Getting on the ladder

deemy2004

EdInvestor wrote:

LOL

This one's even nicer

Booooo !

The other ones nicer

meanmachine_2

GreenB's an estate agent, by the way....

EAs don't act in the buyer's interest. Ever. Remember that.

If you're in England or Wales, then it makes abso no sense to buy now (unless you're on the ladder, in which case it doesn't make much difference either way).

Scotland and N Ireland is a different story. And, of course, there are still local hotspots. But otherwise, my advice would be to wait, especially now we're moving into a dead period for the housing market.

By Autumn there might well be lots of forced sellers that you can negotiate with.

tracy76

Thanks for the advice! well some of it anyway meanmachine!(by the way I am neither a funeral director nor a Taxman! ) but nobody has really answerwed my question.

I want to buy a property for a home - not an investment and I am not planning to do so in the immediate future, I am quite happy to wait and see what happens to the market.

Really I was looking for advice on the technicalities - such as for eg, would I be able to get an interest only morgage on the basis that I will have an inheritance in years to come (that of my parents home). Any ideas?

Thanks for you advice so far!

Tracy76

ReportInvestor

:rotfl: deemy & EdInvestor

Alliance & Leicester uncover evidence of national "mortgage phobia"
So Tracy 76 is not alone!

But to get to the point for Tracy
A lender can't bank on your parents dying or dying with any money left in this age of £25K+ pa nursing fees and selfish baby boomers. It would have to be a guarantor mortgage or similar.

Helping your children get onto the property market
Click on this link to see some of the avenues you and your parents could explore further.

spl0dge_2

tracy76 wrote:

would I be able to get an interest only morgage on the basis that I will have an inheritance in years to come (that of my parents home). Any ideas?
Tracy76

I think you'd make an excellent funeral director if you so desired.

GreenB_2

meanmachine wrote:

GreenB's an estate agent, by the way....

EAs don't act in the buyer's interest. Ever. Remember that.

.

I am not an estate agent - never have been and never will be :mad:

Meanmachine choses not to buy - its not that he can't. - its personal choice.

John_M_Business

The above graph is typical of the manipulation of statistics to suit particular arguments. From a casual look it seems catastrophic... until you realise that the Y-axis is still +ve (i.e. prices are still going UP!!).

This coming from someone who's just sold a property and is looking to rent - so I **should** be hoping that prices are going to fall dramatically. I don't think they will.

Conrad

tracy76 wrote:

Really I was looking for advice on the technicalities - such as for eg, would I be able to get an interest only morgage on the basis that I will have an inheritance in years to come (that of my parents home). Any ideas?

Thanks for you advice so far!

Tracy76

Your parents would have to stand guarantor if you want thier income also taken into account. A useful option might be Intelligent Finance. They can allow parents to join a mortgage (not simply guarantor) even though the parents wont reside.

Interest only is a separate issue and the fact guarantors etc may be involved is irrelevant. Most lenders will allow you to have interest only, although some will want you to specify a traditional repayment vehicle to cover the debt, but they almost never check whether you actually take set - up a repayment vehicle. After - all, many such repayment vehicles have produced less that adequate returns. Lenders have to 'cover thier backs' in case you seek compensation later, claiming "I wasnt told my interest lony mortgage balance remained static, the lender didnt suggest I set up a reoayment vehicle".

Banking on future inheritance is now foolhardy, as the state may want the proceeds to pay for care, or one parent may die, meet a new partner and the new partner will pusuade them to leave everything to them!

In many communities parents tend to simply give thier kids cash rather than rely on inheritence, and many even buy a home for thier kids. Although there are Inland Revenue considerations, in the real world no - one Ive ever known has had any IR or other Tax issues when the parents have died, or whilst alive. Although some people will document such a transfer to thier kids, the vast majority simply dont bother or dont know they have to. Again in the real world this goes on all the time without any problem (IFAs will scare u into proper IHT planning, but again Ive known plenty of people give thier kids large sums and nothings ever come of it.) Some posters will terrify you saying "its fraud, you must document every penny", but again in the real world Ive never known anyone have anysuch issues and neither has my Accountant.

meanmachine_2

GreenB wrote:

I am not an estate agent - never have been and never will be :mad:

Meanmachine choses not to buy - its not that he can't. - its personal choice.

Do forgive me. I thought you stated elsewhere you were a trainee EA. My sincere apologies.

And I wish it were the case that I can afford to buy. I can't. But thanks for the quick assessment of my finances.

To the OP, sorry that the advice was off-topic.

Parental guarantor mortgages sound the way forward. But making financial decisions - which is what buying a property is, I'm afraid to say - based on what may or may not happen in the future - is highly risky.

Maybe I should go into the bank tomorrow and ask for a £1m mortgage based on my future intentions to win the lottery!!!!

In fact, you should consider the future, in terms of your own finances only. Is there a clear promotional structure in your chosen career? Have you made provisions for when/if int rates double, which they're likely to do over a 25 year period? What provisions have you made for paying off the i/o mortgage at the end? Or are you going to take a gamble and hope that house price inflation lifts you out of financial peril?

Banking on mum and dad snuffing it at the right time is again a risk that no one should have to make.

GreenB_2

meanmachine wrote:

And I wish it were the case that I can afford to buy. I can't. But thanks for the quick assessment of my finances.

I was only going on some old posts i was reading when there was discussion between you and a DougK.............

Every persons assessment of affordable is different I suppose. To me 40% of my income makes house buying affordable.