Jump to content
House Price Crash Forum

E.a Advises 'if You Can't Afford It- Don't Buy It'


Recommended Posts

Hi all

Just read this in my local paper which arrived today and I just had to share it with you. Sounds like a major back peddle and softening up exercise :) I've snapped it with digi camera but can't attach here, any suggestions?

Dilbert

In this first in a new series of articles about all aspects of buying property, Dean Sanderson, chair of the National Association of Estate Agents in Lancashire and Cheshire, takes a philosophical view on what is one of the most crucial investment decisions most people will ever make.

The constant talk in the media about house prices rising - lowering - stagnating - has left anyone considering buying a property for the first time or those looking to move house - very confused.

Buyers look to estate agents for advice and the advice of any reputable estate agent should be 'if you can't afford it - don't buy it'.

Ultimately, you must base your decision on the mortgage repayments and also take into account that interest rates rise - which means so will your mortgage. As a general rule of thumb, your mortgage should account for between 25 and 30 per cent of your disposable income. Don't forget you also have to pay utility bills (and they are rising all the time), council tax, insurance and probably run one car or two!

Most of us also want to go on holiday, dine out occasionally and have a little money put by for a rainy day. if your mortgage accounts for 50 per cent-plus of your disposable income - you could find yourself struggling.

Be realistic about your own abilities. Buying a run-down house on the cheap can cause major headaches. Can you live with the builders for months on end? Do you really want to do major DIY projects after a hard day's work? Have you budgeted for all the work that needs to be done?

When you think you've found a property you like at a price you can afford, take into account the close proximity of local amenities, commuting networks and if you have children, schools.

The internet is a great way to research a local area but if in doubt, knock on a few doors. Most people won't mind giving their opinions about a particular street or area.

Finally, try to stop looking at your bricks and mortar as an 'investment opportunity'.

For the vast majority of people, our property is our home. If you can make thousands after a few years - great - but if not, surely the best thing about being a home owner is being able to enjoy a happy and peaceful life.

Link to post
Share on other sites
Hi all

Just read this in my local paper which arrived today and I just had to share it with you. Sounds like a major back peddle and softening up exercise  :)  I've snapped it with digi camera but can't attach here, any suggestions?

Dilbert

In this first in a new series of articles about all aspects of buying property, Dean Sanderson, chair of the National Association of Estate Agents in Lancashire and Cheshire, takes a philosophical view on what is one of the most crucial investment decisions most people will ever make.

The constant talk in the media about house prices rising - lowering - stagnating - has left anyone considering buying a property for the first time or those looking to move house - very confused.

Buyers look to estate agents for advice and the advice of any reputable estate agent should be 'if you can't afford it - don't buy it'.

Ultimately, you must base your decision on the mortgage repayments and also take into account that interest rates rise - which means so will your mortgage. As a general rule of thumb, your mortgage should account for between 25 and 30 per cent of your disposable income. Don't forget you also have to pay utility bills (and they are rising all the time), council tax, insurance and probably run one car or two!

Most of us also want to go on holiday, dine out occasionally and have a little money put by for a rainy day. if your mortgage accounts for 50 per cent-plus of your disposable income - you could find yourself struggling.

Be realistic about your own abilities. Buying a run-down house on the cheap can cause major headaches. Can you live with the builders for months on end? Do you really want to do major DIY projects after a hard day's work?  Have you budgeted for all the work that needs to be done?

When you think you've found a property you like at a price you can afford, take into account the close proximity of local amenities, commuting networks and if you have children, schools.

The internet is a great way to research a local area but if in doubt, knock on a few doors. Most people won't mind giving their opinions about a particular street or area.

Finally, try to stop looking at your bricks and mortar as an 'investment opportunity'.

For the vast majority of people, our property is our home. If you can make thousands after a few years - great - but if not, surely the best thing about being a home owner is being able to enjoy a happy and peaceful life.

You can attach files at the bottom of posts.

Hope that helps!

Link to post
Share on other sites

right_freds_dead

Thank you! IMO it's an easy solution - prices must fall... a lot.

I posted it as it appears to me to be a turn around from what we're constanly seeing in the media, as the guy is from the NAEA I think they've realised they now have to soften up Joe Public for what will happen next. I just loved that line about not seeing property as an investment!

Shakerbaby

Just spotted the option for adding an attachment ... thanks, it helped :D

t_afford_it.jpg

post-1230-1118342035_thumb.jpg

Link to post
Share on other sites

Anyone needing all that explaining clearly has the IQ of a chipmunk and shouldn't be allowed to buy a house anyway.

if your mortgage accounts for 50 per cent-plus of your disposable income - you could find yourself struggling

like... durrr.

you must base your decision on the mortgage repayments and also take into account that interest rates rise - which means so will your mortgage

um... really? Glad someone told me that I'd never have realised.....

<_<

Link to post
Share on other sites
Guest Time 2 raise Interest Rates

How's this sound for bad advice for first time buyers. Article in local newspaper under the headline "Property matters". Each week local estate agents take a look at property issues giving advice to home buyers and sellers. This week's advice from one local agent, advises first time buyers to act now to beat the rush.

"Gordon Brown's announcement is good news. He has said that he will help first time buyers by taking a stake in the property they chose to buy and help by guaranteeing part of the purchase. However, there will be a rush when this schemes starts which will inevitably PUSH UP PRICES. Our advice is to get in now while prices are still stable. The selection of homes is still great and there are still bargains out there."

Can they be held to account for printing stuff like this when prices IMO will be down substantially by the time this scheme comes into effect?

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    No registered users viewing this page.



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.