Housing Bubble: Take Two
22 November 2011, 07:17 PM
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Housing Bubble: Take Two
Last edited by GlesgaKiss; 22 November 2011 at 07:19 PM.
22 November 2011, 09:14 PM
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23 November 2011, 01:47 PM
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I don't understand why its so difficult for first time buyers to buy a home?
Unless of course they are stuck in the rent trap. If not, living at their parents the deposit required shouldn't be too hard to save?
Unless of course they are stuck in the rent trap. If not, living at their parents the deposit required shouldn't be too hard to save?
23 November 2011, 03:49 PM
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deposits are now needed really to get a motgage,
many young people cant get a job , never mind saving 5-10k to buy a home.
and if they do get a job, wages kicking around 15k a year, how on earth are they supposed t live off that and also save the money required for a deposit?
only people that have a decent chance are if they are lucky enough to have well paid job, or help from parents who are in a position to do so. imo ofcourse lol
23 November 2011, 04:31 PM
#7
I remember that our first house we couldn't afford the deposit. As it happens we had a little inheritance, but that was more by luck (unlucky for some relative) than judgement. We were living with parents and that was 15 years ago when things were easier, but we had low salaries and a couple of years out of Uni with student loans, overdrafts etc.
Since then we've been able to pay every mortgate payment on time - does that mean we couldn't afford to buy? No, just means that getting a large deposit was difficult. For sure we could have planned for staying at parents, but then we were 25. I didn't particular want to spend years there (into my 30's?).
I can certainly understand why this may be a good option to punt for.
Since then we've been able to pay every mortgate payment on time - does that mean we couldn't afford to buy? No, just means that getting a large deposit was difficult. For sure we could have planned for staying at parents, but then we were 25. I didn't particular want to spend years there (into my 30's?).
I can certainly understand why this may be a good option to punt for.
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23 November 2011, 04:48 PM
#8
My nephew in his early twenties living with his parents has saved over 20k towards his deposit. How? He barely earns above NMW. By being extra careful with his money. No smoking, drinking or car. Clothes as and when needed and not rip off designer labels. Working long hours helps too. He has concluded making these sacrifices now will help in the future (smart lad
). He will be okay even in these austere times, I wish others would follow his example.
23 November 2011, 05:00 PM
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My nephew in his early twenties living with his parents has saved over 20k towards his deposit. How? He barely earns above NMW. By being extra careful with his money. No smoking, drinking or car. Clothes as and when needed and not rip off designer labels. Working long hours helps too. He has concluded making these sacrifices now will help in the future (smart lad). He will be okay even in these austere times, I wish others would follow his example.
). He will be okay even in these austere times, I wish others would follow his example.I suggest that your nephew is definitely a virgin
He is far from miserable, I think he's learnt early on that there is no correlation between money spent and happiness gained.
23 November 2011, 05:42 PM
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I'm not a virgin but I am in my twenties and saving hard. Bit of a sacrifice now for an easy/good time later, and it won't be much later! Of course, it would be a bit of a c*nt if I went out and got hit by a bus tomorrow.
23 November 2011, 05:48 PM
#14
People have the freedom to decide. Save and buy a house, or spend and have no house. But if they choose the latter, they shouldn't expect anyone else to make up what they've spent. That's the only issue, in my opinion. We've got a nation of people who want everything, and if they can't get it, they expect to have it given to them by others.
I'm not a virgin but I am in my twenties and saving hard. Bit of a sacrifice now for an easy/good time later, and it won't be much later! Of course, it would be a bit of a c*nt if I went out and got hit by a bus tomorrow.
I'm not a virgin but I am in my twenties and saving hard. Bit of a sacrifice now for an easy/good time later, and it won't be much later! Of course, it would be a bit of a c*nt if I went out and got hit by a bus tomorrow.
23 November 2011, 08:03 PM
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Depends on location.
Average round here is about £150K - £160K.
The deposit is almost impossible unless you are living at home. Even if you are at home and you are still looking at say £700 a month in mortgage payments. Possible on £15K living at home but add that to say another £300 on monthly bills and theres not too much left over.
