[DemolitionRed]

I certainly wouldn't buy atm. Five years from now is a good plan.

I'd advise anyone who's not on a fixed rate mortgage for the next five years to get on one asap because if the economy crashes, the interest rates will rocket and there's going to be loads of default.

[user104658]

Originally Posted by DemolitionRed

I certainly wouldn't buy atm. Five years from now is a good plan.

I'd advise anyone who's not on a fixed rate mortgage for the next five years to get on one asap because if the economy crashes, the interest rates will rocket and there's going to be loads of default.

There's also this... Friends of ours have just bought a detached 4 bed house with "land", moving up from a 2 bed property (that was fully paid off). But they have stretched their repayment budget to the absolute maximum and also wiped out their savings. With things as precarious as they are, it seems like a massive risk.

[Kizzy]

Originally Posted by Toy Soldier

There's also this... Friends of ours have just bought a detached 4 bed house with "land", moving up from a 2 bed property (that was fully paid off). But they have stretched their repayment budget to the absolute maximum and also wiped out their savings. With things as precarious as they are, it seems like a massive risk.

It does, hey move in with them while you save up

[user104658]

Originally Posted by Kizzy

It does, hey move in with them while you save up

Reckon everyone from Tibb should just chip in and pay my deposit tbh...

In all seriousness though; every one of my friends my age who now owns property has had help to do so. Money left by grandparents, or have been able to stay with family while they save, etc.

For us on the other hand... My parents sold the family home when they divorced 12 years ago, my mum drank her half of the money and then died leaving nothing (well no, that's not fair there was some money and I paid off student debts, so it's now gone) and my dad moved into a one bed flat so that he could, as far as I can tell, spend the majority of his half on guitars and gadgets.

My wife's family... Well... We lived 15 minutes walk from them for a year and a half and then literally moved countries to be away from it .

Not that I'm even saying everyone is entitled to family help. Just that most young families who want to buy, these days, need at least a little.

Maybe I could adopt a grannie or something. A really old and rich one and then I could inherit her cash. If she was super old I'd probably only need to have sex with her two, maybe three times...

[DemolitionRed]

Originally Posted by Toy Soldier

Reckon everyone from Tibb should just chip in and pay my deposit tbh...

Do a 'crowd funding' I'll chip in.

[DemolitionRed]

Originally Posted by Toy Soldier

Not that I'm even saying everyone is entitled to family help. Just that most young families who want to buy, these days, need at least a little.

Absolutely.

I recently tried to explain to a friend why some people end up being homeless. If they don't have that back up system of a generous family and they fall on hard times (most people are only two pay checks away from becoming bankrupt) then its easy to become homeless.

When our children buy we totally expect to help them out and we will do that because we can but we can only do that because we have inheritance savings ourselves.

[DemolitionRed]

Originally Posted by Toy Soldier

There's also this... Friends of ours have just bought a detached 4 bed house with "land", moving up from a 2 bed property (that was fully paid off). But they have stretched their repayment budget to the absolute maximum and also wiped out their savings. With things as precarious as they are, it seems like a massive risk.

Unfortunately most people don't buy as a necessity any more, they buy what they believe to be an investment. Back in the day, people bought houses to make into permanent cosy homes. A two or three bed terrace was a place they could start and raise a family and grow old together (its still like that in France thank goodness). Now most home buyers in the UK expect to be moving onwards and upwards after a few years because its all about investment, moving up the property ladder and making profit and because banks are willing to lend such huge amounts, the aspiring middle classes are more than willing to move on to yet another crushing mortgage.

Lets hope your friends have a fixed rate mortgage and not a standard variable rate. You should ask them and warn them because if they are on an SVRM, when the bubble bursts they will inevitably will be faced with unsustainable mortgage re-payments for a house with negative equity. Show them this http://www.businessforscotland.co.uk...ion-in-201617/

[joeysteele]

Originally Posted by DemolitionRed

Unfortunately most people don't buy as a necessity any more, they buy what they believe to be an investment. Back in the day, people bought houses to make into permanent cosy homes. A two or three bed terrace was a place they could start and raise a family and grow old together (its still like that in France thank goodness). Now most home buyers in the UK expect to be moving onwards and upwards after a few years because its all about investment, moving up the property ladder and making profit and because banks are willing to lend such huge amounts, the aspiring middle classes are more than willing to move on to yet another crushing mortgage.

Lets hope your friends have a fixed rate mortgage and not a standard variable rate. You should ask them and warn them because if they are on an SVRM, when the bubble bursts they will inevitably will be faced with unsustainable mortgage re-payments for a house with negative equity. Show them this http://www.businessforscotland.co.uk...ion-in-201617/

Fantastic posts from both you and TS, DemolitionRed,sadly as you both really point out the housing situation is a mess and over the last 5+ years has not improved at all.

Your opening line to this particular post is absolutely spot on too.

[Cherry Christmas]

Originally Posted by DemolitionRed

I certainly wouldn't buy atm. Five years from now is a good plan.

I'd advise anyone who's not on a fixed rate mortgage for the next five years to get on one asap because if the economy crashes, the interest rates will rocket and there's going to be loads of default.

Why not? if you are buying a home rather than an investment it's a great time as buyers can take advantage of locking down a fixed rate for the next ten years, yes the value might fall but it will rise again down the road, equity in a property either positive or negative is just a figure in a home that you plan to live in for along time.

[kirklancaster]

Originally Posted by Cherie

Why not? if you are buying a home rather than an investment it's a great time as buyers can take advantage of locking down a fixed rate for the next ten years, yes the value might fall but it will rise again down the road, equity in a property either positive or negative is just a figure in a home that you plan to live in for along time.

So true Cherie. There is ALWAYS cyclic 'peaking' and 'troughing' in any market - not just the property market - but historically, property prices have only increased, and the price of the average property DOUBLES every 10 years or so.

True again, is the fact that Fixing at a relatively low rate now for as long as possible is a very smart move.

[DemolitionRed]

Originally Posted by Cherie

Why not? if you are buying a home rather than an investment it's a great time as buyers can take advantage of locking down a fixed rate for the next ten years, yes the value might fall but it will rise again down the road, equity in a property either positive or negative is just a figure in a home that you plan to live in for along time.

You're right about people who buy homes rather than investment properties to a point but I wouldn't be happy if I bought an apartment for 200k and five years later it was only worth £150. Yes, once we are in we can always sit it out and that's what people will do but if I was to hold my money back for now, I may well be in a position to buy at a much cheaper rate sometime soon.

[Cherry Christmas]

Originally Posted by DemolitionRed

You're right about people who buy homes rather than investment properties to a point but I wouldn't be happy if I bought an apartment for 200k and five years later it was only worth £150. Yes, once we are in we can always sit it out and that's what people will do but if I was to hold my money back for now, I may well be in a position to buy at a much cheaper rate sometime soon.

If you are a cash buyer that is sensible, if someone needs a mortgage they will never get it cheaper than now