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Hopeful FTB

So Really, How Is It Going To Pan Out?

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My second post in one day but have a lot to comment upon! Been holding this in for a long time!!

Like most people on this site ( it appears), I didnt jump on the property ladder 5 years ago in that 6 month window before it all went crazy- had some travelling to do as it goes!

Anyway, have spent the last 5 years being reminded pretty much all the time by a great deal of rather smug friends who have made upwards of 100k on their properties how I am some kind of social pariah for this mistake- I quote " I feel really sorry for anyone trying to get on the property ladder these days as you have probably missed the boat"

So, what do you say? What do you do? I now actually am ready to buy a house but funnily enough, even with a decent joint income, I can only afford a poxy one bed flat when actually I just want a 3 bed home to have my kids in. I dont mean this in the wrong way but I earn more than my parents ever did but, unlike them, seem to have no chance of having the "normal" life that they did due to soaring house prices that price pretty much everyone bar the very wealthy out of the market.

As I have said before on this site, why do the media address every other issue about the housing market bar the most obvious "HOUSES ARE TOO EXPENSIVE FOR MOST NORMAL PEOPLE"- where is this going to go? How many normal people in this country can afford a house without getting into scary amount of debt? Surely this situation is deeply unsustainable?

People keep saying to me that prices will never go down now but I read recently that if HP inflation continued in the way it has, by 2050 your average semi would cost about 50 million!!

I am in despair about ita all! Any comments? :blink:

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I am pretty much in the same boat as you. Without meaning to sound smug - unlike many of my schoolfriends, who are completely priced out of the market, I could buy something as I have built up a good deposit and have a decent wage.

But even with 5x salary, it would be a rabbithutch, flat and likely to be worthless in a couple of years.

In fact, I find myself in a weird financial situation. I have enough disposable income to live a fairly extravagant lifestyle should I wish (I don't, I'm naturally frugal and non-materialistic).

But the prospect of buying even a modest house to start a family in still seems very remote, and the deposit I am building up has taken on something of an abstract quality. So all the spare cash I have at the end of each month can seem quite pointless, bizarrely. It's like I'm saving up for something I'll never be able to afford, like a space shuttle. The only thing it gives me is security.

So I just have to keep telling myself that this thing won't happen overnight, and the more I keep saving, the better positioned I will be when the whole pyramid scheme collapses. The amount of bearish news that has come out this week has seriously cheered me up too!

As far as smug friends are concerned, maybe it's worth reminding them that that 100k is not real money unless they a) MEW and get shafted by the coming higher interest rates, or B) STR, which I bet they won't have the balls to do.

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I'm in much the same boat as you guys. I'm 23, earn a good wage (in relative terms), have money saved for a deposit, and am able to live cheaply (hence saving money) by virtue of my work. I've no dependants, and no financial obligations.

All I want is a place to call home- that being a flat in London, preferably with enough space to swing a cat (although am willing to compromise upon that...). Is this asking the world? Am I being unrealistic? The fact of the matter is that this aim is unattainable at the moment- and I am one of the lucky ones. I'm five years ahead of my university contemporaries, who are paying off student loans and settling credit card bills!

Some friends who had saved enough for a deposit are now living the life of kings- buying new sports cars, holidays etc, because they have abandoned all hope of actually getting a reasonable place. Of course, if they had mortgaged themselves to the hilt, they might have afforded a 100ftsq studio flat on a fifty year lease!

I'm loath to wish ill to others, but nothing would please me more than a crash. Not because of the average Joes who see their homes halved in value, but just so as to see the look on the faces of those smug BTL f**kers, who have been riding the cash cow for the last five years, forcing people like us out of the market. It is not as though we are asking for the world- just the chance to get a reasonable home for reasonable money.

Roll on the collapse/readjustment/crash.......

