Guy at work.. Should i tell him?

LittleMissAspie

Jorgan wrote: »

One question I always want to ask someone wanting house prices to crash, is 'when do you know the time is right to buy a property?'

When my boyfriend and I can buy a starter home for 3x our joint income. Which feels like never at the moment.

Neas - you should try re-reading your own posts. You might find that, in your post at 8.34 this morning in this thread, you were getting MrSafeGaz's behaviour confused with your own.

neas

Pobby wrote: »

I think neas is looking in Plymouth.House prices in that city have gone up about 400% in the last 10 years.I might also argue that it is one of the cheapest places to buy in in the south west.

Aye it is, cornwall is damn expensive with holiday homes. Still average wage is much lower here..

EdInvestor

Rick62 wrote: »

Neas, what do you want to tell this guy? He already has the property, he is tied in to the mortgage for another year, all the major papers are now running front page stories suggesting property could fall 20% over the next 2 years (about right as an average, IMO).

If he makes a loss he can put in a complaint about mortgage misselling to the broker that flogged him his loan.The Ombudsman has already said he will take a very dim view about this sort of mortgage misselling.

Its a sad fact that if prices do fall by 20% plus over the next 2 years then loads of FTB and BTL buyers are going to get hurt, some very badly. The politicians, BOE, FSA and media have let everyone down

Not necessarily, do try to keep up.

gfplux

Please, Please put the handbags down. Put the toys back in the pram and have a cup of tea

Pobby

neas wrote: »

Aye it is, cornwall is damn expensive with holiday homes. Still average wage is much lower here..

You are so right regarding the average wage down here.Also it`s very out of step with house prices.I really wonder just how people afford anything here.

LittleTinker

Pobby wrote: »

You are so right regarding the average wage down here.Also it`s very out of step with house prices.I really wonder just how people afford anything here.

They manage the same way as I did when I was younger and wanted my first house.....I had to move out of the area because I couldn't afford one where I was brought up but it seems these days no-one feels as though they should move away.

I get fed up of people bleating on "Its not fair! Its my right" .....oh dear, such is life!

neas

Im fortunate as 27.5k down here is a pretty good salary to be on.

affordmylife

my hubby earns £20,000. we have a £200,000 mortgage. now im not very good at maths but i think thats 10 times his income isnt it?

he has to do all the over time there is (and hope that there is some) and i have to work to in order to contribute to our normal living expenses.

we manage.

neas

you manage but if one of you become sick... thats it game over. Its meant to be 3.5x.... so you can afford 'noise' in your payments.. I.e sick for 6 months but repayments can be taken from some savings etc.

Strapped

neas wrote: »

I know a student interm at work (2 years into his uni degree with 1.5 years left as a student) who managed to get a joint mortgage with his partner... he is at uni and on 650 interest free mortgage. His 2 year fixed rate deal (at about 5%) is gouing to expire in about a years time. He thinks he is going to make 5k on the original price of the property... He knows theres problems with the financial market as adviced me to 'wait a few months' before trying the house market... he is only 20 but he has made one of the biggest financial decisions of his life to buy at the top of the market... with no income. His partner will obviously be servicing alot of the debt.

His idea was to get an interest only mortgage and then turn to a repayment mortgage once he gets a full time job after being a student. He expects it to to rise by 5k... I didn't dare break his heart by suggesting his house might be worth less 20%... so he will be in negative equity... And... when he thinks he will be able to remortgage he will be forced onto a higher SVR pushing his mortgage up to 1000+ per month because he is in negative equity and can't pay the shortfall. He even accepted he couldn't service anymore than a 150 jump. He intends to just "sell up" once he moves after graduating.

Its a 1 bedroom flat in Exeter... worth about 120-150k...they put down about 10k deposit.

Do i break it to him or just let him delude himself? Of all the people inflating the housing market this guy I feel the worse for because he is only young... and prob has just taken a 30-40k hit on an unsaleable property .

What do i do?

Don't they pay interns?

(And £120-150k for 1 bed in Exeter sounds very high - must be one of the new trendy blocks?)