Frog
Full Member
Posts: 7,293
|
Post by Frog on Aug 19, 2022 18:26:25 GMT
Over half a million
|
|
|
|
Post by Chopsen on Aug 19, 2022 18:26:33 GMT
A garden? In London? Who are you, the fucking Queen or something?
|
|
|
|
Post by dfunked on Aug 19, 2022 18:27:19 GMT
That would probably just about cover a parking space...
|
|
|
|
Post by brokenkey on Aug 19, 2022 18:47:16 GMT
Urgh. Terraced
|
|
X201
Full Member
Posts: 5,136
Member is Online
|
Post by X201 on Aug 19, 2022 19:12:37 GMT
And how far up the country is “up here”
|
|
|
|
Post by technoish on Aug 19, 2022 20:26:38 GMT
Not sure about the calculation, but it's a 37 year mortgage......
|
|
|
|
Post by technoish on Aug 19, 2022 21:17:47 GMT
£2600 mortgage a month? That seems a huge amount, or I’m very jealous of your house. It's five bedrooms (with a garden, lol). If we were still renting the place we were in before, a small basement flat with two bedrooms (and a garden!), it would be easily £2000 a month now. We are also in a relatively cheap / rough bit, with prices probably 30-50% higher if you go half a mile west or east. The median rental for the borough for a 4 bedroom is 3500 per month. London is INSANE. |
|
|
|
Post by dfunked on Aug 19, 2022 21:22:00 GMT
Yeah, we moved out of London to buy as it just wasn't feasible. We're about to get stung by a bump to 3.24%, but even then our mortgage will be much less than the rent for the cheapest flat in London we lived in was. (going back 13 years)
|
|
Frog
Full Member
Posts: 7,293
|
Post by Frog on Aug 19, 2022 21:31:20 GMT
I have no idea how people manage to work for minimum wage in London, it's hard enough for people everywhere else.
|
|
|
|
Post by Chopsen on Aug 19, 2022 21:39:30 GMT
HMO's innit? In short tennacy lets. Which are completely unsuitable for the long term, raising a family, building communities etc.
|
|
|
|
Post by technoish on Aug 19, 2022 22:06:36 GMT
I really don't know how. It's a mixture of getting lucky with council housing (there is actually a lot of really nice council housing / estates in London - although difficult to tell how much is still owned by council), multiple generations living in houses bought decades ago (like our neighbours, who could never afford to buy in the area now), HMOs as said (house opposite has each room rented out separately), or as most people on lower wages probably need to do, living far away. The proper minimum wage jobs are pretty much unaffordable here, so you general see done by immigrants, who probably have unrecognisable home situations.
And that's all before what's going on with utility bills and inflation. I don't know what some of the junior grades in civil service do, they can hardly stay on if they don't get promoted. In my department I have realised they are paid less than many other public sector workers, including the nursery teachers at our nursery. Even our cleaner probably earns more (probably not paying tax on it either).
|
|
|
|
Post by pierrepressure on Aug 20, 2022 8:51:13 GMT
We are/were just about to pull the trigger on a property we liked. The other half is really keen to move as we are both sick of renting but I'm now so scared of buying due to the current inflation and energy crisis/rip off it feels like financial suicide to buy now in the current climate.
|
|
cubby
Full Member
doesn't get subtext
Posts: 6,394
|
Post by cubby on Aug 20, 2022 8:55:31 GMT
Have you got a mortgage in principle already?
|
|
|
|
Post by Dougs on Aug 20, 2022 8:55:37 GMT
House prices are about to tumble too. Although renting costs may go up. 6 of one really but understand the concern.
|
|
|
|
Post by pierrepressure on Aug 20, 2022 8:58:28 GMT
Have you got a mortgage in principle already? Yeah we do, we're first time buyers too so equally feel out of our depth. Really wish I paid more attention to maths at school. |
|
cubby
Full Member
doesn't get subtext
Posts: 6,394
|
Post by cubby on Aug 20, 2022 9:12:27 GMT
Well if you have one in principle, and I presume you've got an agreed fixed rate that lasts at least a couple of years, you should be OK.
Of course who the fuck knows.
|
|
dmukgr
Junior Member
Posts: 1,529
|
Post by dmukgr on Aug 20, 2022 9:16:50 GMT
I’m not sure how much house prices will go down. It feels inevitable but I’ve thought that for the last 30 years.
As a first time buyer with nothing to sell though you have a once in a lifetime type opportunity- my advice is to take the piss carpet bombing with low offers on anything half decent and see who is desperate enough for a quick easy sale.
Easier said then done but try to avoid falling in love with a particular property and just be hard lined on grabbing something for a good price.
|
|
|
|
Post by technoish on Aug 20, 2022 9:17:59 GMT
House prices are about to tumble too. Although renting costs may go up. 6 of one really but understand the concern. I don't think they are. It is location dependent a bit, but there is still a massive chronic shortage of houses, and that is going to be really hard to overcome. Slow growth perhaps in prices, maybe stagnation for a couple years. In any case, the alternative, renting, seems very unlikely to get any cheaper, so mortgage repayments should be compared to that alternative. By a house to live in it, not as an investment in the first instance. |
|
cubby
Full Member
doesn't get subtext
Posts: 6,394
|
Post by cubby on Aug 20, 2022 9:23:05 GMT
House prices will only ever go down when demand goes down. That basically requires more houses (quite a lot more) than there are people who want them. The buy to let fiasco here really ensured that a lot of houses went into landlord's hands and shrunk the available houses.
