Does anyone still think the housing market isn't broken?
- Thread starter Uther
- Start date
Caporegime
Me and my girlfriend took 35 year mortgage on our two bed new build terrace. Our house is 100k total.
When we first started renting in this area the prices seemed to be around £525 per month for a small two bed house, with a garage and a garden, flats were a little cheaper, now a two bed house starts at £750 per month. Some properties that are new builds are over £1,000 per month for a two bed house.
So they've doubled in rent prices in 13 years.
There is simply no way an average Joe (like me and my GF) can pay rent and save a deposit to buy a house, you would literally have to cease to exist for X amount of years to save up £10k.
Blah blah move, well guess what, that's far easier said than done.
So they've doubled in rent prices in 13 years.
There is simply no way an average Joe (like me and my GF) can pay rent and save a deposit to buy a house, you would literally have to cease to exist for X amount of years to save up £10k.
Blah blah move, well guess what, that's far easier said than done.
My first house was £51K. It wasn't in a posh area (Norton Canes for anyone who knows the area) and was a classic 70's design with 3 bedrooms, a garage on the one side attached to my neighbours garage on the other side, making to all intents and purposes a detached house. By todays standards that seems cheap but back then I think my wage was around £12K basic with another £10K in bonus if I had a good year, which I usually did. Not bad for a 20 year old in those days (late 80's), but I still struggled month on month as being 20 I wanted to go out and have fun so each month I would be on the breadline and as the month progressed my going out got less and less. Bare in mind also that I was single, it was my house bought on my own so only 1 wage covering all my expenses. However it was really important for me to get a house as soon as I could. I also said to myself I want to buy a typical second house first, so I pushed hard and frankly took a risk to do that. You look back on it now and think jesus that mortgage I could pay off on a good month, but back then it was all the money in the world and a real struggle. I had garden furniture in my dining room
My first house was £51K. It wasn't in a posh area (Norton Canes for anyone who knows the area) and was a classic 70's design with 3 bedrooms, a garage on the one side attached to my neighbours garage on the other side, making to all intents and purposes a detached house. By todays standards that seems cheap but back then I think my wage was around £12K basic with another £10K in bonus if I had a good year, which I usually did. Not bad for a 20 year old in those days (late 80's), but I still struggled month on month as being 20 I wanted to go out and have fun so each month I would be on the breadline and as the month progressed my going out got less and less. Bare in mind also that I was single, it was my house bought on my own so only 1 wage covering all my expenses. However it was really important for me to get a house as soon as I could. I also said to myself I want to buy a typical second house first, so I pushed hard and frankly took a risk to do that. You look back on it now and think jesus that mortgage I could pay off on a good month, but back then it was all the money in the world and a real struggle. I had garden furniture in my dining room
Now look, you have an R8 in the garage.
Caporegime
About 16% of our take home pay goes on the mortgage, but that includes overpaying.
Before my wife started her job it was more like 23%.
We're on a high fixed rate. We could pay to get out of it, but last time we checked it was really borderline whether it was worth paying the exit charges, so we'll just stick it out.
Before my wife started her job it was more like 23%.
We're on a high fixed rate. We could pay to get out of it, but last time we checked it was really borderline whether it was worth paying the exit charges, so we'll just stick it out.
Soldato
We're 26 and 27. We've got a house and a mortgage a little over £200k. It was bought with Help to Buy, though, so we technically only own 80% of it. We're currently in the process of remortgaging and buying out the other 20% stake, but it's not 20% of the purchase price, it's 20% of the current market value. So, the agency that give the 20% loan is making something like a £12k return on our property. I think it's way over the top personally.
We're getting married next year so we need cash, but the year after we're likely to draw like £20-30k out of our mortgage and buy a property to rent out. Hopefully in the long term this will put us on the track for getting more buy to let properties.
It does mean that our mortgage will be higher than we initially started with, and then it'll only get bigger with the buy to let purchase, but I can't see us having a £200k mortgage forever if we want children, which we do.
I find that most of my money goes on travel and the pub these days. We do have lots of small bills like Netflix etc, but they make up under £100/mo (phones excluded).
We're getting married next year so we need cash, but the year after we're likely to draw like £20-30k out of our mortgage and buy a property to rent out. Hopefully in the long term this will put us on the track for getting more buy to let properties.
It does mean that our mortgage will be higher than we initially started with, and then it'll only get bigger with the buy to let purchase, but I can't see us having a £200k mortgage forever if we want children, which we do.
