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Pie Eater

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Posts posted by Pie Eater

  1. woof. I make that borrowing about 210K, for a purchase around 250K. I think that's bold borrowing, but if the job sustains it that it's his call. What would worry me is that at the end of the 3 year fix it it looks in this economic climate like average prices could be 15/20% down. A lot of folks on here now vouch for that level of further drops, but over the longer period like this. And no V shaped recovery on the horizon. That drop would pretty much wipe out the 40K equity just at the wrong time.

    If that were me then I'd need to pay down a serious wedge in the first 3 years - and that's a lifestyle choice in a lot of cases. It's easy to say you are going to stick an extra 15K a year into your mortgage, but in practice after saving a big deposit and furnishing a ftb gaff with all mod cons that notion might be more aspirational than practical.

    Good luck to your mate, but thats just too much debt for me. Can't help but think 200K borrowing for first time buyers is the kind of thing that got us here in the first place.

    Is it really relevant that's he's an FTB vis a vis the amount he borrows? More relevant what his salary is surely? Many FTBs earn low wages as they are typically starting out in their career, so generally we can say FTBs should borrow less then other buyers. However, given this individual's salary, he is not a typical FTB, therefore the fact he is an FTB is not relevant.

  2. TBH, we are going into this expecting prices to fall further by maybe another 10% (which we are comfortable with as we have already gained by not buying immediately after selling 8 months ago) although the less the better obviously. I just can't see falls of a much greater magnitude than this materialising, although I recognise I could be totally wrong.

    I'm so sick of renting!!

  3. Unfortunately I'm not comfortable posting a link.

    Yes, we earn more than some people in the town, and less than others. The point is, we can now afford the type of house that I believe we shoud be able to afford at 2.5x our salary (following the 23% drop).

    It then follows that if there was a 23% drop across the board in the town (and we are getting there according to PB), then there would be houses at all price points affordable to low, average and high earners.

    For example, it is now possible to buy a 1 bed flat or 2 bed terrace in the town for £45-60k - affordable for a couple with a joint income of £20-25kpa. It has been argued on this site that home ownership is a privilege, not a right, and as such, anyone earning below this (very low wage) should probably be renting anyway.

    Just my thoughts.

  4. Me and my husband live in a northern working class town. We both earn above the national average wage, combined income of £70k ish.

    We have found a good sized, 4 bed detached house in a nice area of the town, backing onto woods/fields.

    This house is perfect for us, and best of all, with a 15% depsoit we would only need to borrow 2.5x our income to purchase it, which is pretty standard by historical standards I believe.

    This house is priced at c. 23% off peak. So...does this house have much further to fall, or is it possible that our town doesn't have as far to fall as, say, London on the basis that maybe it hasn't seen the same kind of growth over recent years?

  5. I joined a LA Children's Service as a social worker 10 years ago having completed a two year diploma course when I was 36.

    I started on 19K and had a very protected caseload and all the usual public sector perks ie. good AL and pension.

    Since then it seems as if LA's and central govt have decieded to just throw more and more money at the profession and newly qualified SW now start at 32K and rise to 42K with experience.

    I became a manager after 4 years and am now earning 46K with another pay award pending and a 2K annual bonus.

    Whilst I may never get rich on this its a job for life and as there's currently a shortage of SW nationaly age makes no difference to employement opportunities. I regulary see SW nearing retirement age getting work. How many other industries can boast that? In most cases your over the hill at 40!

    Go agency and the rewards stack up even higher.

    I would however, love to go part time and live six months abroad and come home for the winter months to work as a locum. Having two small babies keeps me locked in as I feel the need to ensure they are provided for.

    Hi Midnight Rider,

    Out of interest, is it possible to train as a social worker whilst keeping one's current full time job? I earn similar money at the moment, but am uninspired by my job. I think I might enjoy Social Work, but have never really looked into it, as I had always assumed it was low paid. I'd never be able to fund myself through 2-3 years of full-time education though.


  6. Surely it's all down to region, condition, area, etc so it's difficult to specify what an average house is. The fact is, it will be those houses that are now currently valued at the current average price (c. £160k) that come down to the new average price. This may include say, some 1930s semis, some 1 bed flats, some terraces, some 4 bed detached, etc - wholly dependent on the variables above.

  7. Hello

    My mum and dad have just had their house valued, they bought it in 2004 for 120,000 it is a three bed semi with a garage drive attic conversion and 2 reception rooms.

    Mr B&B said that with the banks requiring 25% deposit the majority of people in the area can't afford that normally but coupled with all the layoffs, the fact that we have loads of ths type of house on our books and they aren't selling, and it requires a more modern kitchen put it on at 90,000 but expect to get 80,000.

    Since they bought the house they have updated the garden installed a solid fuel burner and added a conservatory. So unless these have added nothing then i'd have expected a house without these additions to be valued at considerably less.

