The Rise and Rise of Buy To Let.....

madalice

DervProf wrote: »

Well, if your offspring can't save a deposit while earning £25K pa, then it's a good job they've got parents who are helping them out. Maybe if they knew they'd have to look after themselves financially, it would focus their minds.

LOL. And maybe if they knew just how much of a deposit lenders are looking for these days, they'd start saving right now.

DervProf

madalice wrote: »

LOL. And maybe if they knew just how much of a deposit lenders are looking for these days, they'd start saving right now.

Maybe you'd like to pass on my advice, FWIW.......

Lenders are looking for a minimum of around 10% (although I`m sure I`ve read posts on this forum stating that some lenders are offering 95% mortgages).

Anyway, the deposit for a typical FTBer property (costing ~£120K) will be around £15K. Now this is obviously not written in stone, and is subject to changes in lending conditions.

So my advice is to start saving as soon as possible. In fact it isn't just my advice, it's what I did from around the time I left school. Whenever I earned some money, I always tried to save. I knew I'd need a deposit for a house one day, but I didn't know how much exactly I'd need. In fact, as soon as I got close to being able to afford a place of my own, there was a price boom, and my deposit, let alone my salary, was not enough to be able to buy. However, I didn't let this put me off saving. About three years after the end of the boom, and having saved a little more, I was able to buy myself a place to live.

So, if your kids are using the excuse that they don't know how much a deposit is, it's a feeble one. It also confirms what I suspect about the budgeting ability of a majority of today's younger generation - Mummy and Daddy will pay for it, or Mastercard will.

madalice

DervProf wrote: »

Maybe you'd like to pass on my advice, FWIW.......

Lenders are looking for a minimum of around 10% (although I`m sure I`ve read posts on this forum stating that some lenders are offering 95% mortgages).

Anyway, the deposit for a typical FTBer property (costing ~£120K) will be around £15K. Now this is obviously not written in stone, and is subject to changes in lending conditions.

So my advice is to start saving as soon as possible. In fact it isn't just my advice, it's what I did from around the time I left school. Whenever I earned some money, I always tried to save. I knew I'd need a deposit for a house one day, but I didn't know how much exactly I'd need. In fact, as soon as I got close to being able to afford a place of my own, there was a price boom, and my deposit, let alone my salary, was not enough to be able to buy. However, I didn't let this put me off saving. About three years after the end of the boom, and having saved a little more, I was able to buy myself a place to live.

So, if your kids are using the excuse that they don't know how much a deposit is, it's a feeble one. It also confirms what I suspect about the budgeting ability of a majority of today's younger generation - Mummy and Daddy will pay for it, or Mastercard will.

I'll be sure to pass on your advice. :T

Those pesky brats won't make a penny out of me.

DervProf

madalice wrote: »

I'll be sure to pass on your advice. :T

Those pesky brats won't make a penny out of me.

I'm sure they'll appreciate a little financial help. I had a little help from my parents in terms of them allowing me to live with them while I was saving for a deposit. Probably the best help that I got was from them not being able to afford to give me much in financial terms, but showing me how to look after my personal finances.

Graham_Devon

madalice wrote: »

Don't think they have to pay anything back until they're earning something like 25k but that's not a huge amount these days, is it? 25k pa and repaying a student loan isn't exactly going to let you save for a desposit, let alone service a mortgage.

It would do though, if people stopped doing what you are doing.

Its fuelled by doing what you are doing, locking others out because you have the collateral and your kids don't.

cotleigh

I don't know why people dislike BTL - if it works, and makes you money, then you have the right to do it.

It works for me.

geneer

cotleigh wrote: »

I don't know why people dislike BTL - if it works, and makes you money, then you have the right to do it.

It works for me.

People didn't like what BTL became in the final years of the bubble, with every mindless johnny come lately thinking they were property developers because the banks would give them a mortgage if they could spell their initials right.


Currently the BTL is a very different beast.
There have always been landlords and always will be.
But BTL as we knew it is well and truly dead. As predicted.
Regardless of the semantic babbling of the embittered bulls.

IveSeenTheLight

geneer wrote: »

Currently the BTL is a very different beast.
There have always been landlords and always will be.
But BTL as we knew it is well and truly dead. As predicted.
Regardless of the semantic babbling of the embittered bulls.

How can you claim it to be dead, when statistically it can and has been shown that it is still expanding?

robmatic

geneer wrote: »

Yet here you are, still with no answer forthcoming.

So.....Yep. Thats what I thought.

You won't be able to see the irony in this but...

Common or garden short man syndrome in other words.

Gosh, its almost as if they're compelled to try and make up for previous mistakes.

... made me chuckle anyway.

robmatic

IveSeenTheLight wrote: »

How can you claim it to be dead, when statistically it can and has been shown that it is still expanding?

This is BTL as geneer knows it, which may not necessarily have much in common with real world concepts.

Like that whole 'Bull' = homeowner, 'Bear' = frustrated, aspiring homeowner thing that he has going on.