renting til I die

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About renting til I die

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    Londinium
  1. Inflation, and the fact that £216k is half what the is price currently is! For the record, I don't think that a 44% rise over that time period is justified (certainly not based on official records, Ha) or that the average earner would be able save up a deposit for it, even at this price. Numbers/prices are completely arbitrary at the end of the day, what we think is 'fair' is generally based on what we feel (at the time) would be 'fair' to pay.
  2. I would have agreed that £216k looked expensive back in 2010 (I would have considered £140-160k to have been fair value). But today, I would probably think that £216k was close to a fair price, if I needed to live in Croydon (why does anyone want to live there! :P). The problem is, is that it isn't £216k!
  3. In a world of ZIRP! 40 year mortgages, totally sustainable unless you start calculating the compound interest at higher rates!
  4. Yep, something I always point out when I am told how much I can save by buying! Got to compare apples with apples! Also on their £600 pm saving.... not for 20 months (almost 2 years!) they won't. Their just had to stump up £12k in stamp duty! Let's not think about that being dead money though! .. cough, plus any maintenance costs ... .. cough, cough, should have added that they also lose any income from the £25k deposit ...
  5. There's a simple answer for that! It's because it is all a bit of a .. err....... lie, really!
  6. Do you really think that the pound will be falling that much further? Don't you see a possibility of the Euro having a sudden value drop? I don't understand your statement 'we are clearly past peak/prices rent.'? Do you mean you think we are past peak prices or peak rents? Or maybe past peak rental yields?
  7. Why are you worse off because of your savings? See your savings as giving you options, not as a dead weight.
  8. To all of the people who are worried about having money in the bank and the bias of governments and central bank to debtors. The situation has continued for far longer than any of us imagined and may well have some time to run but the situation is unsustainable, it may feel like it has been going on for a long time but it cannot go on forever. As far as protecting your savings. I would suggest if you have all of your money in one account, that you, at the minimum, split it over several accounts. Better, would be to diversify, 5-10% precious metals, 30-70% Equities (I know that is a wide range but it covers a lot of scenarios). We are all here because we think property values are too high, but if you do find yourself in a situation like @BLOW FLY then there is nothing wrong with biting the bullet and buying. As least you will be going into it with your eyes wide open! Of course, you have to be able to afford it and be comfortable with the levels of debt you are taking on first! Good luck by the way!
  9. Hopefully additional taxes will put them off!
  10. I found this the other day, a bit old (2012 data) but gives a bit of a guide: https://www.theguardian.com/society/datablog/interactive/2012/jun/22/how-wealthy-you-compared As for the OP's circumstances, I think they will be ok whatever happens (if they maintain their income). At 23 you can take on a massive mortgage get into huge debt, crash and burn, and still pick up the pieces and start again at 30. Add to that the fact that their monthly outgoings are not much more than if they were renting (disregarding the initial deposit and fees), I can see why they would think this is a good position to take on (lets still note that renting would carry no capital risk). To me share ownership/HTB just sums up what a ponzi the UK housing market has become. It is the worst of buying, as you have to cover the full maintenance and service costs, even though you only 'own' a % of the flat, and the worst of renting, as you can't just tell the landlord than you aren't going to pay the increased rent and move at short notice (being able to move quickly and no maintenance costs are the upsides to renting). Oh, and I believe that you are not allowed to sub-rent your flat, so yet another restriction! I agree with a couple of the other posters that the situation of such a high earner having to use these ridiculous government backed schemes in order to purchase such an overpriced piece of real estate is complete nonsense. An example of the unsustainability of the UK property market. I will say well done and good luck in your employment endeavours, but I hope this shared ownership agreement is the worst property based decision you ever make! Ha (Although, as I already stated, I don't think it will affect you too much in the longer term).
  11. Good, about time.
  12. Thanks for correcting me, I meant to check that %! But I'm a lazy sod so just entered a big enough number to cover myself! https://www.theguardian.com/society/datablog/interactive/2012/jun/22/how-wealthy-you-compared Couple on £100k is in the top 3% from this tool, so it really is a tiny %. The point stands; there aren't that many people earning this level of income!
  13. Wow, you have been lucky and you are very well paid! I agree that dual income professional couple have incomes able to afford properties in the 400-500k range. However, I would point out that these couples are in the top 20% of the income earning population. If the housing market is relying on these people to keep it going we are closer to the end than I thought.
  14. Tescos aren't taking any new applicants at the moment. I did see it a couple of weeks ago but put off opening an account and now it looks like I have missed out!