Buying Property - is it worth bothering?

Eric_the_half_a_bee

surfer9 wrote: »

My parents......
Bought a large 3 bed house in 1984: £65,000
£5,000 deposit.
Joint annual salary of £10,000 in 1984. (Both teachers).

The challenge you face now is tiny compared with that your parents faced.

Interest rates in 1984 were 14%.
Their mortgage on a £60,000 loan would have cost them over £8,600 a year.
Their take home pay on an annual joint salary of £10,000 would have been around £7,300 after income tax and NI.

If your parents owned a printing press to fund the £1,300 shortfall and food, clothing, heating, electricity, etc, then I'm sure you can manage to find a deposit.

spadoosh

I bought my large 3 bedroom house for £104,000 in 2011.

The average UK house prices is £225000. Why is the house you want £450,000?

As a teacher surely there wouldnt be much difference across the country with regards to your wages? The minimum apparently is £21k and £27k for inner london.

Doesnt take a genius to work out that a 23% premium on wage doesnt work with a 100% increase in housing cost.

So youve got 60k joint im guessing somewhere where its expensive (london?). Lets take it to the minimum of 42k joint (anywhere in the country now). £189000 loan with your numbers.

You could buy with a £10k deposit.

You easily get a 3 bed detached house with garage for under £200,000 locally.


Of course that would mean moving somewhere you can afford. Although in my opinion it woul dbe no more incovenient than living in a campervan.

ViolaLass

spadoosh wrote: »

So youve got 60k joint im guessing somewhere where its expensive (london?). Lets take it to the minimum of 42k joint (anywhere in the country now). £189000 loan with your numbers.

I don't disagree with your overall point but £30k isn't difficult for a teacher to achieve (outside London) - I was on it after 5 years with no extra responsibilities.

wymondham

Do maths teachers tend to buy more houses than other teachers?

C_Mababejive

I idea of having special deals for "key workers is totally wrong". Do they sell gas/electric/water/food/cars or anything else to so called key workers ?.

Eric_the_half_a_bee

C_Mababejive wrote: »

I idea of having special deals for "key workers is totally wrong". Do they sell gas/electric/water/food/cars or anything else to so called key workers ?.

The whole concept of key workers is dodgy. Why should subsidies be offered to a nurse on £32k a year, but not to those on half that salary that make the nurse's lunch, clean the nurse's toilets, stack the shelves where the nurse buys his/her dinner, or mind the nurse's children?

jamesperrett

surfer9 wrote: »

Joint annual salary of £10,000 in 1984. (Both teachers).
Joint annual salary of £60,000 at the end of their careers. (The value of they paid for the house).
!

According to http://dera.ioe.ac.uk/22821/1/SN01877.pdf the average salary of a teacher in 1984 was £9400 while in 2007 it was around £34000 so it looks like you might want to revisit those figures.

Electrum

You buy when property is undervalued not when it overvalued.

Property always goes from undervalued to overvalued and back again.

At the moment its very overvalued, but it will swing back.

at the moment you should be buying bitcoin, its still very undervalued at $10,000 per bitcoin.

Buy with both hands whiles it still under a million per bitcoin, your kids will be grateful

Herzlos

Electrum wrote: »

at the moment you should be buying bitcoin, its still very undervalued at $10,000 per bitcoin.

Aww hell no. :mad:

Bitcoin is fluctuating wildly and still hard to cash out. It's price is launching up because people are investing in it, but once everyone realises that they can't do anything with it, and no-one else wants it?

If you have money to waste, then bitcoin is a great high-risk investment.
For everyone else, conventional savings or property is a much safer bet.

westernpromise

Personally I'd never invest in anything where the actual use of the thing and the basis for the rise in its price are both 100% opaque.

Nobody has ever come up with an intelligible explanation (to me) of what a Bitcoin is or why it is valuable.