They love the house and would like to be in a position to buy it from me but despite both having decent full time jobs they would never get the mortgage to buy it.
I thank my luck that I managed to buy it before it tripled in value ! Feel so sorry for anyone trying to get on the property ladder in this day and age.
The value of your house is what someone is prepared to pay for it. So why not offer it for half the perceived 'value'? It sounds like you will still get 50% more than you paid for it.
(Don't like that idea? This is the problem; everyone agrees that high house prices are a bad thing, but they are also secretly delighted when it's them that are profiteering!)
I've just bought a nice two bed flat. I'm in my mid-30s so it was pretty much now or never in regards to getting on the property 'ladder'. Being a first time buyer I could take advantage of government schemes which may or may not be a pain in the bum in years time. I'm already grinding my teeth at service charges and the lease reads more like a rental than a purchase : /
But whatever, it's mine, cheaper than renting and no-one can kick me out at a moment's notice.
I thank my luck that I managed to buy it before it tripled in value ! Feel so sorry for anyone trying to get on the property ladder in this day and age.
I do too, I couldn't afford to buy my current flat if I was on my own. All I could afford woudl be a sh*t hole in a scummy block of flats.
Tut tut. Aren't you listening to the experts on this thread? It's all down to under 35's having unrealistic expectations and demands, and frivolously wasting their money rather than saving.
That the under 35's are for the first time ever poorer than the over 65's, that earnings for the young have fallen since 2007, that drinking, driving and consumer spending for the under 30's has been falling for years and now lower than the 90's, that new buyers are now typically in their 30's when a start flat may be unsuitable for starting a family...well, that's all pretty irrelevant compared to their outrageous expectations!
You start from the bottom and work your way up to that big house, like the people in those big houses had to do. You buy the flat then trade up in 3/4/5 years times. We did that and I don't see why other 1st time buyers seem to expect a 3 or 4 bed house straight away at a cheap price.
The value of your house is what someone is prepared to pay for it. So why not offer it for half the perceived 'value'? It sounds like you will still get 50% more than you paid for it.
(Don't like that idea? This is the problem; everyone agrees that high house prices are a bad thing, but they are also secretly delighted when it's them that are profiteering!)
No, I like the idea - as long as the next house I buy is at half the perceived value .
It is the deposit that can make buying a house seem impossible.
Say you need 10% deposit. On a property in my area of London even for a small 2 bed flat a 10% deposit is around £25-£29,000! Not an easy amount to save for if you are earning a normal salary, and don't have a "Bank of mum and dad" to rely on whilst at the same time paying rent, bills, council tax, and day to day living expenses.
My partner and I could quite easily afford the monthly mortgage repayments on a say £280,000 flat. Raising the deposit to be able to borrow the money on the other hand... not so easy.
Even Help To Buy where a 5% deposit is required would still be £14-£15,000 to find. Easier, but not easy by any means.
By working hard and making sacrifices for a lot of people
If something you want is currently not possible to have with your current circumstances, then make it possible
Change things in your life
Me and my misses are 25 and 24, when I left the forces I had 'some' savings and we decided the next step in our lives was to purchase our own house, thats what our goal became, its what we wanted, and renting was just not allowing us to do that along with bills and certain direct debits etc
So we made sacrifices, moving back in with our parents for a start, wasn't what we wanted, we are very independent folks, but it was practical for our overall needs, we cut a few DD's and made our bills minimal, also managed to arrange getting rid of one of our cars, we definitely need 2 cars, no questions about it, otherwise one of us won't be getting to work, but fortunately the misses Mum has taken retirement early and doesn't need her car for now, so the misses uses her Mum's and I take ours, loved our car we got rid of as well but again, sacrifices, we had a goal, a rough time frame, and getting rid of it made that time frame more achievable
We are now saving per month just over 3 times as much as what we were before, meaning we'll be able to afford that much needed deposit for a house within a year instead of 3/4 years time
We'll be looking at having a big enough deposit for a decent 3/4 bed £200k-£220k house in the east midlands by the end of this year
I've not been able to detail the impact of change in our lives to make this possible, but I can assure you its big, so far seemingly totally worth it though, we can see the light at the end of the tunnel brightening (is that a word?)
