Anyone else in the same boat as me?

Running_Horse

lieutenant_dan wrote: »

So in other words, you'd still be outside the STANDARD 3 and a half times salary/mortgage multiple now, even for a flat, never mind 2 bed house.

Or is to be considered the the norm now, despite over the long term paying out a lot more for mortgage repayments, to take on mortgages in excess of 3 and a half times and up to six times the salary? (which you're bang in trouble for if prices do come down or interest rates increase)

Fact is, as you and many others on here seem to love the like for like comparisons, you would be on the outside too,unless you were prepared to take on a mortgage over the standard multiples (and WELL over standard for the 2 bed house)

That's all I needed to know.

You chalenged me to do it, and I did it. Now you are moving the goalposts by saying it is possible, but would not be a wise thing to do (I agree, waiting and saving for a while would be wiser).

3 1/2 times income has not been normal for a long time now. There used to be a time building societies rejected even people with deposits. You borrow according to the norms of the time you buy in.

It is up to you to assess the risks and benefits for your situation. You could end up like me with a major crash and negative equity 4 years later. Even though my house became a millstone for a while, I would not change a thing.

That was my decision. You appear to not even be willing to try and save some deposit. That is your decision and I respect it.

Running_Horse

lieutenant_dan wrote: »

And I ignore yours and the like of Running Horse's advice because it's not logically sound.

I can live with your ignorance.

I suggest the ignore button.

lieutenant_dan

running horse, your comeback supported my point, not yours.

Out of interest in the hypothetical scenario, for £20k per annum, you take home less than £1300 per month.

Were you to stretch yourself and go for a one bed flat for a four times multiple, or a 2 bed house for over a five times multiple, how much of the approx £1300 do you think would be eaten up by mortgage payments? A damn sight more than the theoretical 30% of take home pay that was put forward as the ideal for mortgage payments, that's for sure!

Utllity bills would be around £200 per month on top, then there's food, transport for work (maybe even a car would be a necessity in your circumstances) you'd be in the red basically every month, and have nothing left to live on/for recreational purposes. And then there's a pension, forget about that. And if things go wrong in the property and need repair, then what?

That's why I'm ignoring these comments, because they're made on the basis of years gone by, when the market was more conducive to allowing people not on great salaries to still own their own properties if they worked/saved hard. No one's disputing that point. Comparing then and now is irrelevant, totally irrelevant.

It's there in black and white time and again on this thread, from myself and many other posters. Not even all the "older" posters who've contributed come out with the same garbage about sacrifices and the like that was made in their generation, and acknowledge that they would have struggled too in this climate. Others have even given examples of drivers/checkout assistants buying 3 bed houses (not flats), others say their parents bought at favourable market prices and didn't have to struggle at all, yet you choose to ignore all this, that it hasn't been as tough in previous generations, certainly not as tough as compared to now.

Probably because you don't want to admit your own sacrifices and cutbacks, although tough at the time, would have got you nowhere now either, when it's starting you in the face, THE FIGURES DON'T ADD UP for many, many people now no matter what they do. Simple as that.

I'm getting bored of this anyway. To get back to the point of thread, I will be downsizing in the New Year, and all being well will be buying in 2009, as long as the market doesn't look like it will be on the decline.

And if it does look that way, then I will be going back to renting decent accomodation, with the security of having a deposit ready for when conditions may be more ideal for buying.

Running_Horse

For someone who is ignoring me, you have a lot to say.

If I was starting out again, I would make that sacrifice again. To a certain extent we are. It would have been easier to finish the old mortgage in the old terraced house paying just £200 a month. But with the arrival of a baby we want her to have better than we did, so have stretched for a better house in a village. It will be tight for a few years, but definitely worth it.

Good luck with your plan. The worst that can happen is you change your mind and have a nice big nest egg. The best thing? You might be turning the key to your own front door. I wouldn't recommend Chatham though. It is a dump.

carolt

Best of luck, lieutenant dan - hope it all works well for you and that house prices come down just in time to meet your new-found deposit. Do try not to worry about house prices too much - I say that as one who stressed about them for years and spent huge amounts of (in retrospect, wasted) time abortively trying to buy various houses that fell through for various reasons. Now, having actively decided not to buy until prices are less ludicrous, I can sit back and enjoy the ride as monthly house prices are announced, interest rates go up/down etc, and as a non-owner find the whole experience very pleasant and relaxing.

I've managed to get on with my life in the meantime, and having my kids has been so much more important to me than owning a house. Obviously, owning your own place is one of those things we imagine ourselves doing once we reach a certain age, but in other countries and periods, people like us have got by just fine as lifelong renters. In actual fact, as stated, house prices here are likely to adjust to make that a reality here again too. But in the meantime, enjoy your life to the full. Don't let current outrageous house prices affect other areas of your life too - make sure you achieve what you want in all other areas of your life, and at some point, when you and house prices are ready, owning your own place will fit into that.......

strawberries1

Hello Dan, just wondering what you're doing cos I'm considering buying my 1st ppty too.
Thanks.

Running_Horse

Wonder what he did to save for a deposit in two and a half years, and a falling market. I genuinely hope he made the sacrifices necessary and is now in a strong position to buy something, rather than still moaning he can't afford to buy and it's everybody else's fault.

strawberries1

I'd rented a one bed but then rented out the living room to a friend. It has helped me save. I'm wondering though whether to hold on a little longer cos I dont anticipate property will rise in value imminently. If I do then perhaps a friend and I will rent a bigger house (4bed perhaps?) and then get two additional housemates....

Fire_Fox

strawberries1 wrote: »

I'd rented a one bed but then rented out the living room to a friend. It has helped me save. I'm wondering though whether to hold on a little longer cos I dont anticipate property will rise in value imminently. If I do then perhaps a friend and I will rent a bigger house (4bed perhaps?) and then get two additional housemates....

Are you confident it is legal to let the living room as regards fire regs etc.?

Lady1981

Hi Lieutenant Dan

Just wanted to pop by and say good luck with your quest to buy your own pad.

I can completely understand that you wouldn't want to change your lifestyle too much after you have worked so far to get where you are now. Having said that, it's surprising how much you might be able to cut back on your spending without changing your life too much. For example, could you rent with another person? If, say, you are currently renting for £600 a month you could maybe rent somewhere equally as nice but larger for say £800 a month. Split the rent with a second person so you're £200 better off a month and you get to split your bills too. Result! I live in a 2 bed maisonette (owned) and used to rent out the second bedroom and can highly recommend a maisonette which has a bedroom on each floor so you have your own space.

Good luck and don't let any negativity get you down!!

Lady xx