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buying a house in negative equity...
Comments
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How does this work, exactly?
Surely, if I buy an 'overpriced' house with a mortgage and I find the mortgage payments affordable, at the end of the mortgage term I'll own a house? Whether that house is worth half as much or twice as much as I paid for it, or even nothing at all* is irrelevant to me as I'll have lived in it for the previous however many years and (assuming I've maintained it properly) I'll be able to continue living in it.
Nowhere in that scenario am I 'losing 1/3 of my monthly wages for the rest of my life'.
Don't let your boundless passion for this subject interfere with your argument. I know you feel strongly that people will get a better deal if they wait to buy and your relentless enthusiasm for spreading the word is commendable. But for those of us who, for whatever personal reasons, are in a position where they really would like to move now, having it shoved down our throats doesn't make our situations any different.
I've read what you have to say.
I understand your message.
I agree with most of your points.
But I still want to move. That doesn't make me stupid, it just makes my circumstances different to yours.
* I know, how terribly un-MSE of me. I'll be drummed off the OS boards with filthy talk like that
Well said!0 -
How does this work, exactly?
Surely, if I buy an 'overpriced' house with a mortgage and I find the mortgage payments affordable, at the end of the mortgage term I'll own a house? Whether that house is worth half as much or twice as much as I paid for it, or even nothing at all* is irrelevant to me as I'll have lived in it for the previous however many years and (assuming I've maintained it properly) I'll be able to continue living in it.
The main risks in this scenario would probably be
1) If you wanted to move before your mortgage was paid off - the 1990s style of negative equity
2) If the payments were affordable at a fixed rate, but you found yourself with unaffordable payments at the end of it, and couldn't remortgage with another lender because your debt was more than the value of the house.Hurrah, now I have more thankings than postings, cheers everyone!0 -
Buy a house.
Or put 1/3 of your wage every month in a waste paper basket and set fire to it.
Result is the same in a declining market.
Squander 1/3 of my wages for 25 years and end up with something at the end of it ......
or
Squander 1/3 of my wages for the rest of my life and end up with nothing.
Tough decision.
BTW I am mortgage free so on the outside looking in.If I had been renting at the time I had the money to pay off the mortgage I would not have been in the position to afford to buy so buying was the right decision for me. :money:
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Squander 1/3 of my wages for 25 years and end up with something at the end of it ......
or
Squander 1/3 of my wages for the rest of my life and end up with nothing.
Tough decision.
Gnrgh. Look, this is going to get moved to the HPC thread, but that's not how it works. Our flat is £1235 a month to rent. It would be about £275000 to buy, so the mortgage interest would be £1400 a month - that's not to "own it", that's to rent it from the bank.
If you end up owning at the end of it, that's because you pay above that rate to buy it gradually. Say mortgage payments of £1600 a month and you buy it £200 at a time.
Alternatively, if we can afford that amount, it's an extra £365 a month in the savings account - more if you take into account that we don't have ground rent or responsibility for repairs, stamp duty or legal costs. Who ends up with most money depends entirely on relative rates of inflation. In the short term, it's us. In the long term, it's you.Hurrah, now I have more thankings than postings, cheers everyone!0 -
Squander 1/3 of my wages for 25 years and end up with something at the end of it ......
or
Squander 1/3 of my wages for the rest of my life and end up with nothing.
Tough decision.
Spend 1/6 of my wages on rent whilst saving another 1/6 and waiting for prices to inevitably drop.
Rather than spending 1/2 my wages on mortgage interest to the bank.
What people don't realise is just how expensive mortgages are these days. We pay £800 per month rent. To get an interest only mortgage on the house would be around £1500.
Which makes more sense?0 -
Gnrgh. Look, this is going to get moved to the HPC thread, but that's not how it works. Our flat is £1235 a month to rent. It would be about £275000 to buy, so the mortgage interest would be £1400 a month - that's not to "own it", that's to rent it from the bank.
If you end up owning at the end of it, that's because you pay above that rate to buy it gradually. Say mortgage payments of £1600 a month and you buy it £200 at a time.
Alternatively, if we can afford that amount, it's an extra £365 a month in the savings account - more if you take into account that we don't have ground rent or responsibility for repairs, stamp duty or legal costs. Who ends up with most money depends entirely on relative rates of inflation. In the short term, it's us. In the long term, it's you.
I was actually getting at the "do not buy under any circumstances" attitude of the poster.
My personal situation changed drastically (for the worse) and I luckily came out of it on top with no debt (and no mortgage) so yes it was right for me. Now even a 50% downturn in the market would still see me up.0 -
Some people prefer to rent, others to buy. Buying now carries huge risks - much higher than ever before. The rewards are the same as always.
Anyone remember when TVs were rented? I rented one for 6 months until I could afford one.
Squatnow is one of life's parasites. I bet he doesn't bother with a TV licence either.
I still wouldn't buy at today's prices in many parts of the UK.
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0 -
Does Squatnow live opposite me? 800k worth of house..quiet (except at the wkends).....are we the mugs?? Paying the council tax etc.
There is never a right time to have a baby...likewise, the right time to commit to a mortgage is down to ones life circumstances........................Pls see my other posts...we bought our 1st home in 1989..desp to get out of highrise estate...we renovated and it dropped in "value"...6 yrs after we trade up.......any neg equity has long been banished from our sums0 -
Does Squatnow live opposite me? 800k worth of house..quiet (except at the wkends).....are we the mugs?? Paying the council tax etc.
There is never a right time to have a baby...likewise, the right time to commit to a mortgage is down to ones life circumstances........................Pls see my other posts...we bought our 1st home in 1989..desp to get out of highrise estate...we renovated and it dropped in "value"...6 yrs after we trade up.......any neg equity has long been banished from our sums
Good for you fc123 !!!
:T
I thought the house price crash posts were now supposed to be banned from the forum, in any case??
A lot of their whines seem like sour grapes to me, anyway ...0
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