cashinmattress Posted August 12, 2009 Share Posted August 12, 2009 Wait until 40 to get on property ladder First-time homebuyers face waiting until they are almost 40 to get on to the property ladder if they don't get a helping hand from their parents.Their ownership hopes are being scuppered by fierce competition for homes, nervous lenders and panicking property valuers. Estate agents in some areas report bidding wars between first-time buyers and back-to-back appointments for viewings — leading to many meeting their asking price for the first time since 2007. In some areas, specific terrace homes are selling for more than they fetched two years ago. This, despite average prices having dropped by more than 20% in some parts of the country. Meanwhile, figures from the Council of Mortgage Lenders show that first-time buyers are stumping up a typical deposit of £31,875, more than double the £13,194 in September 2007. Even when buyers have offers accepted, they find that stubborn banks and building societies refuse to lend. Often this is because surveyors are valuing properties below their sale price. Now CML economists say the average age of a first-time buyer who receives no help from their parents is 37, compared with 31 for those who get help from Mum and Dad. Paul Herring, an estate agent with Kinleigh Folkard & Hayward in London, says: 'First-time buyers who haven't got a large deposit aren't even coming to view houses. It's as though they know there is no point even looking. 'We are stock starved, so there is competition for most of the properties we get. Most first-time buyers have at least a 15% deposit these days, and the majority have had a big help with their deposit from their parents — without it, they wouldn't stand a chance.' Figures from the National Association of Estate Agents show 292 house hunters per estate agent in July against 59 properties available for sale. Halifax house price figures show that across the UK, the value of all properties increased by 1.5% between April and June. But the price of flats and maisonettes — those most popular with first-time buyers — increased by 66% more than this. Meanwhile, the value of detached properties has risen by around a third less than the average property. There are vast fluctuations in different regions and between types of property. For example, in many places detached house prices are rising, but in London they plunged by more than £30,000 between April and June. Meanwhile, the average price of flats rose by £8,000. The same phenomenon is being experienced in the South. In places such as East Anglia, so few flats are being sold that it is proving impossible to know what is going on. While falling prices should make buying a house more affordable, mortgage lenders have clamped down — around 16,000 mortgage applications are being turned down every month. The average advance to first-time buyers has fallen from £118,750 before the credit crunch to £95,625. Ed Stansfield, property economist for Capital Economics, says: 'You can't have a healthy, sustainable property market where a large chunk of buyers are excluded. It's why we think there will be a double- dip in house prices, because there is a lack of supply of properties and tight mortgage lending.' Estate agents, brokers and buyers also complain surveyors are frequently valuing properties below the selling price — even when there have been three or four buyers willing to pay that price. In some cases, it is believed surveyors are being told by lenders to value a home as if it were a distressed sale — where a seller is desperate to move. Chartered surveyor Barry Hall, a spokesman for the Royal Institution of Chartered Surveyors, says: 'Sometimes there is irrational buying, with one or two people bidding on one property. But you have to ask whether that is normal for that area or if it is just part of this price bubble.' Sarah Davenport had to turn to her parents to get a deposit before she could climb on to the property ladder. She and her boyfriend had an offer for the asking price of £220,000 accepted on a two-bedroom house with a garden in Walthamstow, East London. Sarah, 31, a TV production coordinator, who has been renting with her best friend, found it a real battle to find a bargain. 'My boyfriend has savings, but it took him a long time to build them up and it was hard to do,' she says. 'At one time, house prices were rising faster than we could save. It is very competitive out there with few bargains — not at all what we were expecting. 'People were surprised we had to pay the asking price. And even with a 25% deposit, getting a mortgage was not easy. We really had to search around to find someone who would lend to us.' They have now secured a mortgage offer from Abbey. The reality of it all eh, when it's put into this context. For most UK people, you have to spend 2/3 of your life in order to have 'property'. Don't you think we need a radical rethink in regards to priority? Or, will we just remain a petty nation of greedy, selfish, and paranoid citizens? Quote Link to comment Share on other sites More sharing options...
