FTB's - Buyer beware

FaTB

There seems to be more and more articles like this just recently.

Look its even getting into the low quality "mainstream press"

http://www.mirror.co.uk/mirrormoney/yourmoney/tm_headline=first%2Dtime-buyers-should-save-and-wait%26method=full%26objectid=18582178%26siteid=94762-name_page.html

I also read somewhere today (although cannot find the link now) that the U.S. Fedral reserve is predicting a "correction" in the UK.





I predict 2 pages (Before somebody else says it) :rolleyes:

layercake

If the mirror says it. It must be true:rotfl:

mr.broderick

what a load of !!!!!!!! that article is, doesn't the chap pictured look like jim royle aka ricky tomlinson....?

courtjester

You need to appreciate that these articles are based on press releases that are constantly churned out by parties with their own commercial agenda, mainly mortgage lenders and estate agents /portals like Rightmove - the press and media lap it up, but they don't carry out any research to establish whether what they are publishing is actually true.

So what you get is the biased promo that the originator of the release wants to spoon feed you...:cool:

nicki_2

What a load of rubbish! We've been trying to buy a house for over 4 years and we can't even afford to get a deposit together due to rent and other bills (like energy bills more than doubling!) especially as we have a child!

The average house prices where we're looking to move to are around about £120k for ones which don't need work (any cheaper you're starting to look at places which need a new bathroom/kitchen/wiring/doors/windows... we could cope with redecorating but not that!). We can't afford to buy a house AND do work on it because we can only get a mortgage for £80k MAX. Even the rental costs in the area are more than we can afford per month. Personally I am hoping for a crash so that we can afford to buy somewhere.

chriss1979

nicki wrote:

What a load of rubbish! We've been trying to buy a house for over 4 years and we can't even afford to get a deposit together due to rent and other bills (like energy bills more than doubling!) especially as we have a child!

The average house prices where we're looking to move to are around about £120k for ones which don't need work (any cheaper you're starting to look at places which need a new bathroom/kitchen/wiring/doors/windows... we could cope with redecorating but not that!). We can't afford to buy a house AND do work on it because we can only get a mortgage for £80k MAX. Even the rental costs in the area are more than we can afford per month. Personally I am hoping for a crash so that we can afford to buy somewhere.

Its pretty much the same down here in Peterborough, and its the most frustrating thing in the world feeling almost unable to do anything about it...

jaype

We could just about buy - have two children so need somewhere with 3 beds and the cheapest starts at 250k, on which we have a 10% deposit saved (or will have by September). But our joint income is 52k, so we'd need to borrow just over 4x joint salary. Repayments of around 1350 a month, whereas it would be 1000 to rent the same place. Does that sound like financial suicide?

manhattan

chriss1979 wrote:

Its pretty much the same down here in Peterborough, and its the most frustrating thing in the world feeling almost unable to do anything about it...

Hi chriss1979,
I too am from peterborough and in a similar situation. I have noticed that most houses in this area that we have been keeping an eye on have stopped selling, and being heavily reduced in price or they are now trying to rent them out in desperation.

Looks like things are changing here.

chriss1979

manhattan wrote:

Hi chriss1979,
I too am from peterborough and in a similar situation. I have noticed that most houses in this area that we have been keeping an eye on have stopped selling, and being heavily reduced in price or they are now trying to rent them out in desperation.

Looks like things are changing here.

Yep, Im really hoping thats the case and when the time comes I can get something for a reasonable price... Im at home with my parents at the minute and basically have had enough of the domestic instability (dont want to go into detail)... Me and my gf dont have the income as a couple to be able to buy a house yet so we're thinking that me buying a flat just to get out of home would be a good stepping stone and better than pouring my money away renting.

jaype

chriss1979 - if houses are sticking or being reduced, doesn't that make you nervous about buying - especially if its a property that isn't ideal for you? If it becomes worth less than what you bought it for, you'll either have to live in it or subsidise someone else living in it for a long time... Beware!

chriss1979

jaype wrote:

chriss1979 - if houses are sticking or being reduced, doesn't that make you nervous about buying - especially if its a property that isn't ideal for you? If it becomes worth less than what you bought it for, you'll either have to live in it or subsidise someone else living in it for a long time... Beware!

It makes me very nervous! Im trying to do a bit more research and it just seems that people are asking crazy prices, ie a flat that sold as a new buy for £85k last june being on the market for £100k now.... To me its crazy anyway lol :rolleyes: , mind you Im going to be a FTB and just finding things out slowly...