Getting onto the Property Ladder

CB1979_2

TTMCMschine wrote: »

And if houses have gone up in value so that you can sell it & repay the principle, WHERE do you LIVE afterwards? Or are you planning on renting at that point or just taking out another (even bigger mortgage).

Your sums don't add up & THATS a FACT!

erm well I'd have more than likely double the value of the flat so 50% goes to the bank and 50% to me to do what i like with it.

you know i may even rent or emmigrate or put it all on black

jyonda

Chances are you'll borrow further against the equity you've 'made' at some point over 25 years to pay for major maintenance (new roof, new CHS, windows), send kids to uni, pay towards wedding, once in a lifetime holiday or buy that dirty great 4x4 you've had your eye on. Chances are also that you won't want to downsize or go into rented so I wouldn't ever go interest only myself.

Running_Horse

1. Live at home and save up.

2. Wait for prices to fall.

TTMCMschine

CB1979 wrote: »

erm well I'd have more than likely double the value of the flat so 50% goes to the bank and 50% to me to do what i like with it.

you know i may even rent or emmigrate or put it all on black

Unless you live in a strange parallel universe where your house value doubles but all the others are static, then you have a problem with your plan.

If your house was £100K when you bought & you sell in the end for £200K, pay back the £100K you owe the bank & you have £100K left.

But house prices have doubled, so now what? £100K is no longer enough to buy a house, so you either have to rent or put the £100K down as a deposit & borrow another £100K to buy a new house - so you still owe £100K to the bank, just as you did prior to selling your house to release the "equity."

You need to be in a position at the end to pay the lump sum, & it isn't likely to happen for most people.

TTMCMschine

Snow_Dog wrote: »

Errrr, where in olive84's post that you quoted does it state they are paying interest only? It states they have a 100% mortgage, which means they borrowed 100% of the value of the property but I cannot see where they admit to it being interest only.

Obviously it is interest only.

Snow_Dog

olive84 wrote: »

My bf and I have a 100% mortgage and earn roughly what you do. We're borrowing £177,500. Having said that neither of us have any debt, so no other monthly payments. I know there are some people on this forum who are going to say that we're mad, but believe it or not we can afford it. We took a long long time going over the costs of owning a house though, because obviously its not just the mortgage, but c tax, bills and all the rest of it.

So, I just wanted to add something positive here, because it can be done. Talk to a broker because they will let you know what you can really borrow!

Nope, still cannot see where Olive84 states the mortgage is interest only, am I really missing a point here?

Can you possibly clarify for me where Olive84 admits to having an interest only mortgage.

kingkano

TTMCMschine wrote: »

Obviously it is interest only.

A$$-u-me

Perhaps its 30/35yr term....?? Or maybe, just maybe, they are willing to live tight for a year or 2 making the bigger repayments knowing they should get big increases in salaries (professionals perhaps).

never assume....

CB1979_2

TTMCMschine wrote: »

Unless you live in a strange parallel universe where your house value doubles but all the others are static, then you have a problem with your plan.

If your house was £100K when you bought & you sell in the end for £200K, pay back the £100K you owe the bank & you have £100K left.

But house prices have doubled, so now what? £100K is no longer enough to buy a house, so you either have to rent or put the £100K down as a deposit & borrow another £100K to buy a new house - so you still owe £100K to the bank, just as you did prior to selling your house to release the "equity."

You need to be in a position at the end to pay the lump sum, & it isn't likely to happen for most people.

CB1979 wrote:

you know i may even rent or emmigrate or put it all on black

............:)

also there you go again assuming! how do you know it's not likely to happen for most people? some people fine but most????

oh and when i come to sell when I'm retiring if needs be I'll let the govt house me, hey ho

renowen

Im a single parent with 2 small children - I have just started working part time to earn a few extra pennies. Im on the council waiting list and currently living in temorary accomadation where we have been for almost 2 years.

I had to take on this job cause the money I am given through benefits only just makes ends meet, the extra I earn will be for a few luxuries (I really hope to get a car this year)

How can someone like me get on the property ladder? I guess I'd have to wating untill kids are at school and I can work more hours then save my butt off?

CB1979_2

correcta mundo