Headlines today:If your not on Property ladder now, you have no chance in next decade

fruityfairy

So today I have heard on the new that due to properties set to rise in price and lenders being relucant to lend, the chances of a FTB being able to buy in next 10 years are pretty much non-existant.

What does this really mean? Like to the people out there like me who are saving for their first property?

puddy

where did you hear this, daily mail by any chance?

fruityfairy

Ah, I have just looked online and alot of it seems to come from the assumption that due to increases in rent and other living expenses nobody will be able to save a deposit.

To be honest, I am 25 years old and think I am in a generation of people that think they can just get things handed to them, you know like 100% LTV mortgages?! Alot of people I speak to say they would love to buy there own house but they can not because of the government/ house prices/ credit crunch but yet most of them do not save any of their income and instead chose to spend their money on holidays, clothes and lots of nights out. They do not sacrifice anything but still think they have a 'right to buy'.

I on the other hand live in private rented accomodation but I am still managing to put away 35-40% of me & the OH wages each month because we have limited our selfs to one night out a month, started shopping at Aldi and stopped buying anything that is not essential....
Does this news mean I am wasting my time or is there still hope for me?? I felt so depressed on hearing it.

fruityfairy

puddy wrote: »

where did you hear this, daily mail by any chance?

No on Daybreak News & then again on the news on Radio 1.

kiki*_2

I also read this but they were stating that house prices will rise and so will renting do deposit saving will be hard. They then went on to say you'll need 25% deposit which isn't completely true at the min!

It won't be impossible if your saving well at the min, its just not going to be easy peasy either!

puddy

fruityfairy wrote: »

Ah, I have just looked online and alot of it seems to come from the assumption that due to increases in rent and other living expenses nobody will be able to save a deposit.

To be honest, I am 25 years old and think I am in a generation of people that think they can just get things handed to them, you know like 100% LTV mortgages?! Alot of people I speak to say they would love to buy there own house but they can not because of the government/ house prices/ credit crunch but yet most of them do not save any of their income and instead chose to spend their money on holidays, clothes and lots of nights out. They do not sacrifice anything but still think they have a 'right to buy'.

I on the other hand live in private rented accomodation but I am still managing to put away 35-40% of me & the OH wages each month because we have limited our selfs to one night out a month, started shopping at Aldi and stopped buying anything that is not essential....
Does this news mean I am wasting my time or is there still hope for me?? I felt so depressed on hearing it.

what are you saving in money figures and what is it you see yourself buying in the future

if your expectations are realistic then you'll be fine. you want a little starter home or 2 bed flat, dont aim for a 'house' and dont waste money on a one bed or a studio

and DONT touch shared ownership with a barge pole

kiki*_2

I'm a FTB and just bought a 3 bed semi detached so depending on where you are you can aim for a house!

pararct

fruityfairy wrote: »

Ah, I have just looked online and alot of it seems to come from the assumption that due to increases in rent and other living expenses nobody will be able to save a deposit.

To be honest, I am 25 years old and think I am in a generation of people that think they can just get things handed to them, you know like 100% LTV mortgages?! Alot of people I speak to say they would love to buy there own house but they can not because of the government/ house prices/ credit crunch but yet most of them do not save any of their income and instead chose to spend their money on holidays, clothes and lots of nights out. They do not sacrifice anything but still think they have a 'right to buy'.

I on the other hand live in private rented accomodation but I am still managing to put away 35-40% of me & the OH wages each month because we have limited our selfs to one night out a month, started shopping at Aldi and stopped buying anything that is not essential....
Does this news mean I am wasting my time or is there still hope for me?? I felt so depressed on hearing it.

No you are not wasting your time. The path to home ownership is a difficult one fraught with a lot of self sacrifice in your younger years.... Stick with it and take the advice being offered in this thread.

My first mortgage in 1983 was for £30,000 on a property I bought for £45,000. The size of the loan used to worry me to death but we scraped through particularly as in those days I only earned about £10k. The weight off your mind you get some years down the line when the mortgage is paid off and you have no worries about housing for the rest of your lives makes it all worthwhile....

fruityfairy

Hi, we are saving around £800 a month. We are looking for an house as we wish to start a family, however we are looking at the lower end houses in areas that are less desirable like this one below:
http://www.rightmove.co.uk/property-for-sale/property-17198436.html?premiumA=true

In the region of £60k, meaning if we put down 10% depost we would need to borrow 1.6x our annual income. I think I am being realistic in chossing something like this in a first property. The idea would then be to move in more desirable place 5-7 years down the line. I am still training in accounting so expect my salary to increase as I complete qualifications.

We are not affraid of having to put some work into an house and have found that houses which are similar but one needs a kitchen or bathroom replacing are on the market for about 10K less that the ones where the bathroom is fine.

puddy

sounds great, i dont know why you're getting despondant

6k / 800 = 7.5 months?

is that right, it will take you only 8 months to save for your deposit, so whats the worry?

evoke

It's "you're" not "your".