housing ladder

[harrytool]

I don't know about anyone else but if your a first time buyer I see no way of affording one!
the houses are dear and the wages are low here in Devon
if the average house is say £150k and you can only get a mortgage for 3.5 times your wage then you need to earn roughly £42k a year!
now I hear that we are coming out of the resesion but I know for a fact none of my lads down here in devon earn anymore than £18k a year so I/e a mortgage of £63k won't buy them anything!
any of you going to be able to buy a House in your area?
or you going to live with parents or rent?

[Matty]

The way i see it is if you cant afford to purchase a house as a first time buyer, either try and move to a cheaper more affordable part of your area, rent for the next 18 months and see what the housing markets like or ultimately give it a year to see if the government gives any help to first time buyers, and not just a petty reduction in stamp duty. Im studying property management in Bristol at the moment and round here 33% of all new homes built have to be 'affordable housing', this numbers only going to increase and im sure its similar for Devon, so houses might start getting into your price range. Just my two pence...

[harrytool]

The way i see it is if you cant afford to purchase a house as a first time buyer, either try and move to a cheaper more affordable part of your area, rent for the next 18 months and see what the housing markets like or ultimately give it a year to see if the government gives any help to first time buyers, and not just a petty reduction in stamp duty. Im studying property management in Bristol at the moment and round here 33% of all new homes built have to be 'affordable housing', this numbers only going to increase and im sure its similar for Devon, so houses might start getting into your price range. Just my two pence...
I see the government are putting out all this positive stuff and property experts are saying houses are rising in price again, but the sums just don't add up! if no one can afford to buy in the first place, I see no movement in the Market !
for houses to be affordable I can see it taking 10 years of pay increases with the house prices not moving for the same amount of time, for any first time buyer to be able to afford to buy.

[stu-n-shell]

not sure if you guys get this down south but the only way me and the missus could afford to buy was part buy part rent. its a housing assosian flat but we own 50% of it. males it more affordable mortgage wise but then you have rent aswell for the other 50%. obviously the more of the property you own the lower the rent.

[Matty]

Pay increases will just lead to higher inflation, pushing up the house prices further. If you have more money in your pocket through pay rises, the chances are that everyone in the country will be in the same boat as you, meaning house prices can remain artificially high. If the government were to subsidise builders it would then lead to homes becoming cheaper to buy. These times are hard for everyone, but things will get better. But then theres always the mortgage payment scheme where your local council may help you out. At the end of the day its basic economics, there is a greater demand for housing than there is supply of housing. It leads to expensive housing until there are more built.

[harrytool]

from what I can understand the problem started by people borrowing say 10 times there wages then when they could not pay back the money to the banks the banks got into trouble as they did not get the loans paid back!
that then made the house prices go mad because people were paying more than they were worth and more than they could afford !
the result is that us who were not stupid enough to borrow more than we could afford got left behind as the idiots who made prices go up are now getting hand out from the government! using our tax contributions!

[Matty]

Through people not being able to pay back their mortgages its led to a loss in confidence for the bank to hand out loans. Also inter bank lending. This is making it harder for you to get a mortgage as tbh they want to be 100% sure your going to pay it back and not give them your partially paid house back as a toxic asset where they will lose money on it. Like i said, houses are expensive because there arent enough of them, mortgages are hard to get as the banks have no confidence in lending people money that have poor credit history or cant afford the repayments.

[Rach125]

im going through the pricess of buying a studio apartment, it was only £37.5k but it needs totally guttered, not bad though for a way to get on the property ladder at 20 :y:

[harrytool]

it's the banks fault
if they didn't lend to idiots not able to pay back in the first place the house prices would not have gone up so much!
I/e giving someone say £250k when he could only afford to pay back £150k is the root of the problem!
if he only had the ability to pay back £150k he would have bought a house for that amount!
then supply and demand would have been within means, and the average house price would still be affordable in relation to wages now

[Matty_Mills]

2 bedroom flat in Cheltenham... in a shit hole area is £120k (ish)....

Luckily i have a good deposit after a compensation claim... but if i didnt have that, i would end up living at home or renting for a LOOOOOONG time!

[markymark1987]

when i went for a morgage 2 years ago i saved up 30k and they still refused me then few banks/lenders came back said they will give me one but at 13% so i turned them all down still cost me money - solisitors fees searches ect and morgage advisor. over 2k came to and didnt even buy the house.

now i could get one tomorow. with a 25% discount so dont have pay deposit but happy renting at min.

they pick at everything the banks if you missed a payment ect just so they dont give you the money but soon it will be back to normal giving out 110% mortgages and 5x the amount of your wage.