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Post by Barmy Army on Aug 18, 2010 6:43:50 GMT
I know I can't afford to purchase in Oxford. It's mad prices for what it is, but the demand is there. The only way to bring prices down is to saturate the market with new homes. The demand far outstrips the resource. What I have done is buy a house in sunny Stoke-on-Trent, and rent it out. The mortgage is paid more or less by the rent received. I saved up a deposit over the course of 4 years, £300 per month that gave me a deposit of £14,000. I found a 2 bed place for £106,000, and purchased it. With fees on top and making it habitable, the total was close to £113,000. Now, I am saving another £300 per month, and I will be purchasing another in hopefully 2 years time, and then another in 5 years. So, once I have three I can concentrate on paying the mortgages off. With the time value of money increasing, I will be able to start turning a small profit in around 5 years and carry on from here. Within 15 years, I should have enough equity and enough deposit saved for an Oxford or Henley homestead. Part of the problem is that young people (18-25) can't be bothered to save and put some aside. They pretty much live in a spend, spend, spend culture where the only thing that matters is Friday night closely followed by Saturday night. Come Sunday they're skint and the vicious circle starts again on Monday at work. Not wishing to sound like an old git (I'm 46 !) but at that age I struck a balance between saving and enjoying myself and by 21 or 22 had enough aside for the minimum deposit on the smallest, most basic property imaginable but it got me on the ladder and I've never been off it since. How many youngsters of today could accumulate, say, £20,000 (£4,000 a year should be do-able) over a five year period from when they start work and watch it build without being tempted to dive into it ? Not many, in fact very few. Not often i agree with you Baldy but i certainly do on this. I had some good fortune in that i bought my first house when the market bottomed just after the 15% interest days. I borrowed the max available (3.5 times my income) but still put down a 20% deposit. Got a lodger in (which i hated) and paid off the mortgage asap. Moved to a decent house in a nice area, now mortgage free (just as well as skint now!) While i was going out twice a week friends were out all night every night and they are now paying off £100k mortgages. Lads that worked for me last year would be in debt the day after they got paid and were still living at home. Everything they dont own is on credit. |
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Post by baldy on Aug 18, 2010 12:08:05 GMT
Part of the problem is that young people (18-25) can't be bothered to save and put some aside. They pretty much live in a spend, spend, spend culture where the only thing that matters is Friday night closely followed by Saturday night. Come Sunday they're skint and the vicious circle starts again on Monday at work. Not wishing to sound like an old git (I'm 46 !) but at that age I struck a balance between saving and enjoying myself and by 21 or 22 had enough aside for the minimum deposit on the smallest, most basic property imaginable but it got me on the ladder and I've never been off it since. How many youngsters of today could accumulate, say, £20,000 (£4,000 a year should be do-able) over a five year period from when they start work and watch it build without being tempted to dive into it ? Not many, in fact very few. Not often i agree with you Baldy but i certainly do on this. I had some good fortune in that i bought my first house when the market bottomed just after the 15% interest days. I borrowed the max available (3.5 times my income) but still put down a 20% deposit. Got a lodger in (which i hated) and paid off the mortgage asap. Moved to a decent house in a nice area, now mortgage free (just as well as skint now!) While i was going out twice a week friends were out all night every night and they are now paying off £100k mortgages. Lads that worked for me last year would be in debt the day after they got paid and were still living at home. Everything they dont own is on credit. Sounds as though me and you share very similar philosophies - on this at least. My wife couldn't understand me when we met that I never used cards. She had her own house with a sensible mortgage but had just about everything else on tick whereas, mortgage aside, I have always adopted the 'If you can't afford it outright don't bother' approach. I run a small business and whereas that school of thought might have held me back in some respects I am not frantic with worry and stressed out when the quieter times bite because I carry very little in the way of debt other than wages and running costs which are generally manageable even in leaner times. I now have a couple of properties, one I live in and one I rent out, with smallish mortgages. I've managed this mainly on sensible spending as opposed to selling at peak times. I just do not think that your average young person needing a leg up onto the ladder has it in them to show restraint and curtail their thirst for enjoyment. I have kids and I want each of them to enjoy themselves to the hilt, have fun growing up and savour the most special years of their lives but I also want to instill the need for them to show a touch of forsight and consideration for the future because it makes one hell of a difference when you finally settle down into a more normal existence. |
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Post by Barmy Army on Aug 18, 2010 12:27:49 GMT
Yep, ive never owned a credit card and never bought anything (apart from my house) on credit. If i cant afford it now, why should i be able to afford it later?
