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lewissheridan

Plight Of A First Time Buyer...

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Colleague at work buys house for £112k in 1997, sells in 2001 for £205k. Buys new house for £285k, putting down £100k deposit from his equity. House now worth £350k-£400k on £190k mortgage. Approximately 200k equity. This house is in Croydon.

Me, wants to buy house, house costs, £150k-£170k realistically.

:angry:

Talking generally to lady in HR regarding house prices:

"I was thinking of buying a house as an investment, you know because house prices always go up"

:huh:

And just generally i hear things like this all the time. I'm probably one of the youngest in my company @ the tender age of 26, and it amazes me how their new found 'wealth' or equity has blinded them to how difficult it is for people of my generation now starting out in life, with student loan baggage and the like. And ironically when I ask for a payrise, it's my age that has been a prohibitive factor, when a lot of my peers, who are on average 5 years older than me, earn, 6-7k more than me.

That aside i'm beginning a new job where i've got the salary i want, £30k, but to be honest, it must be the relative equivalent to a £15k salary 5 years ago in this economic climate. Was it as hard back then as it is now ? i'm finding my pocket squeezed to the max, and i live quite frugly if i'm fair! No holidays per year, no Sky, no credit cards etc.

It's a very sad state of affairs how this prices have been driven up beyond the reach of ftb'ers, but what's worst that the economic factors that would realign and correct the market are being propped up by VI of whatever guise, including the goverment, MPC etc. etc.

I can honestly say i'd rather of lived 100 years ago, because i'm sure i would of been happier!

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I can honestly say i'd rather of lived 100 years ago, because i'm sure i would of been happier!

Keep it in perspective, owning your own home doesn't = happiness. Quite the opposite if you are an FTB and you are buying at current prices.

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Colleague at work buys house for £112k in 1997, sells in 2001 for £205k. Buys new house for £285k, putting down £100k deposit from his equity. House now worth £350k-£400k on £190k mortgage. Approximately 200k equity. This house is in Croydon.

Me, wants to buy house, house costs, £150k-£170k realistically.

:angry:

Talking generally to lady in HR regarding house prices:

"I was thinking of buying a house as an investment, you know because house prices always go up"

:huh:

And just generally i hear things like this all the time. I'm probably one of the youngest in my company @ the tender age of 26, and it amazes me how their new found 'wealth' or equity has blinded them to how difficult it is for people of my generation now starting out in life, with student loan baggage and the like. And ironically when I ask for a payrise, it's my age that has been a prohibitive factor, when a lot of my peers, who are on average 5 years older than me, earn, 6-7k more than me.

That aside i'm beginning a new job where i've got the salary i want, £30k, but to be honest, it must be the relative equivalent to a £15k salary 5 years ago in this economic climate. Was it as hard back then as it is now ? i'm finding my pocket squeezed to the max, and i live quite frugly if i'm fair! No holidays per year, no Sky, no credit cards etc.

It's a very sad state of affairs how this prices have been driven up beyond the reach of ftb'ers, but what's worst that the economic factors that would realign and correct the market are being propped up by VI of whatever guise, including the goverment, MPC etc. etc.

I can honestly say i'd rather of lived 100 years ago, because i'm sure i would of been happier!

You earn £30k a year and can't afford sky or a holiday what do you spend it on £30k now was work about £30k five years ago

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Colleague at work buys house for £112k in 1997, sells in 2001 for £205k. Buys new house for £285k, putting down £100k deposit from his equity. House now worth £350k-£400k on £190k mortgage. Approximately 200k equity. This house is in Croydon.

Me, wants to buy house, house costs, £150k-£170k realistically.

:angry:

Talking generally to lady in HR regarding house prices:

"I was thinking of buying a house as an investment, you know because house prices always go up"

:huh:

And just generally i hear things like this all the time. I'm probably one of the youngest in my company @ the tender age of 26, and it amazes me how their new found 'wealth' or equity has blinded them to how difficult it is for people of my generation now starting out in life, with student loan baggage and the like. And ironically when I ask for a payrise, it's my age that has been a prohibitive factor, when a lot of my peers, who are on average 5 years older than me, earn, 6-7k more than me.

That aside i'm beginning a new job where i've got the salary i want, £30k, but to be honest, it must be the relative equivalent to a £15k salary 5 years ago in this economic climate. Was it as hard back then as it is now ? i'm finding my pocket squeezed to the max, and i live quite frugly if i'm fair! No holidays per year, no Sky, no credit cards etc.

It's a very sad state of affairs how this prices have been driven up beyond the reach of ftb'ers, but what's worst that the economic factors that would realign and correct the market are being propped up by VI of whatever guise, including the goverment, MPC etc. etc.

