Is There any Chance for Someone Like me to get on the Property Ladder?

richdeniro

I earn a little under 24k a year which after tax and pension contributions means that I probably clear around 17k a year for myself. Half (or possibly a little over) of this is likely to go on bills, rent, transport, food and other living costs. A fair chunk of the money left over is likely to go on palace, alcohol and charity contributions.

With house and flat prices at an all time high is it likely that my generation - I'm 26 BTW - will not be able to get on the property ladder with the ease that our parents generation did? Or even people back in the 90's.

I mean I was looking at a property website for 1 bedroom flats in the Crystal Palace/Sydenham area and prices seemed to be upwards of 180,000 for anything reasonably decent. That would mean having to get together a deposit of around 20k, which considering I have been living in my 2k overdraft since I left uni, seems a long long way off.

I'm not asking for things to be laid on a plate for me. I'd be perfectly happy to live at home with the parents for 3 years in order to save the deposit - although even saving 20k in 3 years seems nigh on impossible with current living costs being so high and I wouldn't be able to live rent free at home.

I hear a lot of people talk about 100% (or even 120%) mortgages and shared ownership schemes - but I also hear many people saying they wouldn't touch them with a bargepole.

Does anyone have any advice for people like me looking to get on the property ladder? My job, friends, family, life, etc are all located in South London so moving to a different part of the country is not really an option for me.

I recently read that house prices are also due to increase over the next 18 months at least, making it even harder for someone like me to get on the ladder. Is there any chance these forecasts could be wrong? I understand that higher taxation leads to lower interest rates which of course raises house prices. Is there a chance that taxes could be lowered in the next parliament allowing interest rates to rise and house prices to fall?

talksalot81

I am in a similar boat (age/earnings) but believe now is a bad time to get oneself into big debt. Your reading of imminent increases could be easily countered by the many reports which point towards a correction in the same timescale. This is now reported by the mainstream media at length.

I just feel that the future is too uncertain. I may well manage to afford a big mortgage, but I believe it opens me up to big losses as well. I simply could not manage if that occurred. So I am probably going to play it safe. I may well not make the gains that some others may, but I will most certainly not be hit if problems arise.

firesidemaid

hi there.

just a thought depending if you can move out of london at all and commute in?

i now live in the kettering area (50 min commute to st pancras - the same as when i used to commute from brockley/ladywell to paddington), and both there and wellingborough are still affordable.

are you able to look further south/east down the train lines to get the same kind of options?

love_lifer

buy v cheap. thats how to start, whatever area. be fussy/ ur f*ked

tomstickland

You need to start by saving a deposit. You're going to have to pay a mortgage if you do buy, so you need to start by saving at a similar rate per month.

There were some posters on here claiming that FTB's were only not able to afford because they were too fussy. I think that's wrong. I say don't take out a large mortgage on a place you don't think is worth it. If there's nowhere half decent that you can afford then prices are too high. Other people are in the same position.

Gorgeous_George

My first mortgage swallowed nearly half of my salary. My wife didn't work.

So, if we assume an interest rate of 6% and a repayment mortgage of half your income, you need to be able to buy a 2 bed terrace for around £115,000.

I could never have afforded to buy a house in the areas that you mention but I'm sure that there are plenty of 2 bed terrace houses elsewhere in the country.

Part of the problem is that there is so much more that people NEED to spend money on today than in the 80's.

An advantage that today's generation may have is increased inheritances from wealthier parents/grandparents.

It's never been easy to get on the so-called ladder.



GG

Alan_M_2

The average age of first time buyers now is low to mid 30's so you're position is not unusual.

ixwood

Gorgeous_George wrote:

An advantage that today's generation may have is increased inheritances from wealthier parents/grandparents.

GG

Not with Gordon brown about!!

ixwood

Rich, it is possible to buy. Although now might not be the perfect time with prices and borrowing ratios at record highs. Especially in London.

I'd say hold tight, rent as cheap as possible and save like crazy. if there is a full blown crash you'll be able to swoop for a bargain wich will set you up for life. If not then... er... you've definitely missed the boat!!

ixwood

sazzacat wrote:

hi there.

i now live in the kettering area (50 min commute to st pancras - the same as when i used to commute from brockley/ladywell to paddington), and both there and wellingborough are still affordable.

There's a reason for that!!

Only kidding, there's some good property investments to be had in the area. It's on the up. The A14 being built years ago has gradually brought more life to the area.

Kanga_2

I have the same kind of worries, I was living in London and knew I would not be able to afford to buy anything around me, I was also living in my £1600 OD every month (still am really). In the end I decided I wanted to get on the property ladder so asked my sister if she would manage a rental property for me if I bought one outside London in a place I could afford. Turns out she wanted to rent a property herself and I bought in Bristol, a three bedroomed house for the maximum mortgage I could get at the time, she lived in it for three years paying the mortgage and modernising it, we're now selling because her life has moved on a bit (2 children and a husband since she moved in!). My concern is now how to get back onto the property ladder because on my income and the way the market is increasing I worry I'll never be in a position to afford even the cheap end of the market again.