Why not force lenders into VERY strict requirements - minimum 25% and maximum 3 times salary. Reduces those who can afford a home which in turn forces down house prices to levels somewhere linked to salaries like the old days. One generation really has to take the pain for the sake of the kids or things will only get worse.
Average round here is about £150K - £160K.
The deposit is almost impossible unless you are living at home. Even if you are at home and you are still looking at say £700 a month in mortgage payments. Possible on £15K living at home but add that to say another £300 on monthly bills and theres not too much left over.
Why not force lenders into VERY strict requirements - minimum 25% and maximum 3 times salary. Reduces those who can afford a home which in turn forces down house prices to levels somewhere linked to salaries like the old days. One generation really has to take the pain for the sake of the kids or things will only get worse.
23 November 2011, 09:19 PM
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Why not force lenders into VERY strict requirements - minimum 25% and maximum 3 times salary. Reduces those who can afford a home which in turn forces down house prices to levels somewhere linked to salaries like the old days. One generation really has to take the pain for the sake of the kids or things will only get worse.
23 November 2011, 09:38 PM
#18
£150K house - 25% deposit is going to be £37.5K
If your borrowing limit is 3 x salary you are going to need to be on £37.5K or have a combined income of about £45K to buy a house at that price as a FTB. With the cost of everything else rising at the moment, it probably isn't the best idea to be getting mortgaged to the limit.
Agree with the post above, everything needs to "normalise" and that will result in some pain, but it should be for the greater good.
If your borrowing limit is 3 x salary you are going to need to be on £37.5K or have a combined income of about £45K to buy a house at that price as a FTB. With the cost of everything else rising at the moment, it probably isn't the best idea to be getting mortgaged to the limit.
Agree with the post above, everything needs to "normalise" and that will result in some pain, but it should be for the greater good.
23 November 2011, 10:55 PM
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Why does everybody keep banging on about a house and how awfully expensive and impossible to buy they are??
Get a flat or a maisonette as a starting point, or make do with what is (or used to be in my day) called a "Barrett Box". Earn some equity and use that as a deposit for a larger home - get on the ladder!
As Einstein RA suggests, too many people want to have their cake and eat it (in a bloody big detached house).
mb
Get a flat or a maisonette as a starting point, or make do with what is (or used to be in my day) called a "Barrett Box". Earn some equity and use that as a deposit for a larger home - get on the ladder!
As Einstein RA suggests, too many people want to have their cake and eat it (in a bloody big detached house).
mb
23 November 2011, 10:59 PM
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Dave
24 November 2011, 07:54 AM
#21
Why does everybody keep banging on about a house and how awfully expensive and impossible to buy they are??
Get a flat or a maisonette as a starting point, or make do with what is (or used to be in my day) called a "Barrett Box". Earn some equity and use that as a deposit for a larger home - get on the ladder!
As Einstein RA suggests, too many people want to have their cake and eat it (in a bloody big detached house).
mb
Get a flat or a maisonette as a starting point, or make do with what is (or used to be in my day) called a "Barrett Box". Earn some equity and use that as a deposit for a larger home - get on the ladder!
As Einstein RA suggests, too many people want to have their cake and eat it (in a bloody big detached house).
mb
Finally some sense!!
Starter homes are so called because thats what they are!
2 up,2 downs can be had in most places in the UK for well under £100k..Some places significantly less...
Problem is kids want a 3 bedroom detached with a swish car on the drive... They look at the figures needed then say i cant afford it..
YES you cant afford it.....Buy something you CAN afford !!!
My closest neighbours are a young couple...He is an engineer and she is a stand in teacher just out of university..... Apparantly they cant afford a deposit.... Complete boll0cks....
They have even had there last 2 cars bought for them off parents.... But continue to blow on big TV's,latest PC's and Iphone 4's..Takeaway meals every other night and designer clothing..
Younger generation just dont WANT to afford a mortgage as it will cramp there self deluded "wealthy" lifestyle..
Let them rent and complain forever....They are not fooling anyone but themselves..
