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

lilab_2

1982 - no deposit, bank loan from bank for deposit £2k, mortgage £22k flat bought at 13% interest rates, ftb flat price £24k, 25 year term Aged 20.
1984 - house bought £42k, not only £5k for deposit from equity from sale, not enough to qualify for mortgage, so mortgage for £25k, with £15k top up loan, both at 15% interest rates, and both at 25 year terms.
1988 - house bought for £128k, mortgage of £60k over 25 years, interest rates slightly less don't remember exact
1993 - house bought for £160k, mortgage of £132k over 16 years
1997 - house bought for £160k mortgage of £60k over 13 years
2006 - house bought for £276k outright. Aged 44.

Would have been mortgage free earlier, but along the journey took equity at sale times to start businesses or fund work as always bought wrecks.

So however you can get on the housing market and if you both have jobs and are prepared to work very hard, even taking on extra part-time work, to meet all your obligations, you can do it. (Even had two children along the way).


23 year old daughter just bought with partner. Worked hard to save £21k deposit, took mortgage over 35 years to get on the ladder and bought an old wreck. Looking forward to watching her journey and wouldn't want anyone to be discouraged from giving it a go. You can do whatever you want in this world if you are prepared to work hard and meet your obligations.

HAMISH_MCTAVISH

nembot wrote: »

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

I'm just chuckling at the fact you can't ever come up with any credible responses.

HAMISH_MCTAVISH

lilab wrote: »

1982 - no deposit, bank loan from bank for deposit £2k, mortgage £22k flat bought at 13% interest rates, ftb flat price £24k, 25 year term Aged 20.
1984 - house bought £42k, not only £5k for deposit from equity from sale, not enough to qualify for mortgage, so mortgage for £25k, with £15k top up loan, both at 15% interest rates, and both at 25 year terms.
1988 - house bought for £128k, mortgage of £60k over 25 years, interest rates slightly less don't remember exact
1993 - house bought for £160k, mortgage of £132k over 16 years
1997 - house bought for £160k mortgage of £60k over 13 years
2006 - house bought for £276k outright. Aged 44.

Would have been mortgage free earlier, but along the journey took equity at sale times to start businesses or fund work as always bought wrecks.

So however you can get on the housing market and if you both have jobs and are prepared to work very hard, even taking on extra part-time work, to meet all your obligations, you can do it. (Even had two children along the way).

Well said.

The absolute key to prosperity is now, and has always been, to buy a house as early in life as possible and spend as little time as possible paying rent, which is only buying a house for someone else.

23 year old daughter just bought with partner. Worked hard to save £21k deposit, took mortgage over 35 years to get on the ladder and bought an old wreck. Looking forward to watching her journey and wouldn't want anyone to be discouraged from giving it a go. You can do whatever you want in this world if you are prepared to work hard and meet your obligations.

Good to hear that sensible young people are just getting on with it like previous generations did.

Much better than sitting around all day on the internet moaning that prices are too high.

ticket2ride

hels234 wrote: »

I think this is a little simplistic...

I think budgeting and self discipline are the key factors with a healthy dose of realism about your situation and prospects.

nicely put.

poppysarah

Humphrey10 wrote: »

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.

Buying a house is the most serious financial decision a person has to make. To allow them to absolve themselves of all financial committment in the run up to this process (ie: saving a deposit) is utter madness.

If you can not save a deposit then you will not save for the ongoing repairs and maintenance of your house.

HAMISH_MCTAVISH

poppysarah wrote: »

Buying a house is the most serious financial decision a person has to make. To allow them to absolve themselves of all financial committment in the run up to this process (ie: saving a deposit) is utter madness.

Oh for heavens sake, enough of the drama queen nonsense.

A mortgage is cheaper than rent in most areas, and the smartest thing most people can do is buy a house of their own rather than buying someone else's house for them.

Forcing them to spend years paying their landlords mortgage as well is just pointless.

If you can not save a deposit then you will not save for the ongoing repairs and maintenance of your house.

Hardly a major expense for most people. A few hundred quid a year at most on average, and that's from someone that's owned houses for over two decades.

And you can minimise this expense by buying right.... Choose a well maintained house where the major things are in good condition and chances are you'll spend almost nothing for the first few years, and you can get insurance to cover things like boilers, etc, when they do need replacement later on.

poppysarah

HAMISH_MCTAVISH wrote: »

Oh for heavens sake, enough of the drama queen nonsense.

So you're saying buying a house isn't a serious financial decision?

shortchanged_2

HAMISH_MCTAVISH wrote: »

A mortgage is cheaper than rent in most areas, and the smartest thing most people can do is buy a house of their own rather than buying someone else's house for them.

It doesn't mean that either is really affordable for many though does it?

poppysarah

shortchanged wrote: »

It doesn't mean that either is really affordable for many though does it?

Over 50% of renters get help with their rent. I assume that's an indicator of lack of affordability in the rented sector.

shirlgirl2004

joerugby wrote: »

But 1997 is not 2011

No but if I tell you that my 21 year old son and his girlfriend have just bought a house with no gifted deposit you would tell me to come back in 25 years when the mortgage is paid off. You have to look historically to see if it is likely to work. The only thing that is likely to go wrong is they split up and they have a financial headache but life is not without risk and if it all works out they will have a lovely family home.