eeps, actualy I did borrow 4.25x if you count my net pay. Plus the £1000 cost of the mortgage it's self! (I have to pay money to give you more money?)
But, most people didn't have that. Instead they had to save 20% of the mortgage, which in my parents case would have been 3/4 of a year's salary. So, it would have taken a while to save, but doable. Also, their first place was a 2 bed.
Now, a 20% deposit for a single place would mean saving around a year and a bit's salary - which is an increase. Which would be for a 1 bed flat. A 2 bed like my parents' would mean about 3 years of salary saving...
If you are lucky enough for your parents to do this for you then that is great but you cannot really offer others advice and to be honest I would be a little shy about it - not proud to the point I am offering advice to others to get on the ladder and not throw your money away renting which is what was said previously. That is just the way I am.
How can you take loan from the bank for a deposit, as well as pay the mortgage and call yourself fiscally responsible? You are piling debt upon yourself from both sides - the people I know who have done this are the same people who are now really struggling and for what to "own" a house?
"not paid attention..........or I just don't want to read it" not very constructive but cheers @aerospacemango
So that makes our experiences and opinions less valid? It makes my observation that it is WORTH looking at shared ownership worthless? We looked at it. We did the maths and had the meetings. It is always worth doing the exercise as you cannot make an informed decision without having done the exercise. Getting on the property ladder isn't easy, but if you have the opportunity DO. If you are going to rent anyway, yes, shared ownership shaft you, but IMO it is better to have some equity than none at all, but there are caveats and you have to be cautious - we learned a valuable lesson and nearly got stitched up and I feel that my experience is worth sharing. As for 'these aren't personal comments', that sounds pretty personal to me. I want to make it clear that NO-ONE 'put me there'. That implies that a relative died and left me their house in their will and here I am having inherited a house pontificating sanctimoniously at non-home owners. That is offensive and cheapens the work we have done and the effort we have put into getting on the property ladder. It makes me out to be greedy and grasping when the very opposite is true. LeBoyfriend and I were lucky enough to have parents in the position to help us buy our house, but it is not without cost. As it happens, 2 years ago my parents paid nearly £10,000 for my sister's wedding - does that make her greedy and grasping too? Instead of paying for a big ol' party, my parents lent me my 'wedding fund' to help me buy a house, but I have to pay it back one way or another (as I said, the full details are private and I shan't be divulging them). LeBoyfriend's parents have also helped us, but that doesn't mean that it's 'free money' either! The point I was making to the OP was that there are always options to look at. It seems desparate but there are lots of schemes out there to help you get on the ladder, you just have to be careful. As it happened, we nearly ended up in a Taylor Wimpey scheme but my father was horrified so they got together with the Inlaws and worked something out for us. If they hadn't been able to, they would not have, and we would have been living in the Taylor Wimpey house instead of the bigger, cheaper, slightly neglected, fixer-upper that we ended up with.Quote:
Originally Posted by cpltd
Exactly. By the time you've saved enough for a deposit for the price of a house NOW, that house will have doubled in cost and you'll still be in the same position. That £15,000 you saved is now only a 5% deposit (obviously inflation dependant). Now assuming you get out of Uni at 21 and get a job and start saving that £150 IMMEDIATELY (which ofc no 21yo will - you have a life to live!), you'll still be 35 by the time you have anywhere near enough money and that is assuming that you don't live your life, go on holiday, get a car, get made redundant, have emergencies that end up costing a lot of money. Wow, that sounds like a THRILLING life to me!Quote:
Originally Posted by localzuk
So is the answer not to try at all and borrow instead?
That is what i am getting at.
£32k to £142k in less than 10 years. That's the key point here. Using the same amount of growth, if that continued, in 10 years, the same house would be going for £630k. My wage isn't going to increase to £120k a year in that time...
I'm not advocating borrowing anything. I'm saying that your attitude that if you're financially prudent that you can do it all properly is wrong. I don't even earn the 'national average', and remember than 50% of the population don't either. So, there's a helluva lot of people like me.
i realise im late to this convo so if ive missed anything, apologies.
Think i would be looking at repossessions, my current property is a large 3 bed flat that i managed to snap up for 26k LESS than the advertised price because it was a repo. Although i cant comment on the prices of housing in London a large 3 bed house with garden and garage is around the 110K mark here...
I wouldnt borrow money as this will go against you when you apply for a mortgage, however if you can get someone else to borrow for you that then wouldn't be counted in the mortgage calculation, i also recommend renting for atleast a few months to a year. Not for any other reason than to make sure you can afford to pay bills/council tax/car, if you rent a similiar property to the one you want to buy then you will be in good standing.
other schemes to consider is the rent for a year then buy, however be careful with this one, the idea is that you rent for a year then use the rent money to buy the house, a friend of mine got caught out and rented for 14 month then decided to buy, to only be told that he didnt have enough, when he queried they told him he had only saved two months of deposit because if you do not buy after 12 months the money goes to company and you loose it guess he didnt read the smallprint.
This is why I believe it is so crucial to get on the property ladder however you can as early as possible even if it means organising 'private finance deals' with relatives.
So if you borrow now and pay back your benefactor later on, you can get a mortgage over a longer term thus reducing the costs. If you bravely solider on saving by yourselves and not borrowing anything, every year that passes over the age of 30/35 is another year less they will lend over and the repayments and interest rates start to climb until you get to a point where you just can't afford it! Surely it is better to jump on that ladder as soon as you can to secure the longer mortgage term even if that means borrowing now and repaying that deposit later?
I would not say get on the ladder asap when your choices are borrowing money to do it or going though shared ownership schemes, again putting yourself in more debt and paying even more over the odds for a pipe dream of having to own your own property. It really isn't worth it,. If you have been helped onto the ladder by parents or anyone else it surely isn't as easy to suggest to others to look at this route is it?
I am sorry but I still think that is a fair point. As I have said previously we obviously aren't going to agree so let's agree to disagree...........nothing is ever black and white so I think this is a fair end to my posts.
Sorry again if you have taken offence - I really cannot help that it is just my view.
I am not ignoring anything at all - For a lot of people it isn't possible currently, but there are also a hell of a lot of people like me who do save and are renting currently? And it is possible - 8 out of 10 of my friends have all done this over the last 5 years so I know it is. I live in Market Harborough and the 3 bedroom property that I rent and it is currently valued at £179k so I know what you are saying but it is possible!