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 Fernilee
Joined: 10/13/2007
Msg: 1
The truth about propertyPage 1 of 7    (1, 2, 3, 4, 5, 6, 7)
Starting shortly on BBC2 - asks how far homebuyers stretch themselves to get on and up the property ladder and how wise they are to do so.

I'm glad I'm not a home owner - I rent - but I see the traps people can fall into so easily. I heard someone being interviewed today who said that house prices are over-valued by about 40% .

Does, or HOW does the current housing market affect you?.. Who IS to blame for the rediculous prices of houses nowadays?.. and have you ever faced eviction?
 ROOR-BAK~BCF
Joined: 9/10/2007
Msg: 2
The truth about property
Posted: 10/18/2007 12:08:28 PM
we are to blame for high house prices,....put it like this,if your selling your house,do you take the first offer?...no..you wait till you get the highest,hence high house prices,plus developers,....they dont really wanna built soicial housing for first time buyers,they built these mega expensive apartments,than no first time buyer can get a look in on,well,theys my two cense..
 frenchie2006
Joined: 5/28/2006
Msg: 3
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History
The truth about property
Posted: 10/18/2007 12:30:03 PM
The housing market is something I have been keeping a close eye on.

Due to imminent divorce I may be forced to sell my house after 14 years. Even if I was to get all the equity and got a mortgage 5 times my wages (which I would never do !) I would still not be able to buy a property in the same area.

Looks like I may have to rent which frankly sucks. I would not mind if I was on my own but with 2 kids I want stability and when you rent you are at the hands of your landlord, ie you may be asked to move after 12 months or so.

I watched Channel 4 last night, Phil and Kirsty and apparently the average house price is the UK is now £200K. £230K to £300K where I live for a 3 bed semi in a decent area so on one wage absolutely no chance.

So I will be down to Ikea.. Apparently they are doing flat packed houses now !
 Whitey1974
Joined: 11/24/2006
Msg: 4
The truth about property
Posted: 10/18/2007 12:37:54 PM

Does, or HOW does the current housing market affect you?.. Who IS to blame for the rediculous prices of houses nowadays?.. and have you ever faced eviction?

I rent from the local council but soon moving to a Housing Association. Either way, I don't think I could afford a morgage but even if I could, on my wage I wouldn't want to commit for 25 years, much prefer not being tied down to one place.
 Katxxxx
Joined: 8/26/2007
Msg: 5
The truth about property
Posted: 10/18/2007 12:42:09 PM

plus developers,....they dont really wanna built soicial housing for first time buyers,they built these mega expensive apartments


not strictly true.... alot of what the developers build is down to the planning department of that particular area.

For example in Swindon....

the government want us to build 'upwards' and not 'outwards'... so we have to build townhouses and apartments.... I would kill for some 2 bed houses to sell to first time buyers. We do what we can by pricing sensibly and offering schemes to enable FTB to afford their first home.

and if a developer has over a certain amount of units on a particular site, they must build a percentage as social housing or shared ownership.



OT

And everyone is to blame for the property boom in the last few years.... Low interest rates encouraged people to buy and particularly rich fat cat investors who had the money to snap up all the cheaper houses and rent them out to make a fat profit to boot.

It has to top out somewhere, and hopefully there wont be a huge crash in prices. Surely after what happened in the late eighties with all those repossessions, that cant be allowed to happen again....
 ~Leannie~
Joined: 8/30/2007
Msg: 6
The truth about property
Posted: 10/18/2007 12:43:17 PM
no, i've never faces eviction, but have been a homeowner since i was 21.

i dont think i've ever paid more than most people pay in rent, and the upshot is that i now have somewhere in the region of 50k equity...