Executive Sadman Posted August 12, 2009 Share Posted August 12, 2009 yes, but for those of us in our twenties now we'll probably only be able to retire when we're 80. So 40 is the new 20-25. We just have to hope fertility treatments, plastic surgery and life prolonging drugs advance accordingly! Quote Link to comment Share on other sites More sharing options...
cashinmattress Posted August 12, 2009 Author Share Posted August 12, 2009 yes, but for those of us in our twenties now we'll probably only be able to retire when we're 80. So 40 is the new 20-25. We just have to hope fertility treatments, plastic surgery and life prolonging drugs advance accordingly! Meh, I have my doubts. The boomers had it good with respect to health care, personal space, bountiful harvests and organic foods, and state support. The generation(s) behind will never be so lucky. Frankenfoods, chemicals, and general toxicity of the land we live in will start to have some very detrimental effects. Quote Link to comment Share on other sites More sharing options...
AvidFan Posted August 12, 2009 Share Posted August 12, 2009 Pity those Santander "first time buyer" accounts advertised by Abbey and B&B have an upper age limit of 35 then. Clearly, they need to get with reality and help those unfortunate 37+ year olds who know houses aren't a buy at 7-8 times the median wage to get a decent yield on their deposit, rather than the 2% everyone else is offering. Quote Link to comment Share on other sites More sharing options...
D.C. Posted August 12, 2009 Share Posted August 12, 2009 40 is the perfect age to buy a house. That means you can finish paying the mortgage off at 65 and then the government can take your house from you to pay for your nursing home. It is perfect, at no point is the house sitting idle not earning money for the banks. Quote Link to comment Share on other sites More sharing options...
AvidFan Posted August 12, 2009 Share Posted August 12, 2009 40 is the perfect age to buy a house. That means you can finish paying the mortgage off at 65 and then the government can take your house from you to pay for your nursing home.It is perfect, at no point is the house sitting idle not earning money for the banks. Hadn't thought of it like that, but you're absolutely correct! Quote Link to comment Share on other sites More sharing options...
D.C. Posted August 12, 2009 Share Posted August 12, 2009 Hadn't thought of it like that, but you're absolutely correct! Scary init? What have they done to my green and pleasant land? Quote Link to comment Share on other sites More sharing options...
AvidFan Posted August 12, 2009 Share Posted August 12, 2009 40 is the perfect age to buy a house. That means you can finish paying the mortgage off at 65 and then the government can take your house from you to pay for your nursing home.It is perfect, at no point is the house sitting idle not earning money for the banks. Repeat after me... must... conquer... savings... paradox... Quote Link to comment Share on other sites More sharing options...
AvidFan Posted August 12, 2009 Share Posted August 12, 2009 Scary init?What have they done to my green and pleasant land? Inflated it out of all proportion? Quote Link to comment Share on other sites More sharing options...
the flying pig Posted August 12, 2009 Share Posted August 12, 2009 (edited) ...Their ownership hopes are being scuppered by fierce competition for homes, nervous lenders and panicking property valuers. although of course the extremely good value and in no way inflated or unaffordable prices that we have at the moment do mitigate these problems to a degree. Edited August 12, 2009 by the flying pig Quote Link to comment Share on other sites More sharing options...
mbga9pgf Posted August 12, 2009 Share Posted August 12, 2009 Repeat after me... must... conquer... savings... paradox... Good Job if I continue saving with a modest savings rate I will have 450K banked by the age of 35. Shame I will be taking it all overseas of course! Quote Link to comment Share on other sites More sharing options...
Guest Parry aka GOD Posted August 12, 2009 Share Posted August 12, 2009 Good Job if I continue saving with a modest savings rate I will have 450K banked by the age of 35. Shame I will be taking it all overseas of course! It might buy an ice cream by then. Quote Link to comment Share on other sites More sharing options...
AvidFan Posted August 12, 2009 Share Posted August 12, 2009 Good Job if I continue saving with a modest savings rate I will have 450K banked by the age of 35. Shame I will be taking it all overseas of course! That's some mighty-fine saving. Investment banker are we? Quote Link to comment Share on other sites More sharing options...
sammysnake Posted August 12, 2009 Share Posted August 12, 2009 Sell your prized asset to family for a quid. That way the criminals never receive a penny Quote Link to comment Share on other sites More sharing options...
Guest Parry aka GOD Posted August 12, 2009 Share Posted August 12, 2009 Sell your prized asset to family for a quid. That way the criminals never receive a penny If you mean your house, I think that one went out the window a few years ago. Something about the land registry and HMRC, if the value was way below market value at transfer then the difference was taxed as a benefit in kind or something like that. It was probably to stop inheritance tax and BTL capital gains tax avoidance. Quote Link to comment Share on other sites More sharing options...
