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  • FIRST POST
    • sv722
    • By sv722 24th Mar 18, 8:20 PM
    • 13Posts
    • 6Thanks
    sv722
    Is buying a house a good idea?
    • #1
    • 24th Mar 18, 8:20 PM
    Is buying a house a good idea? 24th Mar 18 at 8:20 PM
    I've got about £4.5k saved up in my help to buy ISA and was considering a transfer into the Lifetime ISA to get the £1k annual bonus but i'm having doubts. This is because i won't be able to use that money to travel or get myself nice things. I get envious seeing my friends travelling the world.

    I'm 27 and looking to get my own place by age 35 at the absolute latest. So is house ownership a goal to aspire to or am i better off closing my ISA withdrawing the money and using it for something else?

    Thanks
Page 6
    • Crashy Time
    • By Crashy Time 4th Apr 18, 12:00 PM
    • 5,912 Posts
    • 2,327 Thanks
    Crashy Time
    Why will conversing with them mean I learn where the magic money tree is? I'm assuming that's where they'll suddenly find the money for a deposit from.
    Originally posted by shirlgirl2004

    Looks like more and more people are getting lost on the way to the magic money tree


    http://www.propertyindustryeye.com/property-registrations-plummet-by-a-quarter-in-february/
    • Crashy Time
    • By Crashy Time 4th Apr 18, 12:02 PM
    • 5,912 Posts
    • 2,327 Thanks
    Crashy Time
    Return to a thread and see yet again crashy has ruined it.

    If everyone ignored or blocked him he would go back to his lonely one bed rented bed sit and post his nonsense somewhere else.

    Crashy you didn't reply do you want the number of someone who works at my place he is just like you and posts rubbish as he has nothing else to do or concentrate on and is so bitter he hasnt bought a place by late forties?

    I don't know why I'm asking as I know I'll see a post from crashy in the form of a link to a house price crash website instead.
    Originally posted by Mickygg

    Like you do?
    • jeanzbeanz
    • By jeanzbeanz 4th Apr 18, 5:25 PM
    • 51 Posts
    • 44 Thanks
    jeanzbeanz
    In answer to OP, I love the old saying about "live like nobody else will now, so you can live like nobody else can in the future"
    You might feel like you are missing out now but if you buy as early as you can then you will be the one feeling smug later in life when your friends are all still stuck in the rent trap!
    My husband and I are in our 20s and lucky enough to own our house, and to afford it we don't eat out, go on expensive holidays, have gym memberships etc etc...
    I do believe houses are affordable to Millenials, but unfortunately they choose to have an easy lifestyle rather than prioritise investing in a stable future.
    • Crashy Time
    • By Crashy Time 5th Apr 18, 9:02 PM
    • 5,912 Posts
    • 2,327 Thanks
    Crashy Time
    In answer to OP, I love the old saying about "live like nobody else will now, so you can live like nobody else can in the future"
    You might feel like you are missing out now but if you buy as early as you can then you will be the one feeling smug later in life when your friends are all still stuck in the rent trap!
    My husband and I are in our 20s and lucky enough to own our house, and to afford it we don't eat out, go on expensive holidays, have gym memberships etc etc...
    I do believe houses are affordable to Millenials, but unfortunately they choose to have an easy lifestyle rather than prioritise investing in a stable future.
    Originally posted by jeanzbeanz

    If you get deep into debt for a shoebox, especially in London, and interest rates rise, you won`t have a stable financial future, quite the opposite in fact
    • buggy_boy
    • By buggy_boy 5th Apr 18, 10:17 PM
    • 311 Posts
    • 194 Thanks
    buggy_boy
    If you get deep into debt for a shoebox, especially in London, and interest rates rise, you won`t have a stable financial future, quite the opposite in fact
    Originally posted by Crashy Time
    If your sensible and borrow only what you can afford then you will secure your future for the rest of your life, chances are your mortgage will be less than your rent if you have a decent deposit and after 25yrs once the mortgage is paid off you pay nothing more, you own the property.... The alternative is pay rent for your life....

    Home ownership is not for everyone but there is a reason it is so coveted.
    • Crashy Time
    • By Crashy Time 7th Apr 18, 11:48 AM
    • 5,912 Posts
    • 2,327 Thanks
    Crashy Time
    If your sensible and borrow only what you can afford then you will secure your future for the rest of your life, chances are your mortgage will be less than your rent if you have a decent deposit and after 25yrs once the mortgage is paid off you pay nothing more, you own the property.... The alternative is pay rent for your life....

