Income multipliers or actual affordability?

callmechar

Paying over 800 in rent is dead money with no security

DVardysShadow

somethingcorporate wrote: »

And now you just sound like you are putting words in my mouth

Or you in mine :D:D

somethingcorporate

callmechar wrote: »

Paying over 800 in rent is dead money with no security

It's providing a roof over your head - it's as dead as the interest you pay on your mortgage.

beecher2

callmechar wrote: »

Paying over 800 in rent is dead money with no security

Never understood that way of thinking - you're paying for a roof over your head, and don't have to worry about maintenance costs. You have a lot more security in renting than used to be the case. Having a mortgage isn't always all it is cracked up to be.

kk20

We used to earn similar and calculated our mortgage affordability at half that amount. What would happen if one of you lost your job? Surprise child/twins/10% interest rate? TBH a 90% mortgage on a max wage from both of you doesnt seem the best of ideas. Not what you want to hear but I wouldnt go for it TBH (personal opinion of course!)

callmechar

I do appreciate all of your comments. There will be no more babies. We have one child. 10% int rate would be doable and if this really happened we could go int only for a while

I do intend in a few years - prob 3 - 5 or so to move onto a new job earning more

Whats the max mortgage you all suggest on our wages? A mortgage of half of £180k is just no way doable. I do not want a flat which even half of that would not even buy a studio flat round here.

callmechar

beecher2 wrote: »

Never understood that way of thinking - you're paying for a roof over your head, and don't have to worry about maintenance costs. You have a lot more security in renting than used to be the case. Having a mortgage isn't always all it is cracked up to be.

No I am paying my landlords mortgage and giving him a nice health profit (he bought this property 11 years ago for £101k, neighbours selling up and their property is £235k). So he had lots of equity in house and making a nice profit from us as he had such a low mortgage anyway

Repairs are non existent, never know if he will extend tenancy. House is tiny and we cannot even put posters or pictures or anything on walls. Kitchen needs redoing (never been done) as does bathroom. Pay a lot of money for all of what....yes a roof over my head but I am not happy here.

somethingcorporate

Your landlords financial affairs are absolutely nothing to do with you.

If you do not like the property and want to move then fair enough but going on about how much equity he has in the property or any profit he has made just sounds like sour grapes.

They have offered a service and you have been happy to pay for it up until now.

callmechar

somethingcorporate wrote: »

Your landlords financial affairs are absolutely nothing to do with you.

If you do not like the property and want to move then fair enough but going on about how much equity he has in the property or any profit he has made just sounds like sour grapes.

They have offered a service and you have been happy to pay for it up until now.

My point is it is dead money. We pay him a lot - get little in return. He doesnt do repairs even though they are needed.

I am happy enough here...but I want to buy a house with the added security (albeit it at our peril not landlords)

i take it your a landlord?

somethingcorporate

callmechar wrote: »

My point is it is dead money. We pay him a lot - get little in return. He doesnt do repairs even though they are needed.

I am happy enough here...i take it your a landlord?

Yes, but only due to poor financial decisions I took in the past. Funnily enough it was overstretching myself financially when I was young and naive!

I do however take my responsibilities very seriously and try to treat my tenants as best I can.