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Just Bought A House!

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lo all

been lurking on here for near 6 months, but only joined to post a couple of months ago. bit of background first..

i'm 25, graduate living and working in brighton. back in sept i was promoted to a point where affording a mortgage wasn't going to be much of an issue. so started looking around. I'd previously saved around 20k as a deposit, so did my research, found a nice non-council 3 bed house in brighton for 220 and bought it for 214k. looking at the figures round here, price drops just aren't happening yet. that place went on the market in mid september, similar properties are now on the same street for 300k (has a loft conversion), which sold within a week, and 2 really similar places for 260 and 290k. probably all in better condition than my place, but even with that taken in, prices are still definatly on the way up. prices may drop, and thats ok

anyway, back onto the purpose of this post - its really not that hard for graduate ftb to get on the ladder. of the folk on my graduate scheme (all in a similar position to me), around 60% of them now own properties - and this is in one of the most expensive places outside london (typical 2bed city centre flat - ftb heaven - would be 225-300k, up to 750k if its on the seafront). lots of people on here chat about affordability, but as a graduate we're used to living on 5k per year from our student days, so a 5 or 6x mortgage isnt that much of an issue.

for what its worth, i don't believe prices will keep the same, i think they'll drop a little, maybe 10-15%, but as some have pointed out on here, I believe as more people borrow money from their folks, mortgages get longer (30-40 years) and the shortage of property continues, i think prices dropping back down to 3.5x income is unlikely. either way, its just money, so its not the end of the world..

/waits to be flamed

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I don't think anyone will flame you just wish you the bast of luck with it, personally I wouldn't touch property right now with a barge pole but as long you you are prepared to accept the rough with the smooth then good for you.

lo all

been lurking on here for near 6 months, but only joined to post a couple of months ago. bit of background first..

i'm 25, graduate living and working in brighton. back in sept i was promoted to a point where affording a mortgage wasn't going to be much of an issue. so started looking around. I'd previously saved around 20k as a deposit, so did my research, found a nice non-council 3 bed house in brighton for 220 and bought it for 214k. looking at the figures round here, price drops just aren't happening yet. that place went on the market in mid september, similar properties are now on the same street for 300k (has a loft conversion), which sold within a week, and 2 really similar places for 260 and 290k. probably all in better condition than my place, but even with that taken in, prices are still definatly on the way up. prices may drop, and thats ok

anyway, back onto the purpose of this post - its really not that hard for graduate ftb to get on the ladder. of the folk on my graduate scheme (all in a similar position to me), around 60% of them now own properties - and this is in one of the most expensive places outside london (typical 2bed city centre flat - ftb heaven - would be 225-300k, up to 750k if its on the seafront). lots of people on here chat about affordability, but as a graduate we're used to living on 5k per year from our student days, so a 5 or 6x mortgage isnt that much of an issue.

for what its worth, i don't believe prices will keep the same, i think they'll drop a little, maybe 10-15%, but as some have pointed out on here, I believe as more people borrow money from their folks, mortgages get longer (30-40 years) and the shortage of property continues, i think prices dropping back down to 3.5x income is unlikely. either way, its just money, so its not the end of the world..

/waits to be flamed

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lo all

been lurking on here for near 6 months, but only joined to post a couple of months ago. bit of background first..

i'm 25, graduate living and working in brighton. back in sept i was promoted to a point where affording a mortgage wasn't going to be much of an issue. so started looking around. I'd previously saved around 20k as a deposit, so did my research, found a nice non-council 3 bed house in brighton for 220 and bought it for 214k. looking at the figures round here, price drops just aren't happening yet. that place went on the market in mid september, similar properties are now on the same street for 300k (has a loft conversion), which sold within a week, and 2 really similar places for 260 and 290k. probably all in better condition than my place, but even with that taken in, prices are still definatly on the way up. prices may drop, and thats ok

anyway, back onto the purpose of this post - its really not that hard for graduate ftb to get on the ladder. of the folk on my graduate scheme (all in a similar position to me), around 60% of them now own properties - and this is in one of the most expensive places outside london (typical 2bed city centre flat - ftb heaven - would be 225-300k, up to 750k if its on the seafront). lots of people on here chat about affordability, but as a graduate we're used to living on 5k per year from our student days, so a 5 or 6x mortgage isnt that much of an issue.

for what its worth, i don't believe prices will keep the same, i think they'll drop a little, maybe 10-15%, but as some have pointed out on here, I believe as more people borrow money from their folks, mortgages get longer (30-40 years) and the shortage of property continues, i think prices dropping back down to 3.5x income is unlikely. either way, its just money, so its not the end of the world..

