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Dazbo1983

Single Income

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I am contemplating buying my first home in the next 6 months or so.

I havent found anything as yet but I have 10% deposit saved and I'm assuming that my (public sector) job is safe until 2013, at least.

(I'm NOT a diversity officer!).

I'd be paying the mortgage on a single income - I just wanted to hear other people's thoughts.

It is not the most secure position to be in, but how many people can honestly say their positions are bullet-proof and how long can I put my life on hold?

Thoughts appreciated. Thanks.

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You have two main variables here- your job security and the price of the property you will be buying, which may well decline a fair bit in the not to distant future.

So unless you have a really compelling reason to expose yourself to these risks now, why do it?

I would wait a bit and see the fallout, both from the public sector cuts and the ongoing (if slow) house price crash.

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I am contemplating buying my first home in the next 6 months or so.

I havent found anything as yet but I have 10% deposit saved and I'm assuming that my (public sector) job is safe until 2013, at least.

(I'm NOT a diversity officer!).

I'd be paying the mortgage on a single income - I just wanted to hear other people's thoughts.

It is not the most secure position to be in, but how many people can honestly say their positions are bullet-proof and how long can I put my life on hold?

Thoughts appreciated. Thanks.

Without a compelling reason to buy, it would be madness. You'd have to be happy be happy to give your life savings to the seller, and twice as much again to the bank. As for the 'life on hold' part, think of the other end of the deal, ie the point at which you become mortgage free. If (as expected) the market tanks, you'll be mortgage free much sooner if you buy cheaper. There will be plenty of people 'putting their retirement life on hold' 'cos they paid too much.

Of course, you pays your money you takes your choice, and if needs must, then so be it. But if not, there is much to lose through impatience.

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I am contemplating buying my first home in the next 6 months or so.

I havent found anything as yet but I have 10% deposit saved and I'm assuming that my (public sector) job is safe until 2013, at least.

(I'm NOT a diversity officer!).

I'd be paying the mortgage on a single income - I just wanted to hear other people's thoughts.

It is not the most secure position to be in, but how many people can honestly say their positions are bullet-proof and how long can I put my life on hold?

Thoughts appreciated. Thanks.

You're taking the Michael yeh. We, thats right joint income, are sitting on 60% deposit for what we'd be willing to pay and will not be just handing it over so some fecker who bought at an inflated price can walk from thier financial incompetence and leave us to deal with bearing the brunt of the falls. Get with the program!!!

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Having bought my first house in 1990 (a misnomer actually, since you have not bought something until you have paid for it), I can tell you it was the most miserable experience to watch new neighbours moving in in 1993 and 1994 who had paid two-thirds of what I had paid for my house, and I well remember thinking over and again "I wish I had rented for a couple more years and bought when they did".

I wouldn't buy now because I learned from my mistake. I will probably buy in a few years time when I will be able to do it with £30,000 less of mortgage.

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You might think this guy is crazy but he is actually thinking like the majority of people under 35 in this country.

You see this section of society have never seen a proper housing slump, they have ridden the wave of 1998 - present and been bombarded with daily property porn. The suggestion that not buying a house is "putting your life on hold" is now as instilled in them as "pensions are crap" and "saving is a waste of time".

What I witnessed in 1995, 1996, 1997 when I first started looking at flats in London were people whose lives were genuinely "put on hold" and there was absolutely nothing they could do about it. Literally hundreds of people (we did a lot of looking) who had purchased in the late 80's because if you didn't you were crazy who had been unable to sell for 4 or 5 years because of negative equity who by 1996/97 had saved enough to simply cover the mortgage and escape with a Fat Zero. People who had not just lost the deposit it had taken them 5 years to save up but also the 5 years it took them to save up enough money to cover the losses over and above the deposit.

So young people like you Dazbo who felt they had to buy were trapped for 6 or 7 years and lost everything, not very nice at all. As I have mentioned in previous posts my old neighbour was just such a person who purchased his flat in SE London in 1988 for £127,500 and hade to wait until 2002 before it rose back to that price again so that he could sell and even then it was for £119,250. He was a single lad who had bought at 27 and literally left a 1 bed flat a middle aged man of 41 !!!!! That story is one you will not see on Channel 4 or BBC 1, not until 2020 anyway.

