(15-01-2015, 12:39 AM)C.A.R. Wrote: The emphasis on owning your own property is strong in the UK, we are a nation obsessed with owning. I'm content with what I've got and renting carries no risks. If you can rent AND save then buy a property when your LTV is closer to 70% your interest rate is going to be much more pleasant. These 95% mortgages are all well and good for getting people on the property ladder early but they're bloody expensive and young buyers are blinded by the overwhelming desire to "own" that they often don't do their research. Also, avoid these "help to buy" schemes like the plague, the only people getting help are the lenders who are helping themselves to your hard earned.money.
In general house prices are consistently increasing, the problem with renting whilst saving for a house is that the house you would like to buy will be getting more expensive by the day. A 95% mortgage is how I bought my first house earlier this year, I had only recently qualified from university and only had a short period in which to save a deposit, there were 2 choices:
- Take a 95% mortgage with a slightly elevated interest rate fix for 2 years
- Save for another 6-12 months in order to get the additional deposit together
My mortgage cost is equivalent to the rent I would be paying if I had chosen option 2, so with the money I would've been saving I am instead overpaying my mortgage to ensure I have a better LTV when my 2 year fix is up.
In general I think you should get on the property ladder as soon as possible, even if you can only scrape together a 5% deposit.
(15-01-2015, 07:08 AM)THE_Liam Wrote: Thing is mate, if you choose not to buy you'll be paying rent forever. I've been putting extra into my mortgage since I took it out, and because of that I have about 9 years left on it. Even if I can't put any more extra in, it'll be paid off when I'm 36, and then I'll never have to pay rent again. That's £550 a month better off for the rest of my life.
As far as I can see, they make it too hard for you down south. A good mate of mine lives in Bow, and paid 325k for a tiny 1 bedroomed flat. That'd get you a 4 bedroom semi detached in a posh part of Leeds, or in one of the small towns around Leeds like Huddersfield or Castleford you'd be looking at a 5-6 bedroom detached!
Hit the nail on the head
Yes, getting the deposit is very hard, but with buying there is a light at the end of the tunnel. With renting there is just rent increases due to property increasing in value.And yes, it is tough down here
(13-01-2015, 04:22 PM)silverzx Wrote: Well, parents don't want me in the house much longer so considering living in a caravan as:
A) Theres f**k all to rent in my area at a decent price.
B) why the f***k not.
I've permission to use land where my caravan (and workshop, 205, 306 etc) is currently located providing I pay the electricity bill.
So, my current caravan has no working toilet, gas or water.
Water is avaliable from a spring (powered by an electric pump for lifting it) and I have mains electric extended out to the caravan.
I'm thinking microwave, TV, electric blanket, electric heaters, few clip on lights, couple of duvets, plastic chair with a hole cut out and umbrella attached (should it be raining when you want a shit, or go in a carrier bag / bucket combo in the caravan).
I would like to link some sort of water heater to the spring water avaliable. Such as a power shower attached to a wall with some pallets and plastic around. I also have access to massive 500L drums that I can move with the trakkkker should they be of any use (e.g. pipes getting frozen over and back up supply needed).
Just after some thoughts really, think there must be a few pikeys amongst us who can shine some light on the matter...
Have you considered trying to find the cheapest possible property to buy in your area? Even something like a Studio flat, just to get you going for a year or two?