A massive change that would unlock a lot of houses is to disincentive people owning multiple properties, so that they have no option but to sell up.
|
|
|
|
Post by pierrepressure on Aug 20, 2022 9:24:25 GMT
Where we are looking is highly sought-after, so it does feel unlikely prices will fall in the area. Mortgage repayments should be OK but coupled with energy and general cost of living you think what's the bloody point. We have even looked at moving into a property with the in laws to help contribute to costs.
|
|
dmukgr
Junior Member
Posts: 1,529
|
Post by dmukgr on Aug 20, 2022 10:06:57 GMT
Where we are looking is highly sought-after, so it does feel unlikely prices will fall in the area. Mortgage repayments should be OK but coupled with energy and general cost of living you think what's the bloody point. We have even looked at moving into a property with the in laws to help contribute to costs. That reminds me of Bongo’s recent musings on granny/kid annexes becoming more of a thing in future. I think he’s right, cheaper bills, council tax shared etc. and these places tend to have larger gardens for a bit of peace from neighbours too. |
|
|
|
Post by quadfather on Aug 20, 2022 10:48:14 GMT
And how far up the country is “up here” North west, on the edge of the peak district. About 30 mins from Manchester |
|
X201
Full Member
Posts: 5,136
Member is Online
|
Post by X201 on Aug 20, 2022 11:00:18 GMT
House prices will only ever go down when demand goes down. That basically requires more houses (quite a lot more) than there are people who want them. The buy to let fiasco here really ensured that a lot of houses went into landlord's hands and shrunk the available houses. A massive change that would unlock a lot of houses is to disincentive people owning multiple properties, so that they have no option but to sell up. Yep, buy-to-let needs some serious reform and taxation. |
|
|
|
Post by starchildhypocrethes on Aug 20, 2022 11:07:49 GMT
We are/were just about to pull the trigger on a property we liked. The other half is really keen to move as we are both sick of renting but I'm now so scared of buying due to the current inflation and energy crisis/rip off it feels like financial suicide to buy now in the current climate. We’re in the same boat, but we had a tough conversation last week and agreed to just hold fire for now. No idea if it’s the right move but my anxiety levels have dropped at least. |
|
|
|
Post by quadfather on Aug 20, 2022 11:38:41 GMT
|
|
|
|
Post by Chopsen on Aug 20, 2022 11:39:30 GMT
By a house to live in it, not as an investment in the first instance. This. We have mutually incompatible views of what the housing market is for in the UK. On the one hand there is an expectation that housing should be a investment, which therefore implies increase in value in real terms and therefore presumably wages as well. We also have the expectation that it's everybody right to become a home owner if they chose to, which implies that house prices should not rise more than wages. You can't really have both in the long term. There is already evidence that the number of first time buyers is going down. Increasingly it's just people buying and selling houses to each other, only being able to afford a new one due to the equity they built up in the previous, or by using market distorting govt initiatives like HTB or LISAs or whatever. Either we're going to return to most people renting (the majority of people being owner occupied only because a thing in the late 1970s) or house prises will fall in real terms. And renting is the true opportunity cost to consider for most people, not what else they could have invested in instead of a house to generate a better return. You have to live *somewhere*. I don't think they will fall in nominal terms to a significant degree because too many people have a sense of what their house is worth, and would rather not sell than realise the true market value of their home. That's what happened in most places during covid. It's not just a lack of supply due to inadequate building, people want to get a return which is consummate with what they think they're "due".
So yeah, we're either going to see a real terms fall (i.e. stagnation in prices) in values, or more people are going to be renting in the long term. And I suspect if that's the case, we're going to see massive reforms in the rental markets to give tenants more rights as they will become an electoral cohort worth listening to come election time.
|
|
Reviewer
Junior Member
Posts: 4,455
Member is Online
|
Post by Reviewer on Aug 20, 2022 11:46:16 GMT
As long as half the Tory MPs are landlords and property investors there won’t be any new rights for renters.
And people have thought house prices would drop for the last 40 years, they won’t, they just might not go up quite as fast. It’s also insane how much more people pay for a new build - around here a new build is about 50% more expensive than a 20 year old house despite having a smaller back garden, living area, narrow roads into the estate, poor parking and usually no front garden.
|
|
|
|
Post by Jambowayoh on Aug 20, 2022 12:01:40 GMT
Didn't former user Psychotext have a new build, and it was continually giving me him difficulties?
|
|
|
|
Post by quadfather on Aug 20, 2022 12:02:44 GMT
Yeah that went on for a while. Not even sure if it's all fixed yet
|
|
|
|
Post by Bird Of Prey on Aug 20, 2022 12:42:03 GMT
It terrifies me opening this thread at the moment and I'm on a decent salary. I'm too scared to use electric or gas, my mortgage needs renewing this year and no way could I afford a house now if I had to start over). I'm appalled that the energy companies are making so much money and that they and buy to let aren't dealt with.
I've about £300 a month "spare" after essentials at the moment and that's going to be more than gone by this time next year. We've already figured we're going to have to go back to the 70s this winter and not use the central heating anywhere near as much as we did.
|
|