I find that most of my money goes on travel and the pub these days. We do have lots of small bills like Netflix etc, but they make up under £100/mo (phones excluded).
I think you get to a point in life where your priorities change. For the last 10 years my wife and I have focused on clearing our mortgage. At the start of those 10 years our plan was to find a couple of acres in the right location (a real challenge in itself) and then build our dream house. However we had had a change of mind and now our view is different. We have a lovely house already, we don't really need bigger, perhaps another couple of garages would be great and a garden office, but frankly as there are only 2 of use we don't really need more. We also have reached a point where we now want to focus on being healthy, fitter and winding down to retirement. Sure we would stick 500K into a build and then another 500K into kitting it out, but frankly that would mean more debt and more time focused on clearing it and it's just not worth it. So our plan is stay where we are, get a holiday home or 2 that covers their backsides when we don't use them and focus on winding down, doing less for others and more for ourselves.
Now look, you have an R8 in the garage.
I've had all sorts in there over the last 20 years
TVR, BMW M's, Audi RS's, GT3...Polo GTI FFS!!!
We are 24 years into a 40 year mortgage.
Keeps our repayments low with interest rates being so low for so long its worked out well for us.
24 years on we could easily pay off the outstanding 16 years in 5 years if we wanted to but don't as it frees money that we can enjoy life, the wife can work part time now we have a family so less stress.
Soldato
Target is an agency, so I believe that they're a private company. I would be much more comfortable with them having a high interest rate - our house has gone up in value by 18% in the last 2 years so that's a lot for us to pay!
We have paid for the valuation on our property - £570. We will have to pay the agency a £200 admin fee. Why they can't deduct that from the £69,000 we're going to give them I don't know. Seems ridiculously petty. We will also have to pay for conveyancing, and if we use a mortgage broker we will have to pay for them.
Caporegime
I've had all sorts in there over the last 20 years
TVR, BMW M's, Audi RS's, GT3...Polo GTI FFS!!!
Whoa whoa whoa...you actually let the polo soil your garage?
Me and my wife will be exchanging contracts today on a new build with a 35 year mortgage (fixed for 5 years) and will actually be paying £200 less a month than when we were renting, we are aware this is not the best deal possible, but at the moment it works for us.
Soldato
I appreciate that it's their share in equity, but their input since we purchased the property has been absolutely nothing. I do understand what they're doing, but it's a frustrating chunk of the money.
We're actually looking at £1,250ish in charges. It's alright, but obviously we'd like to have as much in the bank as possible for our wedding.
Soldato
140k f...f...for that?
You could MAYBE get a studio apartment here for that and wages are not much different that the UK if at all on average.
Even then it's likely to be a really dingy place.
I should stop watching Location x3. A couple buying a 2 bed flat in Putney for £750k. What really angered me was they only had a deposit (lol, "only") of £70k. Doing the maths on that means their payments would be around £3,500/month at current low interest rates. Assuming they're not total clowns and can afford it to go up to £4,000/month for example, all I could think of was why the hell did they not save a bigger deposit? I mean FFS if you can afford to pay £2,000/month each on your mortgage you can damn well save more. Even saving £2,000/month between them would net them £72k in 3 years 
Mentalists. Can't wait for the revisit in 2-3 years time when interest rates have risen 
(*)
(*Although, given the way the housing market works their £750k flat would then be worth >£1m and they'd probably upgraded to a 3 bed terrace)
Mentalists. Can't wait for the revisit in 2-3 years time when interest rates have risen (*)(*Although, given the way the housing market works their £750k flat would then be worth >£1m and they'd probably upgraded to a 3 bed terrace
)
Caporegime
Having been to jersey and to the town I live in, I can tell you I'd rather be in jersey
Soldato
I'm one week into a 30 year mortgage at the age of 26. Bank wouldn't give me 25 years for "affordability" despite the 25 year payments been affordable from my budget, but hey ho I can just overpay to meet that amount anyway if I want. As it stands my mortgage payment for a 3 bed end-terrace is about 60% of what it would cost me to rent a 2 bed flat in the same area!
All those articles are about couples buying, that makes it far far easier and I'd imagine most of them are buying much more expensive houses than they need to if they need to get on 40 year mortgages.
All those articles are about couples buying, that makes it far far easier and I'd imagine most of them are buying much more expensive houses than they need to if they need to get on 40 year mortgages.