House buying risks

mrlegend123

some advice don't debate with Spider Legs..........poster who thinks he/she knows it all

SpiderLegs

mrlegend123 said:

some advice don't debate with Spider Legs..........poster who thinks he/she knows it all

Evening leg. Good to have you back. 

Seems a bit odd advice though. Surely if I know it all then the best approach would be actually have a debate and disprove?

anyway tbh I am a bit concerned as to why you’re posting this on here given I’ve only asked two questions on page 1 of this thread. It seems a bit like stalker behaviour which is creeping me out.

Beeboo23

ciderboy2009 said:

@Crashy_Time - Remind me.  How many years is it now that you've been predicting the 'bubble bursting' imminently and it not happening?

........

getmore4less

Crashy_Time said:

getmore4less said:

You don't have to remortgage,

You can just stay with the same lender(pick a good one) and go on to the SVR if there has been a major crash and LTV is trashed or one of  their deals  for your current LTV.

If rates go through the roof it is the renters that have to worry as all those landlords will need to get more money of their tenants.

On the numbers it does not look that stretched £2k+ coming in  £550 rent changed to mortgage, will tick along nicely for a few years.

Keep the finances under control gives headroom if needed even with serious rate rises(go long 40y on initial term)
£950pm(rent + lodger money) covers rates up to 6.6%  start that early as overpayments and covered up to 9.2%

Lodger is a major drain on quality of life IMO, unless you are really good buddies with them. Eventually people will tire of having to take in lodgers/washing/ironing or whatever to buy basic shelter, but who will they vote for to lower house prices?

We are dealing with a young man here at the start of their life, who has shared before(successfully)  possibly 50years of life ahead of them.

5 years is a small sacrifice  to be in a position where they already own 40% of their own home with a  <60% LTV mortgage on decent rates in a 3 bedroom house not a £550pm studio. 


Not really the basic shelter territory of the crashy world of renting is best

Angela_D_3

Crashy_Time said:

getmore4less said:

You don't have to remortgage,

You can just stay with the same lender(pick a good one) and go on to the SVR if there has been a major crash and LTV is trashed or one of  their deals  for your current LTV.

If rates go through the roof it is the renters that have to worry as all those landlords will need to get more money of their tenants.

On the numbers it does not look that stretched £2k+ coming in  £550 rent changed to mortgage, will tick along nicely for a few years.

Keep the finances under control gives headroom if needed even with serious rate rises(go long 40y on initial term)
£950pm(rent + lodger money) covers rates up to 6.6%  start that early as overpayments and covered up to 9.2%

Lodger is a major drain on quality of life IMO, unless you are really good buddies with them. Eventually people will tire of having to take in lodgers/washing/ironing or whatever to buy basic shelter, but who will they vote for to lower house prices?

So you do in fact want quality of life not just basic shelter then 🙃

Keswick1uk

My conversation with my son on the lodger thing was interesting. He had quite a bit of varying experience when he was a lodger.  Like most things in life you are giving up something for the money but he said it was nice to have company,  his ground rules were laid down strictly at the start so there wasn't ever any misunderstanding, and it makes sense for there to be more than one person in a 3 bed house.

Negatives were when after a couple of years the owner packed the house with someone in each room and he started to work from home. At that point it became a bit claustrophobic and he does wonder how bad it would have been there during the lockdowns with everyone potentially working from home or hanging around as on furlough. 

He said he definitely wouldn't want more than one lodger and a strict rule on girl and boyfriends (he had to pay extra rent if they stayed over more than one night a week,  note when they were staying on a calender, and introduce them at the first opportunity). 

He said the rules there were very clear!

getmore4less

Good he has had experience of setting clear boundaries so can consider the same for anyone he takes in.
It can be a bit different to a house share where people tend to go in as equals.

Depending where this property is there are potentially other options that can give the benefit of the cash but less intrusive long term.
Mon-Friday works well for a lot of people and keeps the weekends free,
Shorter term/temp  like Airbnb if there is demand for that  better rates but you can keeps periods free.
not everyone is comfortable with the transient market preferring the longer term familiarity. 

If on the partner market himself lodgers can open up new social opportunities. 

Crashy_Time

As I said, people shouldn`t have to take in lodgers to be able to afford a house, hopefully people this guy`s age are awake to that fact by now.

MobileSaver

Crashy_Time said:

As I said, people shouldn`t have to take in lodgers to be able to afford a house,

The OP's son doesn't have to take in lodgers to be able to afford a house, the OP is talking about choosing to buy a bigger house than is necessary for basic shelter and that is why lodgers are being mentioned.

Crashy_Time

MobileSaver said:

Crashy_Time said:

As I said, people shouldn`t have to take in lodgers to be able to afford a house,

The OP's son doesn't have to take in lodgers to be able to afford a house, the OP is talking about choosing to buy a bigger house than is necessary for basic shelter and that is why lodgers are being mentioned.

The original question didn`t mention lodgers, it was more about the predicament the son could be in by overstretching himself financially if mortgage rates rise.