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geranium

Can't Buy? Or Won't Buy?

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Just wondering how much pent up demand there might be out there, from people who could buy now, but are holding off.

Could you buy something you wouldn't mind living in, using your deposit + 3.5x salary + 1x partner's salary, if applicable?

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Just wondering how much pent up demand there might be out there, from people who could buy now, but are holding off.

Could you buy something you wouldn't mind living in, using your deposit + 3.5x salary + 1x partner's salary, if applicable?

Bit of both...I couldn't buy at the moment, but even if I could I wouldn't. Land Reg has Swindon -4.3% for the last quarter, so I'm glad I didn't buy in July :D !

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Just wondering how much pent up demand there might be out there, from people who could buy now, but are holding off.

Could you buy something you wouldn't mind living in, using your deposit + 3.5x salary + 1x partner's salary, if applicable?

AWOOOOOOGA !!

"wouldn't mind living in" ???????????? :blink:

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Just wondering how much pent up demand there might be out there, from people who could buy now, but are holding off.

Could you buy something you wouldn't mind living in, using your deposit + 3.5x salary + 1x partner's salary, if applicable?

I have voted 'other reasons' because they are dominant, but I will admit the market is a factor (and was also a factor when I sold to rent early last year).

I could pay cash where I live by liquidating 80% of my investments.

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OK, a place you would be happy to buy, size/location-wise. That would be adequate for, say, 5-10 years.

Not necessarily the property of your wildest dreams or the size of the the Monkey's house.

I could buy, but only ex councils or 'not so nice' areas. I may have to buy one of these eventually anyway, as I have just started a family and need to get out of our 1 bed flat. We have quite a large sum for a deposit (40k), but it just pees me off that only a few years ago I could have got myself a really nice house, but now I'm left with the dregs. (What a snob, I know!).

How the hell FTB's with no savings and on a modest wage are supposed to manage I don't know. Huge debt I guess.

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7.00pm Can't Buy? Or Won't Buy? Hosted by Ainslie Harriot. Two couples from the South East attempt to find a property in 20 minutes as a result of the latest VI spin.

7.30 Eastenders. Phil and Grant look menacing.

He he... :D

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Two couples from the South East attempt to find a property in 20 minutes as a result of the latest VI spin.

:lol::lol: That's exactly what we're in danger of doing, every time my boyfriend thinks we've got to PANIC! and buy somewhere, RIGHT NOW. We might as well feature on the programme.

These days I can say, calm down, this or that property has been on the market for months and months, they're not going anywhere, more are coming on/being reduced every day, there's really no rush...

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Bit of both...I couldn't buy at the moment, but even if I could I wouldn't. Land Reg has Swindon -4.3% for the last quarter, so I'm glad I didn't buy in July :D !

Was soooo sweet seeing that. C'mon Swindon, down you go!! (as well as the footie team by looks of it)

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We are waiting for the market to drop. Using your criteria we could spend £930,000 and there are some very nice properties currently available for approx £875,000.

However I think your salary multiples are too high if you want to provide a decent private education and university for children and build a decent pension. Hence we are restricting ourselves to a budget of £750,000 maximum. We aim to clear any mortgage in less than 15 years and to be able to retire at 55 - 58.

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Can't afford to buy anywhere with the parameters you use. Could borrow more from the banks and get somewhere we want but then I fall into the first category. ie can afford to buy but don't want massive debt therefore waiting for market conditions to change.

We are waiting for the market to drop. Using your criteria we could spend £930,000 and there are some very nice properties currently available for approx £875,000.

However I think your salary multiples are too high if you want to provide a decent private education and university for children and build a decent pension. Hence we are restricting ourselves to a budget of £750,000 maximum. We aim to clear any mortgage in less than 15 years and to be able to retire at 55 - 58.

My god. How much do you earn????

If I had that much money I wouldn't be wasting my time on a site like this.

ps I'm not having a go here I'm just jealous. With that sort of cash I'd have bought a house many moons ago. ;)

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However I think your salary multiples are too high if you want to provide a decent private education and university for children and build a decent pension.

I was using old-fashioned multiples that lenders thought sensible at higher interest rates, not the 6-7x as many will lend now (or is it 6-7x joint?!)

Fair enough though, when you consider that

1. There is less job security than there used to be - so you should probably allow for possibly a lower or no income once in a while

2. If you borrow 3.5x your salary when you're say 25, you'd pay it off by the age of 50 at worst. But now people carry on borrowing such multiples as they get older.

