price drops

LillyJ

MrSafeGaz wrote: »

10 years ago a couple on average wage could probably have afforded a 4 bedroom detached house. Maybe even 5 years ago.

Depends where you live, in the area where I come from originally average wage would have struggled to get you a roof over your head 5 years ago. Certainly wouldn't now. Like I said before it is all regional. To me that is just greedy why do most people NEED a 4 bed detached? They don't. They WANT one.

neas

i dont see the point in wasting money. For me the renting issue is not a problem.. I negotiated on the end of my first 6 month tenancy a further 12 month tenancy at no increase... because it saves the landlord hassle if one tenant stays for a year... no loss of earnings from move outs etc.

I intend to have my first child while renting also... because its the financially sound thing to do. Im 24 our combined salary is 19k+28k so not too shabby but even then... with 25k deposit I will wait... bide my time... so my first house is a 3 bedroom in a nice area instead of a crappy 2 bedroom in a poor area.

MrSafeGaz

LillyJ wrote: »

Depends where you live, in the area where I come from originally average wage would have struggled to get you a roof over your head 5 years ago. Certainly wouldn't now. Like I said before it is all regional. To me that is just greedy why do most people NEED a 4 bed detached? They don't. They WANT one.

I find that very hard to believe. Nowhere in the last 5 years has increased in affordability. If you couldn't afford somewhere 5 years ago, there is no way you are going to be able to afford it now on average.

LillyJ

MrSafeGaz wrote: »

I find that very hard to believe. Nowhere in the last 5 years has increased in affordability. If you couldn't afford somewhere 5 years ago, there is no way you are going to be able to afford it now on average.

Nope you have misread my post. I am talking about where I come from originally, in the home counties stockbroker belt. I now live in the midlands as I have seen the light.

Stevenic

LillyJ wrote: »

Yep exactly. and after 7 years renting and having a good deposit I feel that there is no reason why I should make a home for me, my OH and any future children we may have.

If the finances work for buying a home than being unhappy renting then the answer is obvious, I wouldn't want to be constantly putting off buying because there 'may' be a better time because the timing may never be right.

I knew that I didn't want to be paying another persons mortgage and I had very little control over my living environment either. I wanted to purchase and then pay off my mortgage as soon a possible.

LillyJ

neas wrote: »

i dont see the point in wasting money. For me the renting issue is not a problem.. I negotiated on the end of my first 6 month tenancy a further 12 month tenancy at no increase... because it saves the landlord hassle if one tenant stays for a year... no loss of earnings from move outs etc.

I intend to have my first child while renting also... because its the financially sound thing to do. Im 24 our combined salary is 19k+28k so not too shabby but even then... with 25k deposit I will wait... bide my time... so my first house is a 3 bedroom in a nice area instead of a crappy 2 bedroom in a poor area.

That is your choice, but I personally would not want children in rented. My home is important to me, more so than how much a bit of paper tells me my house is worth. I HATE renting and pay the same as I would for a mortgage. If you have found somewhere nice to rent then good for you. I haven't and have spent 7 years trying.

I am also very happy to stay in the house that we have found for the next 10 years, probably more. I love the house, I love the area, it is where all my friends are and where I have rented for 7 years. I wouldn't want to live anywhere else. It is perfect for us and our situation. We are not going to be repossessed (why would we be if we can afford SVR and have secure jobs?) so I see no problem. To me getting out of rented is important. My home is my priority. My sister's is partying and she would not buy a house, and that is her choice.

MrSafeGaz

Yeah there are always two aspects of buying a house aren't there, the emotional and the logical. In your situation it sounds like you did the right thing in terms of your happiness and your future plans. I certainly would not dream of having a child unless I had a home of my own, I don't believe renting would provide enough stability.

On the other hand though there is always that thought, that now, given the market conditions that it is the best time to sit back and consolidate. Given your earnings you could easily save 2k net a month between you. If house prices stayed the same you would have a 24k less mortgage in 12 months. If they went down 10% you would have a 37k less mortgage. Or would have been able to get somewhere bigger and better for the same affordability as now.

Anyway, you are in an affordable position, negative equity won't affect you and you are happier for it so it's all good

neas

nobody can say with 100% conviction they wont be repossessed... what if you loose your job?

MrSafeGaz

neas wrote: »

nobody can say with 100% conviction they wont be repossessed... what if you loose your job?

With two people on 30k a piece, even if one lost their job the house would still be affordable. If both lost their job then that is extremely unfortunate and taking such unlikely events in consideration would mean that no one would ever buy a house.

LillyJ

Cheers, my emotional situation is very important to me! I do understand that houses will probably go down, however I think when I am 82 showing pictures of my first home to my great grandchildren I will not care less whether or not I could have got it 10% cheaper if I had waited a year!

I also nearly lost my mum a few months back (she is only in her late 40s) and it made me realise that every second counts and put a different slant on life for me to be honest.

Yeah there are always two aspects of buying a house aren't there, the emotional and the logical. In your situation it sounds like you did the right thing in terms of your happiness and your future plans. I certainly would not dream of having a child unless I had a home of my own, I don't believe renting would provide enough stability.

On the other hand though there is always that thought, that now, given the market conditions that it is the best time to sit back and consolidate. Given your earnings you could easily save 2k net a month between you. If house prices stayed the same you would have a 24k less mortgage in 12 months. If they went down 10% you would have a 37k less mortgage. Or would have been able to get somewhere bigger and better for the same affordability as now.

Anyway, you are in an affordable position, negative equity won't affect you and you are happier for it so it's all good