/waits to be flamed

As long as your not planning to flip it doesn't matter. In 15 years time the price you paid now will likely seem cheap and your outstanding mortgage payments will be a lot lower.

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Something tells me you may not be a student of Economics.

but as a graduate we're used to living on 5k per year from our student days, so a 5 or 6x mortgage isnt that much of an issue.

Read that back to yourself and think...think very deeply about this.

for what its worth, i don't believe prices will keep the same, i think they'll drop a little, maybe 10-15%, but as some have pointed out on here, I believe as more people borrow money from their folks, mortgages get longer (30-40 years) and the shortage of property continues, i think prices dropping back down to 3.5x income is unlikely. either way, its just money, so its not the end of the world..

For what its worth I think that I will be noticed by a flying movie mogul and whisked away to Hollywood for a mega career..you see this is called "wishful thinking" a cousin of "faith" and is not based in any "fact". You assume that most people have a rich mommy and daddy to pay thier childrens way onto the housing pyramid scheme...this is not the case for the majority of people, and if you cant get a deposit or mortgage you cant buy a property...go on think about what then happens to housing prices...if you can't see any issues with being massively indebted for 30 to 40 years ( a large proportion of your estmated life span) then Im afraid you are beyond the point of no return.

Yeah its just money and what happens to a fools money?

Enjoy your new home by the way.

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So you're mortgage is around £194k? That's about 91% LTV. On a 6% 3 year fixed rate mortgage, that works out to about £1,200 per month excluding insurance, utilities, living costs, maintenance, stamp duty etc. I assume you are buying with a partner? If not, then heaven help you.

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In 2-3 year when your flat will be worth 50% of what it is now, could you let us know what your thoughts are? Also, the amount of negative equity would be interesting to most here. Cheers.

Alternatively, when your flat (sic) is worth the same, or slightly more, could you also let us know what your thoughts are, and also the amount of equity you have. I'd be interested in that as well.

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In 2-3 year when your flat will be worth 50% of what it is now, could you let us know what your thoughts are? Also, the amount of negative equity would be interesting to most here. Cheers.

It's a 3 bed house. But whereabouts in Brighton I fear to ask?

Because if it's in as currently 'gritty' an area as I suspect it is at that price, then it may become a little more like the Whitehawk Estate than Hove once the house price crash-led recession hits and everyone (especially debt-anaesthestised students) realises they're stuck with big debts on depreciating assets for life, in a much more 'challenging' economic environment for the UK and the West in general, probably forever ("get used to a lower standard of living" sez Merv).

Still, I could be wrong, it might be a relative bargain ina reasonable area and your family income will cope well with the future. But I do think you're going to regret, to some extent, buying this year rather than in another 2 or 3.

But hell, enjoy it, there's often fun to be had as a homeowner, no doubt.

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Guest An Bearin Bui
lo all

/waits to be flamed

I hope you really really really like the place because you'll be hanging on to it for a long time - unless of course you haven't factored in interest rate rises and are repossessed. :lol:

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with regards to nominal vs real, the effects of inflation (same old same old - classic bullish argument seems to ignore inflation and all costs, never been explained to me why this is sustainable or affordable) I'll leave it as I've given up arguing the case

but on a separate point - grad salaries, after a 2 or 3 years, of 40 - 50k I guess?

which industry is that in, that's very good - actuarials, financial analysis, management consulting, vets/doctors?

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I have been watching the Brighton housing market closely for a year in the price range you have bought. I can honestly say that there have been price reductions since the peak in the summer. I have viewed houses that went for £250,000. The same houses on the same street are on the the market now for £229.950 that are in similiar condition.And this is not just one area. This is a pattern that I have seen emerging since the onset of winter. The houses that are on for last summer prices are simply not budging and there are plenty of them. The amount of houses for sale in my search has doubled and is creeping up.House that sell are ones that have dropped there asking price 10% and have probably been bid down a little more.

