A generation are being priced in order to keep the value up of their parents assets.

ukcarper

Graham_Devon wrote: »

Were back to value for money.

What are you on about value for money the property I looked at was quite nice and I would have quite happily bought it for my first house only proviso is I don’t know area. Remember you normally pay a premium for new properties.

I just did it to show it was possible for a couple to buy a house with pre boom lending criteria.

ukcarper

Graham_Devon wrote: »

Sorry, not sure how if you halve 14, you end up with 17?

Even adding 10k as a deposit to your 100k mortgage scernario, it still does end up with 17k as a deposit.

Unless you are assuming rapid growth or something? Wouldn't surprise me

£10k deposit + half of the £14k you paid off £17k

Graham_Devon

ukcarper wrote: »

£10k deposit + half of the £14k you paid off £17k

Yes, I was being a bit supid there. Couldn't add up, even though I had specifically said the same thing....was halving the 10k for some reason!

As for value for money, I explained it much earlier in the thread. percy has explained it further too. As a house to start out in and look to starting a family in, it's not value for money. Not IMHO anyway,considering just how much that would take out of the local income in the area, and that's without higher interest rates.

You may disagree.

ukcarper

Graham_Devon wrote: »

Yes, I was being a bit supid there. Couldn't add up, even though I had specifically said the same thing....was halving the 10k for some reason!

As for value for money, I explained it much earlier in the thread. percy has explained it further too. As a house to start out in and look to starting a family in, it's not value for money. Not IMHO anyway,considering just how much that would take out of the local income in the area, and that's without higher interest rates.

You may disagree.

Perhaps that’s the problem FTB aren’t happy with a house 2 bed house that is perfectly adequate for a couple and 1 child even 2 for a couple of years.

Graham_Devon

ukcarper wrote: »

Perhaps that’s the problem FTB aren’t happy with a house 2 bed house that is perfectly adequate for a couple and 1 child even 2 for a couple of years.

As I say, making do with, and seeing value for money are two different things.

I've stated already, you can't force people to borrow, and if they are not happy to pay that price, they won't be borrowing.

The value for money thing is a bigger factor in my opinion than we give justice on this forum....we just still expect borrowers to max themselves out for whatever old hous they see, and suggest they "want it all" if they refrain.

Secondly renting for a couple of years would be financially prudent rather than paying all the costs associated with owning for such an intended short period.

Percy1983

ukcarper wrote: »

Perhaps that’s the problem FTB aren’t happy with a house 2 bed house that is perfectly adequate for a couple and 1 child even 2 for a couple of years.

We didn't want to buy a house for to live in for 'a couple of years'.

Essentially FTBs are getting more picky because they are getting older, at 18 a 2 bed terrace would have been fine at 29 with children in mind its far from ideal.

In short we have bought a house which we could live in for the next 25 years, I am not saying we will stay for that long but it is an option, the value in knowing we are 'setup for life' really is a great feeling.

ukcarper

Percy1983 wrote: »

We didn't want to buy a house for to live in for 'a couple of years'.

Essentially FTBs are getting more picky because they are getting older, at 18 a 2 bed terrace would have been fine at 29 with children in mind its far from ideal.

In short we have bought a house which we could live in for the next 25 years, I am not saying we will stay for that long but it is an option, the value in knowing we are 'setup for life' really is a great feeling.

I’m not criticising you I think it is best to buy the best you can afford and with prices stagnating if you are happy where you are and you can save I don’t see any harm in waiting. All I was saying it is possible to buy with a low salary multiply .

ukcarper

Graham_Devon wrote: »

As I say, making do with, and seeing value for money are two different things.

I've stated already, you can't force people to borrow, and if they are not happy to pay that price, they won't be borrowing.

The value for money thing is a bigger factor in my opinion than we give justice on this forum....we just still expect borrowers to max themselves out for whatever old hous they see, and suggest they "want it all" if they refrain.

A £90k mortgage would cost £532 at 5% £375 of which is interest to rent a similar property would be £500 seems reasonable value to me.

You seem to have changed your argument from prices are to high to buy at pre boom lending criteria to people can buy but they want a better house than a 2 bed house.

http://www.rightmove.co.uk/property-for-sale/property-38263628.html what about this if you want a 3 bedroom

Percy1983

ukcarper wrote: »

A £90k mortgage would cost £532 at 5% £375 of which is interest to rent a similar property would be £500 seems reasonable value to me.

You seem to have changed your argument from prices are to high to buy at pre boom lending criteria to people can buy but they want a better house than a 2 bed house.

I would say the 2 maybe go hand in hand.

I know in my situation I was priced out for many years when a 2 bed terrace would have been more than enough.

Maybe a symptom of FTBs getting older is their requirments have changed and the answer of they should all buy 2 bedroom houses just doesn't work.

ukcarper

Percy1983 wrote: »

I would say the 2 maybe go hand in hand.

I know in my situation I was priced out for many years when a 2 bed terrace would have been more than enough.

Maybe a symptom of FTBs getting older is their requirments have changed and the answer of they should all buy 2 bedroom houses just doesn't work.

You must also take into account people get married and have children later as well.