I can honestly say i'd rather of lived 100 years ago, because i'm sure i would of been happier!

Do not fret..

It's the economic cycle.. and its different this time.. Society has shown even greater stupidity in creating the big credit/housing/stupidity boom..

Take a step back...

Look..

People are honestly paying 250% more for a property then they would have 6 years ago..

There are more houses per person then ever..

The only reason you can't buy is that there are a bunch of morons with unlimited credit then can't afford offering the house owners more then they can believe..

Who would you sell to?

your right captain imbecile with no idea of economic cycles, a big self cert interest only mortgage and the sort of look a lemming has on the edge of a cliff..

The herd mentality.. and the herd is stupid.

The correction is innevitable..

If house prices were meant to be this much they would have been 7 years ago..

But no, they have been bouncing up and down like a whores knickers since the war..

No inflation this time, merv promissed that.. So it will be worse then 1989..

Trust me, it is irritiating, but you are in a better position then a prat who has bought.

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You earn £30k a year and can't afford sky or a holiday what do you spend it on £30k now was work about £30k five years ago

Rent: £525pm

Student Loan: £140pm

Council Tax: £100pm

Electric: £32pm

Water: £15pm

BT Phone line: £10pm

ADSL: £20pm

Food: £180pm

Petrol: £200pm

Car insuance: £70pm

Car Loan: £260pm

TOTAL: £1552 per month.

Net Pay per month: £1500.

So i exhaust my income, hardly a frivilous existance... and yes i can't afford sky and a holiday :)

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Petrol: £200pm

Car insuance: £70pm

Car Loan: £260pm

This is why I don't own a car. You are paying out over £530 per month for your car. OK, so some of the payment is becoming 'equity' in your car after interest and depreciation, but that's probably balanced by repairs and the like over any sufficiently lengthy time.

Though I suppose that someone will pipe in and say that "travelcards are dead money".

Billy Shears

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Keep it in perspective, owning your own home doesn't = happiness. Quite the opposite if you are an FTB and you are buying at current prices.

keep it in perspective. a house to raise a family is the main need of all. = happiness.

not some financial exercise in uber urban living space. = miserable millenium slavery.

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Rent: £525pm

Student Loan: £140pm

Council Tax: £100pm

Electric: £32pm

Water: £15pm

BT Phone line: £10pm

ADSL: £20pm

Food: £180pm

Petrol: £200pm

Car insuance: £70pm

Car Loan: £260pm

TOTAL: £1552 per month.

Net Pay per month: £1500.

So i exhaust my income, hardly a frivilous existance... and yes i can't afford sky and a holiday :)

If you're a sole occupant you can get a reduction in your council tax. Electric could go down a bit perhaps. Isn't it cheaper to buy car insurance in one go, rather than pay per month?

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if his 400K house is worth at best 300K in 18-24 months and he still has a 190K mortgage and the economy is in tatters and he loses his job, who`ll perhaps look like the clever one even if you`re on the subs bench not by your own choice? ;)

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Guest Winners and Losers

Rent: £525pm

Student Loan: £140pm

Council Tax: £100pm

Electric: £32pm

Water: £15pm

BT Phone line: £10pm

ADSL: £20pm

Food: £180pm

Petrol: £200pm

Car insuance: £70pm

Car Loan: £260pm

TOTAL: £1552 per month.

Net Pay per month: £1500.

So i exhaust my income, hardly a frivilous existance... and yes i can't afford sky and a holiday :)

The net pay of 30k is more than 1500 per month. 28k is 1750.

And no, it wasn't always this hard. 10 years ago I was earning 18k and paid 65k (with partner) for a property. The deposit was 3k and we were paying the same amount for our mortgage as it would have costed to rent the same house. 30k now is like 18k then. However now you need a 10k deposit and it would be cheaper to rent it than buy it.

Edited by Winners and Losers

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Young people on 30k have a choice, drop the car, or drop living on your own, you really cant afford both. If you can live in a shared house and can get rid of your car somone on 30k car save 1000pcm, a car and a flat will wipe that savings potential away...

Sounds like you have been sensible and also have a pention hence the lower take home.....

Edited by moosetea

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If you're a sole occupant you can get a reduction in your council tax. Electric could go down a bit perhaps. Isn't it cheaper to buy car insurance in one go, rather than pay per month?

I share the 1 bedroom flat with my wife.. of which i had to pay a hefty fee to the letting agency for that privilege, they tried to charge me £198+VAT, i managed to pay £100+VAT... (scandalous people).

