A worried first time buyer!

Bf109

What always amazes me is that when people are told how much they will have to pay up front then they are shocked SHOCKED! at how much money they will need.

Hello! Like £150,000 isnt a lot of money? remember the amount you are going to have to repay? And double that for the interest!

If you think £20k up front is a lot, have you even considered the remaining £300k?

I think people have lost the ability to comprehend how expensive a house is in this country. The price is astonomical!

Zammo

ickledee wrote: »

We are in the same boat Vicky!! We are in our early twenties and have just bought our First House - We have incurred the following;

Stamp duty - £1,500
Deposit - £15,000
Lawyers fees - £850
Survey - £200

and so will be waving goodbye to £18,000 shortly Cant wait though! Very excited, will be worth it in the end

You'll be waving goodbye to a lot more than £18k. You've just bought at the peak of the biggest housing bubble in history. I'd be sh1tting bricks if I were you.

Dogz111

mr.broderick wrote: »

Disagree housing and decent capital appreciation are no longer allowed in the same sentence. We had the greatest boom ever, now its busting, don't see that rate of hpi happening again.

Agree that capital appreciation regarding housing is very unlikely in the current climate. What will happen in my opinion is what happens with stocks and shares. Market will over compensate based on current news and severe reductions in values will result. Prices will then fall to what people consider a cheap level, based on current experience, and people will start buying. Obviously this is over simplistic as many macro economic factors need to be considered.

I still contest though if you buy at the bottom of the cycle good gains can be made although in the longer term. How long will prices fall and stagnate is anyones guess.

ickledee

I am in Scotland and prices appear still to be on the rise. However, I understand that Scotland may follow England but due to circumstances it was the right time for me to buy.

mr.broderick

Dogz111 wrote: »

Agree that capital appreciation regarding housing is very unlikely in the current climate. What will happen in my opinion is what happens with stocks and shares. Market will over compensate based on current news and severe reductions in values will result. Prices will then fall to what people consider a cheap level, based on current experience, and people will start buying. Obviously this is over simplistic as many macro economic factors need to be considered.

I still contest though if you buy at the bottom of the cycle good gains can be made although in the longer term. How long will prices fall and stagnate is anyones guess.

Yeah its easy to talk the talk but walking the walk that little bit more tricky, quite a lot of commentators on here like to talk the talk, will be interesting when prices drop 40 % and economy is in ruins just how many of these noises actually buy this "House" they've been threatening to.

Zammo

mr.broderick wrote: »

Yeah its easy to talk the talk but walking the walk that little bit more tricky, quite a lot of commentators on here like to talk the talk, will be interesting when prices drop 40 % and economy is in ruins just how many of these noises actually buy this "House" they've been threatening to.

If houses do drop by 40% Brodders - as is looking increasingly more likely by the day - I'll be able to buy the average gaff around my way for cash money. A prospect that's certainly a lot less "threatening" than borrowing 7+ times my salary for a shoebox in a ghetto - or should that be "up and coming area".

mr.broderick

Zammo wrote: »

If houses do drop by 40% Brodders - as is looking increasingly more likely by the day - I'll be able to buy the average gaff around my way for cash money. A prospect that's certainly a lot less "threatening" than borrowing 7+ times my salary for a shoebox in a ghetto - or should that be "up and coming area".

Make sure you put your hard earned cash in right at the bottom, not that important when it is somebody else's.

FaTB

mr.broderick wrote: »

Disagree housing and decent capital appreciation are no longer allowed in the same sentence. We had the greatest boom ever, now its busting, don't see that rate of hpi happening again.

I think you might be suprised !

Remember people are Stoopid & Greedy.

I'm sure people said after the early 90's crash that it couldn't be allowed to happen again.... but it did plus some !!

Dogz111

mr.broderick wrote: »

Make sure you put your hard earned cash in right at the bottom, not that important when it is somebody else's.

The telling fact for me is that if you have been to any house auctions recently then you will see flats going in some cases less than 50% of the original value. Low interest rates, estate agents bulling up prices and banking willing to lend on 100% mortgages and in some cases 125% has lead us down this crazy path. The next thing to bite will be all the unsecured debt on credit cards.

Dogz111

FaTB wrote: »

I think you might be suprised !

Remember people are Stoopid & Greedy.

I'm sure people said after the early 90's crash that it couldn't be allowed to happen again.... but it did plus some !!

Any market, if you belive psycologists and investors, are built on fear and greed. Stocks are a classic example. Housing also fits into the same bucket IMHO.