24 November 2011, 09:51 AM
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well my house is a terraced 3 bedroom ex council
its not a starter home, but long term, also wasnt in a particularly nice area,
but meant me and mrs werent stretched to just cover payments and have no more.
agree go for the starter set ups to try get on property ladder
but also agree to my origional point, even at 15k less tax, then rent to parents, which is usually a fair bit less than real rent, your still talking many years to save any deposit, and that means going with no car - which is what a lot of young guys want, and gives some fredom, indepance. and means not constantly stuck at home, annoying parents and them annoying you.
if just saved it all, then i agree, its missing out on the activitie you should be doing as a youngster. just imo.
its not all drinking and fcking around doing nothing in those years, you learn a whole lot as a person.
i was so lucky in that i bought a few years before the crash - had it not been for 100% morgages then i just couldnt have got a house for me and my family.
i just chose not to struggle to meet repayment, was offered 150k mortgae, took 70k.
so my sacrifice was on lcation rather than anything else. now im glad bcause its not that bad, and some areas considered upper class are now just as bad.
its not a starter home, but long term, also wasnt in a particularly nice area,
but meant me and mrs werent stretched to just cover payments and have no more.
agree go for the starter set ups to try get on property ladder
but also agree to my origional point, even at 15k less tax, then rent to parents, which is usually a fair bit less than real rent, your still talking many years to save any deposit, and that means going with no car - which is what a lot of young guys want, and gives some fredom, indepance. and means not constantly stuck at home, annoying parents and them annoying you.
if just saved it all, then i agree, its missing out on the activitie you should be doing as a youngster. just imo.
its not all drinking and fcking around doing nothing in those years, you learn a whole lot as a person.
i was so lucky in that i bought a few years before the crash - had it not been for 100% morgages then i just couldnt have got a house for me and my family.
i just chose not to struggle to meet repayment, was offered 150k mortgae, took 70k.
so my sacrifice was on lcation rather than anything else. now im glad bcause its not that bad, and some areas considered upper class are now just as bad.
24 November 2011, 10:11 AM
#23
Finally some sense!!
Starter homes are so called because thats what they are!
2 up,2 downs can be had in most places in the UK for well under £100k..Some places significantly less...
Problem is kids want a 3 bedroom detached with a swish car on the drive... They look at the figures needed then say i cant afford it..
YES you cant afford it.....Buy something you CAN afford !!!
My closest neighbours are a young couple...He is an engineer and she is a stand in teacher just out of university..... Apparantly they cant afford a deposit.... Complete boll0cks....
They have even had there last 2 cars bought for them off parents.... But continue to blow on big TV's,latest PC's and Iphone 4's..Takeaway meals every other night and designer clothing..
Younger generation just dont WANT to afford a mortgage as it will cramp there self deluded "wealthy" lifestyle..
Let them rent and complain forever....They are not fooling anyone but themselves..
Starter homes are so called because thats what they are!
2 up,2 downs can be had in most places in the UK for well under £100k..Some places significantly less...
Problem is kids want a 3 bedroom detached with a swish car on the drive... They look at the figures needed then say i cant afford it..
YES you cant afford it.....Buy something you CAN afford !!!
My closest neighbours are a young couple...He is an engineer and she is a stand in teacher just out of university..... Apparantly they cant afford a deposit.... Complete boll0cks....
They have even had there last 2 cars bought for them off parents.... But continue to blow on big TV's,latest PC's and Iphone 4's..Takeaway meals every other night and designer clothing..
Younger generation just dont WANT to afford a mortgage as it will cramp there self deluded "wealthy" lifestyle..
Let them rent and complain forever....They are not fooling anyone but themselves..
Hear hear! Every individual must be the master of their own destiny. In my area which isn't quite Mayfair or Knightsbridge there are some lovely properties for circa 60-70k. Indeed we viewed one owned by a builder looking to upsize. It was a really nice house sited in a cul de sac. A lounge and a dining kitchen downstairs. Two good sized bedrooms and decent bathroom. To help the selling process he was leaving all the white goods in the kitchen. The boiler was a brand new warranted one. He was decorating anew top to bottom and putting new carpets in. Plus the bathroom was brand new. It had a fenced garden at the front and a good sized back garden. The price? £65k!
