First Time Buyers - Enough is Enough!

deemy2004

Spendless wrote:

And out of curiousity what did your parents start off with?

Yeh they started with terraces for the first couple. Then bought the current house in 1974, which I think was also a big property slump !

So I guess it runs in the family ...

I was going to buy a detached for 120k about 4 years ago, but did not ! Now that same house is over 220k !

I'm going to wait it out no matter it takes another 3 years... afterall I calc I save about 9k a year as against owning or renting i.e. no rent and sharing the house bills. So quite happy to stay pat...

VH

gustav wrote:

The bottom line is this - people only want to "get on the housing ladder" so they can make money. Why else does this country have an obsession with home ownership. If housing prices levelled off for several years, people wouldnt be so keen on investing, and renting property would suddenly become atractive.

I don't agree. I bought a house to get away from my parents house where there were 6 of us crammed into a 4 bed house with a tiny bathroom.

I couldn't give a t*ss what my house is worth, I bought it at just the right time, when the market started on the up again after a crash. I reckon it's worth about 3 times what I paid for it, but I only bought it because I couldn't cope any longer at the parents house!

I know at least 3 people who are in the 'living with parents, want to move out but can't afford it' scenario, and they certainly don't want to make money, just have some independence!

catkins

I'm not sure that people do only want to make money and renting will never be attractive because it is so expensive. In most cases it is more expensive than having a mortgage.

Also for your information gustav. I lived in France and had to pay Capital Gains when I sold my house. In fact because I came back to England I had to pay more than if I had bought another house in France. I have NO complaints whatsoever. I think the system there is much fairer. We are not all greedy.

nelly_2

Has any one else noticed that when the last crash happened oil prices were at their highest and jobs were on the fall.

Ive noticed a lot of firms going lately Rover and Index to name just 2 but that amounts to 8000 out of work.

quote from BBC website;

"Manufacturing jobs hit a fresh record low of 3.23 million following the loss of another 85,000 posts in the quarter to February, compared with a year ago. "

And with most of the rest of the country employed to phone us up to flog us something we dont want, not looking a rosy future.

Plus the interest rates have been put on hold for the few months up to the election,
you can bet the government have been putting plenty of presure on the BoE not to move them upwards.

Add to that, a couple on average wage can get a mortgage of around £100 000 when the average house price is over £150 000.

Any one who buys a house now is stupid in my opinion,

dougk_2

MoneyMonkey wrote:

I would love to see the government put some kind of incrementing tax on owning multiple houses for the purposes of income. The more houses you own, the higher percentage you pay. This should prevent the costs being passed on to tennants.

Perhaps this would persuade investors into moving their money where it belongs (in the markets) and stop them from stealling our houses!!

No it would mean that rents would have to rise to cover the cost!
Which means all the people who could not afford to buy a house or do not want to (like nelly for instance!) would be spending even more.

Nelly,
I don't think anybody who buys a house is stupid - I think those who waste money or spend on overpriced holidays may need to rethink what is stupid.

Woby_Tide

deemy2004 wrote:

Yeh they started with terraces for the first couple. Then bought the current house in 1974, which I think was also a big property slump !

So I guess it runs in the family ...

I was going to buy a detached for 120k about 4 years ago, but did not ! Now that same house is over 220k !

I'm going to wait it out no matter it takes another 3 years... afterall I calc I save about 9k a year as against owning or renting i.e. no rent and sharing the house bills. So quite happy to stay pat...

So if you've £100k deposit in 3 years further time as per your other post, 3 years ago you had c.£40k deposit(i.e. £100k - (6 years x £9k savings per year+ interest along the way) and were going to buy a house for £120k, so an £80k mortgage and now 3 years later you'd have had an asset of £220k.

With your expected correction of 12% over next 3 years makes house price in at that point £193k, taking into account £80k mortgage and 6 years payments we are looking at c. £120k equity(£73k mortgage). But by investing deposit 3 years ago and waiting for a price correction in 3 years you're £36k better off?

How does this work then?


I've also got to say that given your circumstances, given the advice out that you do is very misleading, I can't believe many other people out there have circumstances anywhere close to yours, they are, erm highly unusual I would have said. Did your parents sponge of their parents for a period of time to get themselves started aswell or did they start purchasing as they married i.e. old style 60's/70's style where people moved in/purchased property as they married?

deemy2004

No, not quite.....

I am saving £9k on what I would pay IF I owned OR rented, i.e. the £9k is extra saving on money that would be being spent. I am saving more than £9k per year... Actual growth is nearer £20k per year (including interest earned).

My target house is £200k not £220k, that is a guess on how much a house I viewed about 4 years ago is worth today.

A 12% drop on a £200k house would be £176k

I don't get the £40k deposit, 3 years ago ?

Actually the deposit today, would be far less than £100k as I would not cash in the cash-Isa's & TOISA to buy a house rather go with a mortgage and pay that down quickly and keep the cash-isa's for the long, long-term.

And yes, with hindsight had I known that damn house would now be worth £220k+ I would have snapped it up without a second thought for £120k !!! At the time £120k seemed High ! :rolleyes:

Offcourse I could be wrong a again.... :rolleyes:
Though this is the way I am betting my chips

What do yer mean sponging off parents... I contribute to 50% of the house bills !

Spendless

deemy2004 wrote:

And yes, with hindsight had I known that damn house would now be worth £220k+ I would have snapped it up without a second thought for £120k !!! At the time £120k seemed High ! :rolleyes:

So what put you off Deemy? Did you think you couldn't afford the mortgage payments? Or did you think then that the price would come down from that or did you think you'd prefer to save more of a deposit?

Just interested to know.

johannamse

deemy2004 wrote:

I'm going to wait it out no matter it takes another 3 years... afterall I calc I save about 9k a year as against owning or renting i.e. no rent and sharing the house bills. So quite happy to stay pat...

What do yer mean sponging off parents... I contribute to 50% of the house bills !

I hope your being sarcastic! Not paying any rent is worthy of a massive sponging badge! You are very, very, very lucky, most of us are not in such a position.

dougk_2

If I were your parents I would be charging you rent Deemy as well as the 50% of the bills - at least half the going rate!
They are not very good MSE's!