obviously it's about as much use as a chocolate ashtray whilst it's tied up in the house, but if i ever did decide to get out of the mortgage game i would be quids in..so it's worked for me.
 ROOR-BAK~BCF
Joined: 9/10/2007
Msg: 7
The truth about property
Posted: 10/18/2007 1:02:24 PM
msg5,....theyl biult houses for first time buyers,if they can keep there profits up by putting up an extra wee office block or summit,..now im only going by what i know of over here,but they biult to make gain,not to lose,if they did that,yes,a lot more people could get onto the property ladder,but at the developers loss,and they aint doin that..lol,
 - Hula Moo -
Joined: 9/25/2007
Msg: 8
The truth about property
Posted: 10/18/2007 1:25:47 PM
I don't think that the current market can be sustained. Prices are ridiculously high and out of reach of ordinary FTBs

I lost my house when I divorced (it was a blessing in disguise), whatever my future circumstances (barring a lottery win) I can't see myself getting back on that ladder until after the inevitable crash.
 Georgiegirl2007
Joined: 8/23/2007
Msg: 9
The truth about property
Posted: 10/18/2007 1:32:46 PM
At the moment I'm on the property ladder. But it's only because I'm incredibly lucky. I can just about afford my mortgage, but am commited to paying it for the next 20 years. If I was still married it would be paid off within the next 5.

I will do everything within my power to maintain the roof over my head so that my kids can benefit from it. They are fortunate in as much both of their parents have property that they will be able to benefit from. Because I don't think there's a hope in hell that they'll be able to get on the property ladder.

I've been working over 20 years. I would be lucky, if I was trying to buy property now, to manage to get a 1 room bedsit.
 vin fourstar
Joined: 8/27/2006
Msg: 10
The truth about property
Posted: 10/18/2007 1:38:51 PM
Too many people chasing too few houses!

Well, at last I have SOMETHING to be grateful to the immigrants for.........my house is worth 500% what I paid for it in 1997.
 xX Mark Xx
Joined: 4/30/2007
Msg: 11
The truth about property
Posted: 10/18/2007 1:40:41 PM

Does, or HOW does the current housing market affect you?


I own my own home, and at the moment the housing market does not affect me, for although the value of my house has tripled, to buy a similar home has also tripled, although I have been advised that it is a good place to own property, as although it is classed as being in a rougher part of derby, it is very close to an ever expanding higher class area of the city, so houses where I live will become more desirable in the future.


Who IS to blame for the rediculous prices of houses nowadays?


The current pricing is down to supply and demand market forces, where the price the consumer is prepared to pay, dictates the price, so in the end anyone wanting to buy/ sell a house is responsible.


have you ever faced eviction?


No.
 dub08
Joined: 4/28/2007
Msg: 12
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History
The truth about property
Posted: 10/18/2007 1:42:16 PM
Property is only worth what someone is prepared to pay for it. Try living here in Dublin!!

My 2 sisters work full time and cant get a mortgage together - well they could but only enough to buy a one bedroom apartment with not even enough room for a table!!
 Fernilee
Joined: 10/13/2007
Msg: 13
The truth about property
Posted: 10/18/2007 1:46:34 PM
It has to top out somewhere, and hopefully there wont be a huge crash in prices. Surely after what happened in the late eighties with all those repossessions, that cant be allowed to happen again....

'hope' and 'can't be allowed'... sadly aren't reliable sentiments. It will top out and the situation will be 'top heavy'. There's not enough low priced or even affordable hosuing to fall back on if there is a housing topple. People WILL be in negative equity again. People have to borrow over and above what they can afford, and relationships aren't as stable as they used to be, so there's an ever growing demand for more and more housing anyway.

Banks like Northern Rock have shown a crack in the lending/borrowing organisations, and the current housing market scare in the USA will inevitably have an eventual knock-on effect on the UK market. (my thoughts, not garnered from published text).

We are victims of our own success and I think Roor has righly mentioned that the huge upsurge in 'Proprty Developing' has been cause and effect of the situation we're in now. (well, not me - us the UK people)
 44Boz
Joined: 6/22/2007
Msg: 14
The truth about property
Posted: 10/19/2007 6:27:07 AM

the current housing market scare in the USA will inevitably have an eventual knock-on effect on the UK market. (my thoughts, not garnered from published text).


