SupraAyf Posted November 23, 2011 Share Posted November 23, 2011 I have just watched a Sky news bulletin this morning and it highlighted a report by David Miles of the Bank of England Monetary Committee which stipulates that '44 years of age' will soon become the average benchmark for first time house ownership in the UK. That doesn't make for good reading unless you're a landlord with a vast house portfolio. Are we still a nation of house owners or will the trend soon change to a culture where renting becomes the norm? I suspect a few guys on this forum will spend all of their money on Supra modifications and then have to live in the boot of their car until the inevitable happens? lol Quote Link to comment Share on other sites More sharing options...
Neil-NA Posted November 23, 2011 Share Posted November 23, 2011 I used to own a house but due to going bankrupt i can now only rent and TBH i prefer it, alright its not the cheapest thing to do but i have no worries about building maintainence etc and i can move around when i get bored or the neighbours pi55 me off. I don't think i will ever be able to afford a house as my line of work is not highly paid, im just hoping to get lucky on the lottery or else when i turn 65 and retire i am going to have to move to New York and become a homeless alky drinking whisky from a bottle wrapped in a brown paper bag. Quote Link to comment Share on other sites More sharing options...
creative Posted November 23, 2011 Share Posted November 23, 2011 I own a house in the uk. I want rid but it won't sell. It is a massive noose around my neck and I want rid. I rent over here and I soon prefer it! Who cares if I'm paying someone else's mortgage, I am living in a property that I would never be able to afford. Quote Link to comment Share on other sites More sharing options...
The Raven Posted November 23, 2011 Share Posted November 23, 2011 I always wanted my own house. I hate the idea of turning 70 and still having to find the money for the rent. I pushed on with the plan an got my first house at 22. It was run down and crappy, but one room at a time i did it up. I sold it 4 years ago and used the money i made to build. Im lucky to have built my own house now, however the first thing i did was go and buy another house and rent it out to students in canterbury. I look at it as a way to save for old age. Stuff shares, bonds, ect. I dont think its the morgage that hurts people as most of the time its less than the rent they pay its the 20% you have to put down that makes it impossible. Quote Link to comment Share on other sites More sharing options...
med Posted November 23, 2011 Share Posted November 23, 2011 I think the smartest way for younger people to go about this issue is to live at home for a few years after uni. It may not be the most glamorous life when your young, but you will be in a better position for the future due to the amount of money you save... (This coming from a 23yr old btw, trying to find that perfect balance of enjoying life now and saving for the future) M Quote Link to comment Share on other sites More sharing options...
JS2004 Posted November 23, 2011 Share Posted November 23, 2011 Just bought mine and im 29, years of hard saving meant a decent deposit.. mortgage is now less than 200 a month but it was a cheap house and the deposit was considerable! totally wiped out now though.. however I aim to do it up, pay off the capital and rent it out in the future to offset my next mortgage.. tricky but its worth a shot Quote Link to comment Share on other sites More sharing options...
Lude Posted November 23, 2011 Share Posted November 23, 2011 im 26 (27 next month) looking to buy next year. thinking the TT6 is going to have to go towards the deposit though. unless i just keep the supe and rent forever Quote Link to comment Share on other sites More sharing options...
Abz Posted November 23, 2011 Share Posted November 23, 2011 I own a property too which I rent out, it's not great as people make it out to be. I get good rent out of it but the maintainable bills come out of my pocket, last year I got totally ripped off by a previous tenant who left me in quite a bit of debt (which forced me to sell the Supra). In the last 10 years the property market has shot up in London, outside London houses seem to be reasonably priced. Anyone living in central London has no hope in buying a decent house unless they earn a very good salary (min £50k). In other countries where I have been the rent is very cheap compared to buying a property, this then allows the person renting to save some money to then decide if they want to buy a property. Most people don't and use the money for other things or savings, others then get onto the property ladder with least amount of help from the crooks... sorry I mean't banks. Talking about Banks, this is the other thing... If you decide to buy a house for £250,000 but only have £50,000 you then need to ask the bank for £200,000. You then get £200,000 from the bank at lets say a modest 4% over 25 years. Monthly repayments are £1,066.86 which equates to a yearly sum of £12,802.32 After 25 years of hard graft to keep a roof over your head you have paid the bank a total sum of £320,058. You now have given away.... £120,058 Enough to have these 2 cars on your drive! (second hand obviously) http://www.sportscarcup.com/cars/lamborghini-gallardo.jpg http://www.benzcarpics.com/wp-content/uploads/2011/08/Ferrari-F430-3.jpg Now I understand without the bank you wouldn't be able to afford a house, but if the prices of the house market weren't so inflated then you wouldn't need the banks help. Which would mean, more people would be less stressful, more well off. Which means they will most likely be out spending which is good for the economy & more jobs will be created because of this too! Think I have solved the UK's debt problem Quote Link to comment Share on other sites More sharing options...
