Anyone else in the same boat as me?

lieutenant_dan

I'm just saying the current housing market situation has led to many desperate measures being taken, some people buying with complete strangers for example, as well as my example of couples buying together far earlier than they should be ideally, or for the wrong reasons, all borne out of pure desperation.

Of course it will be easier with two people/two salaries instead of one, and I wouldn't be against moving further out if I had a reason to do so (though as I said, I'd still have to be able to get to London daily) which would be a serious partner. For now I want to live where I grew up, where my family are, and where my friends are. I couldn't just up sticks and isolate myself purely for cheaper accomodation, that would be depressing.

Phirefly

I concur. Its just a really crappy time. I guess all I was trying to say is sit tight and you'll be reet.

carolt

I think it is genuinely really hard for those who bought a few years ago to understand quite how grindingly depressing and demotivating it is to watch house prices power away far faster than you can possibly save towards them - hence the bitterness. I sympathise - I get really effed off with some people who regard themselves as financial whizz kids or martyrs because they bought their house a few years ago when prices were cheaper and made a killing/'struggled' (personally I find the former much more irritating than the latter....).

But listen to Gorgeous George - the man speaks sense! In the words of a close friend today - a v wealthy American trader - the American economy is completely heading for meltdown - and anyone who thinks the UK economy (and house prices) will remain immune is living in cloud-cuckoo land.

That said, if you currently work in finance, and are self-employed, that may not be exactly the consolation you're after...... However, a sharp correction in house prices does clearly seem to be on the cards to me. I for one think any FTB seriously thinking of buying at the moment needs their heads tested...... For those who've made equity in their current properties it's a different matter, but for those starting out, it just seems the WRONG time to buy. I do genuinely believe this - NOTHING would make me buy at the moment.

And Dan, you know there is really no need to buy - try to remove your own prejudices about renting v buying. You can almost certainly rent somewhere far nicer than you could buy for the same monthly cost (interest only). Someone else has the headache of the repairs. You are flexible, and if and when you meet the right person, will be able to move as you wish without being trapped in an unsuitable property with huge negative equity.

By all means, save for a deposit. But try not to get too upset about current house prices - they ARE only temporary. Try and enjoy where you live - whether a landlord or the bank actually 'own' your property (well, it's not going to be you, is it?), is hardly of the first importance.....

lieutenant_dan

yes carolt, seen you on other threads before and agree with what you say.

That smug attitude is coming across from certain posters in this thread, that they were very smart or made sacrifices in order to get onto the ladder, fair enough, sacrifice and cutbacks have always been necessary, but as I and others have said several times now, it was still a realistic goal and more importantly achievable.

And in truth no one really knows if they're buying at the right time or not, unless the financial aspects are eradicated from the equation and they're simply buying a home for the long term, if their property will go up or if it will go down and then they'll end up in negative equity, a lot of it is down to pure luck. Even the so called "experts" will have vastly differing views on the subject, and always have. How "smart" will those who bought five years ago have been if the prices then crashed, and all that sacrificing for a deposit wouldn't have been worth it. Playing up to the simplistic stereotyping that's been going on above in this thread, whilst others out partying etc who didn't save would have been better off, at least not in negative equity anyway.

I know quite a few people for example who sold up five years ago almost rubbing their hands at the perceived crazy prices at that time, thinking they'll bank the money, rent for a bit, and then when the prices inevitably come down, they'll be laughing. Only the prices went higher, and higher, and higher, and in retrospect it wasn't a good time to sell at all, apart from banking a profit on the initial investment, but in relative terms, the prices moved further away for the next property investment, upgrading was then not possible.

Paradoxically I do agree with you that this is almost certainly not a good time to buy, and the ceiling may well have been reached, and prices probably will come down, so why do I fret about buying now or in a year? Probably because, like a woman's biological clock, I feel anxious at time ticking away, and am in need of security and my own place at this time of my life. I've just been so used to property prices escalating further away, I consider it the norm, and just expect it to continue in this vein, but you make a very good point that this may not be the case and we may well be heading finally for a correction, maybe even a very sharp one at that. In which case I'll end up in an even worse position to now if I do manage to buy at these levels.

Running_Horse

carolt wrote: »

I think it is genuinely really hard for those who bought a few years ago to understand quite how grindingly depressing and demotivating it is to watch house prices power away far faster than you can possibly save towards them - hence the bitterness.

Again you need a little historical perspective.

When I bought in the late 80s, there was the same panic talk about prices rising forever, and this generation will never get on the ladder, and the same house price bores boasting how much they had "made", and that you couldn't lose if you bought property.

Maybe that was why I worked so hard to get a place, and it gave me the incentive to stop complaining and take control of my future.

