Thursday, Sep 25, 2008
Time to Revise the Recovery Time Frames?
Mortgage Introducer: FTBs could take until 2023 to save a deposit
Fairinvestment.co.uk research has found that it could take first time buyers 15 years to save the deposit for their first home.
Posted by renting2 @ 01:10 PM (512 views) Add Comment
12 Comments
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1. drewster said...
... unless prices drop by 2/3rds, then it'll only take them five years to save.
2. george monsoon said...
At last some realistic reporting on the financial issues around FTB's Personally, I am struggling to save 100 quid a month. My gas bill just doubled and means I pay nearly 90 quid a month just for the gas. With inflation running riot, I cannot see me ever being able to afford a 15% deposit, even if house prices halve. I am NOT alone.
"The OLD shall inherit the earth and all its wealth!"
3. planning4acrash said...
Except if they save a few quid in gold and silver, and they can buy an entire farm when gold shoots above $6000/ounce by 2010.
4. nooneo said...
Drewster @ 1.
Totally agree drewster.
These morons still can't wrap their feeble brains around tha fact that a House price crash will reduce prices to sensible levels!
Are these people still stuck in the timewarp that was 2005-2007 ?
5. last_days_of_disco said...
Houses will be priced to what people can afford. It went up that way, it will come down that way. Job done.
6. amjidk said...
doesn't look like the lending criteria is going to remain very tight (for the foreseeable future) hence "HOUSE PRICES MUST FALL SUBSTANTIALLY"..
7. drewster said...
The article misuses the statistics.
First of all FTBs aren't going to buy an "average" house - they're looking at the cheaper end of the market. Picking a few random towns on Rightmove, there are plenty of houses out there for well under £100k, some for under £60k. Towns like Swindon, Northampton, Derby, Stoke-on-Trent, Carlisle - there's no need to save up for a deposit on the "average" house.
Secondly the article's headline cries about a 15 year wait, but then further down they point out that couples will only have to wait half as long.
Thirdly they say that the average person saves £139 a month. Is that the average person desperately saving for a deposit on a house, or just the average person in general? If people try hard they can often save more, it depends on how keen they are to secure that deposit.
Fourth there's always the bank of mum and dad, which historically has often helped out with the deposit. They can save money each month too, and they're keen to get the kids out of the house.
8. amjidk said...
oops
"doesn't look like the lending criteria...." should have read "looks like the lending criteria"
9. Redwing said...
That is awful journalism.
"As lending criteria's tighten..."
A grocer's apostrophe in the opening sentence coupled with a shocking lack of knowledge of single and plural forms.
Criterion - singular, criteria - plural.
How can you trust the rest of the article or anything that gets by this website's editor?
10. Mark said...
"it would take a first time buyer more than 15 years to save the average 15 per cent deposit required for a first time buyer to secure an average priced house, assuming that house prices remain level over that period." I think there is about as much chance of prices remaining level as there will be of Crash Brown being PM after the next general election.
I have after many years saved up a 15 per cent deposit, based on the Halifax average house price. However I am pretty confident that my deposit will soon be 30 per cent after more (much needed) price drops. Being a FTB with our first child on the way I just wish the speed of the falls would increase (Sorry im getting impatient).
11. need-a-crash said...
"The results just go to show the reality of how first time buyers don't stand a chance without hefty savings or generous parents"
Why doesn't she just say FTB's don't stand a chance without a HOUSE PRICE CRASH! Which incidently is what they're going to get.
Interesting how women are supposed to save less than men, when it seems to be all my female friends who bought flats during the last few years at extortionate prices (so presumably had some kind of deposit saved up) while all my male friends stayed renting??
12. hash browne said...
The first thing that strikes me about this article is that the people at Fairinvestment must seriously have F' all to do!
Well done, you can use a calculator!
How about working out something a bit more challenging & interesting like.... how long the average person has to work to pay enough in tax to bail out an incompetent bank..... or how many starving African kids you could feed with $700 billion.... or how much it would cost to send Crash Gordon to the moon.....
c'mon.... use your imagination guys!