Owning your own home

For anyone interested in moving north of the border, it's a bit different if you compare advertised price with sale price. With limited knowledge based on buying in Edinburgh.

House is advertised at £500 000
House valued by independent £525 000

House sells for £600 000
Sale price + fees = £630 000

Bank takes maximum value of house as £525 000 (not the sale price)
So the breakdown of what you might need to buy the house is

Cash Deposit (20% of £525 000 = £105 000)
Mortgage (80% of £525 000 = £420 000)
Cash to get from £525 000 to £600 000 = £75 000)
Cash to pay fees = £30 000

So total cash to buy the house with a 20% deposit = £210 000.

For mortgage purposes the bank don't value the house with regards to the sale price, they value it based on the price in the report which you could request on rightmove, ESPC etc.

12 months ago a serious offer would be 14-16% over value of the property or ~20 over advertised

grounds

Think of the maintenance!

Went for £1,750,000 in Nov 2019.

https://www.rightmove.co.uk/house-prices/detail.html?country=england&locationIdentifier=POSTCODE%5E349060&searchLocation=GU10+5BZ&referrer=landingPage

You'd have a man for that.

This is amazing golf club thread chat

I agree. Time for more DuoLingo so I can go to where houses don't cost £4,500 a month in mortgage payments.

Oh I know.
I was dreaming, not realistic in pretty much any form.

@t-v
super golf club-ey. But cycling's been the new golf for years now.

I think our outcome will be to sit and wait till the maelstrom dies down, and the full financial implications hit in c 9 months, as predicted by the macro lot.

Big financial outlay in this time-period begins to look illogical/unwise, regardless of stability of position.

I basically have been having this argument with myself for a while now.

often amazing houses come up on wowhaus in Belgium. it's where I normally look when not really looking.

you might need Triolingo though.

That's what everyone has been saying for the past ten or eleven years.

I'm not sure that we're going to see the mass exodus from London that some are predicting and ultimately there is still a shortage of decent properties.

I'm demonstrating good use of subject-specific vocabulary.

And practicing for a new job for when teaching is done centrally by one person on MS Teams (after Joe Wicks has finished), now that we've been found out.

Swimming pool's a bit small.

and a 5 minute ride from my office..

I suspect some of it could be people who bought in a cheap area of London 10-15 years ago who have realised they're sitting on more like £500k of deposit (and obviously high income too). Some areas have more than doubled in price in that time.

I really want to put fancy aluminium windows into my Victorian house. Will I make it look stupid?

no it could look great. MGOOF the shit out of it

Thanksnfornthis!

Not if they're done well. There are some very good aluminium window fabricators out there and while it won't look like wood they will be more energy efficient and not degrade over time like wooden windows will do.

At the end of the day no matter what happens it will look better than uPVC.

80% LTV
£150-200k joint salaries

I wouldn’t disagree with you in terms of it not being sensible but I do think there’s a reasonable amount of people who fit the above criteria in the market.

Yep, flats around me were going for £250k ten years ago and not far off £500k now. Once you knock off the original deposit and ten years of repayments you're releasing £350k or so of equity and potentially looking at getting up to 60% LTV and the deals you can get with that.

80% LTV
£150-200k joint salaries

Yep - but then you can't have children to put in your house. So why bother?

And then you have that weird thing that, by all standards, you are absolutely minted (£200k joint salary!) but you are living in a shitty two up two down behind a railway line with an HMO next door and a bunch of batshit crazy people the other side in an area that's a bit shrug having paid £40k+ sdlt for the privilege.

Yeah I I'm sure people do this. It's properly insane though. If there is a lot of them, they are all mad.

I was wondering how can there be that many of them? According to Wikipedia in 2008 460k people earned over £100k, which was the top 1%. I'd thought it would be fewer than top 1%. And assuming today it's much bigger than the top 1%. So a fair few people.

Buying a 1M property with a joint salary of say 160k is going to be a hell of a stretch though, interest rate rise or redundancy and you are hosed. Unless you have a half million pound deposit I guess.

Have you worked the maths through on that? After tax, £160k is £8k per month take home.

A mortgage of £800k repaid over 30 years is circa £3k per month at 2% interest and £4k a month at 4.5% interest. Depending on other outgoings, that would seem affordable to some.

How many people of 35 and under earn 160k a year?

You need at least £240k in cash to pull it off at the start. And someone needs to lend you the money. And you need to be young presumably for a 30yr mortgage.

I guess - and I think Neil has mentioned this before - the key is they never expect to pay the mortgage off, ever. You are literally buying a house you cannot afford. Full time renting from the bank, slam an extension on the back, move up the ladder until you can retire to the Cotswolds or something

12 year out of date info says 50% of the top 0.1% (£350k and up) are 45-54 years old.
I'm guessing more of the other 50% are older rather than younger.
Wonder what those figures look like now.