Hate Buy 2 Let

Jonesya

plane_boy2000 wrote: »

But I really dont believe that it is loads more difficult now than it was 5 years ago - lending terms are more generous, interest rates are stable and affordable. The reality is that my parents probably had the same issues when they bought their first house.

I think, looking at the figures, that is harder to buy now than 5 years ago:

- Average house prices are now ~£200k, in 2002 they were ~£120k, so up 66% in 5 years whilst wages have been rising by, what 4%/year?, so 21% in 5 years. So with the same real income you'd need a greater lending multiple to buy the house in 2007.

-Interest rates are now 5.25% vs ~4% in 2002 and seem to be on a rising trend, if you were borrowing at BoE base rates you'd be paying 31% more in interest payments on the loan.

Banks may have relaxed lending criteria but I'm not sure I'd say that makes it much easier, you can borrow the money yes but you've now got more debt to pay off.

mrstinchcombe

plane_boy2000 wrote: »

But I really dont believe that it is loads more difficult now than it was 5 years ago

Whaaat?

Are you joking?

ajaxgeezer

Jonesya wrote: »

I think, looking at the figures, that is harder to buy now than 5 years ago:

- Average house prices are now ~£200k, in 2002 they were ~£120k, so up 66% in 5 years whilst wages have been rising by, what 4%/year?, so 21% in 5 years. So with the same real income you'd need a greater lending multiple to buy the house in 2007.

-Interest rates are now 5.25% vs ~4% in 2002 and seem to be on a rising trend, if you were borrowing at BoE base rates you'd be paying 31% more in interest payments on the loan.

Banks may have relaxed lending criteria but I'm not sure I'd say that makes it much easier, you can borrow the money yes but you've now got more debt to pay off.

..... presumably people think that the investment of the house will be a "debt reduction" (real crap way of saying it but I'm not good with words) in real terms because the house will out-perform other factors such as inflation, and repayments stay compartiively low as rent rises. If one doesn't believe this, then why want to buy in the first place? (like Mortgage Momma says)

As for average house prices, the OP talked about FTBs not getting on the ladder... that's easily sorted, don't buy the average house! I couldn't afford to buy in Birmingham so went to Dudley instead to get on the ladder..... you have to start somewhere, no-one has a right to expect to land a debenture for their street. At the risk of sounding Tebbit-esque, people have to expect to make sacrifices and to move about.

Bernie

...We bought our first home back in 1980 for what is now peanuts. Interest rates were 16% and it was bloody hard, hard work. We had nowt at the end of the month (cue Monty Python Yorkshireman sketch) and that situation lasted for several endless long years. Our kids were young but that's the way we planned it. We slowly clawed our way out of the mortgage. It was years before we had our first holiday... and you tell the kids of today!!!!

When we went to sell this, no-one was interested at the modest price it was up for so we re-furbished it, rented it out and bought another place to live in. So we now own two houses but we are still, in our 50's now, still on the mortgage treadmill, still making do and living relatively modestly.

By contrast, our children, now grown up and living in London, demand an expensive lifestyles, multiple holidays abroad and the latest phones as must-have items in their lives. They eat out most of the time, would not be seen dead in the wrong clothes and so on. Their choices and they get very short shrift from us when they chorus the laments above about house prices. We had it tough!!!

We ignore the amount we paid this time, it is all Mickey-Mouse figure, a ridiculous debt with ridiculous repayments. We do all these transactions in a separate set of bank accounts divorced from our everyday "real-world" bank accounts.

I've concluded that buying property today is just as much hard work as 30 years ago. The numbers have changed, the effort and sacrifice it requires hasn't but the end rewards are there for you to see! Are not the OP and fellow complainers acknowledging this in their strident berating of the BTL people?

Certainly, now that we at the good end of the process, we are grateful we took all the pain all those years ago. It is long forgotten. Unfortunately, we cannot persuade our own children with the evidence of their own eyes!

:beer:

plane_boy2000

Jonesya wrote: »

I think, looking at the figures, that is harder to buy now than 5 years ago:

- Average house prices are now ~£200k, in 2002 they were ~£120k, so up 66% in 5 years whilst wages have been rising by, what 4%/year?, so 21% in 5 years. So with the same real income you'd need a greater lending multiple to buy the house in 2007.

-Interest rates are now 5.25% vs ~4% in 2002 and seem to be on a rising trend, if you were borrowing at BoE base rates you'd be paying 31% more in interest payments on the loan.

Banks may have relaxed lending criteria but I'm not sure I'd say that makes it much easier, you can borrow the money yes but you've now got more debt to pay off.

Your recolection / research of history is better than mine! However the general point that I was trying to make is that its not imposible to buy a house now, as although prices are higher other factors have come into play to such as relaxed lending etc.

BTL ers are an easy hit to lay blame with for those to lazy / ignorant to get of their backsides and do something.

alanobrien

littlemrtinkle wrote: »

Am i the only person who hates buy 2 let and all it stands for?

I firmly believe this is the sole reason for the property boom forcing young people to no longer be able to purchase a starter home thus further fuelling the buy 2 let market. These days things here seem to be going back to feudal ages where the rich get richer, and the few owning the majority of land and property, i personnally would like to see the government step in and stop this? does anyone agree? i would be interested to here your comments. i would like to add that i am one of the lucky ones to buy at the right time.

