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Thread: General > Talk > Will you own a house?

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Skinny

Posted: 19 Mar 2015
Will you own a house?
For us folk living in London and the South East of England the housing market can only be described as a disaster zone. In London the average house is worth more then £500,000; in some places the annual increase in value of private property earns more then the average annual wage as reported by the BBC yesterday.

It would take a first time buyer 29 years to save for a deposit on an average salary according to BuzzFeed UK. Now take into consideration that it is almost impossible to secure a deposit for your first property past the age of 40; basically if you hadn't started saving by the age of 12 your chances are slim.

At the same time there are places in the UK where you can buy a house for just one pound; if you are not the auctioning type head to the city of Stoke-on-Trent and pick yourself up a two bedroom house outright for £30,000.

You may ask the question why don't us socialist minded wing our way north rather then hang around the capitalist mega-zone of London Town.

The government has rolled out another new plan to help first time buyers, it comes in the form of £3000 if you can save £200 per month for the next five years. A nice hand out for those in Stoke, yet another slap in the face for South East Prospects.

So what do you think, will you own a house? Do we need to buy? How important is property to us now and in the future? Interested to hear your thoughts.
PawClaw

Posted: 20 Mar 2015
Re: Will you own a house?
The property market everywhere is kinda a diasters - whether its these cheap places where people lost out big as they crashed hugely or places where prices have just spiralled upwards.

I mean when my Mum bought our house in the 70s it cost £7000 and that was like quite a mid-range average house value. When it got valued like 8 years ago now for divorce it was at £170,000 ish and recent houses of same size in area have started pushing £200,000 mark again recently.
styzssm

Posted: 20 Mar 2015
Re: Will you own a house?
If I win the lottery
stewiestrapon

Posted: 21 Mar 2015
Re: Will you own a house?
I'm pulled in two directions on this and it's probably two voices I'll have in my head for my entire life.

The first one says that life is too short and the world too vast to busy myself gathering money to bind myself to a patch of earth of my own like some first world tribe man.

The second one says that renting is nothing more than dead money- absolutely nothing to show for it. A tiny black hole in your bank account.

I'm yet to discover the middle ground on this one.
newmy

Posted: 21 Mar 2015
Re: Will you own a house?
The sad truth for me is that I'll only be able to (possibly) afford a house when both my parents have died and I inherit 1/3 (I have 2 brothers) of whatever's left after the sale of their house, and after inheritance tax. Even then that probably won't be enough.

The problem with buying a cheap house in Stoke is that...you'd have to live in Stoke. However, if you were that desperate, and had built up the small deposit, then you could buy there and commute to London. From the figures I've found, doing so would cost around 12-13k per annum. So, let's call it 1k a month, then you've to factor in mortgage repayments (presuming you needed one, and oculd in fact get one on such a purchase) which, let's say are £500 a month. You're looking at £1500 or so a month already. Frankly, for the same money you could, just about, be servicing a higher mortgage and lower travel costs within London. But in that scenario, where's your massive deposit come from...

I would love to be able to buy a house, as frankly spending money on rent feels like such a waste, like being in limbo. One can never fully settle into a house/flat that you're renting. The cruel thing is that for the past few years at least, paying off a mortage has been, in most cases, cheaper than paying rent due to low interest rates. Again though, the problem in that scenario is raising the deposit.

I could ramble on and on, but I shall cease!
styzssm

Posted: 21 Mar 2015
Re: Will you own a house?
^
Isn't a possibility, I'm estranged
rogerkint

Posted: 22 Mar 2015
Re: Will you own a house?
I've been quite lucky and managed to bag myself a place in London. I worked in London from mid 2008 and commuted in each day from Redhill in Surrey, and then in December 2010 bought a flat in Peckham on part-buy, part-rent. a 30% share cost me £64,000 and I had managed to save up a £13,000 deposit (with about £5,000 coming from my dad). So the total value of the flat was about £210,000. In April 2013 I staircased to 50% ownership, with the place valued at £225,000, and I paid a bit more into it so I kept a good mortgage rate.

Then in August 2014 I bought out the rest with the place valued at £275,000. I bought then because I knew I'd never afford it if I left it any longer. Again, I'd saved as much as possible (I was lucky enough to be very well regarded in my industry and so had been paid well as a contractor for the previous year) and so ploughed a big chunk of cash into it again.

Currently my mortgage sits at £200,000 and on a rate of 1.99% that's just £830 a month. With the explosion in house prices in Peckham (to my credit, I saw what was going to happen to the area; that's why I moved here) a 2 bedroom flat like mine would cost £1400 a month to rent! And my flat is currently valued at £410,000 so I certainly got in at the right moment.

A few things have enabled me to get this far:

1. my dad was able to help me out with the initial deposit, which it took me a year to pay back.
2. I got a flatmate. I purposely bought a 2 bedroom flat so that if need be I could rent the other room and have some income.
3. I progressed rapidly in my career and by 2014 I could demand a pretty high price for my services (and no, I wasn't in banking :P )
4. I spent quite a bit of time finding the right place in the right area at the right time. I bought at the absolute bottom of the crash and so the only way was up.

I now live with a flatmate and my boyfriend who both pay some rent - they get a pretty good deal (much lower than anywhere comparable) and the rock bottom mortgage rates I can now get mean they basically cover all the flat overheads; which is good as I'm a full time student again.

I don't think I'll be moving any time soon (at least not for four years anyway) so for now I'm just paying of the mortgage and watching my flat rocket in value. I know I've been very lucky.
sshum

Posted: 26 Apr 2015
Re: Will you own a house?
I'm hoping in the next few years the next government will start building more houses and I hope house prices start to drop. However, Living in London it does feel like home ownership will never happen...


Skinny

Posted: 26 Apr 2015
Re: Will you own a house?
@sshum I fear the government will never allow house prices to drop much as its bad for the Economy.

History has taught us that both Labour and Tory have always promoted policies during election time to build more houses and reduce the pressure for first time buyers. But as soon as the market levels out, starts to dip the building of new homes halts and further deregulation on mortgage lending is introduced to promote inflation essentially to deliberately inflate the value of property because that ideology is actually really good for the economy, just not for the likes of you and me.

Sorry, I don't trust any government on this one, it doesn't help that both Labour and Tory are essentially made up of a bunch of investors, it makes you wonder where their interests really lie.
leon1990

Posted: 30 Apr 2015
Re: Will you own a house?
@Skinny...not with the well-being of you and me, and all like us. It's been a long time since any major party had the interests of other than the very wealthy at heart. Bit of sweet-talking round about election time, with manifestos they have absolutely no obligation to stick to in the slightest detail, and it's back to as you were, once the votes are in.
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