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Sorry - very naive question...

124

Comments

  • tomstickland
    tomstickland Posts: 19,538 Forumite
    10,000 Posts Combo Breaker
    When you borrow the money, you have to pay back the money regardless of what the house is worth.
    Happy chappy
  • HC_2
    HC_2 Posts: 2,239 Forumite
    What I mean is, things keep repeating themselves over and over again. Like groundhog day.
    I am convinced our kids will say 'it was easier in my day' even though we are worrying about them now.

    Sorry, Laura - I'm still posting.

    It was easy to buy a house with a partner when I was 18, provided you had a decent job, in 1984. We did it, our friends did it, everyone we knew did it.

    It is not easy now. My kids will probably be 35 before they get their foot on the property ladder.

    My house was probably worth about £34k in 1984. It's now worth 12 times that. Have salaries gone up that much? Of course not.

    It'll be even harder for my children's children.
  • dean_ham
    dean_ham Posts: 277 Forumite
    HC wrote: »
    Sorry, Laura - I'm still posting.

    It was easy to buy a house with a partner when I was 18, provided you had a decent job, in 1984. We did it, our friends did it, everyone we knew did it.

    It is not easy now. My kids will probably be 35 before they get their foot on the property ladder.

    My house was probably worth about £34k in 1984. It's now worth 12 times that. Have salaries gone up that much? Of course not.

    It'll be even harder for my children's children.

    Hey if us FTB's hold out untill prices drop to reasonable levels (i.e 4-5 times annual salaries) And if the financial services stick to only borrowing to people with 80-90% LTV and generally be more fussier to who they borrow to. We will see these house prices tumble and tumble mark my words.
  • HC_2
    HC_2 Posts: 2,239 Forumite
    dean_ham wrote: »
    Hey if us FTB's hold out untill prices drop to reasonable levels (i.e 4-5 times annual salaries) And if the financial services stick to only borrowing to people with 80-90% LTV and generally be more fussier to who they borrow to. We will see these house prices tumble and tumble mark my words.

    You may well be right. However, you'll probably still be waiting when you're drawing your pension.

    If I were you, I'd get on the property ladder as soon as possible - even if that means a studio flat above a chip shop.
  • dean_ham
    dean_ham Posts: 277 Forumite
    HC wrote: »
    You may well be right. However, you'll probably still be waiting when you're drawing your pension.

    If I were you, I'd get on the property ladder as soon as possible - even if that means a studio flat above a chip shop.

    Thanks for the advice but im gonna hold out.

    I would like to move out from my parents house. But i dont need to move out as i get on with my parents.

    Think i will keep saving my £1000 a month towards a deposit and in the mean time watch the prices drop. You never know i could buy my first property with a 50% LTV if i wait 12-18 months rather than buy now at 80% LTV.
    :beer: :beer: :beer: :beer: :beer: :beer: :beer:
  • HC_2
    HC_2 Posts: 2,239 Forumite
    dean_ham wrote: »
    Thanks for the advice but im gonna hold out.

    I would like to move out from my parents house. But i dont need to move out as i get on with my parents.

    Think i will keep saving my £1000 a month towards a deposit and in the mean time watch the prices drop. You never know i could buy my first property with a 50% LTV if i wait 12-18 months rather than buy now at 80% LTV.
    :beer: :beer: :beer: :beer: :beer: :beer: :beer:

    Hope it works out. Good luck! :j
  • KiKi
    KiKi Posts: 5,381 Forumite
    Part of the Furniture 1,000 Posts
    HC wrote: »
    That is a long way of saying what I already posted.

    Yes, it was, mate. :)

    I think sometimes it helps to have things presented in different ways, even though they're saying the same thing, so I'll defend my post as being valid! I just chose to explain it further with a couple of examples, as that's what I personally find useful! :D

    Some of the posts on these forums have the same reply over and over from different people!!! I think it's helpful to have different perspectives and explanations which all support the same answer. :)

    KiKi
    ' <-- See that? It's called an apostrophe. It does not mean "hey, look out, here comes an S".
  • BobProperty
    BobProperty Posts: 3,245 Forumite
    1,000 Posts Combo Breaker
    SquatNow wrote: »
    It's worth adding that mortgages in many US states are non-recourse, meaning if you get in negative equity you can hand the keys back and they can't chase you for the difference.
    You're at it again Squatter. Do tell us which states are recourse or non-recourse, please. Tell us also if re-fi is included and HELOCs. Alternatively, shut up if you only know a little about what you are talking about.
    A house isn't a home without a cat.
    Those are my principles. If you don't like them, I have others.
    I have writer's block - I can't begin to tell you about it.
    You told me again you preferred handsome men but for me you would make an exception.
    It's a recession when your neighbour loses his job; it's a depression when you lose yours.
  • tomstickland
    tomstickland Posts: 19,538 Forumite
    10,000 Posts Combo Breaker
    HC wrote: »
    You may well be right. However, you'll probably still be waiting when you're drawing your pension.

    If I were you, I'd get on the property ladder as soon as possible - even if that means a studio flat above a chip shop.

    Has this post accidently travelled in time from 2 years ago?
    Prices are falling, the news is everywhere.
    Studio flats are the biggest casualty in a slump.
    Best thing to do is to sit it out waiting until prices bottom out.
    Happy chappy
  • HC_2
    HC_2 Posts: 2,239 Forumite
    Has this post accidently travelled in time from 2 years ago?
    Prices are falling, the news is everywhere.
    Studio flats are the biggest casualty in a slump.
    Best thing to do is to sit it out waiting until prices bottom out.

    Yes, I understand what you mean.

    However, while you're waiting for the bottoming-out (and how will you know when it's there?), savings interest rates will go down and mortgage interest rates will go up. In 1986 I bought a house for £70k. In 1987 it was worth £120k. I sold it a year later for £70k. We may well be heading for a similar situation now.

    It seems you need a PhD in economics these days to know what to do.
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