Not sure how it is in Australia but a mortgage here is much cheaper than renting so I'm not sure why people would go their whole lives renting, paying the mortgage of somebody else with profit on top. Obviously there are circumstances which may determine that the case but in most cases it still makes more financial sense to buy.
Bought my first house at 20, I know it suits some people but I could never entertain the idea of renting
And interest rates then were a damn sight higher than they are now
Just that feeling that the place you live in you own beats renting
comment by Bobby Dazzler (U1449)
posted 1 minute ago
Bought my first house at 20, I know it suits some people but I could never entertain the idea of renting
----------------------------------------------------------------------
No judgment but did you have help from your parents? Or did you buy a place at a time when the wages from a trolley pusher could get you a 4 bedroom detached house?
comment by Robb (Steve) Smith (U22716)
posted 3 seconds ago
comment by Bobby Dazzler (U1449)
posted 1 minute ago
Bought my first house at 20, I know it suits some people but I could never entertain the idea of renting
----------------------------------------------------------------------
No judgment but did you have help from your parents? Or did you buy a place at a time when the wages from a trolley pusher could get you a 4 bedroom detached house?
----------------------------------------------------------------------
No help from parents as neither of us came from money, and as I said, interest rates were around the 15% mark at the time, so we went without what a lot of young people today would take for granted just to pay the bills
Just going through the buying process now and hopefully the end is in sight soon, so we are pretty excited.
We moving from our rented 3 bath, 3 bed house with a huge garden and summerhouse - to a 1.5 bed, 1 bath pretty small cottage so a fair adjustment to get on the ladder, but I'm sure we wont regret it in 5/10 years time
comment by Bobby Dazzler (U1449)
posted 6 minutes ago
comment by Robb (Steve) Smith (U22716)
posted 3 seconds ago
comment by Bobby Dazzler (U1449)
posted 1 minute ago
Bought my first house at 20, I know it suits some people but I could never entertain the idea of renting
----------------------------------------------------------------------
No judgment but did you have help from your parents? Or did you buy a place at a time when the wages from a trolley pusher could get you a 4 bedroom detached house?
----------------------------------------------------------------------
No help from parents as neither of us came from money, and as I said, interest rates were around the 15% mark at the time, so we went without what a lot of young people today would take for granted just to pay the bills
----------------------------------------------------------------------
wages to house price ratio?
My wife and I are still trying to save to buy. Earn £140k between us(Northern Ireland where wages are lower, although house prices also lower) but have two cars, work in opposite ends of the country, have two kids, with childcare costing £800, per month. We plan to downgrade to one car but no idea how to get around it. Best option would be if I could get a job closer to her but currently I'm able to work from home twice per week and work a four day week, meaning childcare costs are lower. This would likely double if I were to work five days a week and couldn't work from home.
We could do this much quicker if we cut out costs, ate poorer quality food, didn't spend as much on clothing, entertainment etc but easier said than done.
15% on lower overall prices can be a lot cheaper than 6% on current prices which is why it's been maddening seeing older people say things like this.
I bought just before the market exploded in the highlands. A lot of newcomers are moving up since Covid and there was a newspaper article saying there are only 4 rentals in the city at the moment.
Hotels going up all over the place and i'd imagine the air bnb market is buying up a lot of the stock but everything is going for well over asking.
Might help me because i want to move out to the sticks though.
Bought our first house in 2008 (when I was 30) and immediately the market crashed. Put it on the market in 2014 for £10k less than paid but still didn't get any bites.
In 2017 had saved enough for a deposit for a Bungalow closer to work so moved and rented the first house out for £450pcm because we couldn't sell. Almost immediately afterwards got an offer for the full asking price but didn't sell as they wanted it to turn it into an Airbnb.
Now we still have both houses but will sell the first one to a local family once the excellent tenant we have says they want to move. Their rent is still £450pcm.
I don't regret buying a house but I also think too much is made of home ownership too. Think we'd all be better off if there was much more affordable housing available for an inexpensive price. Everyone should be able to afford to live somewhere.
comment by Bobby Dazzler (U1449)
posted 15 minutes ago
comment by Robb (Steve) Smith (U22716)
posted 3 seconds ago
comment by Bobby Dazzler (U1449)
posted 1 minute ago
Bought my first house at 20, I know it suits some people but I could never entertain the idea of renting
----------------------------------------------------------------------
No judgment but did you have help from your parents? Or did you buy a place at a time when the wages from a trolley pusher could get you a 4 bedroom detached house?