So Dazbo why not sit back, rent yourself a nice little batchelor pad (for less than mortgage) and worst case scenario (current gentle falls) an average property will be falling by around £2000 per month. In around 3 years I dont think there is an expert (even the property VI's) who wouldnt suggest that the house/flat you're looking at now will be worth a penny more than it is on for now and plenty who believe it will be 30%+ less. At those odds I'd say you'd have to be mentally impaired to buy at present.

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Assuming this is a genuine question.

My advice would be a 10% deposit is far too low. Have you actually looked at the rates for such high LTV loans? They are appalling and that's assuming you even get approved. Even without thinking about the house price falls that are currently happening you need to save much more. 25% absolute minimum. The bonus is while you save you can watch house prices fall so your LTV improves two ways, not only by your increasing deposit by also be the falling prices.

Get yourself a decent ISA if you haven't already got one and work a savings plan. Look to buy after couple more years of saving.

Edited by Pent Up

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You might think this guy is crazy but he is actually thinking like the majority of people under 35 in this country......

Yes, but would you post on a forum before reading a few posts? And having read a few posts you would know better than to consider buying now ;).

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I actually bought my place about 5 months ago although my deposit was about a third of the house value. I think 10% is a bit low personally.

I bought for a number of reasons. My big deposit risked being eaten by inflation like most peoples savings. I didn't have to pay stamp duty. The seller was desperate and I got a decent price. I paid basically 25% less than next-door (same house) did at peak. Rightly or wrongly, I think we'll have low interest rates for a while. But you'll only benefit with a bigger deposit.

I was quite happy to wait it out, but there are opportunities. I found a house/area I liked and decided to buy. If your living at home or something, just wait. I'm in the south-east, I think they'll be more falls here. I was just just tired of waiting.

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I actually bought my place about 5 months ago although my deposit was about a third of the house value. I think 10% is a bit low personally.

I bought for a number of reasons. My big deposit risked being eaten by inflation like most peoples savings. I didn't have to pay stamp duty. The seller was desperate and I got a decent price. I paid basically 25% less than next-door (same house) did at peak. Rightly or wrongly, I think we'll have low interest rates for a while. But you'll only benefit with a bigger deposit.

I was quite happy to wait it out, but there are opportunities. I found a house/area I liked and decided to buy. If your living at home or something, just wait. I'm in the south-east, I think they'll be more falls here. I was just just tired of waiting.

Well done. Sounds good. If I see an opportunity I will buy. I saw a nice house the other day paid £217,500 in 2006 currently asking £205k and the vendor told me she is desperate to sell. I didn't quite feel at home there although it had everything we are looking for. If it was our dream home I would have made a laughable offer. But unless I see something perfect I'm quite happy waiting.

Your deposit won't be eaten up by inflation if the sole purpose of that money is for the purchase of a house. The only inflation you need to think about is house price inflation which is currently negative so your deposit is actually appreciating even before adding interest. :)

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Thank you for your posts - I assure you my post is genuine.

I, like many others on here, am sickened by the efforts to support this ridiculous housing bubble. My concern is that the housing market will be protected at whatever cost to shield the banking sector from another rout should prices plunge.

I'm likely to wait to the end of year minimum to see whether price decreases accelerate.

I refuse to rent and pay my hard-earned (yes I am one of few Public Sector workers that likes to put a proper shift in!) cash to BTL leeches.

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Your deposit won't be eaten up by inflation if the sole purpose of that money is for the purchase of a house. The only inflation you need to think about is house price inflation which is currently negative so your deposit is actually appreciating even before adding interest. :)

Well I guess so, but if you change your mind and decide not to buy a house, then your stung. It doesn't pay to be a saver anymore does it. Not when the returns are terrible. I'm not adverse to a small interest rate rise either, I could stomach it. Unfortunately theres too many that can't.

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  • 312 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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