I generally pay things up front because i despise credit, but it just made sense to spread that cost since i didn't have the cash up front. but things like engagement ring i paid outright... and for my car some may argue a point, but i put down a 33% deposit, and borrowed reasonably on the remainder as maintenance on my non-new car easily outstripped the credit i would pay on a new car. And i couldn't do much else with £6k, it wasn't even 5% deposit for anything i was looking at. Excluding mobile homes, park homes, studio flats and properties in the costa del sol :P

keep it in perspective. a house to raise a family is the main need of all. = happiness.

not some financial exercise in uber urban living space. = miserable millenium slavery.

Agree, and in addition, i'm not particular bothered where i live, i live in the area i do because it's commutable to work..

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The net pay of 30k is more than 1500 per month. 28k is 1750.

And no, it wasn't always this hard. 10 years ago I was earning 18k and paid 65k (with partner) for a property. The deposit was 3k and we were paying the same amount for our mortgage as it would have costed to rent the same house. 30k now is like 18k then. However now you need a 10k deposit and it would be cheaper to rent it than buy it.

I share the 1 bedroom flat with my wife.. of which i had to pay a hefty fee to the letting agency for that privilege, they tried to charge me £198+VAT, i managed to pay £100+VAT... (scandalous people).

I generally pay things up front because i despise credit, but it just made sense to spread that cost since i didn't have the cash up front. but things like engagement ring i paid outright... and for my car some may argue a point, but i put down a 33% deposit, and borrowed reasonably on the remainder as maintenance on my non-new car easily outstripped the credit i would pay on a new car. And i couldn't do much else with £6k, it wasn't even 5% deposit for anything i was looking at. Excluding mobile homes, park homes, studio flats and properties in the costa del sol :P

Agree, and in addition, i'm not particular bothered where i live, i live in the area i do because it's commutable to work..

you the sole breadwinner? You would probably be better off if you were both on benifits...

Edited by moosetea

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BT Phone line: £10pm

ADSL: £20pm

So i exhaust my income, hardly a frivilous existance... and yes i can't afford sky and a holiday :)

You can get phone, tv and broadband with ntl for 30 quid.

You spend a lot on a car.

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yep, the £500 a month on the car is excessive..........My own car costs only £200 a month including depreciation and fuel.....................£840 a year for your car insurance is too much...for anyone who's not a teenager...You must be driving an Audi TT or such like to pay that much at 26yo.

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Guest Winners and Losers

According to our calculations of the net of 30k, you should be 300 squid better off already! Now, go on young one, get that sky, take that holiday! :)

Edited by Winners and Losers

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yep, the £500 a month on the car is excessive..........My own car costs only £200 a month including depreciation and fuel.....................£840 a year for your car insurance is too much...for anyone who's not a teenager...You must be driving an Audi TT or such like to pay that much at 26yo.

Yes, and since the OP is married already, he doesn't need a fancy car as "bait".

Billy Shears

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Just a quick response, my salary in my current job is £25,500, which means about £1500pm after tax.. and that's what the above calculations are based on. I'm starting a new job next month on £30k, sorry for the confusion there.

I don't live by myself, i live with my wife.

The car choice was more of a subsidised cost because i was easily spending circa £150 a month on commuting at one point, my second hand car frequently had issues, so i bought for peace of mind, need the car to commute to work unfortunately... and i treated myself since the hard graft saving my deposit meant shit in this economic climate. i'm still young and haven't gained anything in life, so that's what i treated myself too. i agree that money could be better served in a savings account, but if my second hand car broke down, repairs easily jump into the £500 mark, so just bit the bullet on that one.

i think in fairness i probably typify a lot of people my age, i'm sure there's people worst off, and i know there's people better off, the thrust of my argument is that i'm an average person and yet the whole buying a home thing and with an expecting wife, it is literally a slippery uphill struggle. And as much as it frustrates and depresses me, there's ntohing i'm doing wrong, besides not earning more money i guess!

and in respects to being the sole income, my wife does work in a local all-days on minimum wage, she's 6 months pregnant so won't be there for too long, the extra couple of hundred pounds helps with food and stuff.

madness...

Young people on 30k have a choice, drop the car, or drop living on your own, you really cant afford both. If you can live in a shared house and can get rid of your car somone on 30k car save 1000pcm, a car and a flat will wipe that savings potential away...

Sounds like you have been sensible and also have a pention hence the lower take home.....

I have no pension, i did move back home for 6 months and commuting 40 miles from NW london to surrey to save £6k.. but life catches up, married, child on the way, and it isn't ideal to stay with my mum...

i have made sacrifices.. lots in fact, but they're more of 1 step foward , 2 steps back routine. So i've resided in managing what i have to keep my head above water... because that's all i can do to be honest.

