How I intend to make £'000s

cwcw

meanmachine wrote:

Isn't 10 YEARS of above inflation gains enough for you?

What more do you want?

It would have been, had I been old enough to buy at the time. Since I was 13 yrs old 10 years ago I was more concerned with buying players on Championship Manager 2 than buying property with mortgages. My purchase is still in progress so I don't own a property yet - not too late to pull out, but either way is a huge gamble and whichever I choose I just know will be wrong. If I pull out, 2007 will see another 10%+ HPI. If I don't pull out, the market will crash and I'll be in negative equity.

cwcw

jamesd wrote:

meanmachine, don't worry too much about it, you're also competing with me and a savings rate that's been 63% of net income for the last six months.

I've saved about 70%+ of my net income over the past year or so. My partner and I have put down 10% deposit and are taking out 2.7 times joint income. I will also still have a fair amount in my savings account, so overall I think we've done as much as we can, which is why I will be so ****ed off if the market crashes and all my work could have been for nothing and I may as well have bought myself a Boxster instead. I'm sure this worry is understandable. We're ready to buy now - it's not our fault we were born too late to miss the lower prices, and we can't predict if prices will fall or continue to rise. I just don't know anymore.

mr.broderick

cwcw wrote:

It would have been, had I been old enough to buy at the time. Since I was 13 yrs old 10 years ago I was more concerned with buying players on Championship Manager 2 than buying property with mortgages. My purchase is still in progress so I don't own a property yet - not too late to pull out, but either way is a huge gamble and whichever I choose I just know will be wrong. If I pull out, 2007 will see another 10%+ HPI. If I don't pull out, the market will crash and I'll be in negative equity.

Now we're talking..champ man, lost many a night on it.
Are you buying as an investment or somewhere to call a home?
If its the latter, then you can ride any correction. How much deposit are you putting down?

mr.broderick

whoops our posts crossed.. just read it..you'll be ok trust me.

cwcw

mr.broderick wrote:

Now we're talking..champ man, lost many a night on it.
Are you buying as an investment or somewhere to call a home?
If its the latter, then you can ride any correction. How much deposit are you putting down?

Somewhere to call home for the medium term (probably 5 - 6 years), but I'd hate to lose money. Putting down 10% deposit. I still lose the odd night on Champ Man. :T

m.smith14

The housing market is a tricky one, and I want to pose the following question to you all. Gf and I purchased a 1 bedroom apartment 1 yr ago for 110k in the north of england (whilst in final yr of uni - guaranteed by a parent), expect to sell for 120k. Great, but now we plan to move back to the south of england - now whether to rent/buy is another q... rent (on an ok semi/terraced house) is likely to be around £800/month or as I have some to invest and the gf has come into some inheritance we could decide to buy. The properties we are looking would be around 170k and most are a bit of a joke for the money (ie. ex-council, rough areas, etc) but there are 1/2 we quite like. Now we could pay £800/month in rent or put 80k down and have a 90k mortgage. This could mean if we choose to buy - ok, but if market crashes a large, but not overbearing, mortgage and little opportunity to improve / if it does not crash, priced out of the market. However, if we were to rent until a crash/dip we might find that a reduction of say 15-20% (which is reasonably likely) would not matter due to the increase in the meantime and the increase in rent we would have paid. It is my feeling that it would mainly be external factors such as another terrorist attack, etc. which could start the crash sooner than that which the hike in the interest rates could provoke.

Any thoughts? Thanks.

btloptingout

cwcw wrote:

I've saved about 70%+ of my net income over the past year or so. My partner and I have put down 10% deposit and are taking out 2.7 times joint income. I will also still have a fair amount in my savings account, so overall I think we've done as much as we can, which is why I will be so ****ed off if the market crashes and all my work could have been for nothing and I may as well have bought myself a Boxster instead. I'm sure this worry is understandable.

Your worry is understandable.

At 23 you are probably too young to have any real experience of the 90's downturn...I remember it well, I escaped by the skin of my teeth as I just couldn't scrape together the finance/income to embark on what everyone was telling me I must do. But many of my friends/peers didn't escape and where stuck in negative equity for years....I was then able to leapfrog them come '96 when I had the income to buy.

Perhapes my experience of the 90's has made me overly cautious on property and i'm more than happy to now be propertyless (having owned for 10 years) and renting. I will own again.....just not now.

cwcw wrote:

We're ready to buy now - it's not our fault we were born too late to miss the lower prices, and we can't predict if prices will fall or continue to rise. I just don't know anymore.

No, not your fault....but is still your decision...and your consequence should it turn to rats.....who knows if it will turn out to be the right/wrong decision. But if it does turn out to be the wrong one any envy/anger towards those who elected not to buy but have a Boxster instead will be mis-placed.

Buying a house is much more than just a financial decision....it can be a tough call....Good luck with the purchase.

mr.broderick

Champ man..its the future..
Its not so much a house price crash that is the concern, its interest rates.
I trust your fixing the rate for a couple of years and you have accounted for a possible hike in rates? I dont see a correction this year but i may be wrong, around here prices are still climbing at a disturbing rate, ftb houses lasting about a week before appearing under offer on rightmove. Good luck anyway.

cwcw

mr.broderick wrote:

Champ man..its the future..
Its not so much a house price crash that is the concern, its interest rates.
I trust your fixing the rate for a couple of years and you have accounted for a possible hike in rates? I dont see a correction this year but i may be wrong, around here prices are still climbing at a disturbing rate, ftb houses lasting about a week before appearing under offer on rightmove. Good luck anyway.

The mortgage is fixed at 4.89% for the first 2 years, and we've factored in affordability for up to twice this amount. I should hopefully be getting a substantial payrise in about 3 months too (off graduate scheme and into a 'real' role), fingers crossed, so hopefully we'd be ok if interest rates rocket, if scraping by is considered ok. We were lucky to arrange the mortgage before the latest base rate increase.

btloptingout - I understand what you say - re: envy/anger towards peers "electing" not to buy and then leapfrogging me in the event of a crash. It would still **** me off beyond belief though.

I don't have experience of the 90s crash. I've spoken with my parents about it, and although they weren't affected directly in any case since they bought well before the boom, they still monitored the market and tell me that Sheffield just stagnated for a couple of years and it was mainly the south of England that was affected. I have tried without success to study stats on the last crash. The best I found was a national average by quarter, but this isn't detailed enough. I'd be grateful if you knew of any more detailed stats.

Locally, the market here in Sheffield (or at least the part I'm concerned with) seems strong, with properties selling within weeks and often going to sealed/final offers due to such high levels of interest. Since it's going on 4 months since our offer was accepted, the value has probably risen 2-3% in that time anyway - which reminds me - the sold house prices that are put up on websites are dated, but what does the date relate to? Offer acceptance or completion?

roswell

The dates are after completion if your talking about land registory data / nethouse prices etc these normaly take 3 months after completion to be published as well.