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Post by baldy on Aug 18, 2010 12:56:38 GMT
Yep, ive never owned a credit card and never bought anything (apart from my house) on credit. If i cant afford it now, why should i be able to afford it later? Exactly. Unless you're due a whacking great big bonus or something in a 30 days time what is the point. Your financial situation is unlikely to change one bit by the time the credit card is due. It's a very simplistiv view but living within your means shouldn't really be that difficult. |
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Post by edgecam on Aug 18, 2010 19:04:11 GMT
Yep, ive never owned a credit card and never bought anything (apart from my house) on credit. If i cant afford it now, why should i be able to afford it later? Exactly. Unless you're due a whacking great big bonus or something in a 30 days time what is the point. Your financial situation is unlikely to change one bit by the time the credit card is due. It's a very simplistiv view but living within your means shouldn't really be that difficult. I completely agree and have brought up my children with the same thoughts. However my eldest now expects everything now and says. I'll pay for it later when I get a job. It amazes me how his thoughts have so completely changed. He's a month away from being 18 and at college. Currently I pay for everything. I got nothing from my folks except love and guidance. |
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Post by 'Beav' on Aug 18, 2010 20:26:17 GMT
But problem is Bicester is FAR too expensive. Your looking at £170,000 for 1 bed flat. We're looking at moving away from here, will be sad to go but its to expensive. Plus- what you've forgotten to mention is that Bicester's a hole, having lived there for most of my life I couldn't think of anything worse than moving back there. You have an ever increasing population but with little to no amenities for them, Sheep Street and Market Square have been on a downward slope for many years. The council have always promised redevelopment but have delivered nothing. Bicester is and always will be an Army/commuter town and nothing else, I feel sorry for anyone who are trapped there. I'm well out of there!  I am officially the only young person who loves Bicester. Everything is so easy to get to. Transport is quality. Everything you could need is under an hour away. (MK/Oxford by bus. Plus the train line. May be expensive (Chiltern Railways) but its really good. Now that they're doing-up the whole of Bicester town I cannot wait. Yeah the 'Bicester Bowl' isn't the best. You must remember Wesley Lane? Thats being knocked down. The first shopping precinct place in Bicester. However the area of the whole development is huge and Bicester should be full up on amnemnites (however the bollocks you spell it). Bicester = Convienence. P.S these new houses should hopefully make Bicester cheaper to live in. |
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Post by truthteller on Aug 18, 2010 20:32:19 GMT
I know I can't afford to purchase in Oxford. It's mad prices for what it is, but the demand is there. The only way to bring prices down is to saturate the market with new homes. The demand far outstrips the resource. What I have done is buy a house in sunny Stoke-on-Trent, and rent it out. The mortgage is paid more or less by the rent received. I saved up a deposit over the course of 4 years, £300 per month that gave me a deposit of £14,000. I found a 2 bed place for £106,000, and purchased it. With fees on top and making it habitable, the total was close to £113,000. Now, I am saving another £300 per month, and I will be purchasing another in hopefully 2 years time, and then another in 5 years. So, once I have three I can concentrate on paying the mortgages off. With the time value of money increasing, I will be able to start turning a small profit in around 5 years and carry on from here. Within 15 years, I should have enough equity and enough deposit saved for an Oxford or Henley homestead. all well and good when you have good paying tennants....ONE bad payer and all the hard work could go t**s up. |
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Post by Pogue Mahone on Aug 19, 2010 7:27:19 GMT
I know I can't afford to purchase in Oxford. It's mad prices for what it is, but the demand is there. The only way to bring prices down is to saturate the market with new homes. The demand far outstrips the resource. What I have done is buy a house in sunny Stoke-on-Trent, and rent it out. The mortgage is paid more or less by the rent received. I saved up a deposit over the course of 4 years, £300 per month that gave me a deposit of £14,000. I found a 2 bed place for £106,000, and purchased it. With fees on top and making it habitable, the total was close to £113,000. Now, I am saving another £300 per month, and I will be purchasing another in hopefully 2 years time, and then another in 5 years. So, once I have three I can concentrate on paying the mortgages off. With the time value of money increasing, I will be able to start turning a small profit in around 5 years and carry on from here. Within 15 years, I should have enough equity and enough deposit saved for an Oxford or Henley homestead. all well and good when you have good paying tennants....ONE bad payer and all the hard work could go t**s up. I use a letting agency. For 12% of the rent, they find and screen new tennants, sort out any problems (Fan went in the bathroom, so they have got someone in to fix it recently), and collect all dues in a timely manner. |
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Post by Yellow River on Aug 19, 2010 9:14:27 GMT
I agree with a lot of the sentiment on this thread regarding living within your means. the amount of personal debt in this country is frightening.