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But the prospect of buying even a modest house to start a family in still seems very remote, and the deposit I am building up has taken on something of an abstract quality. So all the spare cash I have at the end of each month can seem quite pointless, bizarrely. It's like I'm saving up for something I'll never be able to afford, like a space shuttle. The only thing it gives me is security.

I know exactly how you feel, I too have saved what looks like a vast amount to me.

But when you put it into the context of buying a "normal" house like the one I grew up in it is a drop in the ocean.

I still get depressed about my situation sometimes, but then I think of some of my freinds, who not only don't have any deposit saved but are actually in debt !!

I'm just hoping that these years of "prudence" ( not wanting to sound like Gordon )

will leap frog me ahead of the game when the time IS right to buy again.

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I am in despair about ita all! Any comments?  :blink:

However bad you feel about your circumstances now, it is nothing compared

To what negative equity feels like when you are forced to put your life on hold

Because you cannot move up, or side-ways along the property ladder.

Many felt that in the 90’s many more will feel it this time.

Stay patient, the tide is turning. ;)

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Hold on there mate. I know how you feel - it does all feel a little unreal. I earn more than the London average, have no debts and over 5 years have saved a desposit large enough to buy a sports car in cash - yet buying a place big enough to raise a nipper in would leave practically no cash to afford one.

I think it is going to get nasty over the next few years - unless another bubble can be pulled out of the rabbit hat (which given the amount of debt around I can't see it).

I can't guarantee my job will be safe but I think I'm better prepared mentally to survive a recession than most. My life does not revolve around consumerism, most of my hobbies cost practically nothing and I already live a frugal lifestyle.

Edited by greencat

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Morning All,

I am currently renting a two bedroom semi in Amersham with my wife who gave birth to our son last Tuesday. Thanks in part to this site my wife is happy to rent for the foreseeable future.

I earn a six figure salary but based on 3.5 times earnings we could still only afford to buy a 3 bedroom house in an ok area. This to me is ridiculous and I refuse to be drawn into such a deal. Don’t get me wrong, I would be happy to live in a 3 bed house in an ok area but not at £350,000!!

We have some friends who sold their place in London last year and rather than renting bought a 2 bedroom terrace round the corner from us for £238,650. The kitchen is the size of a shoe box and the bathroom is reached through the second bedroom. It’s people like this who are going to get badly burnt when prices head south as I am sure they will.

The sad thing is despite them being a friend I will not have an ounce of sympathy when it all goes pear-shaped. These are well-educated people but fail to read the writing on the wall.

“Prices will never go down” “you can’t lose with property” “yeah but, renting is dead money, your just paying someone else’s mortgage”

My response – “Yeah but I’m paying someone else’s £300,000 mortgage. I intend to buy this house with a £180,000 mortgage over 15 years rather than 25” Unfortunately these people are blind to such reasoning.

Patience is the name of the game – the greedy will not prosper in the long run!! ;)

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I do hope you are not an accountant, you earn a six figure salary but have not managed to get onto the market.

With regard to "Just want a three bedroom house" as a first time buyer?.

You have to run before you walk. Get a studio flat and work your way up, times have changed.

Wishing for the days when you could get married and get a four bedder in a leafy suburb have five children and the wife stays at home are long gone.

We have people earning six figure salaries who complain they cannot get onto the housing ladder, and nurses on little more than minimum wage who can and have.

I think some people should take a good look at their wardrobe full of designer clothes and Nike Trainers and understand that buying a house has always involved sacrifices and cutbacks.

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I do hope you are not an accountant, you earn a six figure salary but have not managed to get onto the market.

With regard to "Just want a three bedroom house" as a first time buyer?.

You have to run before you walk. Get a studio flat and work your way up, times have changed.

Wishing for the days when you could get married and get a four bedder in a leafy suburb have five children and the wife stays at home are long gone.

We have people earning six figure salaries who complain they cannot get onto the housing ladder, and nurses on little more than minimum wage who can and have.

