News that House prices rise, worried for FTB.

drbraindead

Tancred wrote: »

£60k!! You couldn't buy a garage for that where I live.

Forget it - even in Lincolnshire.

You can buy a house for 30k where I live, crap area though.

Check on zoopla for houses

wymondham

drbraindead wrote: »

I am in the process of saving for a deposit (10%) and hope to buy around March next year,

I am only aiming to buy a house for around 50 - 60k in NE Lincolnshire.

But hearing the news today that house prices are on the rise, will I still have time to get a property for the price I'm aiming for.

I am rappidly saving as much as I can, but worry about missing out.

Anyone else feel like this?

cheers guys

don't forget though this all proves we're doing much better than a few years ago and rapidly rising house prices is good for everyone! (say the government!)

noisla

Jack_Johnson_the_acorn wrote: »

should they really be buying a home if they only have £50 spare per month....

l would argue that they should not and Im sure the banks would agree.... my HH has £1k spare per month and i don't feel like we have an excessive amount of spare cash.

I know these are extreme examples, but surely for many people a point of buying is to LOWER your monthly outgoing and INCREASE your savings. As the housing market has stagnated, rents have gone up. Surely for a lot of people, a monthly mortgage repayment would be a less than the rent they currently pay, and the rent being so high is exactly the reason why they can't save up for a deposit, so you are stuck.

For me, I pay £355 pcm rent + bills, compared to potential mortgage repayments of £430 pcm, less rent from a lodger say also of £355 pcm = £75 pcm cost. (Ok, over the longer term interest rates will go up.)

However, I am continually surprised that people feel like it is a birthright to be able to get on the property ladder, and moreover expect this when they are young. What's wrong with saving 5-10 years to buy a house?

gazter

wymondham wrote: »

don't forget though this all proves we're doing much better than a few years ago and rapidly rising house prices is good for everyone! (say the government!)

No, but confidence is good for everyone. Markets are based on confidence.

IveSeenTheLight

TruckerT wrote: »

I think I get your drift - house purchase is not an option for vast numbers of people. That's the problem which the government needs to address.

TruckerT

Ownership of any asset is not a right for all.
If you aspire for property to be affordable for 100% of the population then there needs to be a vast increase in the supply of property.

Those wealthier would also be able to afford seaside / countryside retreats.

You say the government need to address this, so I ask the question, how will they be able to afford such a mass building program?

IveSeenTheLight

Tancred wrote: »

£60k!! You couldn't buy a garage for that where I live.

Forget it - even in Lincolnshire.

2 bed flat, 50k no stamp duty
http://www.rightmove.co.uk/property-for-sale/property-25719807.html?premiumA=true

Ok, ok, that's a share, but what about this one

http://www.rightmove.co.uk/property-for-sale/property-38055619.html?premiumA=true

wotsthat

IveSeenTheLight wrote: »

Ok, ok, that's a share, but what about this one

http://www.rightmove.co.uk/property-for-sale/property-38055619.html?premiumA=true

I like the front door on that - looks a bit like Bugs Bunny.

J_i_m

Jack_Johnson_the_acorn wrote: »

should they really be buying a home if they only have £50 spare per month....

l would argue that they should not and Im sure the banks would agree.... my HH has £1k spare per month and i don't feel like we have an excessive amount of spare cash.

If they have a deposit to secure the mortgage then why on earth not?

In my area (when I was a tenant) the going rent for a 2 bedroom flat was £650.

Even today, a couple of years having since moved out (to under my parents roof to enable me to save a deposit) a mortgage on the actual flat I had rented (I know it's approximate value as neighboring flats were recently up for sale) would cost between £450-500 a month.

So I ask this, why is paying £150-200 a month more to rent a comparable property supposedly more "affordable" than paying less money on the mortgage and actually saving perhaps three times more money as a result?

Surely it's logical to suppose something which costs you less on a monthly basis is actually more affordable?

In my case if I had a mortgage on my flat.. I'd probably still be there today as it would have saved me about £200 per month, when renting it meant that normally I was not able to save anything at all.

IveSeenTheLight

J_i_m wrote: »

If they have a deposit to secure the mortgage then why on earth not?

In my area (when I was a tenant) the going rent for a 2 bedroom flat was £650.

Even today, a couple of years having since moved out (to under my parents roof to enable me to save a deposit) a mortgage on the actual flat I had rented (I know it's approximate value as neighboring flats were recently up for sale) would cost between £450-500 a month.

So I ask this, why is paying £150-200 a month more to rent a comparable property supposedly more "affordable" than paying less money on the mortgage and actually saving perhaps three times more money as a result?

Surely it's logical to suppose something which costs you less on a monthly basis is actually more affordable?

In my case if I had a mortgage on my flat.. I'd probably still be there today as it would have saved me about £200 per month, when renting it meant that normally I was not able to save anything at all.

Inevitably, renting will always be more expensive than buying.
When renting you are paying for the mortgage, insurances, factors, voids profit etc.

Your paying for the convenience of not taking the risk on the mortgage debt

So your right, if they have the deposit and can only save a small amount / nothing then they should consider buying as it will be far cheaper in the long run.

markharding557

Ive seen the light wrote:

You say the government need to address this, so I ask the question, how will they be able to afford such a mass building program?

Battered, bombed and war indebted britian of 1945 did just that, but that was under more inspired leadership than we have today.