Prices in Brighton have grown to at least 9 times local wages. Is the top BTL place outside London. Brighton suffered badly in the last crash and this time it will be as bad if not worse this time around.I can't understand why at 25 you want to spend your days servicing a huge mortgage having paid investor bubble prices. Why not have a landlord subsidise your housing while you save towards your future house and reducing your future mortgage and being able to live comfortably and remaining flexible?

Buying at the top of the market is not a sensible decision as a wait and see approach is currently paying off.Well it certainly is for me. I am even more surprised that you have bought after lurking here for the last 6 months especially with what has been happening in the financial world.

Good luck.

Edited by equitystasher

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Good luck with the house. Well done.

I wish everyone who bought a house would post a topic on here once they completed as it would at least prove that they'd sought a contrarian view and satisfied themselves that they'd done the right thing.

My personal view is that you'd be best off wiping your memory of this site now, for fear of huge regret later, but that is just subjective.

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Something tells me you may not be a student of Economics.

Read that back to yourself and think...think very deeply about this.

my point being, if i'm used to living on 5k per year, then loosing 50% of a 20k takehome (for instance) still leaves me with twice the money to play with, comparably, so 6x of 35k (reasonable graduate wage) isnt a problem, as long as the graduate hasnt 'learned' to spend all his new, higher income

In 2-3 year when your flat will be worth 50% of what it is now, could you let us know what your thoughts are? Also, the amount of negative equity would be interesting to most here. Cheers.

its a family home. even i wouldnt touch a new-build city centre flat (and there's a LOT of them here)

So you're mortgage is around £194k? That's about 91% LTV. On a 6% 3 year fixed rate mortgage, that works out to about £1,200 per month excluding insurance, utilities, living costs, maintenance, stamp duty etc. I assume you are buying with a partner? If not, then heaven help you.

i bumped up my deposit to 10% so 90% ltv, on a tracker mortgage (.27% below boe) but your assumptions are about right - i think its £1150 at the moment. had a seperate pot of money for stamp duty etc. buying on my own, but i might let out one or 2 of the rooms if i get lonely - either way the payments account for roughly 50% of my takehome wage (its a 4x mortgage)

It's a 3 bed house. But whereabouts in Brighton I fear to ask?

Because if it's in as currently 'gritty' an area as I suspect it is at that price, then it may become a little more like the Whitehawk Estate than Hove once the house price crash-led recession hits and everyone (especially debt-anaesthestised students) realises they're stuck with big debts on depreciating assets for life, in a much more 'challenging' economic environment for the UK and the West in general, probably forever ("get used to a lower standard of living" sez Merv).

its just off coomb road - so not bevendean, moulscombe or hollingdean. last folk moved in to the house in 1938 (!!!!!!!) so it lends some hope that the area will remain nice.

I hope you really really really like the place because you'll be hanging on to it for a long time - unless of course you haven't factored in interest rate rises and are repossessed. :lol:

i can take an extra 2% on interest rates without sweating, more than 4% and i'd probably start to struggle.

the general mood on this thread is a lot more supportive than i thought it would be - so thanks. around the 'would be better to have bought next year' - might be true, but at the same time may not. something that helped me a little was looking back at the 'classics' forum - threads from 2004 about how everything was pointing to a crash the next year. prices round here are up 20% since then, and anyone who didnt buy would be kicking themselves. granted there was a slowdown, but it canceled itself fairly quickly. getting on the ladder (moving up it is less of a gamble imo) is always a gamble, and wherever the prices are they can always rise higher, or drop lower - no-one knows, we all just guess :)

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I want to know where all these mythical graduate jobs are!

Although that said, i do have a degree in economics but chose to work in IT and after nearly 10 years have risen all the way to 35k a year, which is actually pretty good/average for it workers with degrees.... I'd love to know where all these graduate jobs which pay 40k+ after 2 years are :)

Especially in Brighton, me and the missus planned to move down there a couple of years ago but as highly qualified IT techs couldn't find any decently paid work and couldn't justify the commuting costs!

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something that helped me a little was looking back at the 'classics' forum - threads from 2004 about how everything was pointing to a crash the next year. prices round here are up 20% since then, and anyone who didnt buy would be kicking themselves. granted there was a slowdown, but it canceled itself fairly quickly.

