Cyclone Posted September 23, 2013 Share Posted September 23, 2013 It's just the deposit that's the problem! How is anyone supposed to magic up the 10-12k for a deposit on a reasonable house? The repayments would be affordable just not deposit! Budget to save. You can't have everything you want immediately, it takes a bit of work, so put aside £200 a month for just over 4 years. The deposit serves several purposes, it means you have equity in the house, but more importantly it proves to the bank that you can responsibly manage your money. Link to comment Share on other sites More sharing options...
angos Posted September 23, 2013 Share Posted September 23, 2013 It's just the deposit that's the problem! How is anyone supposed to magic up the 10-12k for a deposit on a reasonable house? The repayments would be affordable just not deposit! By not drinking, smoking or generally wasting money whilst you are young. Link to comment Share on other sites More sharing options...
RutlandFlyer Posted September 23, 2013 Share Posted September 23, 2013 Buying is gambling, at least in the early years. Unless you've been very sensible and got a deposit that's much bigger than you need, the market or personal circumstances could easily conspire against you and spit you back into the rental market minus the equity you had in your deposit. Most people buy the most expensive house they can afford, so most are very vulnerable in those first few years. If you survive those first years and don't get too greedy, then buying obvious benefits over renting. For instance, some friends of mine were busy getting their rented house ready for their baby, only to be nerfed out on two months' notice because the owner needed to sell. You have a security as an owner that you just don't have as a tenant. That said, buying isn't easy. I scraped together £10k and bought the best house I could, but not in a great area. Now we want to move somewhere nicer, but the house isn't selling. There's no reason on paper why we should lose money on it (it's been improved, the market's stronger than when we bought, similar houses have sold at the money we need), but it just isn't happening. It seems like the house isn't quite right for the people in the area and the area isn't right for the kind of people who would like the house. It makes me wish I'd never bothered and just rented where we wanted to live, instead of getting a foot on the ladder because it seemed like the right thing to do. Now I'm faced with either taking a bath on the house and not having the equity to buy again, or remortgaging as a buy-to-let and viewing it as a long-term investment. Link to comment Share on other sites More sharing options...
Cyclone Posted September 23, 2013 Share Posted September 23, 2013 You can have security as a tenant, simply ask to sign a longer term fixed contract. It gives the landlord some security as well. Link to comment Share on other sites More sharing options...
Mister M Posted September 23, 2013 Share Posted September 23, 2013 I would love to buy but until greedy banks start giving out mortgages with realistic deposits then I can't afford it. Me and my partner earn between us around 50k and if we struggle then somethings wrong somewhere! Blimey there's no hope for me then! I rent, but I'm extremely fortunate that I'm fairly secure with a housing association, and I'm not in fear that their gonna turf me out any time soon. I would eventually like to be in a position to buy, however as I only work part time it would be difficult. However on balance I would prefer to rent for the moment as I'm wanting to go back to college soon as I'm wanting to change my career ---------- Post added 23-09-2013 at 17:51 ---------- By not drinking, smoking or generally wasting money whilst you are young. But even if you didn't smoke, drink or waste money as a youngster £10 -£20k is still a hell of a lot of money that most people wouldn't be able to afford.... Link to comment Share on other sites More sharing options...
RutlandFlyer Posted September 23, 2013 Share Posted September 23, 2013 To all the people whose stock response to someone saying they can't afford to get a deposit together is "don't drink, don't smoke, don't go out, don't buy anything". You do realise that if they all did that our economy would collapse overnight, right? Link to comment Share on other sites More sharing options...
angos Posted September 23, 2013 Share Posted September 23, 2013 But even if you didn't smoke, drink or waste money as a youngster £10 -£20k is still a hell of a lot of money that most people wouldn't be able to afford.... I suppose that depends how long they stay with Mum/Dad or both and how much they pay in board. Link to comment Share on other sites More sharing options...
RutlandFlyer Posted September 23, 2013 Share Posted September 23, 2013 I expect you're correct whilst interest rates are this low. Recalculate your mortgage though for a scenario where interest rates go up to 5% (which isn't even that high historically). At some interest rate, renting becomes cheaper in the long term. Surely in practice the single biggest factor affecting the rent of a property is the cost of the landlord's mortgage, so therefore whenever interests rate go up, rents will follow suit? Every buy-to-let landlord sets the rent at their mortgage payment plus a bit extra to cover maintenance, so won't renting always be more expensive? Link to comment Share on other sites More sharing options...
Mister M Posted September 23, 2013 Share Posted September 23, 2013 I suppose that depends how long they stay with Mum/Dad or both and how much they pay in board. Yes I mean if a young person has a well paid job and not planning on further or higher education; is in the fortunate position to live with parents; doesn't pay much board; and knows at 16 that they'll have to forgo smoking, drinking and generally frittering their money on enjoying themselves with their mates just to get on the property ladder then I suppose they could do it. Assuming that at 16 a kid has the foresight to know exactly what they want! Link to comment Share on other sites More sharing options...
poppet2 Posted September 23, 2013 Author Share Posted September 23, 2013 I cannot understand for the life of me, WHY anyone would wish to buy a house nowadays. I'd also point out that you are trapped into working until death to pay off your mortgage. I don't know how the you youngsters of today will ever be able to get a mortgage. Consider the percentage of your monthly salary that pays your mortgage today, compared with the seventies - and that's two people's salary! Knowing the banks I bet they will compel your children and grandchildren to sign a contract to to complete paying the mortgage in the future. Link to comment Share on other sites More sharing options...
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