Halifax... Down -2.4% for April

paulmapp8306

GDB2222 wrote: »

I'm just curious about something. If you are leaving the forces in a year's time, how do you know that you will find a job/be able to pay the mortgage? It seems odd timing to be entering into a major commitment. (By the way, this is none of my business!)

Yeh, i know

BUT:

1 We have to do something. We will either have to buy or rent. Rent costs more than buying so from a pure cost POV thats the better way.

2. i have based my figures on the pension I will receive along the benefits we would get if both me and the wife are unemployed (not much - bit of Child Tax Credit and Council Tax relief, or the equivilant in the new scheme). That leaves a shortfall of around £350/ month IF interest goes up by 3%.

3. How to deal with the shortfall - well I also get a lump sum when I leave which will be around £20k (after paying things I need to pay from it). That £20k will top up our income IF were unemployed. That should give we around 4-5 years of breathing space.

4. We are "eyes open" that if we get 3 years or so in and we havent found suitable employment we need to sell - and go into rented where we would be eligiable for help with rent. It wont be ideal, but even if all our initial outlay is eaten up, at least we wont be any worse off and have given it a try. If that happens we wont be happy but are perfectly aware that would have to happen.

5. How much do I need to earn to support the mortgage without any supliments? Well, i would need to earn £25k as all my "tax free" eliment would be taken up against my pension. However if my wife earns £6k (which she currenty does working 10 months and around the kids schooling) I only need £15k. TBH both figures are possible (though whether they will happen?). My wife works in childcare while Im an Electrionics Tech with prooven management/supervisory skills.

6. There are aspects that may help - even if not desirable. Inheritances could come. My mum is 74 and my father in law 72. Both have houses paid for - with my father in laws being in London. My wife is sole beneficiary of her dads estate while I share mums with my sister. Its not something we want to think about, and havent considered in out calculations - but odds say one or the other wont be with us 10 years down the line. My father in law has money - investments and such, and has just downsized his house to a 2 bed releasing £100k in equity. Some of that may come to us early IF we hit hard times in order to help the mortgage and overpay. We dont want it, but he wont see us homeless.

now - not saying everything will be sweet, or even manageable BUT you have top do something. We "should" be fine, we may not be - but that life. Noone can predict the future and drifting along with no plans isnt an option. if we fail we fail - if we dont we have a family home for life. Its not an investment - its for living in.

HAMISH_MCTAVISH

MatteH wrote: »

You say most people. I would like to see hard figures from a reputable source to prove this, .

According to the BOE the average mortgage interest is currently 3.5%.

According to various sources ranging from LSL to ARLA, the average rent is around 5.5%. (The spread is 5.3% to 6%, but lets call it 5.5% for the sale of simplicity)

IN my case, I am paying 2.5% in mortgage interest, and would be paying 7.5% plus to rent the same property. I am many tens of thousands better off by buying instead of renting.

homelessskilledworker

ruggedtoast wrote: »

Over on hpc.co. uk they are celebrating this news. They are excited!

Meanwhile round my way houses are selling like hot cakes, and for high prices. This is, on reflection, the best possible outcome, for me!

Now this sort of crap really bugs me!!

Houses are not seling like hot cakes, total BS.

When we all post on this board on the UK property market we are talking in general, we refer to the average prices of the main indicies.
And some of us will once in a while give anecdotal evidence which will sometimes go against the grain.

In my situation for example where I am looking to buy, South Cambs/ Suffolk prices have moved down very little and are now flat, with nearly nothing selling.

But in the UK as a whole, very few non investor family types are buying property, the data confirms that.

The property market in so many ways is going at a snails pace, with very few average earning young men/women buying, FACT

paulmapp8306

Oh - for those debating rent v mortgage costs.

My home at 3.9% fixed for 3 years s going to be £440/month. IF the rate rose to 8% that mortgage would cost £698/month.

Current rental rates for a similar property in the same area are currently £600-£650/month.

Yes, there will be building insurance, and probably costs down the line, but the only reason I see to rent given those figures is if you cant get a mortgage or cant afford one. if you cant afford one your going to have to rely on government handouts in the form of housing benefit (or the equivilant under the new scheme) to afford the rent. Thats not desirable OR a fair comparrison as its not actually your money your spending.


i will also add - that the house we are buying is the 4th we put bids in for over the last month. Always for asking and we didnt get any of the final selling price of the other 3 as were between 5% and 10% above asking.

setmefree2

MatteH wrote: »

Yeah just think, 6 years with no capital gains & all that dead money gone on interest payments :money:

But he's at least 6 years closer to owning his own home and being mortgage/rent free....

paulmapp8306

um - what happened to that last paragraph !!!

ruggedtoast

homelessskilledworker wrote: »

Now this sort of crap really bugs me!!

Houses are not seling like hot cakes, total BS.

When we all post on this board on the UK property market we are talking in general, we refer to the average prices of the main indicies.
And some of us will once in a while give anecdotal evidence which will sometimes go against the grain.

In my situation for example where I am looking to buy, South Cambs/ Suffolk prices have moved down very little and are now flat, with nearly nothing selling.

But in the UK as a whole, very few non investor family types are buying property, the data confirms that.

The property market in so many ways is going at a snails pace, with very few average earning young men/women buying, FACT

I just looked on Mouseprice and in the last year there have been 28 sales within 1/4 of a mile of me. I would post a link but I dont want any of yous coming round or anything.

the_flying_pig

pleasing.

obviously prices will go up one day. that's inflation for you. my grandmother fondly tells me stories of how she used to feel rich on those few weeks when she had a whole pound to spend on her shopping bill.

but i certainly hope that prices fall, if only slowly, for a good while yet, and am reasonably hopeful that it could happen.

Graham_Devon

It's another wild fluctuation from Halifax. Exactly what I stated would happen last month.

That's all this is.

StevieJ

paulmapp8306 wrote: »

6. There are aspects that may help - even if not desirable. Inheritances could come. My mum is 74 and my father in law 72. Both have houses paid for - with my father in laws being in London. My wife is sole beneficiary of her dads estate while I share mums with my sister. Its not something we want to think about, and havent considered in out calculations - but odds say one or the other wont be with us 10 years down the line. My father in law has money - investments and such, and has just downsized his house to a 2 bed releasing £100k in equity. Some of that may come to us early IF we hit hard times in order to help the mortgage and overpay. We dont want it, but he wont see us homeless.

Oh yeh, it reads like you haven't :eek: