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Comments
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Seven years? Blimey! Mine's nearly doubled in four. Traditionally, house prices used to double every ten years. You have been very unlucky!
Hoping to move this year - will be my 8th move in roughly 25 years. Can't imagine only having moved twice in that time!
Mortgage deals are very good at the moment. If people buy and overpay, they really should be able to avoid the problems you've incurred.
Jx
Not very unlucky at all really, there are many parts of the UK that have seen only modest house price inflation post 2008 and certainly haven't seen values double.0 -
If you're only going to stay 2 years or less, it doesn't make sense to buy, you may not make back the money you spend in fees.
If you are struggling to earn any interest on your savings you could start overpaying your student loan if you are one of those people who will pay it all off before it's wiped.0 -
greengirl89 wrote: »Yes - we are paying £14,000 a year rent
I think a key question that would be useful to get thoughts on is how long you should realistically envisage staying in a property for before selling up - e.g. if you know you may want to sell up and move on in 2 years is that too short? 4 years? 6 years? I guess it depends how much the property value has changed, but is there a rule of thumb?
It does depend on how the property value has changed, but also how much capital you've paid off versus costs of home ownership such as moving costs or costs for repairs.0 -
Goodness me there's some silly statements on here!
Unlucky because someone's house price hasn't doubled over the last 10 years?
- No, house prices haven't doubled in 10 years because wages have gone down in real terms! The system is broken and it's the very fact that prices boomed for decades whilst wages didn't even track inflation for large parts of it that we're now in this mess, where half the amount of young people (aged 20-30) are able to buy when compared to the last generation 20 years ago!
Better to be on the ladder than off it?
- Not if the ladder is about to fall over!
- Not if you're submitting to a 25 year mortgage, maxing out at 4.5x your salary with a 95% LTV mortgage on a trendy wooden shed in Peckham!
Better to be paying a mortgage than renting?
- Not if that mortgage lands you in negative equity in a year's time!
If you're going to move on in a couple of years then the moving fees (stamp duty, solicitors, mortgage fee, removal costs) PLUS the reduced value of your property relative to what you paid for it, could easily set you back more than the equivalent rent. This isn't some wild assumption by the way - it's well known that house prices are now falling and the writing has been on the wall for some time.0 -
Goodness me there's some silly statements on here!
This isn't some wild assumption by the way - it's well known that house prices are now falling and the writing has been on the wall for some time.
And yet house prices have gone up in your area (Hull) since you sold to rent in March 2016? :huh:Every generation blames the one before...
Mike + The Mechanics - The Living Years0 -
Kilby why do you just blurt out statements like that as if they're fact when they actually aren't true? It's clumsy.0
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MobileSaver wrote: »And yet house prices have gone up in your area (Hull) since you sold to rent in March 2016? :huh:
Yes they have thanks Stalky McStalkerson, but nationally (on average) house prices have fallen for 3 consecutive months. Does nobody read the various reports out there? Land registry, Halifax, nationwide - all stating pretty significant falls...0 -
mysterymurdoch wrote: »Kilby why do you just blurt out statements like that as if they're fact when they actually aren't true? It's clumsy.
It's a statement of fact. Have you seen the statistics or do you have your head in the sand?0 -
nationally (on average) house prices have fallen for 3 consecutive months. Does nobody read the various reports out there? Land registry ... - all stating pretty significant falls...
Why are you completely making stuff up? Talk about "alternative facts!" :rotfl:Land_Registry wrote:The January data shows an annual price increase of 6.2% which takes the average property value in the UK to £218,255. Monthly house prices have risen by 0.8% since December 2016.Land_Registry wrote:The February data shows an annual price increase of 5.8% which takes the average property value in the UK to £217,502. Monthly house prices have risen by 0.6% since January 2017.Land_Registry wrote:The March data shows an annual price increase of 4.1% which takes the average property value in the UK to £215,847. Monthly house prices have fallen by 0.6% since February 2017.
Where are the significant falls?!?!?Every generation blames the one before...
Mike + The Mechanics - The Living Years0 -
Better to be on the ladder than off it?
- Not if the ladder is about to fall over!
Depends where you are... not everywhere is equally bad right now. One post suggested the OP considers moving to another area with a better income to house price ratio...- Not if you're submitting to a 25 year mortgage, maxing out at 4.5x your salary with a 95% LTV mortgage on a trendy wooden shed in Peckham!
The OP has quite a big deposit.
I don't recall anyone recommending taking out a 95% LTV on this thread.Better to be paying a mortgage than renting?
- Not if that mortgage lands you in negative equity in a year's time!
Buying into a perceived "good" area or an up-and-coming area will help mitigate this (to a varying degree) - again it depends on where you are and local factors. Maybe they are building a giant power station near you, maybe they aren't - these sorts of things can have a big impact. In a good or bad market - there's always factors that will make one house priced the same as another more attractive (is it near amenities etc., a big employer, a park etc.).
Sometimes it seems like the UK has become obsessed with always making money from every potential house move. Some people would be happy to just have the stability of ownership at all. Not every house move you will gain from financially (some people buy to live in their house!), if you move around enough, there's a chance you'll have made profits and losses. The trick is to make sure those loses aren't so big.
There's a risk to anything in life, such as crossing the road. The OP is just asking for some advise on the risks with this decision and is weighing it up - like anyone would do...0
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