Timm Posted August 12, 2009 Share Posted August 12, 2009 If you mean your house, I think that one went out the window a few years ago. Something about the land registry and HMRC, if the value was way below market value at transfer then the difference was taxed as a benefit in kind or something like that.It was probably to stop inheritance tax and BTL capital gains tax avoidance. Hmm. I wonder how long before they start taxing forced sales at 2007 prices? Quote Link to comment Share on other sites More sharing options...
Guest Parry aka GOD Posted August 12, 2009 Share Posted August 12, 2009 Hmm. I wonder how long before they start taxing forced sales at 2007 prices? Yes. How would it work in a market where the perception is still high prices but the reality is fire sales? Dunno? Quote Link to comment Share on other sites More sharing options...
grizzly bear Posted August 12, 2009 Share Posted August 12, 2009 My thoughts on this is that its not really a ladder if you are 40, presumably married with a couple of kids - I mean by that stage not much point in buying starter flat you need a family home. Ladder to me means buying small property and then moving up. Quote Link to comment Share on other sites More sharing options...
porca misèria Posted August 12, 2009 Share Posted August 12, 2009 At age 40 I was recently returned to the UK from abroad, and struggling to set up my own business. No question of taking on a mortgage (never thought of "liar loans"). If the average age is tending towards 40, that'll be partly down to some of us being significantly older than that.. Quote Link to comment Share on other sites More sharing options...
ccc Posted August 12, 2009 Share Posted August 12, 2009 "In some areas, specific terrace homes are selling for more than they fetched two years ago. This, despite average prices having dropped by more than 20% in some parts of the country." Ah....... In SOME areas. For SPECIFIC homes.......... No terraced house in the UK is selling for more than it fetched 2 years ago, UNLESS it has had a massive amount of work done to it. Anyone care to disagree..................I really am becoming angry at the constant LIES that are peddled by the media in this country.. :angry: Quote Link to comment Share on other sites More sharing options...
JonoP Posted August 12, 2009 Share Posted August 12, 2009 heh heh, they published my comment! This is unlike The Times, who never publish any of my comments. Anyhow, see if you can guess which one it is....... Quote Link to comment Share on other sites More sharing options...
cashinmattress Posted August 12, 2009 Author Share Posted August 12, 2009 "In some areas, specific terrace homes are selling for more than they fetched two years ago. This, despite average prices having dropped by more than 20% in some parts of the country."Ah....... In SOME areas. For SPECIFIC homes.......... No terraced house in the UK is selling for more than it fetched 2 years ago, UNLESS it has had a massive amount of work done to it. Anyone care to disagree..................I really am becoming angry at the constant LIES that are peddled by the media in this country.. :angry: I think by 'selling' they actually mean 'asking for'. You and me, and the rest of us know that the original statement is false. Quote Link to comment Share on other sites More sharing options...
cashinmattress Posted August 12, 2009 Author Share Posted August 12, 2009 heh heh, they published my comment! This is unlike The Times, who never publish any of my comments. Anyhow, see if you can guess which one it is....... 16. I am 36. I will probably only buy my first house when I am 40. Thing is, I will buy it for cash as I have spent the last 10 years saving. I will almost certainly buy it (as a repossession) from an idiot who believed the constant ramping from the CML/RICS/EA crowd. This idiot will have bought a house that they could not actually afford because they believed that ‘prices are rising’ and ‘if they do not buy now, they will never get on the ladder’. The repossession will probably involve ‘the bank of mum and dad’ losing a tidy sum (i.e the deposit for the house) and the ‘lucky homeowner’ being made bankrupt.Happy days! - Pondy, Reading Posted: 12 August 2009, 7:04pm Do I win a prize? Quote Link to comment Share on other sites More sharing options...
ccc Posted August 12, 2009 Share Posted August 12, 2009 I think by 'selling' they actually mean 'asking for'.You and me, and the rest of us know that the original statement is false. Yes but we are not really important are we ? We are not the majority. The sheeple are. Quote Link to comment Share on other sites More sharing options...
JonoP Posted August 12, 2009 Share Posted August 12, 2009 Do I win a prize? Yes!!!!! A cheaper house in about two years time!!! Quote Link to comment Share on other sites More sharing options...
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