bank were happy for us to do it that way as for us the actual term doesn't matter (there is also no early redemption fee). cel x

No, no, no.... We'll have none of that logic and common sense here.

Don't you know you can not afford to buy a house.

It's been ordained by our self-appointed guru of affordability.

harrup

HAMISH_MCTAVISH wrote: »

You are absolutely, 100% wrong.

The existing shortage:

http://www.nationwide.co.uk/hpi/historical/Jul_2009.pdf

The near term future shortage:



And of course, the problem will continue to get worse....



The lowest number since 1923...... But that was last year.

Housing starts are down a staggering 41% since then.

As for population....

In 2010 there were just 733,000 33 year olds (FTB age) in the UK....

That is the absolute trough of the demographic cycle....

However this age group will now rise inexorably for every year until the early 2020's, when there will be almost one million people reaching FTB age annually.

http://www.statistics.gov.uk/populationestimates/flash_pyramid/UK-pyramid/pyramid6_30.html

So just as the biggest generation in history reaches FTB age, it will crash into the lowest level of house building in over a century, which is only compounding an existing severe housing shortage crisis.

There is only one possible result..... The next boom is locked in already.

Thank you for the info.

I'm dubious of the advisability of choosing a media sound-bite as gospel. That aside are you

1) familiar with the term "confirmation bias"?

2) the phrase "lies, lies and damn statistics" http://en.wikipedia.org/wiki/Lies,_damned_lies,_and_statistics

2) aware of this study examining the reliability and accuracy of population forecasts:

http://www.gad.gov.uk/Documents/Demography/Population%20Trends/UK_Projections_in_perspective_population_trends_129.pdf

It's an interesting read...and thorough.

Humphrey10

poppysarah wrote: »

• You have to have a gifted deposit.

I don't understand this one. If you can afford the mortgage repayments, why does it matter where the deposit comes from? Why waste time renting and paying off someone else's mortgage (while saving for a deposit) when you could be paying off your own mortgage?

In my case, the choice is rent for £X per month, or buy a house with a gifted deposit where the mortgage repayments are £X per month. I really can't see the point of continuing to rent in this situation.

nembot

I'm just chuckling at Hamish's responses, please move on