House Prices Flying

SteveV2

I'm a builder and have been for many years.

For the first time in a long time things really are picking up!

Also, starting on a site next week that's private houses! Can't remember the last time I built one.

ess0two

SteveV2 wrote: »

I'm a builder and have been for many years.

For the first time in a long time things really are picking up!

Also, starting on a site next week that's private houses! Can't remember the last time I built one.

This will be seen as bad news by many in here.

lindsaygalaxy

Sibley wrote: »

Yes but that's not a 1st time buy.

A studio or 1 bed flat is what FTB should be aiming at.
In their budget

Not if you have 2 kids to house aswell.

A 3 bed new build here is about £300k. New buy ould mean about 50k to pay back in 5 years. Going on my salary increase of 1% in 4 years it would be a disaster.

gazzabboi

Idiophreak wrote: »

...unless they repay the loan within those 5 years, of course...

With most people maxing out their mortgage, how would they manage to find the spare cash. Most people don't get bonuses. 25k loan- can you save an extra £450 a month as well as pay a mortgage. I couldnt

shortchanged_2

ess0two wrote: »

This will be seen as bad news by many in here.

By who?

The house price rampers?

chewmylegoff

HAMISH_MCTAVISH wrote: »

Mine would only have gone up 20% had I stayed in the role I was in....

But I was also promoted, so it was a fair bit more.:)

I'm up 73% over the same period so ner-ner ner-ner-ner.

Although according to dryhat's "real inflation rate index" that does mean I've had an effective pay cut of 40%....

Graham_Devon

HAMISH_MCTAVISH wrote: »

You don't expect to earn more in 5 years than you do today?

I've never gone 5 years without significant pay rises.

Well, go back to 2007.

The lack of payrises has been a complete reality.

No doubt you would have said the very same thing back then.

With these prices though, you'd have to have some serious payrises.

the_flying_pig

HAMISH_MCTAVISH wrote: »

What, other than the obvious, that it was a bit daft to start a family without first buying a starter place and building up some equity?

(bet you won't resist that temptation now....)

i honestly think that, in sibley's case, there's a small part of him that believes, or at least wants to believe, a lot of what he types. in other words there's maybe an outside chance of, well, talking him round or something, at least partly, on at least some issues.

whereas in your case, well, you always set out to very cynically and deliberately 'talk up' [ha] prices, whatever you believe deep down. so persuasion doesn't come into it.

Sibley

Carl31 wrote: »

The poster has mentioned in another thread that he has a family, im not sure that a 1 bed flat will do, which is what i was getting at

OK, poster has priced himself out of the market.
Should have sorted house out before having children.

Won't be able to buy a 3 bedroom now. Either got to rent private or go on council list.

Idiophreak

gazzabboi wrote: »

With most people maxing out their mortgage, how would they manage to find the spare cash. Most people don't get bonuses. 25k loan- can you save an extra £450 a month as well as pay a mortgage. I couldnt

Yes, I can comfortably afford to save rather more than that, because I didn't "max out my mortgage", I just found somewhere decent for a price I could easily afford (currently < 2x multiplier) and bought it.

A lot of people would aim to save a house deposit over a five year period - and it's easier to save once you're on a mortgage than paying expensive rental. (in fact, I pay £430/month less on my mortgage than the rent on the property next door) Some more people will expect their wages to increase dramatically over the 5 year period. Finally, you don't necessarily need to repay the whole loan in cash within 5 years. In the 5 year period, if you save 10% of the market value at any point (including any equity you build in the house, which might be ~5% after 5 years), you could then remortgage onto 90% LTV, if you could afford the higher monthly payments.

If, however, over the course of 5 years, you really feel you're not going to be able to make a dent in saving any sort of deposit, you're probably going to struggle to struggle to buy any time soon...I don't think that's a secret.