First Time Buyers - Enough is Enough!

zag2me

Just an update, I was a frustrated FTB, and finally decided to take the plunge. I agreed to buy a tiny shoebox studio appartment for 85k, its horendously small but I could afford the repayments easily and it will do for a year.

bluesnice

The main thing that FTB's should be doing is SAVING !

Thats just what me and my fella are doing! We are both in our early 30s, working hard, saving over £10k a year and both studying for new careers (I'm seconded for full time study and mr bluesnice is doing a msc paid for by his company... thank you!) . :beer:

In 3,4,5 years time we should have skills to survive a recession, be earning a decent wage and have a nice fat deposit. by then house prices should be lower we'll be more than ready to buy a decent property. Well thats the plan!!

by the way.. whats happend to https://www.housepricecrash??

slater14

....issues over traffic apparently. They should be up and running in a few days hopefully.

Good luck with the studies. Your plan sounds great to me.

drwibble

This message is from the house price crash website

"Our hosting company closed us down because the forum was too busy for their servers. We have now taken the board offline as the database is pointing to the old location and needs to be moved. Any posts that were made since the website came up again will be overwritten......thank you for your patience."

Apparently their web host kicked them off as they were taking the server down with too much traffic. (using over 50GB bandwidth per month)


There are few of the regulars on this newly formed forum

http://forum.globalhousepricecrash.com/index.php?act=idx


I am a potential FTB with my partner, we are currently saving like mad (no debt and large deposit). No way are we buying in this vastly inflated market and are currently renting till the prices come down to the long term trend.


Take note of the words of Mervyn King governor of the Bank of England on the issue of house prices.

House prices are "well above what most people would regard as sustainable in the longer term" meaning buyers should think of the future before they take the plunge into the property market.

and the classic quote

"House Prices are a matter of opinion. Debt is Real"


So don't make any rash decision in this current housing market as it can effect your future financial wealth.

nelly_2

Theres loads of us doing the same thing mate,we can go out and buy a house tomorrow but theres not a chance in hell we will

Ive already officialy renamed the property ladder, the property snake

Ive reviewed my opinion i think there maybe a last little push upwards in prices 1/2 % then a massive crash, its already straining at that push pull stage.

meanmachine_2

zag2me wrote:

Just an update, I was a frustrated FTB, and finally decided to take the plunge. I agreed to buy a tiny shoebox studio appartment for 85k, its horendously small but I could afford the repayments easily and it will do for a year.

It's your life mate. But if you buy a studio now at 85K what will you do if it devalues to 75K in a year, potentially wiping out your deposit, and interest rates creep up towards 6%? You'll be stuck in a shoebox with potential negative equity.

I would only really suggest buying now if you intend to live in your property for at least five year and you can ride out any storm. Do you think that's feasible?

Plus, in any "correction" its always the shoeboxes that lose the most value (as a percentage). After all, most people wouldn't choose to live in one if they had a choice, would they?

But it's up to you. It's your money. Or rather, it's 160K of the bank's money (which you're going to have to pay back).

slater14

Hurrah !

HPC is up and running again -

http://www.housepricecrash.co.uk/index.php

zag2me

meanmachine wrote:

It's your life mate. But if you buy a studio now at 85K what will you do if it devalues to 75K in a year, potentially wiping out your deposit, and interest rates creep up towards 6%? You'll be stuck in a shoebox with potential negative equity.

Dont think it will effect me in the slightest, I can afford the mortgauge easily, have a fixed rate for 2 years and surely if i want to sell it to upgrade, all the other houses will have gone down in value too. Worst thing I can forsee is that I get into negative equity and have to stay in the flat longer than I want to.

I have delibretly gone for a shoebox because the price is soo small, If it is worth 75k in 1 year who cares:) (im paying the same on my mortgauge) Thats far better than it being worth 95k and I didnt buy it. Although saying that If I had bought a 140k flat and was close to my limit on affordability I would be worried about negative equity and the threat of reposession.

I have not bought the flat as an investment or in the hope of it doubling in value in 2 years. I simply bought it because i need somewhere to live.

I hope I have made the right decision as 1 week ago I was saying exactly the same thing as you I guess only time will tell. Just glad I can finally leave my parents house and start my life again.

P.S. I saw gordon brown in the airport yesterday walking on his own and am kicking myself I didnt pull him to the side and beat him with a book until he agreed to tax these property investors and buy to let brigade and to build more affordable homes, so giving ftb's more of a chance.

deemy2004

Gorden has his little black book of some £10 billion in tax rises for AFTER the next election...

As an example the last budget saw a giveaway of a net £800 million.... £10 billion of tax rises WILL HIT a LOT of people !

He has NO choice because of his self imposed rules about balancing the budget in an economic cycle, well that cycle is peaking with a deficit when it should be in surplus, which means the gap between spending and income can only get bigger unless he raises taxes or cuts spending or a bit of both.

I think he has his eye on the buy to letters

meanmachine_2

Yep, taxes to go up by at least £8bn, coupled with an IR rate rise, probably in June, to follow the US IR rate hike and we'll soon have a host of high street stories issuing dire profit warnings.

And you know what happens when profits dip? Jobs go. And then spending falls further. And then unemployment rises etc etc

I think you can guess where I'm going with this...

Growth slows. Tax revs dry up....taxes have to go up even more. Gah. I think we're in for a painful couple of years.