    Home ownership is not for everyone but there is a reason it is so coveted.
    Originally posted by buggy_boy

    The reason it is "So Coveted" as you say is because people believed they were buying a cash machine or a lottery win, and it was, until it wasn`t. Sentiment is very different now, there will be many with very large mortgage debt dreading the coming rate rises IMO.


    https://www.standard.co.uk/business/bank-of-england-must-tread-softly-to-stop-housing-slowdown-turning-into-a-crash-a3806741.html


    All that happened was that bankers stoked the fires of lending (and bonus payments) by appealing to the "Greed" side of human nature, and also to some extent to "Fear" (fear of losing out) The real fear is yet to come though, and that is when people will panic and attempt to cut their losses, as they always do in crashes.
    • MobileSaver
    • By MobileSaver 7th Apr 18, 12:18 PM
    • 1,386 Posts
    • 1,942 Thanks
    MobileSaver
    The reason it is "So Coveted" as you say is because people believed they were buying a cash machine or a lottery win,
    Originally posted by Crashy Time
    You are completely wrong and this is one of the main reasons why you made the biggest mistake of your life regarding property and your finances.

    The vast majority of property owners bought a home and not an investment; they wanted somewhere secure where they couldn't be turfed out with 2 months notice, where they didn't need permission to have pets or need permission to redecorate their bedroom. They also had enough common sense to realise that paying their own mortgage was always going to be more sensible than paying someone else's.

    It is you and your HPC friends who are fixated on whether house prices are going up or down and as you are now all finding out, you are all dearly paying the price for your delusions.
    Respect to 3 of the greatest actors of all time; amazing people who are totally believable as the characters they play & almost single-handedly make the shows they starred in:

    Peter Dinklage as Tyrion Lannister in Game of Thrones
    Daniel J. Travanti as Frank Furillo in Hill Street Blues
    Claire Danes as Carrie Mathison in Homeland
    • Crashy Time
    • By Crashy Time 7th Apr 18, 2:02 PM
    • 5,912 Posts
    • 2,327 Thanks
    Crashy Time
    You are completely wrong and this is one of the main reasons why you made the biggest mistake of your life regarding property and your finances.

    The vast majority of property owners bought a home and not an investment; they wanted somewhere secure where they couldn't be turfed out with 2 months notice, where they didn't need permission to have pets or need permission to redecorate their bedroom. They also had enough common sense to realise that paying their own mortgage was always going to be more sensible than paying someone else's.

    It is you and your HPC friends who are fixated on whether house prices are going up or down and as you are now all finding out, you are all dearly paying the price for your delusions.
    Originally posted by MobileSaver

    Honestly can`t remember getting two months notice...ever, most of my rentals have been me giving notice TBH. One house I stayed in the landlord gave TWO YEARS notice, because that was roughly how long until the developer he was selling to would need access to the land/property, the rent was dirt cheap as well


    http://www.thedailymash.co.uk/news/society/people-who-dont-buy-a-house-will-never-be-happy-2013082178832
    • Koldweather1
    • By Koldweather1 7th Apr 18, 4:24 PM
    • 41 Posts
    • 62 Thanks
    Koldweather1
    The one thing Crash forgets is once you have paid off the mortgage you are living totally free of that large cost. Renting and you will never be free of that cost. Even a cheap rent is still a decent wedge of money a year. A person could live 30 years without paying housing costs...that sum ofmoney is huge.

    I once worked out on average that for my own situation it will take interest rates of around 10% over a 25 year period for it to be more cost effective up to 80 for me (I'd assume the state will eventually pick up a renters bill by that point?)to rent rather than have a mortgage.

    We may get a short burst up to 10% at some point...but no way we will average that over a 25 year period! So financially its better by a long way to buy unless things go apocalyptic.
    • Crashy Time
    • By Crashy Time 8th Apr 18, 3:16 PM
    • 5,912 Posts
    • 2,327 Thanks
    Crashy Time
    The one thing Crash forgets is once you have paid off the mortgage you are living totally free of that large cost. Renting and you will never be free of that cost. Even a cheap rent is still a decent wedge of money a year. A person could live 30 years without paying housing costs...that sum ofmoney is huge.

    I once worked out on average that for my own situation it will take interest rates of around 10% over a 25 year period for it to be more cost effective up to 80 for me (I'd assume the state will eventually pick up a renters bill by that point?)to rent rather than have a mortgage.

