House Buyers 2007.... Why? - Page 2

Garp · 09-11-2007, 00:26

I know a few examples of people back home who have gone from rented accommodation into purchased accommodation and the mortgage payment is barely half the rent payment for a similar size abode. London really is a bit of an abberation when it comes to prices. Even back home is to an extent (£130k for a 1 bedroom flat is a joke!)
It depends on the who and wherefores of it all. I want a place of my own. I don't want to be shelling out money month on month in rent which is just lining someone else's pocket. Provided you're sensible about the mortgage you take out (i.e. don't listen to what the bank tells you you can afford as they're rather keen on over stating the amount), keeping its size and payment rates reasonable, then there is little reason for you to default on a mortgage; particularly if you're sensible enough to have payment insurance on it so you're covered in case of redundancy.
To be honest, unless something drastic happens to our economy a crash is unlikely. At most what we're liable to see is a cool down in price increases. Bricks and Mortar should still be a fairly safe investment.

After_8 · 09-11-2007, 02:32

There are other difficulties associated with buying over renting.
I currently rent a flat for £x per month which I have no problem paying every month, however, no bank will give me a mortgage for £x per month since they claim I can't afford it based on my salary. I know that I am better at managing my money than most people, but it's ridiculous that if I wanted to buy a house I'd need to settle for something cheap, because a computer somewhere doesn't believe that I can pay that much despite the three years of previous evidence.

Having said that, my landlord is selling up so I need to be out in three months. Renting can be a pain, too.

lostkat · 09-11-2007, 06:49

We had that problem too. When I was working for Caterpillar, I could barely scrape enough money together to pay for a mortgage on a caravan. When I moved to Rolls-Royce, it was the first time they'd lend me anything that would afford bricks and mortar. We bought £25k under our budget and I am SO glad we did. We have a fixed rate mortgage, but we'd have really been struggling to afford the extra payment on a higher mortgage. It's hard enough as it is.

Renting for us just wasn't an option. We wanted a home to live in and make our own. You just can't do that with a rental property. We've not bought it as a big investment to make masses of profit on. We just had to make the leap at some point and get on the property ladder. It's a small first time buyer property with a garage, so it'll always be in demand and we're doing it up very slowly. Even if we do have a big housing crash, we'll just have to ride it out until the market stabilises again... which it will. As long as we can afford to pay our mortgage, we'll be OK.

Desmo · 09-11-2007, 08:33

Quote:

Originally Posted by lostkat

Even if we do have a big housing crash, we'll just have to ride it out until the market stabilises again... which it will. As long as we can afford to pay our mortgage, we'll be OK.

The problem is employment is linked to the economy. If there is a crash it will be down to the economy and if the economy is porr then it can lead to job losses meaning people can't just ride it out. But hey, we're all in the same boat

Muban · 09-11-2007, 14:00

Buying vs Renting - I couldn't say which was the better option. It depends on who you are, your lifestyle and commitments, where you live, renting price vs buying price.

I know I couldn't even consider renting over buying but thats just me. It's stood me in good stead though. I doubt I could find anywhere to rent for £160 pcm.

Feek · 09-11-2007, 14:21

Yeah, but you can buy a castle where you live for about thruppence!

Desmo · 09-11-2007, 22:06

Quote:

Originally Posted by Muban

I doubt I could find anywhere to rent for £160 pcm.

£160 a month?

I wish

Lopez · 09-11-2007, 22:44

Quote:

Originally Posted by Desmo

But hey, we're all in the same boat

Arf!

Nutcase · 10-11-2007, 09:44

I got my mortgage offer just before the first rate rise last year

.

They're starting to hint that the base rate might be cut next month because of the US issues affecting our economy.

At the minute, I don't think anyone can come close to giving a solid arguement as to wether prices are going to crash or stay still or go up. Pretty sure they're not going to be going up as quickly as they have though...

lostkat · 10-11-2007, 12:10

Yeah we got our mortgage offer in the Summer 2006 just before 2 interest raises at the back end of last year. Phew!!!