    It might not be good news for my mum and dad since it was their first house and they bought with a 100% mortgage, but my dad does admit that they were happier when they rented.

    For those of you after a house it looks like estate agents are starting to pay attention well in the north west at least.

    Interesting, I'm sure you have said previously that you are in the same town as me. By Mr B&B I presume you are referring to one of our local agents, so it's good to know that they at least (if not others) are being realistic. (I used to have a Saturday job with them incidentally!)

    Which area in particular are your parents in, as that sounds like a hell of a drop from an already low-ish price? Seeing some 20% drops in the ares I'm looking in, nothing more than that at this stage, but finding it really difficult to gauge whether new listings are priced in line with the drops already seen or whether agents are still pricing at 2007 levels (without the house nos it's difficult to check sold prices.)

    I noticed the BBC recently reported our town as the 3rd best performing in terms of house prices, apparently only having dropped 1.9% in 12 months. Anecdotally I can confirm the BBC stats are not a reflection of reality.

  8. 20%!!!!

    This is a thread about cheeky offers, drop down 40% at least!

    I was disgusted that the agent didnt laugh at me in disgust at my 40% off. I shouldve gone for 100k. I wouldve upped it to 120 straight away anyway so why aim so high?

    20% off some of the highest house prices in the western world during the bursting of the largest bubble ever seems a bit foolhardy.

    Wheres my tin hat.

    Yes but let's be fair, you are offering on a house that needs a major amount of work doing to it, whereas my offer was on a house that has been refurbed to a high standard already. Although I agree that 20% may not cover the total slump, my opinion is that not all properties will fall by the same amount - renovation jobs always fall by more, relatively, than comparable 'finished' properties.

  9. I'm putting an offer in tomorrow, 20% off advertised price, think it came on market 6 months ago, so poss more than 20% off peak, depending on how realistic the agents were when first setting the price. No comparable sales nearby unfortunately. We shall see how it is viewed!!!

  10. I hear what everyone is saying, and agree that lenders requiring higher deposits is a positive thing. However, try not to be so harsh on FTBs who are saving for their first deposit now. As is the point of this site, a 10% deposit is much more difficult to achieve these days than it was for first time buyers, say 8 years ago, given the rate at which HPI has outstripped wage inflation. Hopefully, this will correct itself in time.

  11. Needing no deposit must have been one of the biggest causes of HPI.

    In the old days only prudent people who saved a deposit could afford to buy, and for FTB that would have been a flat/ modest terrece.

    Then comes along the "no deposit" mortgage and all the wreckless people that had never even used the word "save" could buy, and these are the same people that are obbssesed with labels/credit cards ect..... so then of course the house became their "designer clothes" so they wanted the biggest and best they could possibly get. and so it spiralled.

    I think we need to go back to big deposits, and FTB accepting that a small house is the first step.

    One friend of mine is 36, decent wage, no savings/equity but cant understand why he cant afford a 3 bed semi.......! (too old for a flat of course!)

    But he IS too old for a flat. I really don’t understand why FTB = flat/small house. The reason flats are associated with FTBs is that historically many FTBs are on small wages relative to what they may earn later in their lives due to their young age. They then later trade up to bigger and better properties as they get older and their earning power increases.

    However, if an FTB is in their 30s and not just starting out career-wise then there is no real reason why they should necessarily start off on the first rung of the ladder, surely! As long as they can afford a sensible deposit (5-10%) and their salary can support the mortgage payments, then of course an FTB can look at semi-detached and detached properties. If the point you are making is that your friend is not disciplined enough to save for a deposit even on his good wage so cannot be responsible for a mortgage, then I can go along with this. It's just the implication that ALL FTBs should start out small that annoys me a bit.

  12. Don't hang around too long, I am helping a friend in the new year with egg donation, at 34 we have 6 months before the rate of success drops from 70% to 30%.

    Oh and you might never get broody I have 4 and have never felt any great longing to have a child, one just turned up, then I felt she ought to have a younger sibling and so and so on ;)

    Sounds a bit like us with our dogs, somehow went from 1 to 3 seamlessly (see avatar!)*

    I always said I'd have my first at 30, give or take a year, and I'm still comfortable with that idea. Good luck with your friend and the egg donation.

    *Hubby works shifts so they are rarely left alone (this to satisfy anyone who might take exception to dog ownership by the employed as I have seen happen on other forums)

  13. Your paragraph above exemplifys the madness of the last few years - to use myself and two close friends just as an example when we were in our mid to late twenties ( 1985) - One of us was a very Junior Doctor at Warrington General , the other was a Bank Clerk/Trainee manager with Natwest and there was myself already earning a high tax free salary - The Doctor and the Bank clerk were living in Victorian terraces not far from the centre of town and we lived in a very modest one-bedroomed house on the outskirts -that was what people did -you started off small and gradually worked your way up -when I see friends of my sons leaving University then buying £400,000 townhouses in Lymm or Didsbury I just shake my head at the madness of it all -to suggest that you would allow your property ambitions to dictate when you start a family is just so sad I`m afraid .