There is a great deal of anecdotal evidence to support that view:

http://search.ft.com/search?queryText=uk%2Fus+housing&aje=true&dse=&dsz=
 OBird
Joined: 4/3/2006
Msg: 15
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History
The truth about property
Posted: 10/19/2007 6:58:39 AM
Personally, I have almost paid off my mortgage.
House prices do not really effect me, as whatever rise/fall in the value of mine is the same as all the other houses which might come onto the market. (out of interest, though, I paid 60k for it in 1990, its just been valued at 230k)

I'm pleased to be a home owner. I have a free choice about what I do to my house, I am not going to be evicted, I have something to leave my daughter after my death, I will have no mortgage/rent to pay in a few years (which will be life changing!) and , most importantly, I have not been paying rent to live here - all the money I have paid has culminated in my ownership of the house!
Paying rent every month is like throwing money away, when compared to a mortgage.
 Steve_Sandy
Joined: 3/19/2006
Msg: 16
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History
The truth about property
Posted: 10/19/2007 7:09:57 AM
Bought house for £70k about 5 years ago, worth about £120k, but would have to move futher north to get profit out, to me it is a place to live and not much more...

Paying about £350 per month, 5 year fixed rate finishes in 2 years approx, if it crashes, it is only a paper loss as need a house to live and prefer not paying someone else's mortage for them :)
 OH_ffs!
Joined: 10/4/2007
Msg: 17
The truth about property
Posted: 10/19/2007 7:48:57 AM
Seems to be a spate of evictions and repossessions at the moment. With interest rates rising people who took on mortgages up to 10x their salary are now struggling to cope with repayments.

I was lucky I bought my place when I did - it's more then doubled in value in just 5 years. I doubt I could afford much more then a studio or a bedsit now.

I much prefer having a mortgage to renting, you are at the whim of our landlord when renting and hate moving around all the time.

An no I have never faced eviction, I did walk away from a house I owned with an ex, he got all the profit as it was just not worth the hassle.
 SW1P1LU
Joined: 8/21/2007
Msg: 18
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The truth about property
Posted: 10/19/2007 8:25:31 AM
I agree about being glad I bought when I did, I'd be lucky to find a shoebox I could afford in London now :-(
 SpotlightsOnMe
Joined: 8/27/2007
Msg: 19
The truth about property
Posted: 10/19/2007 8:59:44 AM
Building cheaper homes for first time buyers won't work. They will simply buy them cheap, and sell them on at market value. That's a no brainer.

Renting has advantages if you wish to remain mobile in your career. You can simply move to another part of the country for a better job without a second thought.

Me? Divorced in 87, lost my house and everything I had ever worked for. I was left penniless. I carried on working, I paid my child maintence without fail, my ex got 100% of the house and everything in it. Two months after my last child maintenance payment 5 years ago I was made redundant.

15 years later and I have a home that is mortgage free and another in France that I am renovating ready for retirement.
Am I rich? No.
Do I go out eating and drinking my wages away? No.
Do I 'have' to take a foreign holiday every year? No.
Do I have to go out at all? No.
Do I have to spend money at Christmas? No.
Do I have to buy games machines? No.
Do I need a whizzy mobile phone? No.
Do I need lots of shoes and clothes? No.
Do I need Sky TV?. No.
Do I need a car costing more than a few hundred pounds? No.
Do I need 99% of what the advertising world advertises. No!!!!

I live on what I need, and that isn't much. If people realised that they cannot have their cake and eat it then they would realise that they can own property, or not.

The cost of a mortgage in comparative terms is no different now to what it was 30 years ago. The difference now is that too many people have been sucked into the advertisers Utopia, and don't know the difference between 'nice to have' and 'need to have'.

It's no good bleating about how unfair the world is. The world is not unfair, there are no magic handouts. If someone wants something then they have to want it badly enough to do whatever it takes to get it.

Now where did I put that tin hat?

Rob
 jennym
Joined: 4/6/2007
Msg: 20
The truth about property
Posted: 10/21/2007 3:45:32 AM
I'm lucky that I have been on the property ladder for many years now. 4 years ago I decided to move from countryside to town . This really took away the financial strain. I also moved to a very cheap area.