Yes, and since the OP is married already, he doesn't need a fancy car as "bait".

Billy Shears

Told the insurance co i was married, didn't make a difference, .... the car is group 17... ok i can hear the 'live now pay later brigade coming'... that's not the case at all... if that were the case i would of bought the car in my earlier 20s. there's a time where you have to evaluate what you're doing in live, living to work, working to live etc,... i admit, that money would represent a true value of £300pm which would provide some slack... and some savings towards a deposit.. however, i saved £6k in 6 months, it meant f'all... i'm not going to wait till i'm 30 to look back at all this saving to still have nothing.. it was a compromise, but it did not compromise the 'plight' as it were, nor did it make it worst... at worst it has just brough it closer to my attention, since i could manage comfortably a mortgage 5 years ago!!

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Just a quick response, my salary in my current job is £25,500, which means about £1500pm after tax.. and that's what the above calculations are based on. I'm starting a new job next month on £30k, sorry for the confusion there.

I don't live by myself, i live with my wife.

The car choice was more of a subsidised cost because i was easily spending circa £150 a month on commuting at one point, my second hand car frequently had issues, so i bought for peace of mind, need the car to commute to work unfortunately... and i treated myself since the hard graft saving my deposit meant shit in this economic climate. i'm still young and haven't gained anything in life, so that's what i treated myself too. i agree that money could be better served in a savings account, but if my second hand car broke down, repairs easily jump into the £500 mark, so just bit the bullet on that one.

i think in fairness i probably typify a lot of people my age, i'm sure there's people worst off, and i know there's people better off, the thrust of my argument is that i'm an average person and yet the whole buying a home thing and with an expecting wife, it is literally a slippery uphill struggle. And as much as it frustrates and depresses me, there's ntohing i'm doing wrong, besides not earning more money i guess!

and in respects to being the sole income, my wife does work in a local all-days on minimum wage, she's 6 months pregnant so won't be there for too long, the extra couple of hundred pounds helps with food and stuff.

madness...

I have no pension, i did move back home for 6 months and commuting 40 miles from NW london to surrey to save £6k.. but life catches up, married, child on the way, and it isn't ideal to stay with my mum...

i have made sacrifices.. lots in fact, but they're more of 1 step foward , 2 steps back routine. So i've resided in managing what i have to keep my head above water... because that's all i can do to be honest.

I agree with you totally, its madness.... Im in a similar position (without the wife and kid) and it suprises me how little i save. Today30k isnt enough for somone in your position unless you live beyond your means and get into massive debt, and thats just delaying the inevitable...

However congrats on your wife and kid :) and things will improve, thank god you havent got a 100% IO morgage. Im saving but honestly noone knows if it will make a difference in the long run, you have to save alot and you have other more important things to pay for now :)

Edited by moosetea

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I was at a dinner party last Saturday and a conversation went like this.....

We've just retired and our house bought in 1977 is now worth 20 times what we paid for it - property only ever goes up blah blah blah......

Then about two minutes later...... Our daughters getting married in a couple of months time. She lives in a small two bed flat with her partner. She shares the flat with her brother who's partners also now moved into the flat as well. So two couples in a small flat.....my dear (she said) the prices of property are dreadfully high, they'll never be able to buy their own place....I wonder why?! :rolleyes:

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I was at a dinner party last Saturday and a conversation went like this.....

We've just retired and our house bought in 1977 is now worth 20 times what we paid for it - property only ever goes up blah blah blah......

Then about two minutes later...... Our daughters getting married in a couple of months time. She lives in a small two bed flat with her partner. She shares the flat with her brother who's partners also now moved into the flat as well. So two couples in a small flat.....my dear (she said) the prices of property are dreadfully high, they'll never be able to buy their own place....I wonder why?! :rolleyes:

People have these misguided beliefs, but if you challenge their belief system and prove them to contradict themselves this self-defensive mechanism kicks in, whereby what you are telling them is completely absurb, when the know it to be true. Are they proud, ignorant or stupid ? it's a beautiful sunny day today with a blue sky, white fluffy clouds etc... there is something beautiful about life, greed will consume us all...

Edited by lewissheridan

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and in respects to being the sole income, my wife does work in a local all-days on minimum wage, she's 6 months pregnant so won't be there for too long, the extra couple of hundred pounds helps with food and stuff.

I know I'm going to get slated for this but.....

Why on earth do you think you should be bringing a child into this world when you and your wife can't, as you've explained to us, afford to support even yourselves? Are you happy to be irresponsible or do you feel you have the right to do this and expect others (i.e. the taxpayer) to make up the difference?

I know this is harsh, but I do feel it's an important issue.

Regards

LL

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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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