Taking possession of something you own.

[diy_fun_uk]

Really, people are better renting from the PRS ...

 

[fixitflav]

Must be a hovel; rents around here for 2 and 3 bed shoeboxes are pushing a grand per month.
Next door to my mother's house, the 3 bed semi-detached - admittedly with garden front and rear, and pleasant views beyond - was pushing £2k per month, 2 years ago.

I was only commenting on the increase stated in #25. Not the actual figures, which no doubt vary a lot around the UK.

 

[Brigadier]

I was only commenting on the increase stated in #25. Not the actual figures, which no doubt vary a lot around the UK.

Still, i would be staggered if anyone is renting much at all for those figures.

 

[ajohn]

4 years guess what

£8k out of the salary saved / year. Single person - going to be more difficult. Your 35k becomes 31 and the 25 becomes 21.
Neither of the couple I mentioned earn £35k. Lots don't. A nurse up to band 3 earns about £22k increasing to 24 over 6 years. My son probably similar but his business probably adds really well sub 10k. I'd guess 5~6 or so. He has his uni fees to pay off. The nurse did a bursary but the gov cut the course which meant less pay than some one who did it the normal uni way. She has part done more to cure that.

Stop leasing a BMW

The car was ok if 5L if oil was carried about. Purchasing a house meant getting something better due to work. They had to think about eventual mileage when the new one needs to be sold. They couldn't afford new.

While saving they would need to live and pay rent. Both have iPhones on contract. More or less a necessity these days. Films and etc. A pirate service that costs ~£50 per year. Internet rental - he works from home.

House bought £220k. Some changes needed. Neatly decorated but years out of date. Some more furnishing needed and stuff like that. Shed for the garden. I'd guess he is blowing the business income on that at the moment,

A real life example.

 

[diy_fun_uk]

£8k out of the salary saved / year. Single person - going to be more difficult. Your 35k becomes 31 and the 25 becomes 21.
Neither of the couple I mentioned earn £35k. Lots don't. A nurse up to band 3 earns about £22k increasing to 24 over 6 years. My son probably similar but his business probably adds really well sub 10k. I'd guess 5~6 or so. He has his uni fees to pay off. The nurse did a bursary but the gov cut the course which meant less pay than some one who did it the normal uni way. She has part done more to cure that.

The car was ok if 5L if oil was carried about. Purchasing a house meant getting something better due to work. They had to think about eventual mileage when the new one needs to be sold. They couldn't afford new.

While saving they would need to live and pay rent. Both have iPhones on contract. More or less a necessity these days. Films and etc. A pirate service that costs ~£50 per year. Internet rental - he works from home.

House bought £220k. Some changes needed. Neatly decorated but years out of date. Some more furnishing needed and stuff like that. Shed for the garden. I'd guess he is blowing the business income on that at the moment,

A real life example.

So what is it you seek then? Wages to rise so the average wage (or even below average) meets the 2.5x property/wage ratio?

Or are you expecting property prices to drop so the average UK property price meets the 2.5x property/wage ratio?

Or somewhere in the middle?

So re properties, what's the grand plan then? How do we go about gradually or maybe not so gradually reducing the prices properties are marketed for? A law forcing maximum selling price on owners?

Or what about wages, what's the plan to get the average UK wage up from £35k to ~£50k or maybe more?

 

[fixitflav]

Still, i would be staggered if anyone is renting much at all for those figures.

So would I

 

[carmanmemoranda]

So what is it you seek then? Wages to rise so the average wage (or even below average) meets the 2.5x property/wage ratio?

Or are you expecting property prices to drop so the average UK property price meets the 2.5x property/wage ratio?

Or somewhere in the middle?

So re properties, what's the grand plan then? How do we go about gradually or maybe not so gradually reducing the prices properties are marketed for? A law forcing maximum selling price on owners?

Or what about wages, what's the plan to get the average UK wage up from £35k to ~£50k or maybe more?

Or build more houses, especially council housing.

Supply and demand affects prices as well as income

 

[ajohn]

So what is it you seek then?

Nothing - just giving an example of how things are re purchasing house. I may have mentioned that the purchase was kicked off by a landlord telling them they would have to move out some months hence. Given the deposit, bank of parents and a grandad and they can manage. Saving a deposit isn't as straight forwards as some suggest, It entirely depends on earnings. And for a long time now for many people it needs 2 earnings.

