Repo's up and some startling numbers

RenovationMan

IveSeenTheLight wrote: »

The wife and I maxekd out on the house we could afford.
If truth be told, we were prepared to take a loan on top to cover solicitors, stamp duty etc, but just managed to scrape in without it.

We were however focussed to living off one wage ond paying down the mortgage fully from the second wage.

We did that for a number of years and only after we had reduced the mortgage (and I increased my income) to a level where we were happy we could afford to have children on the single wage.

It sounds like your gamble paid off and you are doing well ISTL. I'm sure that everyone on the Economy board will join me in saying "Well done" and congratulate you on your success. It's great when ordinary people take calculated risks and manage to jump ahead of the game.

We hope to do the same over the next few years, helped by historically low interest rates. We are already a lot further on that we thought we would be so early in our little gamble. We are still outside our comfort zone but moving quickly in the right direction.

It's good to see an example of someone who has done something similar and how it worked for them. I guess that's the value of the MSE boards - everyone being so friendly and encouraging each other in their goals.

shortchanged_2

That's why I'm asking RenovationMan when ISTL bought because it would make a hell of a difference if he bought in 2000 for example when house prices were a fraction of what they are today.
If I could have bought back then (if I was old enough) I would have been able to afford a 4 bedroom detached house in a good area all be it a bit of a stretch. I have no such chance at todays prices.

RenovationMan

shortchanged wrote: »

That's why I'm asking RenovationMan when ISTL bought because it would make a hell of a difference if he bought in 2000 for example when house prices were a fraction of what they are today.

Why would it make a difference when ISTL bought? He simply said he maxed out his finances to buy a house (I presume it was a nicer house than he would have had if he hadn't maxed out?). He didn't state what type of house he bought, just that he had to max out his finances to buy it. He could have maxed out his finances to buy his house in 2010, ten years after your proposed year 2000 date, or any date in between. What difference does it make?

shortchanged wrote: »

If I could have bought back then (if I was old enough) I would have been able to afford a 4 bedroom detached house in a good area all be it a bit of a stretch. I have no such chance at todays prices.

Sorry, I don't understand how ISTL maxing out his finances to buy a house relates to you and what you could have afforded back in 2000 or indeed what you could afford today?

stonethrower

Looks as if repos could get worse

http://citywire.co.uk/wealth-manager/banking-boss-warns-of-tsunami-of-home-repossessions/a504097

IveSeenTheLight

shortchanged wrote: »

That's why I'm asking RenovationMan when ISTL bought because it would make a hell of a difference if he bought in 2000 for example when house prices were a fraction of what they are today.
If I could have bought back then (if I was old enough) I would have been able to afford a 4 bedroom detached house in a good area all be it a bit of a stretch. I have no such chance at todays prices.

I've bought a number of properties over the years.
The first in 2000, the last a BTL in 2007.
I've even bought off plan and sold on completion to make a profit

As rennovationman alluded, it doesn't matter when I bought, the crux was I maxed out my finances at that time and every purchase has proven to be succesful.

You could liken to today, where a joint houshold income of say £30k, may max themselves out to purchase a £120k property.
think forward 5 years and are the likely to find that same propertymore or less affordable? (Let's assume the mortgage is fixed therefore negates any hypothetical interest rate increases to circa 10+%)

shortchanged_2

IveSeenTheLight wrote: »

I've bought a number of properties over the years.
The first in 2000, the last a BTL in 2007.
I've even bought off plan and sold on completion to make a profit

As rennovationman alluded, it doesn't matter when I bought, the crux was I maxed out my finances at that time and every purchase has proven to be succesful.

You could liken to today, where a joint houshold income of say £30k, may max themselves out to purchase a £120k property.
think forward 5 years and are the likely to find that same propertymore or less affordable? (Let's assume the mortgage is fixed therefore negates any hypothetical interest rate increases to circa 10+%)

You don't think that buying your first house in 2000 before the boom and rampant HPI since has put you in a favourable position then. It is likely that you made a massive profit in a very short space of time thanks to when you bought originally.