I think some people should take a good look at their wardrobe full of designer clothes and Nike Trainers and understand that buying a house has always involved sacrifices and cutbacks.

Hehe, flamebait as usual. :D

The point he was making was that he didn't want to waste his hard-earned on an overpriced hole that's more than likely to drop substantially in the next couple of years. Can't say I blame him. When you can rent for a fraction of a mortgage, then why buy. On a great salary, just save your pennies and buy a house cash in 2-3 years time and never have a mortgage.

Ps. Didn't see the bit where he mentioned his "wardrobe full of designer clothes and Nike Trainers" Must be these glasses...

Nomadd

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Laurejon was, is and always will be an objectionable little nid, with no ideas of his own, and a peculiar bitter hatred towards those of us who have decided not to play his stupid little game, and take our 6 figure deposits elsewhere.

Like 'TimeToCryIntoMyBeer', he now understands that his rosy dreams of a life of ease and luxury doing NOTHING, funded by the hard work of others, will have to take a 10 or 12 year break, because that's how long it will be before prices claw back up above 2004 levels.

And for that entire decade, he will effectively have to work FOR his tenants, by subsidising their living costs, fixing their boilers, and repairing their roofs.

Serves the lazy sod right.

Expect his usual 'I'm not highly geared / I bought a long time ago blah blah blah blather'.

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Easy for me to say, having bought years ago and living in undeserved luxury, but if I were you I'd carry on saving up. A year ago the figures all showed rises. Now a lot of them, particularly in London, are showing falls. The economy is slowing. Unemployment has risen for six straight months. Lots of people have debt problems. The government has overspent. FTBs are at an all time low. Inflation is creeping into the system making it harder for the Bank to cut rates. Your cash is looking good in the bank, and the wheels are coming off the housing market wagon in super slow motion.

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I do hope you are not an accountant, you earn a six figure salary but have not managed to get onto the market.

With regard to "Just want a three bedroom house" as a first time buyer?.

You have to run before you walk. Get a studio flat and work your way up, times have changed.

Wishing for the days when you could get married and get a four bedder in a leafy suburb have five children and the wife stays at home are long gone.

We have people earning six figure salaries who complain they cannot get onto the housing ladder, and nurses on little more than minimum wage who can and have.

I think some people should take a good look at their wardrobe full of designer clothes and Nike Trainers and understand that buying a house has always involved sacrifices and cutbacks.

Can you please let me know what gives you the right to be so patronising?

Run before you can walk indeed, you're not responding to some snot nose kid - he's a grown up, which frankly is more than can be said for you. Do I detect a hint of bitterness...

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He has the right because he is a ********. People like him normally get beaten sh!tless every other night - natures way of removing defectives from the genepool.

As an umimaginative, unpleasant, boring, patronising little gimp Laurejon loves the internet because no one can flatten his oversized nose with extreme justice. Outside the virtual arena, he'd probably spend most of his useless parasitic little life in a hospital bed (paid for by the likes of you and me, btw).

Ignore him. He won't ever go away, cos he has nothing left now but bitterness that he was wrong, and the crash actually did start, so he pops up every now and again with pointless unfunny snide remarks that never do more tha skim the edges of relevance...

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He has the right because he is a ********. People like him normally get beaten sh!tless every other night - natures way of removing defectives from the genepool.

As an umimaginative, unpleasant, boring, patronising little gimp Laurejon loves the internet because no one can flatten his oversized nose with extreme justice. Outside the virtual arena, he'd probably spend most of his useless parasitic little life in a hospital bed (paid for by the likes of you and me, btw).

Ignore him. He won't ever go away, cos he has nothing left now but bitterness that he was wrong, and the crash actually did start, so he pops up every now and again with pointless unfunny snide remarks that never do more tha skim the edges of relevance...

Ok MrCrash, much as though he irritates me I will ignore him, come to think of it he probably loves all the attention.

As I'm a newbie I get easily wound up, but not by LJ any more! :D:D

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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