Living with your parents/siblings/etc makes things relatively easy. It's tough saving up when ever increasing rent and other bills eats away at your earnings.
And then there's the frustration at not being able to get a mortgage even though the repayments are less than half the amount of rent you've been paying for four years...
I'm a first time buyer...well at least I hope to be next year. I've got £15,000 that I've saved. I'm 28. I lived away from home for Uni and stayed livign away from home for a few years after. In 2013 I moved home to save for a mortgage. I live in London and have a decent. well paid job. By the end of next year 2016 I should hopefully have £30,000 in savings (hopefully!). I'm hoping that this would be enough for a deposit on a place in London. I'm well aware that prices in London are absolutely sky high, but from looking around it looks like I would be able to get a decent one bedroom place in somewhere liek Stevenage or St Alban's, just outside of London. I work in North London so this would be ideal for me. I know my first place won't be fantastic, but I think it's important to get on the property ladder. I feel like I'm in a lucky position as well...pretty much all of my friends who are the same age are struggling financially and don't have decent jobs, many of them live at home and are still struggling. I feel like this is probably the only time in my life where I'm going to have the opportunity to save this amount of money. I'm not going to be in this position for ever so I might as well take advantage of it. I do worry though that at the end of next year although I might have £30,000 in savings, that it still won't be enough to get me anything.
I'm a first time buyer...well at least I hope to be next year. I've got £15,000 that I've saved. I'm 28. I lived away from home for Uni and stayed livign away from home for a few years after. In 2013 I moved home to save for a mortgage. I live in London and have a decent. well paid job. By the end of next year 2016 I should hopefully have £30,000 in savings (hopefully!). I'm hoping that this would be enough for a deposit on a place in London. I'm well aware that prices in London are absolutely sky high, but from looking around it looks like I would be able to get a decent one bedroom place in somewhere liek Stevenage or St Alban's, just outside of London. I work in North London so this would be ideal for me. I know my first place won't be fantastic, but I think it's important to get on the property ladder. I feel like I'm in a lucky position as well...pretty much all of my friends who are the same age are struggling financially and don't have decent jobs, many of them live at home and are still struggling. I feel like this is probably the only time in my life where I'm going to have the opportunity to save this amount of money. I'm not going to be in this position for ever so I might as well take advantage of it. I do worry though that at the end of next year although I might have £30,000 in savings, that it still won't be enough to get me anything.
I assume with the sum of £30k your looking at a 10% deposit or there abouts considering it's london?
If you find come 2016 and you've reached £30k in savings and you can't seem to find the desired property becuase it's still out of reach price wise, then the worst that can happen is you stay put at home whilst savings continue increasing
Me and the misses are hoping to be in a position to start house hunting at the end of this year but we aren't just going to buy any old house, if we can't find what we want then we'll just keep looking, if that takes several months then the upturn is we have even more savings win win
I have bought houses that I intend to let my kids have when it comes time for them to find somewhere of their own to live.
It's great if you can do that. But what about all those people who don't have parents that can do that? I know life is not fair, but that really is unfair.
On the other hand, I remember watching Location, Location, Location a while ago and being amazed what £120,000 will buy you in some areas of Middlesbrough. Bigger than you'd get for half a million in London.
Half a mill doesn't buy much in London anymore. I shook hands on a place 15 years ago in the centre for £70k. Seller changed his mind a few days later and that place is now worth nigh on £700k. Still makes me sick to think about it.
That's the mantra trotted out by politicians, but the reality is a lot more complicated than that.
A key reason property prices have got so high is the massive increase in the availability of finance for landlords/investors since the mid 1990s. Build more houses in desirable areas and they'll be snapped up by the buy-to-let brigade before first time buyers can get a sniff.
