Worried First Time Buyer - In Too Deep?

littlemissmoney

How would you manage if your girlfriend got pregnent? Not trying to scare you It's just something to think about. Your salaries are quite low so could you cope on just one?!

mr.broderick

seraphina wrote: »

That is utter rubbish. Whether or not you believe that house prices are going to fall substantially (Nationwide figures show that the average price has fallen in the past 4 months in a row), negative equity was a very real problem at the beginning of the 1990's.

Renting is *not* dead money - in fact, in your case it sounds like it would do you the power of good - if you both live at your parents you have no real experience about how much it costs to run your own home, between just the two of you. In many parts of the country renting is much cheaper than buying, so you should be able to save a good deposit whilst you rent. If you really want a place of your own, then surely a year or two of saving isn't such a hardship?

There will always be another house that is just as good. ANd as for renting being dead money, what do you consider the interest on a mortgage to be?

SOrry to sound harsh, but it sounds like you're being pressured into buying.

Renting is dead money no matter how much you tart the concept up, this is coming from someone who rented for the whole of last year.

Kez100

poppyolivia wrote: »

Never said it was!:p And for all you know my hubby could be mega minted!;)

If your husband is mega minted then you didn't tell the truth about the income which supported the repayment of the two mortgages. If the income was correct and the mortgages were not for 132k then your experience is not relevant to the OPs question. Please keep on topic rather than posting to impress yourself.

Kez100

mr.broderick wrote: »

Renting is dead money no matter how much you tart the concept up, this is coming from someone who rented for the whole of last year.

I wish I had rented when prices fell and I ended up in negative equity.I would have been better off by about £5000.

olly300

mr.broderick wrote: »

Renting is dead money no matter how much you tart the concept up, this is coming from someone who rented for the whole of last year.

So you only rented for one year and you say it's dead money.

Obviously you don't understand the advantages to renting the most important being a roof over your head.Yep shelter is important for human beings - go and help out at a homeless hostel and you soon realise that renting is better than living on the streets.

In this case the couple can barely afford to buy the house they want AND have not lived together - which looks like a disaster waiting to happen.

SouthCoast

Just my contribution.

Rent for six months, save like mad, then come back and ask your question again.

PasturesNew

Phirefly wrote: »

I'm sorry OP, I've not read the whole thread, not least because Ms. P. New will slap my wrist for slacking, but I'd like to offer a different perspective.

I'm onto you ... copy me into your billable hours timesheet this week.
I need to make sure you're not slacking!

PasturesNew

mr.broderick wrote: »

Renting is dead money no matter how much you tart the concept up, this is coming from someone who rented for the whole of last year.

I've rented for 6 months.

In that time any house I would have bought 6 months ago has now come down £10,000.

If I were buying that would be £2,100 rent -v- £10,000 saving (compounded at the rate of interest on a mortgage).

I expect to repeat this "saving" in the next 6 months.

It depends where/when/for how much you're doing it. And for what reasons.

Phirefly

PasturesNew wrote: »

It depends where/when/for how much you're doing it. And for what reasons.

At last someones making sense.

She's right yinnah. Regardless what the crystal ball brigade say pro or con, everyones circumstances are completely different so do the right thing for you, no one else can tell you what that is.

geoffky

people like this have got us to where we are today,,,do you really think the builder is paying 5 %....i reckon you should buy it first thing in the morning and get it over with and forget about negative equity or the chance interest rates will have to rise because of inflation and you will not be able to afford it or new builds are always priced up at least 20% ...this is a no brainer for me..