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Fairyland

Aging Out And Tired Of Waiting For A Crash

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I have crossed 40 and I am worried I will age out and not get a mortgage if I wait more. On the other hand it seems non sense to feed utterly mad HPI.

Should I continue paying my BTL LL's mortgage (via rent) or take the plunge. I may have paid half of my LL's mortgage in last 10 years' renting. My decision making muscle has gone stiff. Anyone in the same boat? What have you decided.

Edited by Fairyland

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I have just crossed the big 5 0, and am waiting in the knowledge it will happen. I will not pay over the odds for a place that will shame me, and make me very unhappy to look at. I look out of my rented window and laugh at the muppet opposite that paid 1/2 a million for an estate house with a pi55 poor garden.

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Anyone buying now will be paying rent for longer than they anticipated.....nothing wrong with renting....like buying it has to be the right value at the right price. ;)

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I have crossed 40 and I am worried I will age out and not get a mortgage if I wait more. On the other hand it seems non sense to feed utterly mad HPI.

Should I continue paying my BTL LL's mortgage (via rent) or take the plunge. I may have paid half of my LL's mortgage in last 10 years' renting. My decision making muscle has gone stiff. Anyone in the same boat? What have you decided.

Are you really currently paying your LL's mortgage or just the interest on it which you would have to pay anyway if you owned?

What do you think his net yield after all costs is?

I know that my LL is subsidising me AND taking the risk of a house price fall. I am quite happy with that thought. If you are wobbling and don't think prices will fall then you need to do whatever you need to do.

I am 48 BTW.

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I was surprised to see BTL mortgage rates are c 4-5%. Not exactly cheap when you consider how much they borrowed, in the last 10 years.

Most LLs only just washing their faces.

There may only be a 2008 25% fall in HPs before it takes off again. But that at least looks more and more likely by 2017. On verra.

So, if that happened, would be material outside L and H Counties. Not material inside.

Edited by Killer Bunny

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I'm certainly in the same boat of just about to hit 40 and paying mega bucks on rent, month in month out. But where I live I can't afford to buy a good place in a good area, even with a good deposit, that ship sailed a while ago. So I'm coming round to my best option of renting and saving till I retire then leaving the country. Also If I buy into a lifetime of debt imprisonment my options become very limited in terms of career moves. Another aspect I consider is I'm nearly 40 and won't want to work at the pace I do in say 10 years time, with a mega debt mortgage millstone I'd have to. Renting I can get out of the system pretty easily.

Also I reckon it's a mirage in the mind, it makes logic sense to buy for security and peace of mind, but once there you'd wonder what the fuss was about think sh1t I'm up to my neck in debt and be worrying yourself about an impending crash that would completely ruin your life. There isn't a way to win, the game is rigged on both sides of the coin. But renting for me at this point leaves me with more options for my future.

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Buying is more about choosing the right house.....renting is more about choosing the right landlord......not all are desperately over leveraged with no plan b. ;)

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At 27 I'm toying with the idea of buying with a family member under Right to Buy. No intention of flipping or BTL. With the 'discount' it would be under £50,000.

Every year going by with renting it looks like the only way unless the UK has the HPC we all want.

HTB wouldn't help unless it was under the Shared Ownership which in itself is the worst of buying and renting put together.

Edited by Assume The Opposite

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I have crossed 40 and I am worried I will age out and not get a mortgage if I wait more. On the other hand it seems non sense to feed utterly mad HPI.

Should I continue paying my BTL LL's mortgage (via rent) or take the plunge. I may have paid half of my LL's mortgage in last 10 years' renting. My decision making muscle has gone stiff. Anyone in the same boat? What have you decided.

Troll

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I pay what I save by renting into my pension. This is my future mortgage repayment vehicle. You can get a mortgage way past retirement age if you have a good pension balance.

And no I'm not paying my landlords mortgage.

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In a similar position re age. Save a third of what I earn, as I have for over a decade now. Not fussed what happens now - can get a shorter mortgage if necessary. Have about 70% of what I need to buy the kind of place we want outright. What p*sses me off is that in 2012 we were in roughly the same position, so I've spent three years treading water against the echo bubble.

Edit to add - also tired of people who know next to nothing about what sets house prices being proved right a lot more than I am...

Edited by rantnrave

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I am 39 and have 2 kids, the eldest of which is due to start school in 2017 so I need to move into a half decent school catchment (in Edinburgh) by the end of 2016. Sure, I could move to another rental, but family makes you want a bit more security (I've already had my family chucked out one rental flat last Christmas by a LL who wanted to sell). I can't see how prices are sustainable - I'm a civil service lawyer with a decent deposit and yet I can't afford anything even remotely decent - but I'm not sure if HPC is going to come quickly enough for me. Only thing stopping me buying is the fact that I can't bring myself to even view any of the sh*tboxes that are actually within my budget.