I assume with the sum of £30k your looking at a 10% deposit or there abouts considering it's london?
If you find come 2016 and you've reached £30k in savings and you can't seem to find the desired property becuase it's still out of reach price wise, then the worst that can happen is you stay put at home whilst savings continue increasing
Me and the misses are hoping to be in a position to start house hunting at the end of this year but we aren't just going to buy any old house, if we can't find what we want then we'll just keep looking, if that takes several months then the upturn is we have even more savings win win
Unfortunately I do think it will have to be a 10% deposit as it's London and prices are so high. I have considered Manchester or a different city where prices are cheaper and you get much more for your money, but I work in London and all my family are here...and I absolutely love living here. The only problem that I do have is that I'm putting so much on hold whilst saving for a mortgage...not socialising as much, I don't have a car, don't go away much. I sort of feel like my life is on pause while I'm saving...it's not easy at all and I've made the decision to live at home and save...god knows how people wwho don't live at home are doing it! If it gets to the end of the year and I can't get a mortgage with a £30,000 deposit, then I'm considering going traveling. I don't want to look back and have spent the entire second half of my 20's saving for a mortgage. You only get one life and I want to live it and enjoy it too. However, saying that, I feel as if I'm really determined now to reach my goal of getting this mortgage. It's not easy, but fingers crossed. I'm determined.
I do worry though that at the end of next year although I might have £30,000 in savings, that it still won't be enough to get me anything.
It will be at some point either because the market pauses or stops or because you decide to buy and rent a spare room till you can afford it etc.
some young people even seen to be renting out their first place and continuing to live at home until the place becomes more affordable now! In previous booms people would buy with a partner in order to get on the ladder. People do adapt but there does need to be a massive house yielding project because now I feel the system is broken. I'm on an average /OK salary and my place went up in value more than I earned for the last couple of years - London of course.
Yeah, and it seems like they can arbitrarily decide to charge whatever they want : /
Again though, whatever. This flat was pretty much all I could afford so my hands were tied there and providing you can set up some sort of payment scheme whatever charges are thrown my way shouldn't be a problem and would still come in well below what I would pay renting.
Could've been worse as well. I was looking at flats on another new development and the site sat on 2 council boundaries with neither taking ownership meaning an independent management company has been brought in that charges £150 extra on top of your service charges and on top of your ground rent and on top of your council tax (funny how they can decide the council tax but not the council services),
Unfortunately I do think it will have to be a 10% deposit as it's London and prices are so high. I have considered Manchester or a different city where prices are cheaper and you get much more for your money, but I work in London and all my family are here...and I absolutely love living here. The only problem that I do have is that I'm putting so much on hold whilst saving for a mortgage...not socialising as much, I don't have a car, don't go away much. I sort of feel like my life is on pause while I'm saving...it's not easy at all and I've made the decision to live at home and save...god knows how people wwho don't live at home are doing it! If it gets to the end of the year and I can't get a mortgage with a £30,000 deposit, then I'm considering going traveling. I don't want to look back and have spent the entire second half of my 20's saving for a mortgage. You only get one life and I want to live it and enjoy it too. However, saying that, I feel as if I'm really determined now to reach my goal of getting this mortgage. It's not easy, but fingers crossed. I'm determined.
I know exactly what you mean, it's why me and my partner moved back home, we were fortunate in that we were able to save and rent, we could save £12k in a year which I know most folks would love to be able to do ontop of renting etc, so we don't take that for granted, but it would take us 3/4 years to achieve our deposit target at that rate.
We are in Our mid 20's, saving like a maniac can certainly feel like your life is on pause, and we decided we didn't want to live like that for 3/4 years wasting our mid to late 20's chasing bricks and mortars, so we moved home with our parents and are now able to save 3/4 years worth in just one year, wich sits much better with us
I hope whatever the outcome is for you that it's one you are happy with, all th pe best with it
You start from the bottom and work your way up to that big house, like the people in those big houses had to do. You buy the flat then trade up in 3/4/5 years times. We did that and I don't see why other 1st time buyers seem to expect a 3 or 4 bed house straight away at a cheap price.