    OK, hang on a minute now. I'm not really clear on what is so wrong with wanting to make sure that I can provide a financially stable environment in which to bring up my children when I choose to have them. I'm only 27, so don't particularly feel ready for children yet anyway, regardless of my domestic situation, so it's easy for me to vaguely say I'm waiting until a time in the future when everything's clearer. I guess I always just assumed that we would be settled in our long term home with a good idea of the associated outgoings before having our first child. If I get seriously broody before we buy, then maybe I'll have to revisit my long-held assumptions.

    And in terms of moving up the ladder, we have already bought and sold our first 'starter' home - a two bed terrace with the original intention of working our way up the ladder, but the economic climate has put paid to that for now, so don't imagine that I am one of these FTBs with an overdeveloped sense of entitlement prepared to skint myself in order to skip the bottom rungs of the ladder.

    Sorry to the OP, bit off topic…

  14. Your post is probably the single, most deressing post I've ever read on this forum. Feeble excuses for not having children, complaints when earning £70K pa between you and a stated desire for an easy life.

    Is this what we have succumbed to?

    Wow, quite extraordinary when I think of some of the posts that I'm up against!! :lol:

  15. Nice houses and nice holidays don't exist when you have children. However well you bring the little blighters up they trash the former, and they make the latter prohibitively expensive and/or more hassle than it's worth.

    Yes, I'm sure that's true. One of the reasons I don't have kids yet is because we're postponing it until that magical day when we are settled into our forever home and have enjoyed a couple of nice hols...

  16. I go a step further than you in honesty, let's face it women should concentrate on their natural duties as mothers again. What is wrong with them these days! How bad could it be that they'd rather go out 9-5 to make a profit for someone else and be their wage slave?!?!?!? Insanity.

    Really OK ladies you've had your fun now, you've had the opportunity to see that the man's world isn't the bundle of laughs you assumed it was, now will you please do us all a favour and resume rearing decent children.

    Or might some lady care to take this issue up with me?

    OK go on then, I’ll humour you!

    Firstly, I agree that mothers should concentrate on their natural duties and bring up their children properly, but I believe the same applies to both parents. Not sure why it necessarily has to be the mum who stays at home, both parens play an important role in bringing up their children. I don’t have children but I would love nothing more when I do to be a stay at home mum. Unfortunately for me, I was born with the wish to live in a nice house and take a nice holiday every year when I grew up and it was obvious from an early age that the achievement of those simple goals would require a dual income household.

    I now find myself in a position where my husband and I are in our mid 20s and earn a reasonable amount between us (£60-70kpa). We’re not rich or well off by any means, but we should be comfortable. Unfortunately because of the frustrating HPI we’ve seen, my dream of a nice house and nice holidays remains a dream for now. (And we only live in Wigan!) But I digress…!

    The point is, I earn over 50% of our household income, as do many other women I know, and probably so do many of the women on HPC, so I do resent the tone of your post which seems to suggest that we ‘little ladies’ are playing at a man’s game and are out of our depth. However, I’m fairly certain your comments were made tongue in cheek and mainly to provoke a response, so I’ll leave it there, and here is your response!!

    (Incidentally I do agree that children not being brought up properly is one of the main causes of many of the issues that we face in Britain today. I would argue however that it is those families with no working parents rather than both parents working that are causing the problems).

  17. I am female. My husband and I STRd a few months back. Yes, women can have a nesting instinct, but so can some men. My husband is the one who feels the need to buy again more urgently. I would really REALLY love a house of my own once again, but am level-headed enough not to let my heart rule my head. I won’t risk buying too early and missing out on possibly the greatest opportunity we’ve ever had.

    I am no economist, and therefore find this site very useful and informative in helping me to gauge whether it’s the time to buy (or not).

    Yes some posters' views on women are a little bit misguided. There are women who are shallow, dense, emotional, dependent, but there are many women who are not. Similarly, the same could be said for men. Stereotypes can be useful, amusing, comforting even - but are often wildly inaccurate.

  18. In my experience (very limited - STR 3 months ago, never rented before) about 20% of landlords will consider pets. I drew up a huge list of houses that I was interested in viewing, then called each letting agent and explained that we had three dogs and understood that this would limit the extent to which we had free choice from the properties available. We then ran through the list and arranged viewings on the properties where pets were permitted. In the end we viewed approx 10 properties, and amazingly ended up in a shiny new build on the condition only that we get the carpets cleaned at the end of our tenancy. So, unless things are different where you are, you should be ok.

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