Why do people think they are entitled to home ownership?

[Guest makapaka]

No they won't, but the post you replied to was also incorrect. Someone on £22k with no debts and no kids could realistically lend around 4.5x salary with a 5% deposit so around £99k mortgage. You can buy a reasonable home for £100k, plus that's a single person a couple with one kid and a few credit cards could borrow around £160k if on the average wage.

 

Buying a house is not as hard as the press make it out but it's also not easy, to buy with a 5% deposit you need to have a perfect credit score.

 

There are many government schemes to help though, shared ownership, help to buy 1 and 2 plus in my opinion all people who have never owned a home should be sticking as much as possible into a htb isa. Soon as you kids turn 18 get them one set up. Money for nothing.

 

So if you can both earn about 20k a year and get a £150k mortgage - why aren't people buying? Genuine question?

[L00b]

So if you can both earn about 20k a year and get a £150k mortgage - why aren't people buying? Genuine question?

Because people in that situation either haven't got the deposit, or are aspirationally after a bigger/better pile of bricks for which they need more than a £150k mortgage?

[Guest makapaka]

Because people in that situation either haven't got the deposit, or are aspirationally after a bigger/better pile of bricks for which they need more than a £150k mortgage?

 

Nah... £150k buys you a nice house in Sheffield. Your not telling me there's a couple on 20k a year each renting saying they wouldn't buy a £150k house?! And £7500 is doable in a couple of years. So why 58%?

 

Either the problem is a myth and people prefer to rent or something else?

[Danny_Boy]

Nah... £150k buys you a nice house in Sheffield. Your not telling me there's a couple on 20k a year each renting saying they wouldn't buy a £150k house?! And £7500 is doable in a couple of years. So why 58%?

 

Either the problem is a myth and people prefer to rent or something else?

 

I think some people do prefer to rent, it suited me for a few years. Some people can't get a mortgage due to bad credit. Some people probably don't think they can get a mortgage but have never tried.

[ez8004]

because of the massive increase in immigration with migrants that cannot support themselves hence the rental market is booming.

 

What? People who can't support themselves can afford ever increasing rental costs. Please explain.

[mafya]

because of the massive increase in immigration with migrants that cannot support themselves hence the rental market is booming.

 

I just read your username backwards, so tell me 1donaldtrump backwards what's your previous username?

[Cyclone]

So if you can both earn about 20k a year and get a £150k mortgage - why aren't people buying? Genuine question?

 

Can they actually afford to service it though.

 

That's a £750/month mortgage, and if interest rates increased it could be £1000. That's what the bank will look at in terms of affordability.

 

2 people earning 20k a year bring in £1400 after tax a month. So they'd be looking at 1/3rd income going into mortgage when considering an interest rate increase, affordable if they have no other expenses I guess.

[LeMaquis]

I just read your username backwards, so tell me 1donaldtrump backwards what's your previous username?

 

daehkcid1?

[Danny_Boy]

Can they actually afford to service it though.

 

That's a £750/month mortgage, and if interest rates increased it could be £1000. That's what the bank will look at in terms of affordability.

 

2 people earning 20k a year bring in £1400 after tax a month. So they'd be looking at 1/3rd income going into mortgage when considering an interest rate increase, affordable if they have no other expenses I guess.

 

1/3 income to the mortgage does seem high but it's not unusual these days. Although it's affordable depending on what other outgoings they have. Issues arise though if borrowers then go and get loans and credit cards as effectively they can become a mortgage prisoner or be in a bad situation when rates do go up as they haven't budgeted for it.

 

It's also important to consider what happens if one of those salaries suddenly goes bye bye through unemployment, illness or death.

[poppet2]

I don't understand the issue or even why this is getting so much attention in terms of people getting on to the property ladder? I find it really striking how different we are compared to continental Europe where renting is considered the norm.

 

People need to understand that owning your own home isn't some kind of entitlement that requires government intervention. It is a matter of living within your means and if that means renting, then so be it.

 

Well I'm sure we would all be happy to rent if, like those on the Continent you paid peppercorn rent and had 10 year or even life-time tenancies.

We used to have that here and there are still some around, see 1977 protected tenancies Act. Rents less than council and HA rents and are just as secure.

The big difference is you can actually afford to save while renting.

Oh and guess who abolished these tenancies in 1989? You guessed it, The Conservatives, Thatcher's government. What a surprise!!!. The same people who decided to sell off council housing whilst not allowing councils to build more with the money from these sales. How rediculous a policy was that?!!!

Now look at the mess were in! Short sighted or what?!!!

That's what happens when you don't get people that live in the real world making policy for the majority. I bet none of their children will ever want for housing.

Edited August 16, 2016 by poppet2