You've basically missed my point entirely. The older people in big houses typically started out in their first property at 22-23 years old. Their salaries then rose 7-10% per year, so the mortgage size relative to earning shrunk significantly after just 5 years or so - thus making upsizing highly affordable. Obtaining a 3 bed family home by 30 was realistic and common.
Now...typical new buyers are already 30, or 36 without parental help. They're also often nearing the peak of earnings, and salary growth is now longer as high as it used to be ( in fact, it's been falling since 2007 for the under 30's). Thus a big mortgage at 30 on a starter flat may still be a big mortgage at 35. Without inheritance or significant career advances, up-sizing to a decent family home by 40 will be very difficult.
There's a world of difference between the property 'ladder' 30-40 years ago than what we have now.
You've basically missed my point entirely. The older people in big houses typically started out in their first property at 22-23 years old. Their salaries then rose 7-10% per year, so the mortgage size relative to earning shrunk significantly after just 5 years or so - thus making upsizing highly affordable. Obtaining a 3 bed family home by 30 was realistic and common.
Now...typical new buyers are already 30, or 36 without parental help. They're also often nearing the peak of earnings, and salary growth is now longer as high as it used to be ( in fact, it's been falling since 2007 for the under 30's). Thus a big mortgage at 30 on a starter flat may still be a big mortgage at 35. Without inheritance or significant career advances, up-sizing to a decent family home by 40 will be very difficult.
There's a world of difference between the property 'ladder' 30-40 years ago than what we have now.
I bought when I was 31, we are moving into a 3 bed house next month (I am now 37), yes we had to put off starting a family but that's life you deal with it. We bought what we could afford and we made money on it which helped us buy the family home with a decent deposit. You can't get something for nothing these days and you can't expect the big family home to be your first home especially not in the South East.
I bought when I was 31, we are moving into a 3 bed house next month (I am now 37), yes we had to put off starting a family but that's life you deal with it. We bought what we could afford and we made money on it which helped us buy the family home with a decent deposit. You can't get something for nothing these days and you can't expect the big family home to be your first home especially not in the South East.
So I'm right then. You can't compare expectations now with 30-40 years ago (or even just 15 years ago)
And if thee money you 'made' on your first flat was purely from house price inflation rather than improvements, and you remained in the same area rather than 'downgraded' to somewhere cheaper, you would have been better off is house prices remained relatively stable, as the price gap to the larger property would have been much smaller.
I do agree expectations need to change though. House sharing for under 30's needs to become much more common, and affording a 3 bedroom property of your own will become largely dependent on family inheritances rather than one's own efforts. Most of those that don't inherit will become life-time renters.
We've got to the point where we may have to look outside London to buy.
Problem is if we go out too far the cost of commuting will eat up any savings made on house cost, and findind a job locally in a new area means us both quiting our jobs we already have, and more than likely earning less money and I wouldn't be very likely to be able to find a job in the industry I work in outside of London..
We're kind of thinking buying a property up north somewhere (cheaper) and renting it out. I really don't like buy-to-let really but it would be the only way right now we could get ourselves on the property ladder.
Come to Folkestone where you can buy a flat by the sea for £69,000.
My sister lives in Folkestone - thanks to the new wizzy HS1 link its 70 minutes to Kings Cross, less to Stratford. Hence prices are well on the up. Of course what this means is sisters house is worth more, but she still needs it to live in, whilst my niece is struggling to afford a house with garden for herself and son:(
Folkestone is definitely on the up though - I enjoyed the triannual art festival last year. But there's still a long way to go in regeneration. If I were investing I'd be very tempted by Folkestone...
Comments
The value of your house is what someone is prepared to pay for it. So why not offer it for half the perceived 'value'? It sounds like you will still get 50% more than you paid for it.