However it's certainly not just the 'younger generation' that have debt problems.
There are many people in their 40s & 50s who have remortgaged their homes to the hilt to pay for new cars, & holidays etc.
Many self employed people in their 40s & 50s who have lied about their income (self cert mortgages) to obtain 125% mortgages, known as Liar Loans.
The banks are just as guilty as the borrowers who lied, for not making thorough checks on peoples ability to repay.
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Post by Boogaloo on Aug 19, 2010 11:01:09 GMT
It's a bit of an easy excuse to blame people for pissing their money against a wall rather than saving, but when I bought my flat about nine years ago it cost 77,500K. That means that you would need a salary of about 25K to realistically afford the repayments. My flat is now worth 130K, which means you need a salary of about 40-45K. How many people in their early twenties earn that sort of money?
You put the argument that they should save up, but not everyone lives at home with mummy and daddy - this means they are forced to live in rented accommodation, and that can cost about 500-600 a month. Once that's gone and all bills are paid, essentials like food is purchased etc, that doesn't leave a lot left over if you're on an average salary of £25K.
I'm one of the lucky ones buying mine at the right time, just before prices went exponential, but I certainly don't envy anyone trying to get on the housing ladder right now.
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Post by Pogue Mahone on Aug 19, 2010 11:54:55 GMT
It's a bit of an easy excuse to blame people for pissing their money against a wall rather than saving, but when I bought my flat about nine years ago it cost 77,500K. That means that you would need a salary of about 25K to realistically afford the repayments. My flat is now worth 130K, which means you need a salary of about 40-45K. How many people in their early twenties earn that sort of money? You put the argument that they should save up, but not everyone lives at home with mummy and daddy - this means they are forced to live in rented accommodation, and that can cost about 500-600 a month. Once that's gone and all bills are paid, essentials like food is purchased etc, that doesn't leave a lot left over if you're on an average salary of £25K. I'm one of the lucky ones buying mine at the right time, just before prices went exponential, but I certainly don't envy anyone trying to get on the housing ladder right now. I left home at 18, and I still managed it as well as going out right enough. It's all about budgeting and living well within your means. Also, in a shared house along Abingdon Road, you can get a big size double room for £360 per month - with bills included. It's all about looking around and seeing what is out there. |
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Post by Scottish Yellow on Aug 19, 2010 13:07:05 GMT
Plus- what you've forgotten to mention is that Bicester's a hole, having lived there for most of my life I couldn't think of anything worse than moving back there. You have an ever increasing population but with little to no amenities for them, Sheep Street and Market Square have been on a downward slope for many years. The council have always promised redevelopment but have delivered nothing. Bicester is and always will be an Army/commuter town and nothing else, I feel sorry for anyone who are trapped there. I'm well out of there! I am officially the only young person who loves Bicester. Everything is so easy to get to. Transport is quality. Everything you could need is under an hour away. (MK/Oxford by bus. Plus the train line. May be expensive (Chiltern Railways) but its really good. Now that they're doing-up the whole of Bicester town I cannot wait. Yeah the 'Bicester Bowl' isn't the best. You must remember Wesley Lane? Thats being knocked down. The first shopping precinct place in Bicester. However the area of the whole development is huge and Bicester should be full up on amnemnites (however the bollocks you spell it). Bicester = Convienence. P.S these new houses should hopefully make Bicester cheaper to live in. Hi OX26, I admire your support for Bicester. I admit having a bowling alley, although small, is an asset to the town. On my last visit I was walking through Crown Walk only to find half the shops closing down or already closed. A town of Bicester's size should have bigger, better known brand in the high street. Ok, you have M&S and Costa but there everywhere. You shouldn't have to go to Oxford/Banbury/Milton Keynes to go to the cinema, go shopping or just for something to do. You say Bicester's getting done up, I would go so far as to say it's in line for regeneration. I hope it livens the place up and then hopefully I can go back for more than a few days without getting sick of the place. But the houses being built aren't going to be cheaper. All new estates will be just like the rest, very few one/two bed and loads of three/four bed homes. And none of them will be "affordable" to first time buyers. Sorry mate that's the way things are. |
