truman Posted August 7, 2014 Share Posted August 7, 2014 But they did, why are you trying to deny it? Read in the paper, maybe last week or the week before, that average house prices will soon be 10 times the average salary, making the desposit approximately £72K. http://www.telegraph.co.uk/finance/personalfinance/houseprices/10905333/House-prices-rise-to-ten-times-average-salary.html With UK relative wages at a 134 year low things are going to get very difficult for most people soon. Where does it mention the deposit Mecky? Have a look here instead of newspaper headlines http://www.economicshelp.org/blog/5568/housing/uk-house-price-affordability/ ---------- Post added 07-08-2014 at 14:55 ---------- Does anyone actually buy a house as a long term family home anymore? Yes..been married for 34 years..only in our 2nd home... Link to comment Share on other sites More sharing options...
Cyclone Posted August 7, 2014 Share Posted August 7, 2014 When you cut and paste it's usualy good form to include the source...just had a quick look and I could get a 150k mortgage for about £600/month...much the same as a decent rental (cheaper than a lot) Yeah, but as I mentioned, if you were re-buying a 300k house you have 15k in stamp duty to pay, plus all the (smaller) associated costs. The total cost of selling and then buying a 300k house would be close to 20k straight away. You'd need to be gambling on a large fall to make it even remotely worthwhile. Large like 20% over 5 years. And even that doesn't make you very much really. Lets say it's a 400k house you sell, you pay off 100k mortgage and pocket 300k. Prices fall 20%. You buy back your old house (or equivalent) for 320k. You pay 20k in costs between the sale and purchase. You've made 60k in 5 years. 12k a year. I suppose that's better than a kick in the teeth, it's tax free as CGT doesn't apply to the sale of your main home. The rent you pay for the time is equivalent to the mortgage you cleared... And when you've bought it back, 5 years on, you now only have a 40k mortgage instead of 100k... ---------- Post added 07-08-2014 at 15:10 ---------- Then new carpets, new bog seat, and new all those other things that you wouldn't want to use because strangers have.. Who does that? I change the carpets as and when they either need changing or the room is being remodelled. Why would I change perfectly good carpets in a just purchased home otherwise? And toilet seat? Seriously? Clean it, sure, but if I my wife suggested changing it because someone else had used it, I'd call her neurotic. ---------- Post added 07-08-2014 at 15:11 ---------- Does anyone actually buy a house as a long term family home anymore? I buy one to live in, not as an investment. Link to comment Share on other sites More sharing options...
poppet2 Posted August 7, 2014 Author Share Posted August 7, 2014 If I sold now I'd have about 300k in cash available to me.... I could probably rent a home similar to mine for not far off the same amount as my mortgage...I could put half my cash away for a future deposit (for when prices have dropped) and enjoy myself with the other 150k... No need to put half of your cash away for a deposit when you can buy houses in Sheffield for under £40K. http://www.homes24.co.uk/for-sale/houses/sheffield/ Link to comment Share on other sites More sharing options...
gimp27 Posted August 7, 2014 Share Posted August 7, 2014 would this work? Assuming you rent modestly @ £600/month = £7k p.a. And that significant house price movements are fairly long term so for 5 years that's £35k, or for 10 yrs = £70k you are spending on rent. And while you rent, it's not your home, so you are not at liberty to develop or change things to suit you. It would need a massive price movement to convince me to your idea. There was a massive price movement. During the "Downturn" period, my parents home at Chapeltown lost almost £50k in resale value. Link to comment Share on other sites More sharing options...
Mecky Posted August 7, 2014 Share Posted August 7, 2014 Where does it mention the deposit Mecky? It was in the Metro free paper which is my usual rightwing giggle on the daily commute. But just for you http://www.theguardian.com/money/2014/jul/31/homebuyers-72k-deposit-if-tories-win http://www.jonathanwelford.co.uk/?p=660 http://money.uk.msn.com/news/tories-making-homes-unaffordable http://www.feedworld.co.uk/related/homebuyers-will-need-a-%C2%A372-000-deposit-if-tories-win-says-labour_GQj Knock yourself out Link to comment Share on other sites More sharing options...
Guest Posted August 7, 2014 Share Posted August 7, 2014 It was in the Metro free paper which is my usual rightwing giggle on the daily commute. Metro. Right wing. Link to comment Share on other sites More sharing options...
Mecky Posted August 7, 2014 Share Posted August 7, 2014 Metro. Right wing. It's run and owned by the same people that do the DM Link to comment Share on other sites More sharing options...
Robbie Loving Posted August 7, 2014 Share Posted August 7, 2014 Yeah, but as I mentioned, if you were re-buying a 300k house you have 15k in stamp duty to pay, plus all the (smaller) associated costs. £9k, not £15k. Or he could decide to plump for a cheaper property around £250k (he's downsizing as family have left) and only have to pay £2.5k. With houses of that price, it is plausible that it could drop £20/30k easily..... But it's a gamble. A big gamble as you say, and not one many would consider. Link to comment Share on other sites More sharing options...
poppet2 Posted August 7, 2014 Author Share Posted August 7, 2014 £9k, not £15k. Or he could decide to plump for a cheaper property around £250k (he's downsizing as family have left) and only have to pay £2.5k. With houses of that price, it is plausible that it could drop £20/30k easily..... But it's a gamble. A big gamble as you say, and not one many would consider. That's why I said go for a house under £50K. This will leave him with even more money. http://www.homes24.co.uk/for-sale/houses/sheffield/ Link to comment Share on other sites More sharing options...
Cyclone Posted August 8, 2014 Share Posted August 8, 2014 £9k, not £15k. Or he could decide to plump for a cheaper property around £250k (he's downsizing as family have left) and only have to pay £2.5k. With houses of that price, it is plausible that it could drop £20/30k easily..... But it's a gamble. A big gamble as you say, and not one many would consider. He wasn't downsizing, that wasn't part of his hypothetical. I had misremembered the SD rate though, good point. Link to comment Share on other sites More sharing options...
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