I recall reading somewhere recently that something like 1 in 4 properties sold was purchased for buy to let. I agree it is socially appalling and i have no doubt it is playing a large part in fuelling house prices which in turn is increasing the gap between the rich and poor.

However the fact is the current situation we find ourselves in is a direct result of government policy a government that the majority of the uk population voted in......and not just once.

This is the price you pay for living in a free market economy.

In truth and rather sadly i suspect that most of us would all like to be in the position where we owned several properties and could live on the income from them but for most of us that isnt a reality likely to happen.

Its fairly obvious that sooner or later something will have to give. Salaries are not keeping pace with house prices, mortages durations are being extended beyond all reason so "kids" are being forced to live with parents until their 30's in some cases. Social madness, it will be interesting to see where it all ends......

spurs_nut

MortgageMamma wrote: »

spurs_nut wrote: »

OR IF THEY'RE LIKE YOU,


THEY WILL PROBABLY SUCCEED BECAUSE THEY'VE HAD A GREAT BIG SILVER SPOON IN THEIR MOUTH SINCE DAY ONE,

BEEN PUT THROUGH UNI AND GIVEN EVERYTHING BY MUMMY AND DADDY (BLESS UM), INC THAT BMW

AND ON TOP PF THAT THEY THINK THERE SOOOOOO !!!!!!! SPECIAL, THEY LOOK DOWN ON EVERYONE ELSE LIKE A PIECE OF DOG %&%£ ON THEIR SHOE

:rotfl: :rotfl:

Thats just plain nasty, even if someone was born with a silver spoon in their mouth thats hardly their fault is it and if you had been born into money your attitude would be totally different.

You are obviously employed in the lower end of the market, with a crap car and frustrated with the life YOU have created for yourself, so, instead of taking responsibility and working hard to change it you have chosen to lash out at those who ARE successful.

I pity you, I really do, and with an attitude like that, there is no wonder you are being treated like something one would scrape off the bottom of their shoe.

No, I would class myself as being on a average wage of 18k a year which may not be much, but I get by and am satisfied with.

I have a nice little golf Mk4 which I am also very satisfied with

And like I said, I'm now purchasing a 3 bed semi detached for 140k with my fiancee because we have worked fcuking hard to get were we are. I would consider myself to have taken responsibility for where I am today and I extremely happy where I am. I wouldn't want anything more.

However, I get extremely agitated when numpty's like yourselves are so far up your fcking !!!! that you think your better than everybody else because you earn a few extra £1000 a year.

Bollox.

As for a silver spoon, looks like I've hit a nerve there Bigfatmomma!!!!!

How does it feel never having to be working your !!!! off to get where you are and to be handed everything on a plate?

The op has an opinion, and your making assumptions of what sort of background they're from?????

jokers,

But then that's to be expected from a bunch of Torie loving toffs.

oink oink :rotfl:


p.s I pity you more lol

ajaxgeezer

I wonder how much of it is down to prioritisation. How much more deposit could be raised by someone who saved for 5 years while buying the cheapest clothes, didn't eat out, had a bottle of wine a week, didn't have a mobile phone, bought the cheapest food, didn't have broadband or pay-tv channels or expensive gadgetry, ran a beat-up car, and did overtime every week on top of a 40 hour factory week being the norm?

I remember that years of doing that used to be the way everyone raised the deposit for a mortgage. Then with your deposit you'd go to the estate agents, find that you couldn't afford your area so moved to where you could afford - in my parents' case that involved getting on a boat to a different country.

Maybe things have changed less than some folk think?

nearlyrich

spurs_nut wrote: »

[
No, I would class myself as being on a average wage of 18k a year which may not be much, but I get by and am satisfied with.

I have a nice little golf Mk4 which I am also very satisfied with

And like I said, I'm now purchasing a 3 bed semi detached for 140k with my fiancee because we have worked fcuking hard to get were we are. I would consider myself to have taken responsibility for where I am today and I extremely happy where I am. I wouldn't want anything more.

However, I get extremely agitated when numpty's like yourselves are so far up your fcking !!!! that you think your better than everybody else because you earn a few extra £1000 a year.

Bollox.

As for a silver spoon, looks like I've hit a nerve there Bigfatmomma!!!!!

How does it feel never having to be working your !!!! off to get where you are and to be handed everything on a plate?

The op has an opinion, and your making assumptions of what sort of background they're from?????

jokers,

But then that's to be expected from a bunch of Torie loving toffs.

oink oink :rotfl:


p.s I pity you more lol

Woops hit thanks instead of Quote!

What gives you the right to have a go at other posters? You are doing just what you accuse them of...

Your nasy attitude and your aggressive language make me think that you are not very happy with your lot and having a go at people who have a little more makes you feel BIG?

And by the way it's Tory:rolleyes:

spurs_nut

nearlyrich wrote: »

spurs_nut wrote: »

Woops hit thanks instead of Quote!

What gives you the right to have a go at other posters? You are doing just what you accuse them of...

Your nasy attitude and your aggressive language make me think that you are not very happy with your lot and having a go at people who have a little more makes you feel BIG?

And by the way it's Tory:rolleyes:

Ok, I am a very unhappy person and yes, I does make me feel big.

What you going to do about it