rabmc

Recently bought my first property at 26, put a decent deposit down also, BUT what the point of the post is the market at the moment, intrest rate wise also, its so so so so hard to get on the ladder at the moment and alot of companys are dropping 100% morgages nd the minimum is 90% i found so whats the main reason for this, think ive won a watch with the place i bought tbh, anyway my gripe is theres a few ppl local to me who buy up ex council or general properties and rent them out and it seriously fcuk`s up 1st time buyers who find it hard enough as it is, do you think the goverment or anyone can possibly stop this from happening, as it happened to us and it really pissed me off, and 50% of ppl just dont stand a chance which just shouldt be right.

And also intrest rate wise do you think they will rise much in the coming year or fall????? im new to this

current situation is roughly for 90k morgage is going to hurt someone the best part of 600pm + just terrible !!

feel sorry for my younger brother etc who have it all to do in 3 or 4 years

Ebonycossie4x4

iTrader: (4)

Exactly what i said in the other post.

Its these people that are part of the problem

I think the goverment will have to stop them...

rabmc

defo mate there 2 guys round here that are snapping just about everything up, just lucky with place i got was wise to it and respect for neighbours as its a good area, for these ppl renting it out, and generally prefered 1st time buyers.

Ginge !

they are sort of, when they sell they unless they live in it they will have to pay big taxes

i can see why though,,, its a BETTER bet than a pension,,, wish i was given this advice when i was 17 being sold a pension

its a cunt,,,,, but its life im afraid, the only people REALLY earning the cash on property is the banks/governents and estate agencys

dont worry though,,, in a few years inheritence tax will free up property, goverment releasing land for development ( not this half rent half buy bollocks) would also help

but aslong as they get there cash in and people work to pay there morgage they why whould they change it !!!

kiddie

our house has lost £5k since last June when we bought it (2nd house) now that may not sound like a lot but it has seriously buggered our plans. The people who valued the house said it should go up again soon so fingers crossed. We made a little on our first though so its swings and roundabouts

kiddie

Just out of interest who was offering 100%? as we had to come up with a deposit for our 1st and it was only £98k!

rabmc

hmm alot of ppl ditched 100% as far as i know, i had to put down 10%

kiddie

who did you go with? ours was halifax

kiddie

sorry mate didn't read the 1st post properly

cfoster

Been speaking with a mortgage advisor tonight and there are still some lenders about offering 95% (Abbey and RBS in particular). As you say though hard for first time buyers. I'm gonna hang on though for a few months as i reckon its heading the same way as the US.....

Shings

If you can wait... now appears to be a good time to...

I am for the first time, at 27, in my opinion, able to afford to buy and in a position that I am happy to buy..... but I'll leave it a few months and see how the whole credit crunch pays out.... by which time I'll have had a pay rise to cover any rise anyways.....


J

CUE- All the experts who will be able to tell you theres nothing wrong and its all fine etc etc

geoffxr4

125% and 100% mortgages have been dropped because they represent more of a risk to the lenders. In todays present climate the appetite for risk has decreased and lenders are trying to minimise their exposure at the moment and so are adopting more stringent borrowing criteria. If a property decreases in value in a downturn and the owner defaults on mortgages payments the bank has more chance of recovering their total outlay if they have only lent 80% instead of 100% of the value

Regarding the buy to let ppl i think it's somewhat of a misnomer hyped up by the media. They can't possibly be buying up all the property. At the moment 10% of households live in rented accommodation. If this translates then 90% of property is bought is by private buyers. 10% rented seems quite low to me and the owner occupier levels seem high. In any event the option of rented accommodation is good for the economy and so helps to keep ppl in employment in the long term.

I think it’s a valid point that more and more ppl are finding it difficult to get on the housing market, but unfortunately there is so much money about these days that the market doesn’t care if everybody can afford to buy, only that there are enough who can.

Chip

iTrader: (3)

I think that 10% is private rented accomadation, ie it doesnt include housing ascociations and local authority

dojj

iTrader: (3)

the americans cut their intrest rates loads again yesterday, so they are on something like a 2.5% base rate

look for more cuts over here soon as well

mac456

im actually lookin to buy within the next month, 1st time buyer, shall i hold out or what??? really confused!

