30% fall in property if no deal brexit

snowqueen555

triathlon wrote: »

I got my first mortgage and home in my early 20's, second home was at 27 years old. You have to get in there as early as possible. And just to contradict so many people on here, yes it was very hard in those early years, but it gets easier. My advice, get on the ladder at any cost as young as you can, and yes it will be hard and you will have to make sacrifices. The alternative is bedsit in your 50's and women staying well clear of you, just have to read some of the posts on here to realise that now, but we all knew anyway:)

But at what cost? I don't fancy paying £150k for a one bed flat. 60-70% of my take home pay would be going towards the mortgage and bills, it just isn't feasible.

phillw

snowqueen555 wrote: »

But at what cost? I don't fancy paying £150k for a one bed flat. 60-70% of my take home pay would be going towards the mortgage and bills, it just isn't feasible.

I wouldn't recommend a one bed flat now either. From my experience they are the first to drop in value and the last to recover.

My parents basically had no money left after mortgage and bills for a long period at the beginning of their mortgage. No carpets, no furniture etc.

I'm not going to say that millennials could afford a house if only they stopped buying avacado's. But there are some sacrifices that you would need to make if you seriously wanted to buy a house.

triathlon

snowqueen555 wrote: »

But at what cost? I don't fancy paying £150k for a one bed flat. 60-70% of my take home pay would be going towards the mortgage and bills, it just isn't feasible.

Sadly you have just answered the big question for yourself and so many other on this board on why you will never own your own home. I am willing to bet that even on this board many of the slightly older guys will remember what we had to go through in order to buy that first home. I remember feeling that my wages would not even cover the costs of my mortgage and living expenses, and more often than not they never, but you just found a way, it was never easy.

Then a day arrives when it does become easier, inflation, wage growth, better job, a little luck, but you have to be on the ride first. I read some of the posts on here and of course that horrible HPC.com cult which has ruined lives in my opinion, and they all are waiting for that magical fairytale day where you can by that perfect home for peanuts. With the odd exception for one or two people who just might get lucky at the right time when buying a home most will NEVER see that perfect day arrive arrive for them.

And for the record it is the same with kids, there is never a right time to have them, just some of us have the guts to go for it rather than wait for the perfect time.

Malthusian

triathlon wrote: »

Sadly you have just answered the big question for yourself and so many other on this board on why you will never own your own home. I am willing to bet that even on this board many of the slightly older guys will remember what we had to go through in order to buy that first home. I remember feeling that my wages would not even cover the costs of my mortgage and living expenses, and more often than not they never, but you just found a way, it was never easy.

Not many first-time buyers are actually going to be living on baked beans, because of regulator-imposed affordability requirements. If they can qualify for a mortgage they will be fine. It is highly unlikely they will be sitting on the floor. (Furniture is free anyway thanks to Freecycle, only nice new sofas on demand cost money.)

If I had the income I'd've needed to qualify for the mortgage I'm paying at the moment in my own right, which I can already pay while standing on my head, I'd be living the life of Riley. (Because of affordability requirements I had to get a guarantor to persuade the lender to offer me a mortgage I could pay standing on my head.)

Maybe they might have to tighten their belts if interest rates go up to 10% (the scenario the Government fears which drives the ludicrously strict criteria) but that doesn't seem likely in the near future, and if it does happen, it'll be because inflation is rampant, which will reduce the cost of servicing the debt.

In your day times were tough at first but then they got better because of inflation and wage growth. For first-time buyers in our day the good times are already here. We have full employment and zero interest rates. Whether people wish to take advantage of the good times by buying a house or taking two foreign holidays a year or pursuing a low-earning career as a freelance creative is up to them.

The main obstacle facing first-time buyers is the artificially restricted availability of mortgages due to lending criteria.

I just ran my own numbers and using the nicest possible definition of bills (excluding food and car costs), my mortgage and bills are just over 50% of my net income. If I include essential groceries and car costs (which is almost 100% commuting to work, so non-discretionary) that rises to over 70%. And my life is great, thanks very much. If my life is an unfeasibly straitened existence then luxury must be awesome. You've got to spend it on something.

Herzlos

snowqueen555 wrote: »

But at what cost? I don't fancy paying £150k for a one bed flat. 60-70% of my take home pay would be going towards the mortgage and bills, it just isn't feasible.

You could always spend 60-70% of your take home pay on rent instead.

phillw wrote: »

I wouldn't recommend a one bed flat now either. From my experience they are the first to drop in value and the last to recover.

I always thought they did pretty well as they appealed to FTB and BTL, and you can't downsize any smaller. Up here at least, a 1 bed flat costs within about 10% of the cost of a 2 bed house, but they seem to rarely appear on the market (I assume because they get snapped up by landlords).

seatbeltnoob

Herzlos wrote: »

Up here at least, a 1 bed flat costs within about 10% of the cost of a 2 bed house, but they seem to rarely appear on the market (I assume because they get snapped up by landlords).

If that's the case why would yuu buy a 1 bed when you can just pay 10% more and get a 2 bed? It's such a small increase in the grand scheme of things, you might as well get the 2 bed and save yourself the move later.

phillw

Herzlos wrote: »

I always thought they did pretty well as they appealed to FTB and BTL, and you can't downsize any smaller. Up here at least, a 1 bed flat costs within about 10% of the cost of a 2 bed house, but they seem to rarely appear on the market (I assume because they get snapped up by landlords).

The FTB who can only afford a flat are the first to disappear in a downturn, the BTL then sense peoples desperation to sell.

Most people outgrow a 1 bed flat quite quickly and want to get a house, the small difference (especially when you take into account management fees etc) means I would recommend going for the house first.

The-Joker

Still nothing is certain

Just because they say they have a deal everybody else has to agree t as well

Still think the best way is to leave then negotiate

phillw

The-Joker wrote: »

Still think the best way is to leave then negotiate

As it's going to hurt us more than the EU, then that would be an interesting strategy.

"Do a deal, or we'll hurt ourselves even more".

It would be interesting to see just how bad the deal the EU would get once we're out of the EU and completely at their mercy.

The-Joker

phillw wrote: »

As it's going to hurt us more than the EU, then that would be an interesting strategy.

"Do a deal, or we'll hurt ourselves even more".

It would be interesting to see just how bad the deal the EU would get once we're out of the EU and completely at their mercy.

It’s hurting everybody anyway