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OzzMosiz

Doing The Math(s)

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Ok, I've seen a 3 bed semi with garage (the sort of place I could live in til the end of my days) just drop down to a price that a mortgage (if I could get one) would be just a tiny bit over 1/3 of my take home pay - so basically into my affordability bracket.

This place is near Cinema, Bowling alley, Gym, Pool, Bus routes, M4 (great for my work) - which suits me.

It's dropped in price over 10% (its less than £150K). This seller must need to get out as there are other properties in the same area (same style house) a lot more pricier.

You know what....it's VERY tempting.

PropertyBee sure is great!

This post is purely a "pondering" post, I doubt I'll do anything about it.

Edited by OzzMosiz

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Guest mSparks

The math is easy.

How much do you pay in rent.

How much would you pay, per month, with mortgage, buildings insurance, maintenance and financial security.

You pick which ever is cheaper, with one caveat, how secure is your income. As a guide I'd say worse case it will take you two weeks for each year of your age to find a job if you lose your current one, can you see your job lasting long enough to set aside enough money to last that long to pay all the bills if the worst happens? do you have someone you can fall back on.

If your renting and things go bad, things will be bad until you find another job

If you own and things go bad, you'll be lucky to get back on your feet after a few years of hard slog.

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Can't be much of a house these days for £150,000, even with a reduction. How does it compare for that street in terms of sold prices?

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even in a bad market like this there are times and situations where it isnt a bad idea to buy

a friend of mine bought a 3 bed house about 4 months ago. he is an ultra bear but his situation meant it didnt really matter if the property went down 30% or more (he is in a situation to take on 2 lodgers and potentially pay off his mortgage in 5 years!)

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ive been tempted a few times, but never moved. the houses often sold to someone else, and so far any potential massive reductions havent happened.

perhaps it may take 5 years to drop 30%. in which case, is it worth waiting ?

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Guest mSparks
ive been tempted a few times, but never moved. the houses often sold to someone else, and so far any potential massive reductions havent happened.

perhaps it may take 5 years to drop 30%. in which case, is it worth waiting ?

but what if, as is more likely, it only takes 6 months?

right now, between myself and lass we could spend about 115,000. Since March last year asking prices for the types of houses we have been looking at have come down from £105,000 to around £70,000-£90,000, and none of them are selling, given the property we are renting. atm, tbh, they would have to come down to around £50,000 to make it worth our while moving.

EDIT: I meant to say, around 7-8 years ago they were selling for £35,000, Im betting they were mostly NRK mortgages

Edited by mSparks

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but what if, as is more likely, it only takes 6 months?

You're saying prices will fall 30% in 6 months?

You consider that to be realistic? :wacko::wacko:

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I'm renting at the moment. £625, this house is 15 miles closer to work and woud be around £860 in mortgage payments.

Similar house would rent for £650-700.

If prices dropped 30% in 5 years, I could live with that, 625(RENT) x 60 = about 30% anyway so I'd be no better or worse off. Of course ,it may fall further or quicker, but no one really knows.

Sold prices - ceiling price was £168K year and a half ago. This price is back to 2003-2004 prices.

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£150k in the South? Why is it so cheap down there?

Semi's typically haven't boomed in the towns as much as village houses.

This type of place would've been around 80-90k in 1999.

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  • 292 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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