Nice house?? The Rules??

beecher

I knew no-one at 22 who was even remotely interested in buying - most of my friends bought at around 29/30 and most bought tiny flats at the time. I'm 40 and a house is still unaffordable to me - I think there's an assumption that previous generations just walked into 3 bed semis with gardens and it just isn't the case for most.

Start saving and keep an eye on what a mortgage would actually cost - even if banks were giving 5x salary could you really afford it? I

Dicky2K

Unlikely to be honest. Its wishful thinking

beecher

Dicky2K wrote: »

Unlikely to be honest. Its wishful thinking

I wouldn't be - you're in a much stronger position than those who have saddled themselves with a 5x mortgage recently and are now really struggling to pay, while facing negative equity. You're likely to be one of the winners in all this - prices will come down and in a few years you'll be likely to be able to buy. There's seriously no hurry at 22 - save what you can, and watch the level of deposit you need come down as prices fall

sdooley

Dicky2K wrote: »

car

Unless you're in a rural area, ditching the car is your first step to saving a deposit.

Dicky2K

sdooley wrote: »

Unless you're in a rural area, ditching the car is your first step to saving a deposit.

Lol.. thanks for the reply anyway.. but i live in a tiny little village called Llangybi, in west wales... (For little britain fans, thats about 3 miles from Llandewi Brefi) and the nearest main town is 30 miles away and i commute 25 miles one way to work.. lol

[Deleted User]

Shame.. i bet wales will be hit pretty hard by the forth coming recession (are we in it already??).. have you saved up money for i) stamp duty ii) solicitor fees iii) survey fees iv) some furniture ?

Don't jump into it.. house prices will continue to go downwards for the next year or so - you're saving money not buying a house now.

Also - are you both stuck in your location? Could you consider upping sticks and heading for the bright lights of the city for better paying work?

Save save save. Don't buy lottery tickets, put the money in a jar, then the bank. Save save save.

Dicky2K

Its all very well moving to the city to get better paid jobs, but then everything costs a hell of a lot more too.. In comparrison to bedfordshire where i moved from, the cost of living over here in wales is drastically cheaper, not to mention free prescriptions etc.. Im reasonably happy where i am now, would just like to be in a slightly warmer, less damp flat/house lol.
Looks like im just gunna have to save some cash then..!! Thanks all.

By the way, did anyone find out what a Deferred equity thingy was?? - #10

happybroker

Sounds like shared ownership to me, it means you would buy a "share" of the property and rent the rest until such time as you can afford to buy a further share eventually working your way up to full ownership. This process is called "staircasing".

It was set up to help people in your situation to get a foot on the property ladder and most new developments now wind up having a few of these to get the planning through.

It's definitely worth looking into though, I've dealt with a few that have worked out well.

(obviously I have no idea as to your full circumstances so couldn't say it is definitely your bet option, find a decent broker and get some quality advice)

Dicky2K

So wouldn;t that mean i'd have to fork out for a Mortgage AND then find money for rent aswell???

happybroker

yeah but think about it, the mortgage will be smaller than if you paid the full price and would probably put less money in up front as te purchase price is so much less.

The key considerations for anybody looking at this are can you afford the total monthly outlay on mortgage and rent (consider higher interest rates when looking at this) and also think about your job prospects, are you likely to have a significant enough change in your income in the future to be able to afford to buy the rest of the equity?