Scott Posted November 23, 2011 Share Posted November 23, 2011 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. Yeah 250k is mental IMO. It's fine if you have a lot of financial backing but there's no way the average earner is going to get close to that sort of home on their first shot. Quote Link to comment Share on other sites More sharing options...
SPG Posted November 23, 2011 Share Posted November 23, 2011 i like to work with 9% yield minimum when looking for an investment property. seems like a good market for it. Quote Link to comment Share on other sites More sharing options...
SupraAyf Posted November 23, 2011 Author Share Posted November 23, 2011 Houses can be had for as little as £40k though But this is an issue in itself - the investors buy the cheap ones and tart them up which subsequently results in their value increasing. The problem is then further compounded where a typical average investor owns between 20-40 properties and this then places a vast strain on the supply and demand mechanism, meaning that cheaper houses are zapped up and the cheaper end of the market is no longer cheap and accessible to the original clientele. If this continues for the foreseeable future then Abz is correct with his 25-35k figure. Quote Link to comment Share on other sites More sharing options...
Scott Posted November 23, 2011 Share Posted November 23, 2011 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. Bought* You'll get it one day Abz Quote Link to comment Share on other sites More sharing options...
Abz Posted November 23, 2011 Share Posted November 23, 2011 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. Absolutely Gaz, but for some folks £250k gets you a starter property! Anything less is in a council estate. The only problem I see with shared ownership (unless the property is cheap), is that if you are paying for your mortgage for the shared property & also paying rent towards it then unless both outcomes are a LOT less cheaper than your income how do you save up to buy the property outright or fund wards a second or larger property? Quote Link to comment Share on other sites More sharing options...
Scott Posted November 23, 2011 Share Posted November 23, 2011 But this is an issue in itself - the investors buy the cheap ones and tart them up which subsequently results in their value incraesing. The problem is then further compoiunded where a typical average investor ownes between 20-40 propoerties and this then places a vast strain on the supply and demand mechanism, meaning that cheaper houses are zapped up and the cheaper end of the market is no longer cheap and accessible to the original clientel. If this continues for the forseeable future then Abz is correct with his 25-35k figure. I'm not talking about dumps though. I'm talking about live-in ready houses I understand that there are loads of people getting into the housing market and buying up run-down properties, the main driver for this is the cost of land and the climate though. The downfall is that in order to step onto this rung of the ladder you need to be willing to perhaps live in a less than ideal area. Quote Link to comment Share on other sites More sharing options...
Scott Posted November 23, 2011 Share Posted November 23, 2011 Absolutely Gaz, but for some folks £250k gets you a starter property! Anything less is in a council estate. Nothing wrong with living in a council estate Abz. I was born and bread in one and would have happily bought a house in the surrounding area if that was living within my means. Quote Link to comment Share on other sites More sharing options...
Gaz6002 Posted November 23, 2011 Share Posted November 23, 2011 Absolutely Gaz, but for some folks £250k gets you a starter property! Anything less is in a council estate. The only problem I see with shared ownership (unless the property is cheap), is that if you are paying for your mortgage for the shared property & also paying rent towards it then unless both outcomes are a LOT less cheaper than your income how do you save up to buy the property outright or fund wards a second or larger property? Well you buy chunks of the property back when funds allow. You may get a mortgage on 25% of the property for instance, then buy back chunks from the housing association in say 12.5% blocks, extending your mortgage each time if you can't pay outright. Quote Link to comment Share on other sites More sharing options...
welshbuddy Posted November 23, 2011 Share Posted November 23, 2011 im stuck in the same boat as you, i know im only 22, but i got to start sometime in the property ladder!! move USA i think. bargain prices Quote Link to comment Share on other sites More sharing options...
SupraAyf Posted November 23, 2011 Author Share Posted November 23, 2011 I'm not talking about dumps though. I'm talking about live-in ready houses I understand that there are loads of people getting into the housing market and buying up run-down properties, the main driver for this is the cost of land and the climate though. The downfall is that in order to step onto this rung of the ladder you need to be willing to perhaps live in a less than ideal area. I only wished you had quoted me once I had corrected my 20 spelling mistakes or so, lol. Quote Link to comment Share on other sites More sharing options...
Gaz6002 Posted November 23, 2011 Share Posted November 23, 2011 I was born and bread in one Quote Link to comment Share on other sites More sharing options...
Scott Posted November 23, 2011 Share Posted November 23, 2011 http://i.telegraph.co.uk/multimedia/archive/01110/hovis_1110346c.jpg I deserved that one lol. Quote Link to comment Share on other sites More sharing options...
Abz Posted November 23, 2011 Share Posted November 23, 2011 Bought* You'll get it one day Abz Shut it! Nothing wrong with living in a council estate Abz. I was born and bread in one and would have happily bought a house in the surrounding area if that was living within my means. Same here, grew up on the 17th floor of a tower block! Some council estates aren't that great in East London though Quote Link to comment Share on other sites More sharing options...
Scott Posted November 23, 2011 Share Posted November 23, 2011 Shut it! Same here, grew up on the 17th floor of a tower block! Some council estates aren't that great in East London though I wouldn't move to an unknown council area. I would happily live in and around where I was brought up though, in fact I do. I'm just fortunate enough that I was able to afford a house in a semi-private area. One day I hope to be in a fully private detached house, it's always onwards and upwards. In my opinion most people want the same thing from their future, or very similar at least. The further down the ladder you start only makes most more determined to get to the top. That takes work and common sense though, the work part is lacking a lot in our country at the moment. Quote Link to comment Share on other sites More sharing options...
Abz Posted November 23, 2011 Share Posted November 23, 2011 I wouldn't move to an unknown council area. I would happily live in and around where I was brought up though, in fact I do. I'm just fortunate enough that I was able to afford a house in a semi-private area. One day I hope to be in a fully private detached house, it's always onwards and upwards. In my opinion most people want the same thing from their future, or very similar at least. The further down the ladder you start only makes most more determined to get to the top. That takes work and common sense though, the work part is lacking a lot in our country at the moment. You couldn't have said it any better Quote Link to comment Share on other sites More sharing options...
jake supra Posted November 23, 2011 Share Posted November 23, 2011 I'm lucky/unlucky to own my own house outright at 22 due to a big inheritance. I can imagine it being very hard to get on the market without a big wage packet or other capital. Quote Link to comment Share on other sites More sharing options...
snake Posted November 24, 2011 Share Posted November 24, 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 In 25 years time the house will be worth more then 320k Quote Link to comment Share on other sites More sharing options...
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