Another Boring House Price Thread

[Cheeky Monkey]

In 1997 a mate bought a one bedroom flat in Brighton for 35k, seven and a half years later he has sold it for £135k. Wages in the Brighton area haven't trebled in that same seven and a half year period, in fact the average salary in the Arsegas Jobs Section seems to be around 16k.

The supply of minted first time buyers willing to shell out 135k for one bedroom flats has got to dry up soon, hopefully prompting a significant downward shift in prices.

 

[Lammy]

As said in an earlier thread, It is not 'minted first time buyers' that are buying the one bedroom flats. It is people looking for an investment.

There will always be mugs willing to rent.

 

[Simster]

Lammy is right. Cheekey, I don't think you will see the price crash you're hoping for. It may flatten out, or perhaps dip at 1 or 2% at the most but you're still better off trying to get on the property ladder ASAP.

 

[bhafc99]

They aren't "mugs" willing to rent – more often than not it's people who'd love to buy but can't afford it. Because too many properties get snapped up by buy-to-let landlords, keeping prices artificially high and trapping renters.

 

[Simster]

They aren't "mugs" willing to rent – more often than not it's people who'd love to buy but can't afford it. Because too many properties get snapped up by buy-to-let landlords, keeping prices artificially high and trapping renters.

Perhaps using the word "mugs" is a bit insensitive. But then again there are plenty of people who simply won't make any sacrifice - such as moving in with the parents for a year (where possible) or cutting back significantly on luxuries - instead choosing to pay normal rental prices, buying playstations and expensive clothes whilst moaning that nobody is doing anything to make houses more affordable.

 

[Lokki 7]

I am a buy to let landlord and currently rent out 2 flats. This is because I want to provide a pension for myself when I retire. The flats themselves do not provide me with an income today but do pay for themselves. I have no pension scheme, and do not beleive the government will be able to provide for me by the time I reach retirement age. It is not my intention to push up prices or put people on the street.
Am I a wanker for doing this?

 

[caz99]

They aren't "mugs" willing to rent – more often than not it's people who'd love to buy but can't afford it. Because too many properties get snapped up by buy-to-let landlords, keeping prices artificially high and trapping renters.

 

[Hampden Park]

no, youre not, each to their own.

 

[Attilio the Hun]

Perhaps using the word "mugs" is a bit insensitive. But then again there are plenty of people who simply won't make any sacrifice - such as moving in with the parents for a year (where possible) or cutting back significantly on luxuries - instead choosing to pay normal rental prices, buying playstations and expensive clothes whilst moaning that nobody is doing anything to make houses more affordable.

But can anyone save money as fast as property prices rise?

You have to get mortgaged up to the eyeballs and tap up the parents for every bean they can spare to get on the ladder.

Short term pain but it needs to be done. I bought a one-bedroom flat in Hove for £67K - sold it 18 months later for £124K - giving the deposit needed for a house.

 

[Gazwag]

I am a buy to let landlord and currently rent out 2 flats. This is because I want to provide a pension for myself when I retire. The flats themselves do not provide me with an income today but do pay for themselves. I have no pension scheme, and do not beleive the government will be able to provide for me by the time I reach retirement age. It is not my intention to push up prices or put people on the street.
Am I a wanker for doing this?

Not at all.

The reason why there are so many buy to lets is because it is the only "safe" investment giving good capital appreciation.

Currently personal pensions are worthless, base rates are so low its not possible to get a good return on cash and the stock market is very risky.

The clever people got into buy to let five years ago and as Lokki says now have a retirement nest egg. So long as you keep the property up to scratch and are looking very long term then its a good investment. You also need to consider the CGT when the property is sold.

 

[Lammy]

They aren't "mugs" willing to rent – more often than not it's people who'd love to buy but can't afford it. Because too many properties get snapped up by buy-to-let landlords, keeping prices artificially high and trapping renters.

Sorry to offend. My 'mug' comment was aimed at RoyalAli (or Wilts I can't remember) who actually prefers to rent rather than buy. I know lots of people in that situation that like the freedom and lack of responsibility renting profides. They are the mugs I was refering to. However, I also agree with Simster. There are too many people out there getting pissed up and eating takeaways moaning that they can't afford a house. The mentality seems to be that because it is hard to achieve, I simply won't bother.

I've been making sacrifices for the past three+ years to get myself on the ladder. I'm still having to say no to lads weekends, away games and indeed next years season ticket. However, I know that in the long term I am far more financially secure than I would be renting in Brighton.

Oh and the other thing is YOU DON'T HAVE TO LIVE IN BRIGHTON. If you can't afford a 1 bedroom flat in Brighton then have a look down the coast to Peacehaven. The lack of London links means the prices are much cheaper. After a few years you will be able to sell it and buy a flat in Brighton. It is not easy getting on the property ladder but well worth the pain in my opinion.

