Ark Posted January 12, 2007 Share Posted January 12, 2007 You do realise how hard it is for the new house buyer to actually get on the property ladder these day, the vast majority of youngsters have no option but to extend themselves to the limit to just get in a crappy one bedroom flat. Yes - funnily enough I went through exactly that. Everyone moans first time they buy a house, especially if they don't get mumsy to help, then they realise they can't keep spending money like it grows on trees, they learn prudence and the problems go away. People moan about the interest rates and how expensive property is, but these interest rates are NOTHING! You just don't know how lucky you are. And despite feeling like an old codger, I am in fact not. Quote Link to comment Share on other sites More sharing options...
Todd Posted January 12, 2007 Share Posted January 12, 2007 People moan about the interest rates and how expensive property is, but these interest rates are NOTHING! You just don't know how lucky you are. You wouldn't happen to have one of these would you! http://www.worth1000.com/entries/119000/119101EKMJ_w.jpg Quote Link to comment Share on other sites More sharing options...
Ark Posted January 12, 2007 Share Posted January 12, 2007 You wouldn't happen to have one of these would you! [qimg]http://www.worth1000.com/entries/119000/119101EKMJ_w.jpg[/qimg] I'm not sure what you trying to say here. If you're suggesting I'm a rich Arab, then no. I'm not sure what else you could mean though, unless you're suggesting I have a thing for mutant horses... Quote Link to comment Share on other sites More sharing options...
Jurgen-Jm-Imports Posted January 12, 2007 Share Posted January 12, 2007 nice thread am off to solicitors today at 3pm to exchange contracts sign the deeds etc... Quote Link to comment Share on other sites More sharing options...
DaveK Posted January 12, 2007 Share Posted January 12, 2007 People moan about the interest rates and how expensive property is, but these interest rates are NOTHING! You just don't know how lucky you are. I agree. Even though they are saying "interest rates are their highest for 6 years" that's only because they have been unusually low. Unfortunately - I think that has led to some people borrowing silly amounts of money - 5 or 6 times their salary - so if rates to continue to rise there will be some casualties. If it does go like the late 80s and hit about 15% - then we'll have cause to complain. I guess my mortgage would be about £1800 a month then, and that would impose a few restrictions on my spending. Quote Link to comment Share on other sites More sharing options...
penguin Posted January 12, 2007 Share Posted January 12, 2007 just another side note - how long ago was it since fixed rate mortages were introduced? i'm just wondering, if people are on fixed rate mortgages for the whole period, they won't experience the effects of massive hikes in interest rates would they.... ? plus i'm going for virgin money deal - seems i can complete my 160k mortgage in just over 11 years if i stick my savings in the same account compared to 25 years i'm on currently Quote Link to comment Share on other sites More sharing options...
Havard Posted January 12, 2007 Author Share Posted January 12, 2007 just another side note - how long ago was it since fixed rate mortages were introduced? i'm just wondering, if people are on fixed rate mortgages for the whole period, they won't experience the effects of massive hikes in interest rates would they.... ? plus i'm going for virgin money deal - seems i can complete my 160k mortgage in just over 11 years if i stick my savings in the same account compared to 25 years i'm on currently This is the point i made earlier in the thread..!!! if you leave it to the full term you will be amazed what you will give to the bank. At what point in your life can you hand someone 50 - 60k and no questions asked. If your mortgage is big then it could be 100k in interest.... I go into the Nationwide every month and pay an extra £500 without being penalised by the bank. I reckon in 18 months i'll be free!!! That said we are then talking about moving to a bigger house!! H. Quote Link to comment Share on other sites More sharing options...
DaveK Posted January 12, 2007 Share Posted January 12, 2007 just another side note - how long ago was it since fixed rate mortages were introduced? i'm just wondering, if people are on fixed rate mortgages for the whole period, they won't experience the effects of massive hikes in interest rates would they.... ? plus i'm going for virgin money deal - seems i can complete my 160k mortgage in just over 11 years if i stick my savings in the same account compared to 25 years i'm on currently I used their calculator about a month ago - and it said I'd pay my mortgage off in less than 5 years rather than the 18 years I've got left. Wasn't entirely convinced! Quote Link to comment Share on other sites More sharing options...