DamanC Posted November 23, 2011 Share Posted November 23, 2011 We are one of the few nations that are obsessed with owning our own plot. I'm 29, moved out when 21 and am looking to 'own' in the next year or two. Renting is nice and easy but I look at places I live and think "id love to do this and that, but it would be a waste of my money". It is that itch that is driving me if I am honest. Quote Link to comment Share on other sites More sharing options...
johnny g Posted November 23, 2011 Share Posted November 23, 2011 Own Quote Link to comment Share on other sites More sharing options...
Lbm Posted November 23, 2011 Share Posted November 23, 2011 Think I have solved the UK's debt problem Abz for Prime Minister Quote Link to comment Share on other sites More sharing options...
Scott Posted November 23, 2011 Share Posted November 23, 2011 Our house is mortgaged. I couldn't for the life of me ever rent as it amounts to nothing at the end of the day. The example Abz gave is good for me to reference off of. Lets say you rent a £250,000 house. You pay say £1000 a month (which I think in this climate is actually low lol). That is £12,000 a year, if you rented that house or a similar one for 25 years you will have paid the owner £300,000. This is enough for him to buy his house outright and to afford one of the fancy cars mentioned previously. It's great at the time as you have a roof over your head but I just couldn't pay something that at the end of the day didn't amount to anything. Circumstances obviously have a massive impact on these decisions but if I had a solid job and I didn't plan on moving around I would never rent over buying. Just as a little side note, people are renting houses very similar to mine that are around £200 more per month than I currently pay for my mortgage. Quote Link to comment Share on other sites More sharing options...
creative Posted November 23, 2011 Share Posted November 23, 2011 We are one of the few nations that are obsessed with owning our own plot. . Australia is exactly the same. The aussie dream is owning land and property! I work in real estate and my boss is always asking when I am going to buy something. He is suprised when I say I worked hard all of my life and own the house in the uk, I couldnt afford to live when I was there. I was doing 100hrs a week and on the breadline. I am now in a position where i own 2 cars, have a house full of furniture, can afford to go on holiday, eat out and generally have a better lifestyle on the same money I spent 10 years trying to survive on! Quote Link to comment Share on other sites More sharing options...
SupraAyf Posted November 23, 2011 Author Share Posted November 23, 2011 You guys have posted some cracking points but one of the problems in our area is that the investors are moving in quickly to scoop up the cheap properties for their renting games. This results in the fellows on the bottom of the tree now requiring even bigger deposits than before since the cheaper houses are being zapped up. If this trend continues then renting may become the norm in years to come. Quote Link to comment Share on other sites More sharing options...
Scott Posted November 23, 2011 Share Posted November 23, 2011 You guys have posted some cracking points but one of the problems in our area is that the investors are moving in quickly to scoop up the cheap properties for their renting games. This results in the fellows on the bottom of the tree now requiring even bigger deposits than before since the cheaper houses are being zapped up. If this trend continues then renting may become the norm in years to come. I don't see renting as the solution there at all though. The only solution I can see there is moving in with the parents or massively sharing rent (housemates etc). As I said above renting is often more expensive than a mortgage, granted it's not often by a lot but even so. It might be cheaper in Oz hence why Creative is having an easier time over there, but over here it's been that way for a little while. If renting is no cheaper than a mortgage then how do you financially save up to start a mortgage? It's a lose/lose scenario. My choice would be, and I'm cringing, a personal loan to have the necessary deposit. Quote Link to comment Share on other sites More sharing options...
Gaz6002 Posted November 23, 2011 Share Posted November 23, 2011 I bought a place a year ago on a mortgage and I'm paying significantly less per month than I would by renting the same sort of place. I'm also putting money into my mortgage rather than throwing it away. Remind me how I'm missing out again? Quote Link to comment Share on other sites More sharing options...
Abz Posted November 23, 2011 Share Posted November 23, 2011 Our house is mortgaged. I couldn't for the life of me ever rent as it amounts to nothing at the end of the day. The example Abz gave is good for me to reference off of. Lets say you rent a £250,000 house. You pay say £1000 a month (which I think in this climate is actually low lol). That is £12,000 a year, if you rented that house or a similar one for 25 years you will have paid the owner £300,000. This is enough for him to buy his house outright and to afford one of the fancy cars mentioned previously. It's great at the time as you have a roof over your head but I just couldn't pay something that at the end of the day didn't amount to anything. Circumstances obviously have a massive impact on these decisions but if I had a solid job and I didn't plan on moving around I would never rent over buying. Just as a little side note, people are renting houses very similar to mine that are around £200 more per month than I currently pay for my mortgage. It's a catch 22 situation. If you don't have at least £30,000 tucked away you have no chance in buying a house. So you resort to renting, but then renting costs you just as much as a mortgage would do! Now to save £30k is no easy task, so unless you have parents helping you out, a extremely good job or no life apart from working all week to save up then you don't have a chance to get onto the property ladder. Also if you rent out at say £1,000 a month, unless you are earning at least £3,000 a month how are you supposed to save up? Because even if you earn £2,000 a month, you still got loads of bills & taxes to still pay. Quote Link to comment Share on other sites More sharing options...