I know this isn't an 'average' price but there are deals to be had.
Last edited by Maz; 24 November 2011 at 11:13 AM.
24 November 2011, 10:59 AM
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Finally some sense!!
Starter homes are so called because thats what they are!
2 up,2 downs can be had in most places in the UK for well under £100k..Some places significantly less...
Problem is kids want a 3 bedroom detached with a swish car on the drive... They look at the figures needed then say i cant afford it..
YES you cant afford it.....Buy something you CAN afford !!!
My closest neighbours are a young couple...He is an engineer and she is a stand in teacher just out of university..... Apparantly they cant afford a deposit.... Complete boll0cks....
They have even had there last 2 cars bought for them off parents.... But continue to blow on big TV's,latest PC's and Iphone 4's..Takeaway meals every other night and designer clothing..
Younger generation just dont WANT to afford a mortgage as it will cramp there self deluded "wealthy" lifestyle..
Let them rent and complain forever....They are not fooling anyone but themselves..
Starter homes are so called because thats what they are!
2 up,2 downs can be had in most places in the UK for well under £100k..Some places significantly less...
Problem is kids want a 3 bedroom detached with a swish car on the drive... They look at the figures needed then say i cant afford it..
YES you cant afford it.....Buy something you CAN afford !!!
My closest neighbours are a young couple...He is an engineer and she is a stand in teacher just out of university..... Apparantly they cant afford a deposit.... Complete boll0cks....
They have even had there last 2 cars bought for them off parents.... But continue to blow on big TV's,latest PC's and Iphone 4's..Takeaway meals every other night and designer clothing..
Younger generation just dont WANT to afford a mortgage as it will cramp there self deluded "wealthy" lifestyle..
Let them rent and complain forever....They are not fooling anyone but themselves..
but your example does not cover every scenario, possibly a percentage. there are people/families that are really struggling to even get buy
young adults with no jobs ect.
you cant just say becuase of your neigh ours, there all like that lol
24 November 2011, 11:10 AM
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Why does everybody keep banging on about a house and how awfully expensive and impossible to buy they are??
Get a flat or a maisonette as a starting point, or make do with what is (or used to be in my day) called a "Barrett Box". Earn some equity and use that as a deposit for a larger home - get on the ladder!
As Einstein RA suggests, too many people want to have their cake and eat it (in a bloody big detached house).
mb
Get a flat or a maisonette as a starting point, or make do with what is (or used to be in my day) called a "Barrett Box". Earn some equity and use that as a deposit for a larger home - get on the ladder!
As Einstein RA suggests, too many people want to have their cake and eat it (in a bloody big detached house).
mb
Agree 100%
24 November 2011, 11:36 AM
#26
But if you havent got a job,the last thing on your mind should be a mortgage to buy a house..
Young people nowadays dont know there born...They want all the best stuff...NOW......But dont want to work for it..
Im only in my early 40's but it was no different when i was a young lad. I was on YTS scheme for £25 a week and a small starter home was around 18k IIRC..
24 November 2011, 12:37 PM
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Hear hear! Every individual must be the master of their own destiny. In my area which isn't quite Mayfair or Knightsbridge there are some lovely properties for circa 60-70k. Indeed we viewed one owned by a builder looking to upsize. It was a really nice house sited in a cul de sac. A lounge and a dining kitchen downstairs. Two good sized bedrooms and decent bathroom. To help the selling process he was leaving all the white goods in the kitchen. The boiler was a brand new warranted one. He was decorating anew top to bottom and putting new carpets in. Plus the bathroom was brand new. It had a fenced garden at the front and a good sized back garden. The price? £65k!
I know this isn't an 'average' price but there are deals to be had.
I know this isn't an 'average' price but there are deals to be had.
24 November 2011, 01:29 PM
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24 November 2011, 01:36 PM
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http://en.m.wikipedia.org/wiki/Beeston,_Leeds
I see a number of the residents are (well, were) very active politically.
I see a number of the residents are (well, were) very active politically.