(Don't like that idea? This is the problem; everyone agrees that high house prices are a bad thing, but they are also secretly delighted when it's them that are profiteering!)
I found this 4 bed for £60k in less than a minute searching.
Fairly sizeable property too. Hardly "tiny".
Another £60k one as well.....only 3 bed though but both in Lincolnshire.
Service charges are a pain in the bum.
I do too, I couldn't afford to buy my current flat if I was on my own. All I could afford woudl be a sh*t hole in a scummy block of flats.
You start from the bottom and work your way up to that big house, like the people in those big houses had to do. You buy the flat then trade up in 3/4/5 years times. We did that and I don't see why other 1st time buyers seem to expect a 3 or 4 bed house straight away at a cheap price.
No, I like the idea - as long as the next house I buy is at half the perceived value
It's a giant game if musical chairs.
Say you need 10% deposit. On a property in my area of London even for a small 2 bed flat a 10% deposit is around £25-£29,000! Not an easy amount to save for if you are earning a normal salary, and don't have a "Bank of mum and dad" to rely on whilst at the same time paying rent, bills, council tax, and day to day living expenses.
My partner and I could quite easily afford the monthly mortgage repayments on a say £280,000 flat. Raising the deposit to be able to borrow the money on the other hand... not so easy.
Even Help To Buy where a 5% deposit is required would still be £14-£15,000 to find. Easier, but not easy by any means.
Living with your parents/siblings/etc makes things relatively easy. It's tough saving up when ever increasing rent and other bills eats away at your earnings.
And then there's the frustration at not being able to get a mortgage even though the repayments are less than half the amount of rent you've been paying for four years...
I assume with the sum of £30k your looking at a 10% deposit or there abouts considering it's london?
If you find come 2016 and you've reached £30k in savings and you can't seem to find the desired property becuase it's still out of reach price wise, then the worst that can happen is you stay put at home whilst savings continue increasing
Me and the misses are hoping to be in a position to start house hunting at the end of this year but we aren't just going to buy any old house, if we can't find what we want then we'll just keep looking, if that takes several months then the upturn is we have even more savings
It's great if you can do that. But what about all those people who don't have parents that can do that? I know life is not fair, but that really is unfair.
We need to build more houses.
Half a mill doesn't buy much in London anymore. I shook hands on a place 15 years ago in the centre for £70k. Seller changed his mind a few days later and that place is now worth nigh on £700k. Still makes me sick to think about it.
That's the mantra trotted out by politicians, but the reality is a lot more complicated than that.
A key reason property prices have got so high is the massive increase in the availability of finance for landlords/investors since the mid 1990s. Build more houses in desirable areas and they'll be snapped up by the buy-to-let brigade before first time buyers can get a sniff.
Unfortunately I do think it will have to be a 10% deposit as it's London and prices are so high. I have considered Manchester or a different city where prices are cheaper and you get much more for your money, but I work in London and all my family are here...and I absolutely love living here. The only problem that I do have is that I'm putting so much on hold whilst saving for a mortgage...not socialising as much, I don't have a car, don't go away much. I sort of feel like my life is on pause while I'm saving...it's not easy at all and I've made the decision to live at home and save...god knows how people wwho don't live at home are doing it! If it gets to the end of the year and I can't get a mortgage with a £30,000 deposit, then I'm considering going traveling. I don't want to look back and have spent the entire second half of my 20's saving for a mortgage. You only get one life and I want to live it and enjoy it too. However, saying that, I feel as if I'm really determined now to reach my goal of getting this mortgage. It's not easy, but fingers crossed. I'm determined.
some young people even seen to be renting out their first place and continuing to live at home until the place becomes more affordable now! In previous booms people would buy with a partner in order to get on the ladder. People do adapt but there does need to be a massive house yielding project because now I feel the system is broken. I'm on an average /OK salary and my place went up in value more than I earned for the last couple of years - London of course.