 

[carmanmemoranda]

Nothing - just giving an example of how things are re purchasing house. I may have mentioned that the purchase was kicked off by a landlord telling them they would have to move out some months hence. Given the deposit, bank of parents and a grandad and they can manage. Saving a deposit isn't as straight forwards as some suggest, It entirely depends on earnings. And for a long time now for many people it needs 2 earnings.

It's often the case that mortgage repayments are less than rental ( was the case for both my children), but it's the deposit that's hard for most.

Especially if renting (the better paid careers need moving location to be closer to). Add a family into the mix too.

And transport, food, living. Savings are not quick to achieve.

Parents bank helps some. Not the case for many.

But let's blame those lazy workers for not working hard enough, even if they take on an additional job.

Anybody here with a house that's paid for, or an established mortgage honest enough to say they would struggle to get the savings and a mortgage if they were younger 1st time buyers.

 

[Brigadier]

DIY's back-of-fag-packet example (£35k + £25k, £285k house, save for £25k deposit).
Makes it sound oh-so-straightforward.

It does require the stars to align, and to stay aligned, to "make it".

Combined take home - c. £3500 per month
Mortgage @ 5% (currently, c. 6%, but I'm being generous) - c. £1700 per month.

£1800 a month for bills, food, upkeep, kids, travel, etc etc etc. Sounds a piece of p!ss, doesn't it?

However, it relies on a number of avoiding a number of derailments along the way.

Staying together as a couple; not so easy, if you're having to live for 4 yrs with the parents while you get the deposit together, then for the rest of your life, if you want to be financially comfortable.
Meet what you think is your life partner at say, 30 yrs of age. Mortgage free at 60 , provided you have no bumps in the road, stay together, and don't upsize......
I don't know the figures, but isn't something like half of all marriages end in divorce?

In my above scenario and for many, this is a one-chance deal: split up - especially after a decade or two, and things get very difficult.
Big mortgage, now with one wage, and far fewer years to pay it back.
Who is going to offer a 40 yr mortgage to a 50 yr-old divorcee?

 

[gas112]

He is also trying to pretend it's a poor way to make money.

I doubt if he could have made the same return on a house over the last xyz years compared to money in a bank.

I'm not knocking people for making money out of renting (the whole system is wrong but that's not any individuals fault). I'm taking him to task for pretending he isn't getting a valuation increase on his property, as its being paid for by somebody else.

And yes I agree he isn't looking at it from the view his kids see of the housing market.

I see you are still struggling with the original comment that it would be financially more beneficial at present to sell and stick the money in the bank so stop swerving all over the road and making things up that i said im not making money im on about i could be making more money .. . The past was not mentioned in the comment neither was the future .
Would you like to tell me how a house with no debt on it would increase in value by having a tenant in it . It would increase at the same value without a tenant .
As per usual you dont half talk pure and utter drivel

 

[carmanmemoranda]

As per usual you dont half talk pure and utter drivel

Not me thats doing the drivel.

You automatically think you're being attacked for being a landlord. Not the point that has been made, but never mind if it bypassed you.

 

[gas112]

Not me thats doing the drivel.

You automatically think you're being attacked for being a landlord. Not the point that has been made, but never mind if it bypassed you.

i dont think or care if its an attack . You clearly struggle with basic finance and where MORE money could be made at present and want to jump in with all your made up assumptions and if you want to keep talking shyte then i will constantly shoot you down.
Now lets keep it simple for you what gives the better return 4.5% or 5.25%

 

[ajohn]

Vaguely related, No win no fee legal companies are being use to get rented properties repaired. It's costing some councils millions, a 30 odd in some case PA. One company interviewed specialises in it. People get fed up with waiting for repairs and sometimes the results and also things that were not fixed.

 

[carmanmemoranda]

i dont think or care if its an attack . You clearly struggle with basic finance and where MORE money could be made at present and want to jump in with all your made up assumptions and if you want to keep talking shyte then i will constantly shoot you down.
Now lets keep it simple for you what gives the better return 4.5% or 5.25%

Don't you worry.

You keep missing the point.

I bow to you being more intelligent.




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