House I am in was only meant to be temporary but I can't see me moving in the local area again. I have watched as houses like mine are selling for three times what I paid less than 4 years ago. It won't benefit me because if I move, anywhere I move to will have increase by a similar proportion. If I move away from the area, house prices are even higher.

My house is far from ideal but at least I know it is affordable.
 Fernilee
Joined: 10/13/2007
Msg: 21
The truth about property
Posted: 10/21/2007 3:59:44 AM

I live on what I need, and that isn't much. If people realised that they cannot have their cake and eat it then they would realise that they can own property, or not.

The cost of a mortgage in comparative terms is no different now to what it was 30 years ago. The difference now is that too many people have been sucked into the advertisers Utopia, and don't know the difference between 'nice to have' and 'need to have'.

Wish I'd written this. I concurr.



House I am in was only meant to be temporary but I can't see me moving in the local area again. I have watched as houses like mine are selling for three times what I paid less than 4 years ago. It won't benefit me because if I move, anywhere I move to will have increase by a similar proportion. If I move away from the area, house prices are even higher.


exactly that!!.. a house only has monetary value if you are selling up and cashing in, or if you are selling up and downsizing...or leaving it in your will.
Apart from that , if you're stuck in a 25-30 year mortgage, and the cost of housing rises and rises and interest rates increase hand over foot, over and above the annual inflation rate and wage increase... then what true value can it have?
 Tuttifruity
Joined: 9/6/2007
Msg: 22
The truth about property
Posted: 10/21/2007 4:01:01 AM
I guess we all have property for different reasons... me i look at is as an investment into the future..

To look at it realistically renting is just throwing away money where as i'm investing money into my home well which will be one day mortage free.. plus i don't have the restrictions aswell of renting... i've been there wouldn't want to do it again least my house i can do to it what i like :-)

I look at it as an investment for my daughter when shes older a nest egg to do with what she likes.. i'm sure as hell not keeping it to pay for what i put into the national health for and thats my care when i'm old.
 zaphod_trenchcoat
Joined: 1/21/2009
Msg: 23
The truth about property
Posted: 1/14/2010 12:18:49 AM
I bought my first house and moved in mid november 2009. I bought it on my own. I was lucky as had £2000 from my late nan (thank you nan and granddad) which help with the deposit.

Although its a very old house, 110 years old. It's in amongst mountains, which is not everyones choice. Its 30 mins drive from work. It only cost me £55000! So with the 5% deposit I paid upfront my monthly mortgage is low. Will get lower after 3 years as on fixed. Infact I pay a third again in insurances! Never paid all that when I rented.

But its what I can afford! Granted I was lucky.
 lulu1402
Joined: 3/24/2007
Msg: 24
The truth about property
Posted: 1/14/2010 12:47:48 AM
To look at it realistically renting is just throwing away money where as i'm investing money into my home well which will be one day mortage free.. plus i don't have the restrictions aswell of renting... i've been there wouldn't want to do it again least my house i can do to it what i like :-)

Totally agree ,what seems an high mortage now in 10 years will get easier as the years go on and rents go up .I know some one who is renting privately and they pay £550 a month rent ,i consider that a waste of money .
My mortage is paid up and its wonderful except for any repairs that might come up ,
You have also to think when you are older if you have a private pension and you are in a rented house you will not be entitled to rent allowence so will still have to find the full rent .
My Parents told me they bought their home when they got marreid for£470 and did with out things like hols ,car ,and built up the luxury items as they could afford it
 Urban Flower
Joined: 5/29/2009
Msg: 25
The truth about property
Posted: 1/14/2010 1:31:18 AM
Unfortunately we are not all in the position to get on the property ladder.Even when i was earning a fairly good wage, what mortgage i could have got wouldn,t have even bought me a beach hut!I think its swings and roundabouts.At least in rented,whether in the private sector or council property you dont have to pay for any repairs that need doing.As long as i have a roof over my head thats all that matters.
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