Did you read understand why that happened and what the long term ramifications of that was?

Good luck with it by the way and that is said with no hint of sarcasm, I think many of us on here could buy tomorrow if they wanted, we just choose not to.

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My personal view is that you'd be best off wiping your memory of this site now, for fear of huge regret later, but that is just subjective.

I did exactly that. Bought a house about 2 years ago after much consideration and then avoided this site until recently.

My advice would be to go and bury your head in a bucket of pebbles.

Good luck with the house.

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So you did it. I wish you all the best and if in a few years you decide there's more to life than a mortgage millstone around your neck then you picked a good area for student lets.

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Guest An Bearin Bui
I want to know where all these mythical graduate jobs are!

Although that said, i do have a degree in economics but chose to work in IT and after nearly 10 years have risen all the way to 35k a year, which is actually pretty good/average for it workers with degrees.... I'd love to know where all these graduate jobs which pay 40k+ after 2 years are :)

Especially in Brighton, me and the missus planned to move down there a couple of years ago but as highly qualified IT techs couldn't find any decently paid work and couldn't justify the commuting costs!

I'd also be genuinely curious to know what the OP does for a living that allows him / her to earn 45k per year at 25. No employer is willing to pay anyone 45k straight out of college except for some City employers who, as you can tell by the name, aren't located in Brighton. Equally I know the oil industry will pay 45k to engineers in their 20s but that's only in Aberdeen. The only role I can think of that pays that well would be a GP but most GPs are 28 before they even can get close to earning full salary as it takes much longer to qualify.

Employers that pay 45k per year to 25 year olds are therefore thin on the ground and not usually located in Brighton - something doesn't add up here ... :blink:

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Hey I was 30 in 1998 and bought my first flat in nearby delightful Chichester for.....

£44,000. I earned about £13,000 pa.

£2,200 deposit on interest only from C&G and had to have an interview and do a boring budget to convince them of my credit-worthines.

Good luck dude - they say that timing is all that matters in life ;) Way too young IMHO, and a crazy multiple on your ill gotten gains (Lawyer? EA?)

Are you involved in the entertainment world to be earning such huge wonga, or just cooking up Kristal Meth in the kitchen*?

*that shid can blow the whole gaff down - be careful.

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I'd also be genuinely curious to know what the OP does for a living that allows him / her to earn 45k per year at 25. No employer is willing to pay anyone 45k straight out of college except for some City employers who, as you can tell by the name, aren't located in Brighton. Equally I know the oil industry will pay 45k to engineers in their 20s but that's only in Aberdeen. The only role I can think of that pays that well would be a GP but most GPs are 28 before they even can get close to earning full salary as it takes much longer to qualify.

Employers that pay 45k per year to 25 year olds are therefore thin on the ground and not usually located in Brighton - something doesn't add up here ... :blink:

Accounting, actuary, law etc etc... plus spiv jobs like recruiting

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Accounting, actuary, law etc etc... plus spiv jobs like recruiting

There's a few hedge funds around Brighton and Amex has a big office there too. Probably a few jobs around the place that pay 45K after a couple of years. Or maybe he's a rent boy?

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There's a few hedge funds around Brighton and Amex has a big office there too. Probably a few jobs around the place that pay 45K after a couple of years. Or maybe he's a rent boy?

:lol::lol: Now, now; dont be cheeky.

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heh, the guesses at my job are amusing. I work in IT\telecomms - technically i'm out of uni for 2.5 years, however i've been working here for 4.5 years (first 2 years were part time with a part time masters). I'll accept my wage is above average, but so are the prices round here. You'd not need to be earning an inordinate amount to afford a flat in, say, cardiff or brum (100k mortgage at 4x 25k??). do you lot really consider 4x that crazy? amongst my peers, i'm certainly not the highest paid, but probably among the upper end outside the city (one guy i went to uni is got 70k last year from a city firm :o)

my point of this thread really wasn't to show off. If i wanted to do that i could find far, far more receptive forums for that :) it was just my 2p that while things are expensive, and credit is tightening, a lot of ftb are still within reach of getting on the ladder, if they should so desire. even in brighton there are studio flats (probably executive, luxury etc) still (just) sneaking in under £100k

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  • 295 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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