Owning your own home

It's just fucking greed. People buy houses because they believe they can sell them for more than they paid.

There was a comparison between renting and buying which concluded it was actually cheaper overall to rent. This was a few years ago and didn't take into account such things as the risk of being turfed out of a rented property if the owner decided to end the tenancy. This has now changed with increasing rents and falling house prices. It is in certain areas, currently cheaper to buy.
You still need to raise a decent deposit of course so not that straight forward.

Why own?

Because if rent comprises 2/3 of someone's income, then they have to work from January through to September to pay the rent, and in effect if the majority of your wage is going to a landlord then you're living in servitude... you're a slave to the landowner. And welcome to the middle ages.

You need to own to break that cycle, just as servants of the land needed to own to break out of servitude. The land and home is then a living expense, but it's a reasonable one that isn't defining the majority of your effort as lining someone else's pockets.

I see high rents as slavery for the 21st century.

I don't see a need to own, I see a need to escape modern day slavery.

It's just fucking greed. People buy houses because they believe they can sell them for more than they paid.

No, I bought mine because the mortgage is cheaper than my rent was.

I can also sell mine or keep it to make rental income off if I move back to Oz. Either way, I'd rather have the money than give it to someone else. It's not greed, it's financial sense.

You're missing the point.

I have no qualms with anyone that buys a house if they can afford it.

You're missing the point.
I have no qualms with anyone that buys a house if they can afford it.

Ah, yes, well this whole 105% loan thing is a massive wtf in my mind.

If you can't raise a 10% deposit, you shouldn't be borrowing. Simples.

Houses are just another type of consumer must-have IMO

Right now raising a deposit is the real stumbling point for most people. Raise a 10% deposit and getting a mortgage will be a strughgle. Raise 20% and you're in with a shout. Up that to 50% and then you can expect some action with decent interest rates.

Ah, yes, well this whole 105% loan thing is a massive wtf in my mind.

If you can't raise a 10% deposit, you shouldn't be borrowing. Simples.

Back to my point about greed. The justification for 105% loans is based on an ever increasing value of said investment.

It's bonkers

I doubt you could find a 105% loan right now. A few years back yes.

When I got mine they weren't even looking at 10%. You had to have 20% min.

Right now raising a deposit is the real stumbling point for most people. Raise a 10% deposit and getting a mortgage will be a strughgle. Raise 20% and you're in with a shout. Up that to 50% and then you can expect some action with decent interest rates.

Only in London where property prices are very, very disproportionate to salaries.

Seriously, what sort of person wanting to buy a 1 bed flat has a spare £300k?

You can get 1br flats in London for 200k. £20k deposit.

Don't buy new shoes every season. Don't get cable tv. Don't smoke. Don't drink. Save your money.

You can get a 4 bed house in Macclesfield for £200k.

Assuming you need a 4 bed house (wife, 2.4 kids) then raising £20k for a deposit on a family home is both achievable and sensible even on a normal salary.

London is just a microcosm of greed and Foxton wankers

You can buy 3 bedroom houses in south east London for < £300k.

I know you can. I viewed loads of them.

Only in London where property prices are very, very disproportionate to salaries.

Seriously, what sort of person wanting to buy a 1 bed flat has a spare £300k?

Despite the property market crash nationwide, the inner London property market is very buoyant. There seems to be no shortage of buyers.

Only in London where property prices are very, very disproportionate to salaries.

Seriously, what sort of person wanting to buy a 1 bed flat has a spare £300k?

We bought a three bed flat for £190,000.

Yes, it needs a lot of work, but the identical but better decorated flat upstairs went for £250,000 months before we bought ours.

There is a lovely one bed downstairs which is in great order, going on the market for £120,000 shortly.

So, more affordable and nice housing stock is out there, simply saying "all decent 1 bed flats are £300k" is not a true reflection of the market.

are you in that white 20's building near the horniman? what are the service charges like? is it noisy (thin walls)

[ame]http://en.wikipedia.org/wiki/Forest_Croft[/ame]

Service charge is roughly a grand a year, noise insulation very good, or neighbours are mice, one of the two.

We bought a three bed flat for £190,000.

Yes, it needs a lot of work, but the identical but better decorated flat upstairs went for £250,000 months before we bought ours.

There is a lovely one bed downstairs which is in great order, going on the market for £120,000 shortly.

So, more affordable and nice housing stock is out there, simply saying "all decent 1 bed flats are £300k" is not a true reflection of the market.

Whereabouts are you? Am I imagining it, or have you mentioned in the past that it's a slightly "interesting" area, crime-wise?

Oh, and as for this talk of greed - nonsense. Me and GF want to own because eventually it will free us from monthly payments. Currently I give away more than a third of my salary on rent, which isn't something I want to do forever, or even a moment longer than I have to. We've both saved hard for several years and now have a deposit, but I've gone and moved to London. Now we're both renting separately and in a worse situation! Greed is when people have 2+ houses and rent 1+ out. Second properties need to be taxed very hard, in my opinion: increase tax revenue, discourage BTL, lower house prices, incentivise the young to prosper, all in one move. While we're at it, scrap income tax and raise sales tax through the roof: no more income tax evasion, criminals become taxed and rates are truly progressive. Blah, blah, blah...

Just ride it out for a while Sparky. House prices are only going 1 way in future. Don't jump in to anything blindfolded.

It may even work out cheaper if you live outside London if Mrs. Sparky doesn't want to live in London and you can commute.

Good luck to you mate I'll be in the same situation in a year... or 2.

Couldn't agree more though about the tax of second properties, also there needs to be more help for first time buyers.

More help like 110% loans? It doesn't get any easier than not having to raise a single cent to purchase a house.

If I have to toil for 30 years to raise enough to buy why should I subsidise other first time buyers?