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classixuk

An Email From A Potential Buyer Of A New Build Property

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This ia an email I received from a long standing friend of mine. Her circumstances are that she bought in 2003 (ex-LA house, £54,950) and sold to one of those BMV companies late last year (we buy your house and you rent it off us etc.). She did that because the small interest rate rise made her mortgage too expensive.

Recently she won £12K in a competition.

Here's her (edited for privacy and names changed) email (and yes, I asked her permission).

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Hi Classixuk,

How are you? Well Tracy and Darren (younger sister and husband, both doctors) have now moved into their new home, I went up on Friday and Saturday to help with moving stuff over, as did my dad and my mum. Fred their dalmation dog didn't like the move too much, the first night there he cried all night, so I'm told, but that was to be expected.

Personally speaking, they have both done really well for their new home, its a lot better than David and Chantelle's house (younger lazy brother and wife who recently bought for £200K), and Tracy got hers cheaper... Ha ha

We will wait to see what they both say when they go up to visit, but I've told Tracy NOT to worry about that, I love her new house, I'm trying desperately to find a way of getting a mortgage {provider} who will lend me more than the industry standard of 3.5 times your annual salary so that I can go and be Tracy's neighbour in the same estate of course... Go and have a look at the web site http://www.barratthomes.co.uk/XXXXXXXXXXXX

This will take you straight there. Tracy is plot 62 "The Gloucester", but her address is

123 Any Street

Some Town

Where Borough

Co. Durham

DHX XXX

Will have to go, I will try and get some photo's of Tracy's new home when I can and send them to you ok.

Take care and Ill speak to you soon.

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The houses my friend is talking about are around £130K to £160K. She's seeing her winnings as a deposit, and that the deposit=can now afford to buy the dream house.

She has watched her brother sell his terrace and move into a £230K new build, and most recently her sister who has done the same on a £130K home. Being the eldest she feels that she would like a slice of that pie. All she is interested in are the monthly payments and whether she can afford them. The house could be £560K over 40 years at 30% interest rate, but as long as the monthly payments are affordable she would still buy.

How many recent first time buyers are like this? Maybe we are the select few in that we look at the amount of debt in total rather than the monthly payments?

How will this effect those of us waiting for prices to come down? There are a lot of people just like my friend. They are constantly buying cars for £220 per month and housing for £650 per month. They have Sky TV for £45 per month and a mobile phone for £30 per month. They can very rarely tell you how much their car WILL cost them, or their phone, TV, house etc.

Thoughts?

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Guest Winners and Losers

Oh, come on guys, don't deprive me of Sky! How would I be able to watch how well the property market was doing without all of those Location, Location - How to be a Property Developer re-runs?? Personally, I'm a pay as you go kinda gal. Don't like any kind of credit. The only debt I have is my mortgage. If I aint got the money, I can't buy it.

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That is the exact mentality of most the people I know. Everything is paid for in monthly instalments now. Cars, phones, dishwashers, houses, PC's you name it, it's on credit.

I also know a group of people who have found out the hard way and are now having to repay their credit cards/store cards and climb back out of debt. They all assure me how difficult it is. Most of them are on very poor wages and work multiple jobs.

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I've just posted this on another thread, but it's relevant here too - an example of someone who only appears to be concerned with the monthly cost :

We were chatting to someone the other night and property prices were mentioned. I am always reluctant to talk about our position (FTBs waiting & saving) as you never know where the conversation will go. Anyway in the end OH said the usual - don't want to commit financial suicide, markets changing so we'll just wait a bit longer. The other guy agreed that things were really tough for FTB'ers and he didn't know how anyone could afford to 'get on the property ladder'. He was ok though (he says!) his mortgae only costs him £600 pm, works for himself and is doing ok etc. He then admitted that he didn't know what the current interest rate was!

He then went on to say that he has TOLD his brother that he must, at whatever cost, buy now and not to leave it any longer. 'It doesn't matter what it costs you now - you will make money in about 5 years time'. I think he was a bit taken aback by our sudden change in conversation!

edited for spelling!

Edited by hebejebe

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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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