House price crash-don't make me laugh

gemma.zhang

Turnbull2000 wrote: »

The very flat I'm living in costs £500pm to rent, yet would require £900pm to buy - with insurance and maintenance costs on top. That tells me something has gone seriously wrong with the market and I'm better off renting.

I doubt it. The one-bed flat we're staying is 900/month in West London - better location. We're currently buying 2-bed Victorian cottage in a less expensive area. Monthly payment is 1400 pounds. Difficult to compare with the 1st one, right.. OK! The same property in the same area can be rented for 1200 pounds/month - which is more than interest only mortgage(1000 pounds in our case). We're obviously better off buying it than renting it, not even considering the potential rise . It's always a better investiment than renting... ..

bargainbarmy

Badger_Lady wrote: »

Yes, FTB costs are very high and very difficult. I can only draw from my personal experience...

At age 21, I decided I wanted to buy my first home. I could only possibly stretch to a 1-bed leasehold flat in my area, so that's what I bought.

My sister, friends and colleagues of a similar agegroup could have done the same, but chose not to because a 1-bedroom flat wasn't good enough. They prefered the luxury of larger (rented) accommodation.

My sister, in particular, stated that she would never buy anything less than a 3-bedroom semi-detatched house with a garage on a nice estate near work. Bear in mind that, when she said this, she was a 22-yr-old single girl with no plans to marry or have children.

So, some potential FTBs' expectations are too high, although this is also combined with the affordability issues above.

My 1-bedroom flat helped me get into a position where now, 2 years later, I have the dream 3-bed house... whereas my friends are still renting their comfortable houses with money they'll never see again.



TurnBall, I don't know where you live, but I'm surprised by those figures - my flat would have been £600pcm to rent, but I paid £670pcm towards my 100% repayment mortgage.

Badgerlady is a very clever girl. Now all those whinging on about house prices carshing and not being able to afford even a 1 bed flat take a good honest look at yourselves. You know you could have done what Badgerlady did but either you're expectations were too high, you weren't prepared to live in a less socially attractive area or you just were waiting for that never about to happen day when the market would crash. FTB house prices would fall the least anyway if that were to happen as they are usually the most in demand type of property. So if you are a FTB you need to get on the market . If interest rates come down prices will start to increase for FTB's. Your top end of the market will probably stagnate a bit but not FTB'S.

Nuff said !!! Think about it carolt.

Lavendyr

adr0ck wrote: »

True and they can also be bought for £75K

Depends on where you live and where you work and how far afield you can look. I live and work in the south, there are no jobs for my field in the north and so I have to look at buying property down here. If I was on my own I would never be able to afford to buy. Even in a relationship and with a joint income, we could only just afford to buy the cheapest properties available which are within a reasonable commutable distance of our respective workplaces at the moment.

carpetbelly wrote: »

I have a student loan, earn a fair bit over 15k and have nothing like 10% of my earnings taken by that.

Your student loan will be deducted at a rate of 9% of any earnings above the 15k threshold. If you have a student loan (the "newer" type rather than the grant type), you will be paying 9% of your earnings over £15k.

I personally value the flexibility of being able to up sticks at reasonably short notice, not having to worry about whether I'll be able to sell my house if I do need to move/lose my job/fall seriously ill, not having to worry about forking out for serious repairs or maintenance, not having to worry about current market instability and meanwhile being able to live in a much nicer home than I otherwise would be able to while saving £1k per month towards a deposit for a house.

Everyone has a different take on the ownership thing, and it obviously depends on individual situation, location, priorities etc.

carpetbelly

Depends on where you live and where you work and how far afield you can look. I live and work in the south, there are no jobs for my field in the north and so I have to look at buying property down here. If I was on my own I would never be able to afford to buy. Even in a relationship and with a joint income, we could only just afford to buy the cheapest properties available which are within a reasonable commutable distance of our respective workplaces at the moment.

I used to live and work in brighton... I had an offer accepted in peacehaven for a 2bed property for £117k only about a year ago. Having seen a similar property up for £130k now (now that's HPI!!! and scarey too :eek: ). The properties are there if you look hard and get in fast and are prepared to live a little bit away.

Your student loan will be deducted at a rate of 9% of any earnings above the 15k threshold. If you have a student loan (the "newer" type rather than the grant type), you will be paying 9% of your earnings over £15k.

oooo I should read my Student Loan letters harder... but yes, that makes more sense and I probably am paying the right amount then thanks for that

I personally value the flexibility of being able to up sticks at reasonably short notice, not having to worry about whether I'll be able to sell my house if I do need to move/lose my job/fall seriously ill, not having to worry about forking out for serious repairs or maintenance, not having to worry about current market instability and meanwhile being able to live in a much nicer home than I otherwise would be able to while saving £1k per month towards a deposit for a house.

Now that;s a sensible attitude. A lot of it is what do you want. You want flexibility. I want the stability now. Cannot argue with that at all and if you're managing to save that much then well done :beer: wish I could save that much again now I have my house lol

Everyone has a different take on the ownership thing, and it obviously depends on individual situation, location, priorities etc.

Best statement yet :T

Badger_Lady

carpetbelly wrote:

I value the ability to decorate, the security of not being chucked out in 6months time and the fact this property is mine. I think that's worth the extra money.

Plus the fact that, in 25 years time (or whatever), you won't have to pay anything at all!

Guy_Montag

With thanks to ExchangeMonkey on GHPC

LR up 0.2% MoM & 9.4% YoY

Land Reg

ds1980

Lavendyr wrote: »

Depends on where you live and where you work and how far afield you can look. I live and work in the south, there are no jobs for my field in the north and so I have to look at buying property down here. If I was on my own I would never be able to afford to buy. Even in a relationship and with a joint income, we could only just afford to buy the cheapest properties available which are within a reasonable commutable distance of our respective workplaces at the moment.

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Your student loan will be deducted at a rate of 9% of any earnings above the 15k threshold. If you have a student loan (the "newer" type rather than the grant type), you will be paying 9% of your earnings over £15k.

I personally value the flexibility of being able to up sticks at reasonably short notice, not having to worry about whether I'll be able to sell my house if I do need to move/lose my job/fall seriously ill, not having to worry about forking out for serious repairs or maintenance, not having to worry about current market instability and meanwhile being able to live in a much nicer home than I otherwise would be able to while saving £1k per month towards a deposit for a house.

Everyone has a different take on the ownership thing, and it obviously depends on individual situation, location, priorities etc.

its actually 6%

Lavendyr

Er, no it's not.

http://www.studentsupportdirect.co.uk/portal/page?_pageid=1647,468259&_dad=portal&_schema=PROTOCOL

ncome Contingent Repayment means that the amount you repay will be based on your income. If you earn less than the repayment threshold – a minimum level of income set by the Government which is discussed below – you will not be required to repay anything. If you earn above the threshold, you will be required to repay 9% of the amount you earn in excess of the threshold.

The size of your income determines how much you repay. The first £15,000 of your annual income (or monthly / weekly equivalent) is disregarded and your repayment is worked out as 9% of the remaining balance.

dannyboycey

Guy_Montag wrote: »

With thanks to ExchangeMonkey on GHPC

LR up 0.2% MoM & 9.4% YoY

Land Reg

Yep. Factor inflation into that and prices are still falling nicely.

wibble68_2

Woby_Tide wrote: »

thats what I call trying to make a point badly

Good call.

My sense of humour has always let me down.