Destined to rent forever?

[Raistlin]

Had a bit of a depressing time yesterday.

Went into my bank to find out what was the largest mortgage that they would give me.

Apparently the largest mortgage they could give me would enable me to buy a £72k house (and that's assuming I pay the deposit of £4k).

So, I went and looked at estate agent's windows and property papers.

You know what? I shouldn't have wasted my time, I just knew that there wasn't going to be any way that I could find a house for that sort of money.....

Are house prices gonna stay the way they are, or are they gonna get worse/better?

Am I destined to have to rent (and this throw my money away each month) forever?

Anybody else facing / faced similar problems? If you've managed to buy recently (but you're in a similar situation) hw did you get round it?

[paulyoung666]

how about a bit of property shareing where 2 or more ppl buy into the property and each have there own share in it

[Raistlin]

Who with though?

I've thought about that but tbh I kinda like having my own space.

Plus, the last time I bought a house with somebody I ended up worse off than I'd started (and in more of a pickle than smicer is ).

[Rob]

The only way is up - in the medium to long term at least - for housing prices. There may be small "corrections" from time to time, as is happening in some areas at the moment, but the threat of negative equity will prevent major price drops. Unless we are to go for a really major house building boom so supply vastly exceeds demand this will not change. Meddling with capital gains tax and the like will probably just drive up market activity and prices, so no real savings will be made.

For a long while now first time buyers have been priced out. They were replaced by the buy to let investor. Initially they made a killing from low investment and high rents, (which drove prices up again) but the market has since reached saturation, it's now high investment for low rent returns. the low rent and imporved choice was the government's aim, not the purchase price increase side effect. Strange how government meddling never quite gets it right. The buy to let investor has dissapeared, thus there are few buyers of the "cheapest" properties at the moment, so the whole market suffers as the chains cannot form.

For the first time buyer now, I suspect the shared equity options using housing associtation or similar schems to part fund a purchase, is the way to go.

[Russ]

Originally Posted by Raistlin

Apparently the largest mortgage they could give me would enable me to buy a £72k house (and that's assuming I pay the deposit of £4k).

I find it (unintentionally) amusing you find this to be an issue - £72k would buy you a very nice house down this neck of the woods!

Wait and see who wins the election all it will take is a recession and house prices will plummet interest rates will rise unemployment will rise and someone dressed in grey will say high unemployment = low inflation,IMO this is inevitable,the cost of high interest means anyone who max's out there mortgage pertential will be in trouble just like what happened under a tory government in the 80's.We are living with relatively low interest rates atm,this will mean the rich will not invest in banks etc they invest elsewhere,this will lead to less cash in the banks circulation and less cash to lend at low interest rates,higher rates then = more cash and so the circle begins again

You could consider an auction buy a fix a upper,the benefit in this is you do it up exactlly how you want it,lay out decor etc

[Rob]

Originally Posted by Russ D

I find it (unintentionally) amusing you find this to be an issue - £72k would buy you a very nice house down this neck of the woods!

Hmm, the cheapest property I have valued this year in my area, North Surrey, was a 2 bedroom flat, in rather tatty condition, in a tower block £140,000.

[Raistlin]

Which neck of the woods would that be?

If I wanted to buy a 2 bedroom terrace, on an ex council estate (with a long history of drugs, violence, rioting, theft, muggings etc) I would need to find about £100k.

And that's the scummiest, trashiest, most least desireable, option for about 20-30 miles.

If I move much further than that commuting to work becomes an issue (or rather, the cost of it) and so I would need to find myself a new job (which is probably going to be more difficult than finding somewhere to live ).

[Rob]

Originally Posted by zinglebarb

You could consider an auction buy a fix a upper,the benefit in this is you do it up exactlly how you want it,lay out decor etc

Yes but to get the mortgage on something like that, you will need to show you have the capital to do it up, and if there are "essential repairs" the mortgage company may well hold a retention. Double whammy

Of course whether there is even time with an auction property to get a mortgage arranged is doubtful.

I live on a council estate just like you mentioned but its rep is out of date most of the estate is clean of its older problems but it still has its rep and houses go for less than your 72 k or so i believe im just a tenent on a dodgy scummy estate

[Raistlin]

Originally Posted by zinglebarb

You could consider an auction buy a fix a upper,the benefit in this is you do it up exactlly how you want it,lay out decor etc

Considered that, but the way I understand it I would need to have the cash (or at least a firm mortgage offer) available before I went to the auction.

Not sure how I can do that, surely the bank won't give me a mortgage without knowing what house I want to buy?

I was thinking about trying to get a nice cheap reposessed house and doing it up but I can't seem to find out if there are any in the area - which leads me to believe that there probably aren't.

Anyway, I've barely got the time to keep this flat tidy, nevermind doing a house up from scratch - but if that's what it takes.....

Originally Posted by MovedGoalPosts

Yes but to get the mortgage on something like that, you will need to show you have the capital to do it up, and if there are "essential repairs" the mortgage company may well hold a retention. Double whammy

Of course whether there is even time with an auction property to get a mortgage arranged is doubtful.

oh i dunno I watch to much daytime tv

[Russ]

Port Talbot, near Swansea - property down here has always been very reasonable. Nothing wrong with the location either.

[Raistlin]

Originally Posted by zinglebarb

I live on a council estate just like you mentioned but its rep is out of date most of the estate is slean of its older problems but it still has its rep and houses go for less than your 72 k or so i believe im just a tenent on a dodgy scummy estate

The difference is that yours has got rid of it's reputation, there were actually riots on this estate a little over 3 years ago (full blown riots, petrol bombs, police dogs, horses, the works) and it hasn't gotten any better since.....

Sorry, I take that back. It has got better. The council spent a fortune doing it up and landscaping it. Now it's just as scummy but the houses are worth more
__________________

Originally Posted by Russ D

Port Talbot, near Swansea - property down here has always been very reasonable. Nothing wrong with the location either.

Don't suppose you wanna offer me a job down that way then

this house is just up the road from me so it is possible to get reasonable prices Raistlin where are you??

http://www.propertyfinder.com/2/pf/p...sKey=5676031&=