As a side not I have absolutely nothing again landlords looking to invest either. Indeed if I had the cash I would certainly look to do this myself to enhance my pension. Taxation laws presently make this a very easy thing to do. Good luck to you I say.

 

[Curious Orange]

But then again there are plenty of people who simply won't make any sacrifice - such as moving in with the parents for a year

It would need to be a bit more than a year!!

You need about £30 grand for a deposit these days - not many people can save that in a year!!

 

[Lammy]

It would need to be a bit more than a year!!

You need about £30 grand for a deposit these days - not many people can save that in a year!!

No you don't. Get a 95% mortgage like I did.

You will be able to find a flat in the Brighton area for £110,000. That's a deposit of £5,500, Stamp £1,100, Lawyers £700

You need to save £7,300. If you did this in a year you would need to save £608 a month. You could do it in two years at £304 a month.

If you were able then you could even go for a 100% mortgage. As long as you didn't want to move for the first 5 years or so it is a safe bet.

Rather than say I can't do it because it will take too long. My advice is to start saving as much as you can anyway. At least you will not be starting from scratch! Also if you have a car you can sell that is a good way of raising quick capital. Again, people assume having a car is a God given right these days....

 

[Lammy]

Just incase you don't believe me...


http://www.rightmove.co.uk/rm/actio...1;jsessionid=586FBAE8160BAD88B946CD91F76A03A0

note the flat for £64,950 in kemp town.

 

[Lammy]

Another option you have is to buy a house with a friend. This is an option I was seriously considering before I got married.

If you do go down this route I seriously suggest you trust your friend and have an agreement drawn up by a solicitor before hand regardless.

 

[caz99]

No you don't. Get a 95% mortgage like I did.

You will be able to find a flat in the Brighton area for £110,000. That's a deposit of £5,500, Stamp £1,100, Lawyers £700

You need to save £7,300. If you did this in a year you would need to save £608 a month. You could do it in two years at £304 a month.

If you were able then you could even go for a 100% mortgage. As long as you didn't want to move for the first 5 years or so it is a safe bet.

Rather than say I can't do it because it will take too long. My advice is to start saving as much as you can anyway. At least you will not be starting from scratch! Also if you have a car you can sell that is a good way of raising quick capital. Again, people assume having a car is a God given right these days....

Like me i am saving furiously this year with my boyf. sacrifices are being made and i do still live at home. i dont want a 95% mortgage. we are trying to save a deposit of £10,000 with everyone esle on top. i just dont want to be mortgaged to the hilt.

also where i work we havent had payrises for two years due the company not performing i have tried to move jobs but i actually quite like my job however if i want to move out it may be something that i have to look at doing moving jobs might just the only option to gain more money.

 

[Lammy]

Like me i am saving furiously this year with my boyf. sacrifices are being made and i do still live at home. i dont want a 95% mortgage. we are trying to save a deposit of £10,000 with everyone esle on top. i just dont want to be mortgaged to the hilt.

also where i work we havent had payrises for two years due the company not performing i have tried to move jobs but i actually quite like my job however if i want to move out it may be something that i have to look at doing moving jobs might just the only option to gain more money.

You'll get there then. It just takes time.

It's well worth the effort though. A 95% mortgage is not that bad either to be honest and I would definitely reccomend it for a first time buyer. A £100,000 mortgage will probably set you back about £600 a month. Which is would you would expect to pay in rent on a one bedroom flat in Brighton anyway.

 

[Curious Orange]

No you don't. Get a 95% mortgage like I did.

You will be able to find a flat in the Brighton area for £110,000. That's a deposit of £5,500, Stamp £1,100, Lawyers £700

You need to save £7,300. If you did this in a year you would need to save £608 a month. You could do it in two years at £304 a month.

If you were able then you could even go for a 100% mortgage. As long as you didn't want to move for the first 5 years or so it is a safe bet.

Rather than say I can't do it because it will take too long. My advice is to start saving as much as you can anyway. At least you will not be starting from scratch! Also if you have a car you can sell that is a good way of raising quick capital. Again, people assume having a car is a God given right these days....

I really need to move to Brighton at some point then. Even really shoddy properties around here start at about £165k!!

 

[maffew]

Lammy is this your profession?

i read the other day out of a survey of first time buyers between 19 and 29 in the SE, that I think 53% were now buying abroad as a first time buy at an average price of 100k instead of 160k what do you think to that

 

[Simster]

It would need to be a bit more than a year!!

You need about £30 grand for a deposit these days - not many people can save that in a year!!

I noticed you coming up with that quote before. Presumably that is a 10% deposit on a £240k 2 bed flat, plus stamp duty etc.

I won't argue with that - but you could look at a 95% mortgage, or compromise on location. If you feel that a 95% mortgage cuts you out of some of the good deals, then save 5 or 6%, get a short term loan to cover the rest and try and pay that off as quickly as possible as well as your mortgage - it might be cheaper than not saddling yourself with the short term debt so you'd have to do the sums yourself.