Sheefa Posted January 12, 2007 Share Posted January 12, 2007 Hmmm, £14k loan, £6k on credit cards plus student loan debt. Could be a problem. Quote Link to comment Share on other sites More sharing options...
jaymdee Posted January 12, 2007 Share Posted January 12, 2007 I don't see renting as 'Dead Money' as someone put it. It provides a roof over my head. I'm 34 and still renting. I can afford to rent a much nicer property in a much nicer location for much less I would be paying on a mortgage right now. I read before Xmas that the Govt are concerned at the high price of houses and that First time buyers only represent 33% of the market. Traditionally it's nearer 66%. House prices are going up double inflation & salaries, and this is detrimental to the economy in the long run. They are determined to get house prices down and the FSA has warned the big lenders to make sure they will not go bankrupt if the housing market lost 40%. Now I don't think that will happen, but it certianly put me off thinking of buying at the moment. I expect interest will hit 6% this year, possible 7% next year and then the house market will stabilise and maybe drop a bit. If I bought now I would be paying £1000pcm for a property I currently rent for £650, and at the end of 2 years risk the value being less than it is now. House prices are artificially high as buyers have been duped into thinking they must buy now before it's too late and don't realise that's it actually a buyers market with more properties on the market than people wanting to buy. The sellers are asking stupid prices because they think it's worth that (well, it is their house...) and the buyers are stupidly paying it. J Quote Link to comment Share on other sites More sharing options...
penguin Posted January 12, 2007 Share Posted January 12, 2007 I don't see renting as 'Dead Money' as someone put it. It provides a roof over my head. I'm 34 and still renting. I can afford to rent a much nicer property in a much nicer location for much less I would be paying on a mortgage right now. I read before Xmas that the Govt are concerned at the high price of houses and that First time buyers only represent 33% of the market. Traditionally it's nearer 66%. House prices are going up double inflation & salaries, and this is detrimental to the economy in the long run. They are determined to get house prices down and the FSA has warned the big lenders to make sure they will not go bankrupt if the housing market lost 40%. Now I don't think that will happen, but it certianly put me off thinking of buying at the moment. I expect interest will hit 6% this year, possible 7% next year and then the house market will stabilise and maybe drop a bit. If I bought now I would be paying £1000pcm for a property I currently rent for £650, and at the end of 2 years risk the value being less than it is now. House prices are artificially high as buyers have been duped into thinking they must buy now before it's too late and don't realise that's it actually a buyers market with more properties on the market than people wanting to buy. The sellers are asking stupid prices because they think it's worth that (well, it is their house...) and the buyers are stupidly paying it. J hmm... i suppose you have a point... however, i cant see interest rates going up just to slow down house prices even in the current market, second time buyers tend to get houses just so they can rent them out and make a lot of cash when they sell.... i know a lot of people with more properties then they can manage Quote Link to comment Share on other sites More sharing options...
Max Headroom Posted January 12, 2007 Share Posted January 12, 2007 Getting on the first step of the ladder is the important thing, with house prices still climbing, the return on property is still a good thing. Of course it all has to do with "cutting the cloth", why buy a house for 200k at your absolute limit of your spending power when a 120 or 150K house would suffice. Quote Link to comment Share on other sites More sharing options...
Chewie Posted January 12, 2007 Share Posted January 12, 2007 Renting is not dead money but in the long term i.e. 25-30 years buying is still the better option. Why? It's because it's YOUR PENSION. Don't rely on SERPS, stakeholder, or final salary (if you've got one) to see you through your zimmer years. With the increasing OAP population there isn't going to be enough to look after all of us when we retire. Watch the news! There will be a BIG pension problem in the next 20 years onwards. We'll all be working until we croak. Now if you had a house, you can sell up move to somewhere nice, sunny and cheap and spend the surplus on your Toyota Zimmer. I can't wait. Sun, sangria, bingo, false teeth, incontinence pants, bring it on! Quote Link to comment Share on other sites More sharing options...
penguin Posted January 12, 2007 Share Posted January 12, 2007 Renting is not dead money but in the long term i.e. 25-30 years buying is still the better option. Why? It's because it's YOUR PENSION. Don't rely on SERPS, stakeholder, or final salary (if you've got one) to see you through your zimmer years. With the increasing OAP population there isn't going to be enough to look after all of us when we retire. Watch the news! There will be a BIG pension problem in the next 20 years onwards. We'll all be working until we croak. Now if you had a house, you can sell up move to somewhere nice, sunny and cheap and spend the surplus on your Toyota Zimmer. I can't wait. Sun, sangria, bingo, false teeth, incontinence pants, bring it on! you've forgotten the most important part ..... 22 year old blonde hottie with the ass of a godess that's my retirement plan Quote Link to comment Share on other sites More sharing options...
tbourner Posted January 12, 2007 Share Posted January 12, 2007 Interest will go up for the next year or so, salaries will slow down, then house prices will begin to drop. Then in 4 or 5 years it will have cleared up a bit and the house prices will start to go up again, interest will come down and salaries will increase - if the people that mortgage now can live through it it will be cool - if not they'll have to sell at a low price or remortgage at a high rate! Quote Link to comment Share on other sites More sharing options...
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