Gaz6002 Posted November 23, 2011 Share Posted November 23, 2011 If you don't have at least £30,000 tucked away you have no chance in buying a house. That's wrong. What about shared ownership etc? Quote Link to comment Share on other sites More sharing options...
SupraAyf Posted November 23, 2011 Author Share Posted November 23, 2011 I don't see renting as the solution there at all though. The only solution I can see there is moving in with the parents or massively sharing rent (housemates etc). As I said above renting is often more expensive than a mortgage, granted it's not often by a lot but even so. It might be cheaper in Oz hence why Creative is having an easier time over there, but over here it's been that way for a little while. If renting is no cheaper than a mortgage then how do you financially save up to start a mortgage? It's a lose/lose scenario. My choice would be, and I'm cringing, a personal loan to have the necessary deposit. Agreed, but it's the old problem of saving the initial deposit that is creating the big hurdle for most. Good mortgage deals these days are requiring ever bigger sums to lay down from the outset. This isn't exactly a great situation to be in if your salary is low; austerity is biting you badly, and the job market is undulating at best. It's a gamble. Quote Link to comment Share on other sites More sharing options...
JS2004 Posted November 23, 2011 Share Posted November 23, 2011 I just dont see the point in renting - at least if you own the house and pay a mortgage you have something to show at the end of it - which you could always sell, downgrade and then have a bit of cash to have fun with - although thats assuming you make it to the age where you can do that. But paying someone elses mortgage doesnt appeal to me.. having someone else pay mine does though! Quote Link to comment Share on other sites More sharing options...
GJD Posted November 23, 2011 Share Posted November 23, 2011 You now have given away.... £120,058 Enough to have these 2 cars on your drive! (second hand obviously) Sort of . Inflation? What's a lambo going to cost in 25 years . We are one of the few nations that are obsessed with owning our own plot. I don't think I'm particularly obsessed with owning my own plot - there are good points and bad points to that. But I'm sure as hell obsessed with reaching the day when I no longer have to fork out hundreds of pounds every month just to have a roof over my head. Little way off yet though... Quote Link to comment Share on other sites More sharing options...
Scott Posted November 23, 2011 Share Posted November 23, 2011 It's a catch 22 situation. If you don't have at least £30,000 tucked away you have no chance in buying a house. So you resort to renting, but then renting costs you just as much as a mortgage would do! Now to save £30k is no easy task, so unless you have parents helping you out, a extremely good job or no life apart from working all week to save up then you don't have a chance to get onto the property ladder. Also if you rent out at say £1,000 a month, unless you are earning at least £3,000 a month how are you supposed to save up? Because even if you earn £2,000 a month, you still got loads of bills & taxes to still pay. Bingo. £30k isn't necessary here thankfully, at least not to get onto the property ladder. When it comes time to climbing up that ladder then large deposits are required. It's quite strange, when I was shopping around for a mortgage there were offers of 105% lol. Now you're lucky if you see 90%, more often than not it's 80%. Houses can be had for as little as £40k though, you just need to be aware of the type of surroundings you may have to endure for a little while. That's all part of life though, unless you are extremely lucky, extremely brilliant or extremely spoiled then you will always have to endure some tough times. I consider myself to be one of the extremely lucky ones Quote Link to comment Share on other sites More sharing options...
Abz Posted November 23, 2011 Share Posted November 23, 2011 That's wrong. What about shared ownership etc? I am still using £250,000 as an example here Gaz, most banks at the very min want 10% of the house value. With shared ownership, yes you pay less deposit but then you have both a mortgage & rent to pay. Quote Link to comment Share on other sites More sharing options...
Gaz6002 Posted November 23, 2011 Share Posted November 23, 2011 I am still using £250,000 as an example here Gaz, most banks at the very min want 10% of the house value. With shared ownership, yes you pay less deposit but then you have both a mortgage & rent to pay. You'd be absolutely mad to buy a £250k place as a starter home though, surely. Shared ownership is still a LOT cheaper than renting outright. Quote Link to comment Share on other sites More sharing options...
Abz Posted November 23, 2011 Share Posted November 23, 2011 Sort of . Inflation? What's a lambo going to cost in 25 years . Hey! Not seen you on here for a while! Well if you got a decent lambo then quite a bit more than what you paid for it. Where as the housing market is a gamble, if you brought a house at the peak of the bubble & paid (I know a couple of people who have done this as our area hugely jumped up in price). After the recession it has lost £100,000, after 25 years it is only worth £50,000 more but the place you want to upgrade to NOW costs £100,000 more. Quote Link to comment Share on other sites More sharing options...
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