3. If you borrow 3.5x at age 25, you'd probably pay it offer sooner than that given salary rises to peak earnings in your 30's

You've made me think, because I'm nearly 35, wouldn't want to pay down a mortgage over the next 25 years (by age 60). Plus I have no real job security.

I had considered myself overly risk-averse for worrying about borrowing 3.5x + 1x salary (when some seem happy with 6-7x). Now I'm not so sure. :ph34r:

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Was soooo sweet seeing that. C'mon Swindon, down you go!! (as well as the footie team by looks of it)

Aha! a fellow Swindon resident! Yes I noticed that we're bottom of the land reg league table. Long may it continue...

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My god. How much do you earn????

If I had that much money I wouldn't be wasting my time on a site like this.

ps I'm not having a go here I'm just jealous. With that sort of cash I'd have bought a house many moons ago. ;)

Not me - my wife. And yes, had she bought mid nineties rather than late 2000 we'd have a significantly larger pot. We only met a few years ago and although she'd earnt 3 or 4 times more than me each year for a decade, my property equity resulted in greater savings (once I'd sold).

We're actually in a common predicament that many FTBs face (or will face) in that having children later in life stores up a huge necessary future expenditure. It's a huge potential drain on earnings.

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Just wondering how much pent up demand there might be out there, from people who could buy now, but are holding off.

So being able to afford but choosing not to is "pent up demand" is it?

On that basis I am buying up all the "Take That" memorabila I can lay my hands on in anticipation of an explosion in demand.

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I was using old-fashioned multiples that lenders thought sensible at higher interest rates, not the 6-7x as many will lend now (or is it 6-7x joint?!)

Fair enough though, when you consider that

1. There is less job security than there used to be - so you should probably allow for possibly a lower or no income once in a while

2. If you borrow 3.5x your salary when you're say 25, you'd pay it off by the age of 50 at worst. But now people carry on borrowing such multiples as they get older.

3. If you borrow 3.5x at age 25, you'd probably pay it offer sooner than that given salary rises to peak earnings in your 30's

You've made me think, because I'm nearly 35, wouldn't want to pay down a mortgage over the next 25 years (by age 60). Plus I have no real job security.

I had considered myself overly risk-averse for worrying about borrowing 3.5x + 1x salary (when some seem happy with 6-7x). Now I'm not so sure. :ph34r:

Never repay a mortgage over 25 years. 15 should be the target. Investigate how little extra per month you have to pay to reduce the repayment period by 10 years.

It's similar to credit card minimum repayments - why pay what the bank wants as this maximises their profit. Banks aren't charities.

In a low inflation world everyone should be able to over-repay. In fact in a low inflation world everyone must, full stop.

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Guest Charlie The Tramp

Never repay a mortgage over 25 years. 15 should be the target. Investigate how little extra per month you have to pay to reduce the repayment period by 10 years.

Totally agree, forget the new car a good second hand one does the same job.

Surprising how an affordable overpayment make such a difference.

Mortgage Overpayment Calculator

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Totally agree, forget the new car a good second hand one does the same job.

Surprising how an affordable overpayment make such a difference.

Mortgage Overpayment Calculator

interesting stuff... I've just put this idea to some of my colleagues and they've looked at me like "OVERpay?"

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Never repay a mortgage over 25 years. 15 should be the target. Investigate how little extra per month you have to pay to reduce the repayment period by 10 years.

I do agree. In fact I paid my last 25-year mortgage (which was about 3x my salary) down in about 5 years, helped by a rising salary, between the ages of 27 and 32. Just not sure I can pull off the same trick again.

Trading up is hard to do (even having STR in mid 2004). To buy the property we'd be happy living in for the next 5-10 years we really would have to borrow 3.5x mine and 1x his salary. That amount of debt seems quite scary, but would be hard to pay down much more quickly, especially as we're probably both at peak earnings.

It doesn't really matter whether you're an FTB or a trader-upper - both have to take on an uncomfortable level of debt to buy. This is what makes me think the market is overvalued - that and the fact that arrears and insolvencies seem to be rising.

Edited by geranium

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Could buy now, but won't. Putting twice as much as my rent into a savings account every month. So long as prices are not inflating by double digits I am OK. Stagnation is fine, falling prices even better. Happy renting more often than not and have a great housemate (good friend from uni). May be paying landlord's mortgage (may not be- he's had this place for years), not fussed. It's still much less than I would be paying to the bank in interest for a similar place.

Yes, obviously if prices start to go up by 20% a year again I will rethink this. That does not look like it is going to happen soon.

When I buy I intend to pay it off by as much as possible every month. I'd even consider going without a few things to pay it off sooner.

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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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