How does anyone get onto the property market??

shortchanged_2

pimento wrote: »

You still have choices, even then.

Too simplistic I'm afraid.

pimento

shortchanged wrote: »

Too simplistic I'm afraid.

Not for me.

likkle_monkey

Hi

I'm another first time buyer. I am living in rented accomodation, and just made an offer on a house which has been accepted. I simply couldn't have got the deposit together without the help of my Dad. He lent me more than half of the deposit. Is there anyone in your family that could help you with the deposit?

If not, I agree with some of the other posters here - stay put for now and keep your eye out for a good deal. Compromise is key as you won't get your dream home straight away (something which took me a while to learn!!) Finish paying off your debts and save, save, save! You don't want to rush into anything, even though you're desperate to move, it may not be the best time to do so.

Good luck! x

googler

pimento wrote: »

You still have choices, even then.

... including abstinence, of course, which is 100% effective.

shortchanged_2

googler wrote: »

... including abstinence, of course, which is 100% effective.

Why of course.

pimento

googler wrote: »

... including abstinence, of course, which is 100% effective.

But not much fun, eh?

pjcox2005

tyler80 wrote: »

Well the window arrangement in the place we looked at would have precluded bunkbeds.

I don't have kids, I shared a room until I was 18, so I've no particular axe to grind. But the idea of buying small and moving up the ladder only really works in times of rising prices and when you can get on the first rung before you're 30 and stay in that house long enough to acquire more equity. Buying a house that's going to be too small in 3/4 years time is madness in the current climate imo.

This is completley the wrong way round, it's more benefical to be able to move up the ladder at times of reducing or static prices.

On a basic assumption (as obviously things vary) that when house prices are inflating, sayc.5% per year, then the cost of the larger house will be increasing by more in terms of actual value than a smaller house, making it harder to upgrade.

Stagnant price means you can live somewhere, continue saving, and then be able to buy a larger place for cheaper than in an inflating market.

dtsazza

tyler80 wrote: »

I don't have kids, I shared a room until I was 18, so I've no particular axe to grind. But the idea of buying small and moving up the ladder only really works in times of rising prices and when you can get on the first rung before you're 30 and stay in that house long enough to acquire more equity. Buying a house that's going to be too small in 3/4 years time is madness in the current climate imo.

You don't need rising house prices for this to work.

What you're essentially doing is saving up the deposit for a mortgage on the bigger place. If it's, say, £150k and you can only borrow £100k then you need to come up with a £50k deposit.

You could save this up while you're living with parents, you could save this up while you're renting, or you could "save" this up while buying small (in the sense of paying off enough of the smaller mortgage's principle that you have £50k equity in the property).

They all have their trade-offs, but I suspect that for a lot of people the interest costs of a mortgage will be lower than what they would pay in rent on a similar place, which means that from a purely financial perspective it's a better option. (Living with parents is even better, but less fun of course.) Plus there's the aspect of it being your own place which has both pros and cons.


In fact, depending on the amount of deposit you put down, falling house prices could help you; a 10% reduction across the board means that the price of the bigger house will come down by more (in pounds) than your existing house. So you'd lose some of your accrued equity (say, £10k), but the bigger place is now £12-15k cheaper, which means you're still £2-5k closer to your deposit goal.

Dave_6

Another FTB here, in the south east, ages 27 + 24, joint income of 38k so hardly big earners

We are just buying a house, offer accepted at 155k, 24k is our deposit and 131k mortgage
It’s a 3 bed semi. (5k of the deposit was a gift from my Dad)

We both have cars but they are worth 4k each & have done under 50k miles, nothing too special but they are reliable. We go on 3 holidays a year but we’ve always saved up for stuff we want, not borrowed.

We haven’t had children yet and haven’t had loans or finance on cars,

After the story in the papers this week about trolling + then seeing your post and signature I’m almost tempted to say the OP is a wind up


I’ve always said I wouldn’t have kids until I owned a house, mainly because I knew that if I had them then I’d struggle to save to ever buy

Thrugelmir

Dave_6 wrote: »

After the story in the papers this week about trolling + then seeing your post and signature I’m almost tempted to say the OP is a wind up

Maybe maybe maybe not. However debt is a major issue for many. Pay a visit to other forum boards. There is a serious lack of understanding when it comes to managing money.