Say for example you bought your house for 100K in 2000. It's likely that that same property was probably going for 200-250K five or six years later. That's not a bad return in such a short space of time. No wonder many of the bulls who bought pre boom are so keen to push high property prices.

RenovationMan

shortchanged wrote: »

You don't think that buying your first house in 2000 before the boom and rampant HPI since has put you in a favourable position then. It is likely that you made a massive profit in a very short space of time thanks to when you bought originally.

Say for example you bought your house for 100K in 2000. It's likely that that same property was probably going for 200-250K five or six years later. That's not a bad return in such a short space of time. No wonder many of the bulls who bought pre boom are so keen to push high property prices.

Why do you always turn any comment into a "Bull vs Bear", "Have's Vs Have not's" argument?

As far as I can see ISTL just commented that he maxed out his finances to buy a house, he didn't say anything about it putting him in a favourable position or whether it made him a huge profit.

He basically said that he maxed out his mortgage against his own salary and used the salary of his partner to blitz down the mortgage which, coupled with salary increases allowed them to get the mortgage down and get them back into their comfort zone.

I'm doing the same. We maxed out our mortgage based on my income and didn't include my wife's. We now use her income to pay for bills, holidays, nights out, etc. and we use mine soley for renovating the house and paying down the mortgage. In 5 years or so, if things go to plan, we will be back within our financial comfort zone and things will have worked out well.

No mention of HPI. No requirement FOR HPI, just sensible budgeting and strict adherence to overpayments. Simples.

shortchanged_2

RenovationMan wrote: »

Why do you always turn any comment into a "Bull vs Bear", "Have's Vs Have not's" argument?

As far as I can see ISTL just commented that he maxed out his finances to buy a house, he didn't say anything about it putting him in a favourable position or whether it made him a huge profit.

He basically said that he maxed out his mortgage against his own salary and used the salary of his partner to blitz down the mortgage which, coupled with salary increases allowed them to get the mortgage down and get them back into their comfort zone.

I'm doing the same. We maxed out our mortgage based on my income and didn't include my wife's. We now use her income to pay for bills, holidays, nights out, etc. and we use mine soley for renovating the house and paying down the mortgage. In 5 years or so, if things go to plan, we will be back within our financial comfort zone and things will have worked out well.

No mention of HPI. No requirement FOR HPI, just sensible budgeting and strict adherence to overpayments. Simples.

But at the end of the day RenovationMan you have also benefitted from the same circumstances in that you started your house buying process pre boom, so at some stage in the last decade have made a huge profit on selling a house somewhere along the line. Am I wrong?

Therefore you must have benefitted from the rampant HPI at some stage all because you originally got into the housing market before the last boom.

RenovationMan

shortchanged wrote: »

But at the end of the day RenovationMan you have also benefitted from the same circumstances in that you started your house buying process pre boom, so at some stage in the last decade have made a huge profit on selling a house somewhere along the line. Am I wrong?

Therefore you must have benefitted from the rampant HPI at some stage all because you originally got into the housing market before the last boom.

Yes you're wrong. You are falling into the same trap that all those HPI cheerleading clowns did at the infamous diner parties. You don't benefit from HPI if you don't own investment property and if you are moving up the housing ladder.

My first 2 bed house cost £40k in 1995. At the same time a 4 bed detached house would have cost £80k. A £40k difference between the two.

In 2002 I sold my first house for £100k and bought a 4 bed detached for £180k. An £80k difference between the two.

By my calculations, it cost me £40k MORE to buy my detached house in 2002 than it would have cost in 1995. All due to HPI, so where is my 'profit'?

shortchanged_2

RenovationMan wrote: »

Yes you're wrong. You are falling into the same trap that all those HPI cheerleading clowns did at the infamous diner parties. You don't benefit from HPI if you don't own investment property and if you are moving up the housing ladder.

My first 2 bed house cost £40k in 1995. At the same time a 4 bed detached house would have cost £80k. A £40k difference between the two.

In 2002 I sold my first house for £100k and bought a 4 bed detached for £180k. An £80k difference between the two.

By my calculations, it cost me £40k MORE to buy my detached house in 2002 than it would have cost in 1995. All due to HPI, so where is my 'profit'?

So what did you sell your 4 bedroom house for?