Running_Horse

lieutenant_dan wrote: »

yes carolt, seen you on other threads before and agree with what you say.

That smug attitude is coming across from certain posters in this thread, that they were very smart or made sacrifices in order to get onto the ladder, fair enough, sacrifice and cutbacks have always been necessary, but as I and others have said several times now, it was still a realistic goal and more importantly achievable.

And in truth no one really knows if they're buying at the right time or not, unless the financial aspects are eradicated from the equation and they're simply buying a home for the long term, if their property will go up or if it will go down and then they'll end up in negative equity, a lot of it is down to pure luck. Even the so called "experts" will have vastly differing views on the subject, and always have. How "smart" will those who bought five years ago have been if the prices then crashed, and all that sacrificing for a deposit wouldn't have been worth it. Playing up to the simplistic stereotyping that's been going on above in this thread, whilst others out partying etc who didn't save would have been better off, at least not in negative equity anyway.

I know quite a few people for example who sold up five years ago almost rubbing their hands at the perceived crazy prices at that time, thinking they'll bank the money, rent for a bit, and then when the prices inevitably come down, they'll be laughing. Only the prices went higher, and higher, and higher, and in retrospect it wasn't a good time to sell at all, apart from banking a profit on the initial investment, but in relative terms, the prices moved further away for the next property investment, upgrading was then not possible.

Paradoxically I do agree with you that this is almost certainly not a good time to buy, and the ceiling may well have been reached, and prices probably will come down, so why do I fret about buying now or in a year? Probably because, like a woman's biological clock, I feel anxious at time ticking away, and am in need of security and my own place at this time of my life. I've just been so used to property prices escalating further away, I consider it the norm, and just expect it to continue in this vein, but you make a very good point that this may not be the case and we may well be heading finally for a correction, maybe even a very sharp one at that. In which case I'll end up in an even worse position to now if I do manage to buy at these levels.

Oh Dan. Don't take it personally; is a true friend someone who tells you your bum looks big in that dress, or someone who tells you how great you look when you don't? You might not like what some have told you, but it is mostly the truth. You can take it or leave the advice you have been given. I have learned in life you just can't help some people.

If you really want it, you will find a way.

Ama

nollag2006 wrote: »

Why are you in your mid 30's without buying a house? Why didn't you buy something 5 years ago ?

I am in my early 30s, I am yet to get on the property ladder and have Debts of around £23,500. I live in a rented house. What does that make me?

I have stopped listening to people who go on about doing whatever it takes to get on the property ladder. I have no savings but I am in a good pension scheme and have a good life insurance policy to take care of my children should anything happen to me. Life is too short and I wouldn't kill myself trying to acquire a property :A . Am I missing something?

jyonda

Yeah Dan. Stick on the Ipod, dance around your flat in your designer gear , book a holiday then take your flash motor for a spin.
You'll feel much better after that.

lieutenant_dan

yeah right jyonda you clown, funny how I was contributing to this thread on a FRIDAY NIGHT instead of out clubbing! And didn't have a holiday at all last year, so much for your lame stereotyping.

And Running Horse, I have a little challenge for you. You said you were on £8500 salary in the late 80s when you made all your sacrifices to buy, come back to me with equivalent salary figures for now with inflation, and let's see if you really could have bought a 2 bed place in Chatham now on the equivalent salary, or if you could have saved enough of a deposit etc.

Note I wasn't even talking about a house, but a flat too.

Running_Horse

lieutenant_dan wrote: »

And Running Horse, I have a little challenge for you. You said you were on £8500 salary in the late 80s when you made all your sacrifices to buy, come back to me with equivalent salary figures for now with inflation, and let's see if you really could have bought a 2 bed place in Chatham now on the equivalent salary, or if you could have saved enough of a deposit etc.

Note I wasn't even talking about a house, but a flat too.

Read my post correctly. I was on £8,500 plus overtime (12 hour days, 6 days a week) that took my salary to £14,000. When I lost this overtime I took in lodgers. To allow for 20 years of inflation lets take a less than average salary of £20,000, many NHS workers earn more than this, I earn a little more now.

A search on Rightmove brings up seventeen 2 bed houses in Chatham for less than £120,000, and nobody paid full price in Chatham even before the slowdown, so we will say £110,000. With a 10% deposit, low interest rates, and modern multipliers, are you really saying it would be impossible? Might be unwise, but not impossible.

As you were kind enough to include flats, the number of available properties now rises to 34 (including some very nice brand new part share properties for only £82,500). So even if at 4 times income, it is quite possible to get on the property ladder.

Of course you would need to be motivated to go without for a while to save up a deposit. But you have already explained very eloquently why you are not willing to do that, despite having had many years as an adult to save.