    We may get a short burst up to 10% at some point...but no way we will average that over a 25 year period! So financially its better by a long way to buy unless things go apocalyptic.
    Originally posted by Koldweather1

    The debt you would need to take on now to reach that goal though just isn`t worth it for more and more people, especially as interest rates are going to start rising, the only realistic outcome is that prices correct, or the state picks up the tab for more and more people in old age.
    • buggy_boy
    • By buggy_boy 8th Apr 18, 8:26 PM
    • 311 Posts
    • 194 Thanks
    buggy_boy
    The debt you would need to take on now to reach that goal though just isn`t worth it for more and more people, especially as interest rates are going to start rising, the only realistic outcome is that prices correct, or the state picks up the tab for more and more people in old age.
    Originally posted by Crashy Time
    As interest rates rise so will inflation, the advantage is in 20yrs time a lot of the mortgage can be inflation-ed away where as rents will generally increase...
    • Crashy Time
    • By Crashy Time 8th Apr 18, 10:19 PM
    • 5,912 Posts
    • 2,327 Thanks
    Crashy Time
    As interest rates rise so will inflation, the advantage is in 20yrs time a lot of the mortgage can be inflation-ed away where as rents will generally increase...
    Originally posted by buggy_boy

    My experience is that on basic flats with private landlords they won`t, not much anyway, they are governed mainly by wages, and wages have not increased much in many years, hence the reason that politicians loved it when ordinary punters believed in the property bubble and thought they were worth a lot by borrowing a lot (seems mental now with rates set to rise doesn`t it?) If you think you can predict wages and inflation then you are ahead of most people, the Fed are trumpeting rate rises, and it seems obvious that credit markets are becoming more volatile and less "controlled" by central banks, that is the only reason that I keep talking about rates going up on mortgages.
    • buggy_boy
    • By buggy_boy 8th Apr 18, 11:18 PM
    • 311 Posts
    • 194 Thanks
    buggy_boy
    My experience is that on basic flats with private landlords they won`t, not much anyway, they are governed mainly by wages, and wages have not increased much in many years, hence the reason that politicians loved it when ordinary punters believed in the property bubble and thought they were worth a lot by borrowing a lot (seems mental now with rates set to rise doesn`t it?) If you think you can predict wages and inflation then you are ahead of most people, the Fed are trumpeting rate rises, and it seems obvious that credit markets are becoming more volatile and less "controlled" by central banks, that is the only reason that I keep talking about rates going up on mortgages.
    Originally posted by Crashy Time

    Rents have risen fact, you can try to say on a certain type of property it has not but look at the stats, rents have risen... Im sure certain rents in certain areas have not but that does not mean rents have not risen, its where your logic is flawed, on average rents have risen, you argue this by saying certain rents haven't... Rents are not only based on wages, just look at some areas where lots of flats have been built, rents have not risen much, on the flip side areas that have a shortage of houses to rent have seen rises, it depends what the market can bare.

    Really your the one that is making very tenuous financial predictions. No you and your friends at HPC have been talking about it for years and its yet to happen, when rates rise it will be a slow gradual rise unless something catastrophic happens and as we have seen will only rise as the economy rises, this will mean wage rises.
    • johnsonisabella
    • By johnsonisabella 9th Apr 18, 6:16 AM
    • 1 Posts
    • 0 Thanks
    johnsonisabella
    Is buying a house a good idea?
    Buying a house is good idea only when if you have sufficient money to invest or paying down or you want to live long time in that particular city but if you anticipate a job change or career then renting a room or home might suits you better as buying a home can hamper your flexibility to move and pick.
    • Crashy Time
    • By Crashy Time 9th Apr 18, 12:06 PM
    • 5,912 Posts
    • 2,327 Thanks
    Crashy Time
    Rents have risen fact, you can try to say on a certain type of property it has not but look at the stats, rents have risen... Im sure certain rents in certain areas have not but that does not mean rents have not risen, its where your logic is flawed, on average rents have risen, you argue this by saying certain rents haven't... Rents are not only based on wages, just look at some areas where lots of flats have been built, rents have not risen much, on the flip side areas that have a shortage of houses to rent have seen rises, it depends what the market can bare.