09-11-2007, 00:26	#11
Garp Preparing more tumbleweed Join Date: Jun 2006 Location: Hawaii Posts: 6,038	I know a few examples of people back home who have gone from rented accommodation into purchased accommodation and the mortgage payment is barely half the rent payment for a similar size abode. London really is a bit of an abberation when it comes to prices. Even back home is to an extent (£130k for a 1 bedroom flat is a joke!) It depends on the who and wherefores of it all. I want a place of my own. I don't want to be shelling out money month on month in rent which is just lining someone else's pocket. Provided you're sensible about the mortgage you take out (i.e. don't listen to what the bank tells you you can afford as they're rather keen on over stating the amount), keeping its size and payment rates reasonable, then there is little reason for you to default on a mortgage; particularly if you're sensible enough to have payment insurance on it so you're covered in case of redundancy. To be honest, unless something drastic happens to our economy a crash is unlikely. At most what we're liable to see is a cool down in price increases. Bricks and Mortar should still be a fairly safe investment. __________________ Mal: Define "interesting"? Wash: "Oh, God, oh, God, we're all gonna die"?

09-11-2007, 02:32	#12
After_8 Nice weak cup of Earl Grey Join Date: Sep 2007 Posts: 47	There are other difficulties associated with buying over renting. I currently rent a flat for £x per month which I have no problem paying every month, however, no bank will give me a mortgage for £x per month since they claim I can't afford it based on my salary. I know that I am better at managing my money than most people, but it's ridiculous that if I wanted to buy a house I'd need to settle for something cheap, because a computer somewhere doesn't believe that I can pay that much despite the three years of previous evidence. Having said that, my landlord is selling up so I need to be out in three months. Renting can be a pain, too. __________________ "I'm happy to grow up, but I won't pretend that fun things aren't still fun out of fear of looking silly."

09-11-2007, 06:49	#13
lostkat Good Cat Join Date: Jun 2006 Posts: 5,550	We had that problem too. When I was working for Caterpillar, I could barely scrape enough money together to pay for a mortgage on a caravan. When I moved to Rolls-Royce, it was the first time they'd lend me anything that would afford bricks and mortar. We bought £25k under our budget and I am SO glad we did. We have a fixed rate mortgage, but we'd have really been struggling to afford the extra payment on a higher mortgage. It's hard enough as it is. Renting for us just wasn't an option. We wanted a home to live in and make our own. You just can't do that with a rental property. We've not bought it as a big investment to make masses of profit on. We just had to make the leap at some point and get on the property ladder. It's a small first time buyer property with a garage, so it'll always be in demand and we're doing it up very slowly. Even if we do have a big housing crash, we'll just have to ride it out until the market stabilises again... which it will. As long as we can afford to pay our mortgage, we'll be OK. __________________ Oooooh Cecil, what have you done?

09-11-2007, 14:00	#15
Muban Shoes, Boobs & Corsets Join Date: Jul 2006 Location: The fastest town in Scotland Posts: 1,882	Buying vs Renting - I couldn't say which was the better option. It depends on who you are, your lifestyle and commitments, where you live, renting price vs buying price. I know I couldn't even consider renting over buying but thats just me. It's stood me in good stead though. I doubt I could find anywhere to rent for £160 pcm. __________________ well, not to put a too fine point to it, he was discovered.. in the lounge

09-11-2007, 14:21	#16
Feek ex SAS Join Date: Jun 2006 Location: JO01ou Posts: 10,062	Yeah, but you can buy a castle where you live for about thruppence! __________________

10-11-2007, 09:44	#19
Nutcase Moonshine Join Date: Dec 2006 Location: Chelmsford, innit! Posts: 3,979	I got my mortgage offer just before the first rate rise last year . They're starting to hint that the base rate might be cut next month because of the US issues affecting our economy. At the minute, I don't think anyone can come close to giving a solid arguement as to wether prices are going to crash or stay still or go up. Pretty sure they're not going to be going up as quickly as they have though...

10-11-2007, 12:10	#20
lostkat Good Cat Join Date: Jun 2006 Posts: 5,550	Yeah we got our mortgage offer in the Summer 2006 just before 2 interest raises at the back end of last year. Phew!!! __________________ Oooooh Cecil, what have you done?