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You can take out a mortgage right up until retirement age, it's just that the term will ge shorter.

Why worry, if you think there will be a correction within 10-15 years hold off and put money aside relative to the capital element of what a 25 year repayment would be. Either way you'll be renting from either a person or the bank.

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I am 39 and have 2 kids, the eldest of which is due to start school in 2017 so I need to move into a half decent school catchment (in Edinburgh) by the end of 2016. Sure, I could move to another rental, but family makes you want a bit more security (I've already had my family chucked out one rental flat last Christmas by a LL who wanted to sell). I can't see how prices are sustainable - I'm a civil service lawyer with a decent deposit and yet I can't afford anything even remotely decent - but I'm not sure if HPC is going to come quickly enough for me. Only thing stopping me buying is the fact that I can't bring myself to even view any of the sh*tboxes that are actually within my budget.

Feck all that school catchment crap, if it's a good public school you'll be paying way over the odds especially around Edinburgh. We had the same choice re. stretching ourselves to live in a £350,000 sh**box or send our children to one of two failing state schools. We chose the wildcard and they are now in a good, cheap private school. Look where the sheep go and go the other way.

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IMO prices are now going down slowly for the next 20 years. There will be a start of a faster crash in a couple of years but they'll do things to halt it, whatever it takes, possibly miras or similar.

So, buy if you want to buy. Don't if you don't.

But don't let yourself be swayed by issues of 'investment' or 'savings' - if you want to buy get somewhere nice enough where you think you might be happy.

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If renting allows you to save something every month, then suspect it should be ok.

In the end, buying with mortgage means that you are renting for 25 years. (or more these days).

The questions are:

-if the crash comes, will the £ crash as well? So the question probably is how to make sure that you savings last the crash so you can buy cash.

-If the crash does not come, are you ok moving to another cheaper area? I personally cant wait to leave the SE so I am fine if the crash does not come. In the end, I am quite happy to emigrate as well so I really only care about living in a nice place now and make sure I save.

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i am 42 this year i brought my house when i was 41. i decided it was now or never. I was lucky though got nice house in a good area and what i though was a ok price .

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I have crossed 40 and I am worried I will age out and not get a mortgage if I wait more. On the other hand it seems non sense to feed utterly mad HPI.

Should I continue paying my BTL LL's mortgage (via rent) or take the plunge. I may have paid half of my LL's mortgage in last 10 years' renting. My decision making muscle has gone stiff. Anyone in the same boat? What have you decided.

There is a middle ground. Use your deposit to buy a knackered place at auction and live in itwhile you do it up. If the property is without a kitchen and bathroom like mine was, then you get reduced council tax while you renovate, just don't mention that you're dossing there. You get a cheap home, live rent free and when you finish the renovations you get a crash proof house.

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Trolls

Hardly. Believe it or not some people here aren't 40 year old virgins who've put their lives on hold until the HPC comes. They have OH's and families to worry about, supposedly raising child cost £230,000 to raise so you can't look at everything through the eyes of yield, investment or money lost, because if you did you'd potentially never do anything with your life.

I have to admit I'm getting close to the point of giving-up and buying, my only hope is that the last time I nearly bought was just before the credit crunch. Actually I have another hope, that if there is an HPC I don't have to live with the threat of redundancy hanging over me and having to move job like I did during the recession. At the moment I don't want to buy but am looking into a pit of despair that the government will do everything in its power to keep HPI flat or positive (from negative IR to MIRAS to HTB infinity).

Buy, don't buy, people should do whatever feels right in their heart (and their heads), because you don't want to get to 65 and wish you had(n't).

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Hardly. Believe it or not some people here aren't 40 year old virgins who've put their lives on hold until the HPC comes.

Oh ffs

Clichéd trolls then.

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There is a middle ground. Use your deposit to buy a knackered place at auction and live in itwhile you do it up. If the property is without a kitchen and bathroom like mine was, then you get reduced council tax while you renovate, just don't mention that you're dossing there. You get a cheap home, live rent free and when you finish the renovations you get a crash proof house.

And the wife and kids?

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And the wife and kids?

You can buy them at auction too

More seriously, all the doer uppers I've seen don't look worth the doing up effort, reflected in the fact that amateurs buy them rather than people 'in the trade'

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I have to admit I'm getting close to the point of giving-up and buying, my only hope is that the last time I nearly bought was just before the credit crunch.

If you were getting close to buying before the credit crunch when prices were pretty much at their height, then why didn't you buy after the credit crunch when prices fell?

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