    Really your the one that is making very tenuous financial predictions. No you and your friends at HPC have been talking about it for years and its yet to happen, when rates rise it will be a slow gradual rise unless something catastrophic happens and as we have seen will only rise as the economy rises, this will mean wage rises.
    Originally posted by buggy_boy

    No. If the US start raising BOE will quickly be in a tight spot if they don`t follow IMO. The economy is based on debt, not wages, you need to understand this to understand the risk you take with large mortgage debt at this point.
    • tom9980
    • By tom9980 9th Apr 18, 12:09 PM
    • 1,260 Posts
    • 3,794 Thanks
    tom9980
    My experience is that on basic flats with private landlords they won`t, not much anyway, they are governed mainly by wages, and wages have not increased much in many years, hence the reason that politicians loved it when ordinary punters believed in the property bubble and thought they were worth a lot by borrowing a lot (seems mental now with rates set to rise doesn`t it?) If you think you can predict wages and inflation then you are ahead of most people, the Fed are trumpeting rate rises, and it seems obvious that credit markets are becoming more volatile and less "controlled" by central banks, that is the only reason that I keep talking about rates going up on mortgages.
    Originally posted by Crashy Time
    So you admit you live in a "Basic" flat then, bet that has been fun for the past 20+ years.
    “In order to change, we must be sick and tired of being sick and tired.”
    • Crashy Time
    • By Crashy Time 9th Apr 18, 12:14 PM
    • 5,912 Posts
    • 2,327 Thanks
    Crashy Time
    So you admit you live in a "Basic" flat then, bet that has been fun for the past 20+ years.
    Originally posted by tom9980

    Who mentioned living in the same place for 20 years? That is what happens when you can`t sell your house
    • 51mm5
    • By 51mm5 9th Apr 18, 3:50 PM
    • 28 Posts
    • 8 Thanks
    51mm5
    This is dedicated to Crashy:

    https://static.halifax.co.uk/assets/pdf/mortgages/pdf/March-2018-House-Price-Index.pdf

    !!!8226; Prices in the last three months to March were 2.7% higher than in the same three months a year earlier, edging up from the 1.8% annual growth recorded in February
    !!!8226; The average price in March was £227,871, the highest recorded price
    !!!8226; House prices in the latest quarter (January-March) were -0.1% lower than in the preceding
    three months (October-December), the second consecutive decline on this measure
    !!!8226; On a monthly basis, prices grew by 1.5% in March, this follows a 0.5% rise in February;
    monthly changes can be volatile
    !!!8226; Mortgages in the UK are at their most affordable level in a decade
    • Crashy Time
    • By Crashy Time 9th Apr 18, 4:39 PM
    • 5,912 Posts
    • 2,327 Thanks
    Crashy Time
    This is dedicated to Crashy:

    https://static.halifax.co.uk/assets/pdf/mortgages/pdf/March-2018-House-Price-Index.pdf

    !!!8226; Prices in the last three months to March were 2.7% higher than in the same three months a year earlier, edging up from the 1.8% annual growth recorded in February
    !!!8226; The average price in March was £227,871, the highest recorded price
    !!!8226; House prices in the latest quarter (January-March) were -0.1% lower than in the preceding
    three months (October-December), the second consecutive decline on this measure
    !!!8226; On a monthly basis, prices grew by 1.5% in March, this follows a 0.5% rise in February;
    monthly changes can be volatile
    !!!8226; Mortgages in the UK are at their most affordable level in a decade
    Originally posted by 51mm5

    Fill yer boots!


    This is what EA`s think....




    "That "surprise" 1.5% jump in March for house prices reported by the Halifax, is not such good news, reckons north London estate agent Jeremy Leaf. He said:
    On the face of it, the Halifax figures look quite encouraging but when you examine them in more detail one appreciates that the increase in property prices is more to do with a shortage of stock, low mortgage approvals, and subdued activity rather than any great change in the market. "




    Looks like you can`t have your cake (high prices) and eat it (healthy transactions)


    Only on here would a report from VI`s who need mortgage lending to survive about a broken housing market throwing up volatile stats as it heads for the cliff be welcomed with such enthusiasm

    • lookstraightahead
    • By lookstraightahead 9th Apr 18, 4:50 PM
    • 131 Posts
    • 142 Thanks
    lookstraightahead
    I bought a flat at 22 and had to rent it out as I moved jobs. This was a bit of a nightmare to manage and I remember wishing I hadn!!!8217;t got that ball and chain. Then things were ok for a while and I bought s nice cottage with my first husband. Then I got divorced which meant I had to buy him out. Then tge house depreciated in value oh and then, because it was an old house, not only could I not afford the mortgage, I could not afford the repairs. So I sold, in loads of debt, have been renting and hopefully will be buying again soon, this time I hope my life will be straightforward.

    I think buying on balance is a good idea but you have to be aware of things going wrong in life too. Property can be a great investment, a secure home, or can swallow up everything.
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