My wife is desperate for her own house but..

rach83

meanmachine wrote:

rach83 wrote:

Wow, you bought at 18? How did you manage that?

Now that is impressive.

As for whether you've "made" £40,000, that's again rather debatable, since you still need somehwere to live. I'm guessing. Nonetheless, for someone your age, that's pretty good.

However, having a mortgage at 18 - sounds far too young to me. I wasn't thinking about property at that age. I was getting an education and travelling the world having fun.

Maybe if I'd done the same as you, I wouldn't now be a priced-out FTBer!!

I was actually a month into being 19!! I managed it cause for me owning my own property was very important to me and I worked like hell to get it no hand outs for me!! I guess I followed in my parents footsteps as they brought their first property when they were 19 in 1980 - 4 houses later they live in a property that is worth about £500k. I know what you say about "made" £40,000 but it is a purpose built flat and others that are identical have fetched a price which would mean I have made that. I know I need somewhere to live but it means that when I do purchase my next property there will not be such a gap. I am extremely mature for 21. Yeah going out, getting drunk can be a laugh for some but what have you got to show for it - Nothing. I did loads of travelling when I was younger. I have been to a lot of places and yes this still interests me but I can do this along the way. I am still learning now just finishing a college course. I am glad I started when I did by the end of this year I will have 22 years of mortgage left meaning as long as I don't extend the term I will be 43 when I pay it off! I can do my travelling then! A mortgage isn't necessarily the end of your life yes it is a commitment but in my experience it has been the best thing I have ever done.

dippy

Whereabouts do you live Eurows? The hometrack figures coming out on Monday will reveal that England and Wales have already fallen 3.6% from this time last year.

Will your wife's parents pledge to fork up for any shortfall?

eurows

They say they will but I don't want to. I am convinced that I will save mine and their money by waiting. By the way I live in Huddersfield and there are tons of houses at the moment. There is one opposite me now. A barn conversion made into four houses. Three sold but took a year for £250,000 a year ago. The other one the builder upped the price to £345,000 reduced it this spring to £315,000 still on the market two years on.
Is that greed or what.

It isn't the deposit that stops me getting a house. Its the foolishness of buying one at these prices.

If they come down by 10% in a year I have wasted my deposit when I could of waited.

If they go up....well. they cant'. THATS A FACT

YorkshireBoy

eurows wrote:

I take it if they fall 30% your knackered

Why? How?

I have enough savings to pay the mortgage off now, but this wouldn't make sense as I'm making more interest on my ISA's than I pay on my mortgage. Having said that, the mortgage will be settled in January 2007, 12 years early! Anyway, that wasn't the point I was trying to make.

My point is that, despite...

1/ Last year's 5 separate 1/4 point rises in BOE base rates, and
2/ Scaremongering in the media, and
3/ Worrying (from a Government viewpoint) levels of consumer debt, and
4/ People going for self-cert mortgages of 4 & 5 times joint income, and
5/ Many buyer's insisting that "we'll show 'em - we'll offer 10/15% less and this'll drive down the market prices"

...the slow down in house prices in many parts of the country (and especially in my part of the world)...

IS SIMPLY NOT HAPPENING

Yes, I'm a 1/4 millionnaire (as I say though, only on paper), but I'm unlikely to ever realise this in terms of pound notes in my wallet - and neither will my kids if we need "care" in later life.

The more worrying issue is how my kids are ever going to get a foot on the housing ladder without TWO good salaries and NO desire to start families of their own.

Hope this clarifies my earlier post.

YorkshireBoy

eurows wrote:

It isn't the deposit that stops me getting a house. Its the foolishness of buying one at these prices.

Housing is like the stockmarket though - take any 5 year period in (recent) history and you will find that prices have risen.

The big difference between the late 80's/early 90's and now, with regard to price falls and negative equity, is the low level of interest rates (4.75% now compared to 12-13% back then). BOE rates WILL NOT GO UP to those early 90's levels due the effect it would have on the economy - especially with such low Euro zone rates.

I'm advising my kids to get on the ladder as soon as possible. Renting and saving for a deposit is false economy in my opinion.

eurows wrote:

If they go up....well. they cant'. THATS A FACT

We'll wait and see!

mimi_money_saver

eurows wrote:

If they go up....well. they cant'. THATS A FACT

Eurows, is it not a question of supply and demand? In my area (South East England) demand outstrips supply two or three fold. Even long term building programs the government have proposed will not address the shortfall in the long term. It is supply and demand that will dictate how house prices move.

Also taking a longer term and broader view (look at the last thirty years, say) prices have risen despite periods of negative growth - THAT'S A FACT

For the time being property is a safe bet in this country PROVIDED you are in it for the long term game.