Yeah, and it seems like they can arbitrarily decide to charge whatever they want : /
Again though, whatever. This flat was pretty much all I could afford so my hands were tied there and providing you can set up some sort of payment scheme whatever charges are thrown my way shouldn't be a problem and would still come in well below what I would pay renting.
Could've been worse as well. I was looking at flats on another new development and the site sat on 2 council boundaries with neither taking ownership meaning an independent management company has been brought in that charges £150 extra on top of your service charges and on top of your ground rent and on top of your council tax (funny how they can decide the council tax but not the council services),
I know exactly what you mean, it's why me and my partner moved back home, we were fortunate in that we were able to save and rent, we could save £12k in a year which I know most folks would love to be able to do ontop of renting etc, so we don't take that for granted, but it would take us 3/4 years to achieve our deposit target at that rate.
We are in Our mid 20's, saving like a maniac can certainly feel like your life is on pause, and we decided we didn't want to live like that for 3/4 years wasting our mid to late 20's chasing bricks and mortars, so we moved home with our parents and are now able to save 3/4 years worth in just one year, wich sits much better with us
I hope whatever the outcome is for you that it's one you are happy with, all th pe best with it
The property is open to bids
There is no proper kitchen
There is no central heating
It's EPC rating is 'failure'
All windows need replaced
Actually selling price is likely to be nearer £80,000. The buyer will then need around £15,000-20,000 cash for upgrades.
You've basically missed my point entirely. The older people in big houses typically started out in their first property at 22-23 years old. Their salaries then rose 7-10% per year, so the mortgage size relative to earning shrunk significantly after just 5 years or so - thus making upsizing highly affordable. Obtaining a 3 bed family home by 30 was realistic and common.
Now...typical new buyers are already 30, or 36 without parental help. They're also often nearing the peak of earnings, and salary growth is now longer as high as it used to be ( in fact, it's been falling since 2007 for the under 30's). Thus a big mortgage at 30 on a starter flat may still be a big mortgage at 35. Without inheritance or significant career advances, up-sizing to a decent family home by 40 will be very difficult.
There's a world of difference between the property 'ladder' 30-40 years ago than what we have now.
A lot of these coastal properties will be *in* the sea in a few years. That's why they are so cheap.
I bought when I was 31, we are moving into a 3 bed house next month (I am now 37), yes we had to put off starting a family but that's life you deal with it. We bought what we could afford and we made money on it which helped us buy the family home with a decent deposit. You can't get something for nothing these days and you can't expect the big family home to be your first home especially not in the South East.
So I'm right then. You can't compare expectations now with 30-40 years ago (or even just 15 years ago)
And if thee money you 'made' on your first flat was purely from house price inflation rather than improvements, and you remained in the same area rather than 'downgraded' to somewhere cheaper, you would have been better off is house prices remained relatively stable, as the price gap to the larger property would have been much smaller.
I do agree expectations need to change though. House sharing for under 30's needs to become much more common, and affording a 3 bedroom property of your own will become largely dependent on family inheritances rather than one's own efforts. Most of those that don't inherit will become life-time renters.
Problem is if we go out too far the cost of commuting will eat up any savings made on house cost, and findind a job locally in a new area means us both quiting our jobs we already have, and more than likely earning less money and I wouldn't be very likely to be able to find a job in the industry I work in outside of London..
We're kind of thinking buying a property up north somewhere (cheaper) and renting it out. I really don't like buy-to-let really but it would be the only way right now we could get ourselves on the property ladder.
My sister lives in Folkestone - thanks to the new wizzy HS1 link its 70 minutes to Kings Cross, less to Stratford. Hence prices are well on the up. Of course what this means is sisters house is worth more, but she still needs it to live in, whilst my niece is struggling to afford a house with garden for herself and son:(
Folkestone is definitely on the up though - I enjoyed the triannual art festival last year. But there's still a long way to go in regeneration. If I were investing I'd be very tempted by Folkestone...