Micky The Finn

wait,many houses will drop 10% over the next 12 months,look at what houses are actually selling for not what they are addvertised at,ive just bid somebody 30k less than the asking price on a house and they accepted straight away,overpriced by the estate agents etc,they dont have anything like the asking price in the property unless baught recently so they WILL take a bid,as they are still winning.
there are some houses round here,nice 300-400k ones in the country that have been on the market or over 12 months now.
the bubble has burst,prices will drop.negative equity is the future for many many people unfortunatly.

RichardPON

Tim,

Inflated asking prices are standard practice for estate agents.

We've got one on the market at the moment for 700k, and I'm instructed to let it go for 650.....

cfoster

So if I were to see a property on rightmove or whereever for say £250k but my limit to buy is about £230k, would a £20k inflated asking price be the norm for that kind of value of property or is it all luck etc?? (ie - would the house owners know its worth £230k but been instructed to stick it up for £250k and see what happens?).

Chris

carlo

iTrader: (4)

Im selling my flat at the moment & struggling , we have bought another house getting a entry date sometime this week starting to panick need the flat gone as its holding the deposit for my new house

rsnissan

iTrader: (9)

no different to buying anything IMHO people will take offers it its been around ages don't ask you don't get etc.

Fuck knows what to think I bought my 1st property 5 years ago when I was younger than you and people were saying the same shit about prices, crashing etc I still made 40k on it when
I sold it just over a year ago

Micky The Finn

possibly,its a buyers market at the moment.go for it.

Micky The Finn

no doubt mate,

but would it not be better addvertised at say £659,950?look more look more realistic and would maybe attract more interest?not that i am teaching you how to suck eggs,but overpricing is a crazy business move in any market.

RichardPON

Yes, pretty much.

Especially at that figure, they'll probably push as close to the stamp duty threshold as possible, whilst remaining attractively underneath it.

Paul Ripley probably knows more about this stuff than me, as I just deal with accounts rather than purchasing, but in my experience, you can always look to buy the property for 10% less than the asking price. You wont always get it, but there are enough people out there being advised and acting on their own greed to try and get more than the value.

RichardPON

Normally I would agree mate, but it's had plenty of interest, plus it's London and the South East, and that tends to be slightly sheltered from the countrywide price fluctuations.

Like selling anything - people always want a deal. I sell my car tomorrow and want 5k back, I'm sticking it up at £5500 and "taking" 5.

mac456

cheers dude

geoffxr4

Yep, you're right. Owner occupier is currently at about 70%. This is up from about 50% owner occupier 50 years ago.

(The Economic and social research council graph only went back to 1960 )

rabmc

think the houses 120+ are struggling to shift but below seem to be going ok round this area anyway, ive got quite a low mortgage over 25 years , really scares me to see what some pay out there, it was now ir never for us tbh, think the prices/intrest rate was going to kill off my chances.

ps carlo have you moved??

Rhys

I would wait. I know i am for awhile

rabmc

If i didnt have the house id prob buy a m3 or a nice evo8 !! but need must i suppose !

the focus never complains though and does me proud lol

Micky The Finn

quality advise mate,

roro22

Just means you can't buy what you can't really afford a 100% - 125% mortgage is stupid, if people think they can afford the payments on a mortgage then save even some cash for some sort of a deposit to back up your application to the bank.
IMO A reasonably priced house will always sell.
I cant "afford" a house because I'm not going to bust my balls for a mortgage at the prices local houses are compared to my wages.
A lot of people are getting a kick in the arse to live within their means.

I really want my own house but I'm not going to rush into it, Im gonna get some good wages first!

les3002

tbh i dont mind renting at the minute, im paying 550 a month to live in a 170k house with driveway, garage nice area etc whereas if i got a mortgage i could only afford upto maybe 100k which doesnt get you anything worth having round here, so for now im just going to see how it all pans out maybe the prices will drop to a reasonable level again.