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Really depressed by the news about Help to Buy...
Something_Witty
Posts: 18 Forumite
Am I the only aspiring FTB feeling really depressed at the news that Help to buy (for 'buy' read 'sell' in my opinion!) has been brought forward?!
Other half and myself have been saving for years and by the end of next year should have hit 20% deposit...so just as we are beginning to glimpse the light at the end of the tunnel, the government plans to flood the market with potential buyers and push prices out of our reach
I don't begrudge more people being able to buy but it feels like our hard work and careful budgeting will never be rewarded...someone please tell me its not all that bad!
Other half and myself have been saving for years and by the end of next year should have hit 20% deposit...so just as we are beginning to glimpse the light at the end of the tunnel, the government plans to flood the market with potential buyers and push prices out of our reach
I don't begrudge more people being able to buy but it feels like our hard work and careful budgeting will never be rewarded...someone please tell me its not all that bad!
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Comments
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Something_Witty wrote: »I don't begrudge more people being able to buy
Clearly you do.
That is the entire point of HTB.
It restores functionality to a dysfunctional mortgage market.
It enables more people to buy, and in the medium to long term, this ensures more houses get built.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Something_Witty wrote: »someone please tell me its not all that bad!
It's not all that bad. Glad to help.0 -
I was hoping to buy in the first half of next year but I dread to think what will happen with this scheme. Just feels like my luck really! I thought the tories are all about helping people who save and work hard?0
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I would feel exactly like you, I can't believe our luck really that we managed to sneak in just before all the price increases hit. A couple of houses have come on the market on our road since and despite being exactly the same size, layout and position as ours and in similar condition they are about 10 grand more than ours was on the market for.
There are a few good things though! If it all goes t!ts up (which it very well could do, the scheme hasn't proved itself in terms of longevity yet) then you won't be one of the many people who may find themselves in a precarious situation. And that's completely aside from the satisfaction that you will naturally feel from having done all the work yourself anyway
First home purchased 09/08/2013
New job start date 24/03/2014
Life is slowly slotting into place :beer:0 -
I thought the tories are all about helping people who save and work hard?
They are.
Which is why HTB is such a good idea.
It is simply restoring functionality to a dysfunctional mortgage market, easing mortgage rationing, and enabling more people to buy.
As at the moment, the biggest beneficiaries of the dysfunctional and broken mortgage market and severe mortgage rationing are those people with rich parents and gifted deposits.
Not the hard working strivers who want to buy a home, but in poll after poll, list the new and absurdly high deposit % requirements (due to mortgage rationing thanks to the credit crunch) as the biggest reason they can't buy.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Seriously, in this financial climate even saving 5% for a deposit is a [STRIKE]serious[/STRIKE] major commitment for first time buyers, especially if they are paying rent at the same time. Good luck to them, I don't begrudge them anything but they must always remember that they must keep up the payments otherwise it all becomes unstrung.0
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Something_Witty wrote: »Am I the only aspiring FTB feeling really depressed at the news that Help to buy (for 'buy' read 'sell' in my opinion!) has been brought forward?!
Other half and myself have been saving for years and by the end of next year should have hit 20% deposit...so just as we are beginning to glimpse the light at the end of the tunnel, the government plans to flood the market with potential buyers and push prices out of our reach
I don't begrudge more people being able to buy but it feels like our hard work and careful budgeting will never be rewarded...someone please tell me its not all that bad!
Don't worry, me and my OH are feeling the same, we had it all planned what we were going to do, we'd found a house we like, and had put in an offer that was rejected but were waiting until we put in another offer and then hopefully get it at a reasonable price, now they announced this the vendor is one of those who will just put the price up because he feels he could then so its thrown us into array and we don't know what we want to do now! Or if the house is on at a good price or not!0 -
GalaxyStar wrote: »Or if the house if on at a good price or not!
When you look back 10 years from now, most prices will appear to be very good.
This scheme is simply the BOE and Govt doing their job to restore at least partial functionality to a mortgage market that has been completely dysfunctional since the global credit crunch hit, and not before time.
In my opinion the current artificial repressing of house prices through mortgage rationing is starting to end, and the lowest house building in a century is about to meet the biggest generational bulge of FTB age people in history.
Soaring population and the existing million house shortage will certainly mean prices continue to rise, a situation worsened dramatically by the last 5 years of mortgage rationing causing house building to fall to the lowest levels in a century, and the next boom will likely be the biggest ever as a result.
Leading to the likeliest outcome by far being a near doubling in house prices in real terms over the next cycle, as the mortgage market and wider economy recover, and millions of ftb age people run into the worst housing shortage in history....
Of course, other opinions may vary.....
But they've mostly been wrong so far
However lets not forget that rising prices are a good thing for most people...
Rising house prices are good for......
-The millions of people who are in or approaching retirement, and who either plan to, or may unexpectedly need to, downsize.
-The millions more people who are in their final property now, but will find themselves in the position above at some point.
-The couple of million people who bought within the last 7 years, who may be in or close to negative equity.
-The owners of the 2 million investment properties.
-The millions of people who may need to re-mortgage as and when rates climb, and want the best possible LTV ratio to get the best rates.
-House builders, construction industry, suppliers, investors, pension funds holding mortgage securities, banks, and all housing related industries, all of their shareholders and employees, whether they own a house or not.
-The family members of anyone who will leave an inheritance, or release equity to help their kids onto the ladder when downsizing, etc.
Rising house prices are bad for......
-A few hundred thousand potential FTB's at any given time...... But only until they get on the ladder, and become one of the groups above.
And as for upsizers......
It used to be commonly believed that falling prices were better for them.
However this crash has proved that to be wrong, in most cases, because the price of their FTB property has fallen by far more than the price of the 2TB properties.
So the gap between rungs on the ladder has widened, not narrowed, with falling prices.
In summary....
Rising prices are better by far for the vast majority of society, and falling prices only benefit a few, and then only temporarily.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »They are.
Which is why HTB is such a good idea.
It is simply restoring functionality to a dysfunctional mortgage market, easing mortgage rationing, and enabling more people to buy.
As at the moment, the biggest beneficiaries of the dysfunctional and broken mortgage market and severe mortgage rationing are those people with rich parents and gifted deposits.
Not the hard working strivers who want to buy a home, but in poll after poll, list the new and absurdly high deposit % requirements (due to mortgage rationing thanks to the credit crunch) as the biggest reason they can't buy.
And the fact that the housing market until HTB, showed signs of unpredictable flux in some areas and thus this device might serve to instill some stability. Some may decry this move, but it initially seems the best bet for struggling areas.0 -
Well Hamish, I concede that you might be right that I do begrudge more people having access to mortgages, mainly for selfish reasons admittedly, but also because I believe in personal responsibility and working for your rewards. Strangely enough these are principles the current government profess to share, just before they prepare to royally shaft the FTBs who have done the right thing, worked hard and scrimped and saved for years. Competition in the housing market is undoubtedly 'a good thing', but if there are not enough houses being built yet many more people in a position to buy, the future is going to be very tough indeed for a lot of people.0
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