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Post by baldy on Aug 19, 2010 14:24:31 GMT
It's a bit of an easy excuse to blame people for pissing their money against a wall rather than saving, but when I bought my flat about nine years ago it cost 77,500K. That means that you would need a salary of about 25K to realistically afford the repayments. My flat is now worth 130K, which means you need a salary of about 40-45K. How many people in their early twenties earn that sort of money? You put the argument that they should save up, but not everyone lives at home with mummy and daddy - this means they are forced to live in rented accommodation, and that can cost about 500-600 a month. Once that's gone and all bills are paid, essentials like food is purchased etc, that doesn't leave a lot left over if you're on an average salary of £25K. I'm one of the lucky ones buying mine at the right time, just before prices went exponential, but I certainly don't envy anyone trying to get on the housing ladder right now. My point is that young people wanting to buy need to show restraint and discipline for 5 or so years to get a decent deposit together - not 5 minutes. As I pointed out earlier, £80 put aside a week for 5 years gives you £20k to begin your search with. That, in my opinion, is within reach if that person really wants to do it. Yes, it requires a steely determination but plenty of us seemed to do it 20 or 30 years ago and haven't looked back. |
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Post by slappy on Aug 19, 2010 14:42:22 GMT
Aug. 19 (Bloomberg) -- The number of U.K. first-time house
buyers rose 28 percent in the first half of 2010 from a year
earlier to 94,600, Lloyds Banking Group Plc’s Halifax division
said in an e-mailed statement today.
The number of buyers is half the amount in the same period
in 2007, Halifax said, citing research from its database. The
share of a new property owner’s disposable earnings devoted to
mortgage payments was 28 percent in June, compared with an
average of 34 percent over the past 25 years, the statement
said.
How does that work? If say a mortgage is £150K to buy a flat. 5% mortgage rate means say £900 monthly repayments. And if 28% is true, that means take home pay of £3,200 per month, or a salary of presumably £50K +? For first time buyers?
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Post by amarillo on Aug 19, 2010 14:45:16 GMT
I agree that there is much more of a spending culture these days, which is also a factor - and I'm a fair bit younger than baldy.
But obviously its more than just that.
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Post by Boogaloo on Aug 19, 2010 14:47:10 GMT
It's a bit of an easy excuse to blame people for pissing their money against a wall rather than saving, but when I bought my flat about nine years ago it cost 77,500. That means that you would need a salary of about 25K to realistically afford the repayments. My flat is now worth 130K, which means you need a salary of about 40-45K. How many people in their early twenties earn that sort of money? You put the argument that they should save up, but not everyone lives at home with mummy and daddy - this means they are forced to live in rented accommodation, and that can cost about 500-600 a month. Once that's gone and all bills are paid, essentials like food is purchased etc, that doesn't leave a lot left over if you're on an average salary of £25K. I'm one of the lucky ones buying mine at the right time, just before prices went exponential, but I certainly don't envy anyone trying to get on the housing ladder right now. My point is that young people wanting to buy need to show restraint and discipline for 5 or so years to get a decent deposit together - not 5 minutes. As I pointed out earlier, £80 put aside a week for 5 years gives you £20k to begin your search with. That, in my opinion, is within reach if that person really wants to do it. Yes, it requires a steely determination but plenty of us seemed to do it 20 or 30 years ago and haven't looked back. Yes, but my point is that over the past ten years average house prices have gone up by about 100%, but average salaries are not much different now to what they are back then. I agree with you that it is still possible, but it is a hell of a lot tougher now that it was ten years ago. |
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Post by peterdevo on Aug 19, 2010 20:02:52 GMT
A friend of mine in Bracknell has been persuaded to rent his out in Priestwood in Bracknell. A three bed house for rent is £850. This is helping live in Worcester Park and pay for his mortgage there where he works. You are right about Bracknell. Here in Yateley it is more or less the same, not many for sale but now more to rent than before.
We have two buy to lets. One is now beginning to turn in a profit but the other is still turning in a loss. This is our way of overcoming the pension shortfall that arose because of Gordon Brown stealing £5billion of our funds. Also this may be a way to pay our current mortgage off
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