----------------------------------------------------------------------
No help from parents as neither of us came from money, and as I said, interest rates were around the 15% mark at the time, so we went without what a lot of young people today would take for granted just to pay the bills
----------------------------------------------------------------------
How did you actually afford a house when you were 20? I very much doubt it is just because you went without a £10 a month netflix subscription.
comment by Pierre Reedy (U1734)
posted 17 seconds ago
comment by Bobby Dazzler (U1449)
posted 15 minutes ago
comment by Robb (Steve) Smith (U22716)
posted 3 seconds ago
comment by Bobby Dazzler (U1449)
posted 1 minute ago
Bought my first house at 20, I know it suits some people but I could never entertain the idea of renting
----------------------------------------------------------------------
No judgment but did you have help from your parents? Or did you buy a place at a time when the wages from a trolley pusher could get you a 4 bedroom detached house?
----------------------------------------------------------------------
No help from parents as neither of us came from money, and as I said, interest rates were around the 15% mark at the time, so we went without what a lot of young people today would take for granted just to pay the bills
----------------------------------------------------------------------
How did you actually afford a house when you were 20? I very much doubt it is just because you went without a £10 a month netflix subscription.
----------------------------------------------------------------------
Because you could get 3 for a £10 in the 80s.
comment by Bobby Dazzler (U1449)
posted 20 minutes ago
And interest rates then were a damn sight higher than they are now
----------------------------------------------------------------------
Actually, due to the cost of houses and the lack of things like Mortgage Interest Relief at Source (MIRAS), the current interest rates are at least equivalent to the 15% when you bought.
Bought my first house as soon as both my wife and I had stable jobs, back in 2000.
I was lucky that back then, even in a decent area, we got a 1 bed flat for £80k. The same place now sells for £220k. We made 50% on it in two years and then moved into London and brought a 2 bed flat, stretching ourselves a bit on the mortgage. Stayed there for 10 years and sold in 2012. In that 10 years the property went up about 25% (it was more like 50% before the 2008 credit crunch) but we had also paid off half the mortgage so had a lot of equity to take into a new property.
When we sold we moved to Kent and bought a house on the coast and although we could readily afford the mortgage, it needed a lot of work and an extension and in this respect I was luck that i was left some money from my dad who passed in 2011. We've added a lot of value to the property since but also the market has shifted big time, so we now hold a lot of equity in it and its worth a lot. Not that we'll move, its probably our 'forever house' and once the mortgage gets paid off it will be my legacy to our kids when we snuff it!
My advice to anyone is get on the ladder asap. Property is cyclical but overall it goes up. As long as you can see through any of the tough times without being forced to sell then you will benefit long term and your money will be paying off YOUR asset rather than paying for your Landlord's ski holiday.
Be smart with mortgaging. If buying right now go short term. When % rates drop, fix your rates. Be prepared to jump mortgages as it can save you big time. I took a sizable early exit fee to remortgage in 2021 because i could see some inflation (& rate rise) down the line as a fall out of covid and my fixed rate would have ended last summer. Never imagined it would be sooo high, but now fixed on 1.19% which compares to current 6% deals !! Saved myself a fortune and a lot of worry.
My mrs and I were both working in London. Hated it, so after a few years sold her one bed flat which was just outside London; moved to a four bed detached in the midlands. Downsized a few years ago from that to a 3 bed semi. Paid off the mortgage. Is awesome.
The housing market and rental market are so fecked here in Australia. It's proof if ever it was needed that insane housing bubbles are about poor governing rather than space or land availability.
At least the wages to rent ratio still isn't as bad as many parts of the UK but as we all no doubt know the UK isn't exactly a country worth comparing yours to nowadays anyway
On our second home, first in 2015 then 2019.
We were thinking of moving in April when we fixed rate is up, that won't be happening now our mortgage is about to go from £600 to around £1000.
comment by HB Fashion Sakala is offside again (U21935)
posted 23 minutes ago
15% on lower prices can be a lot cheaper than 6% on current prices which is why it's been maddening seeing older people say things like this.
_____________________________________
I saw a comparison of the average wage, house price and salary, people now are around 15%-20% worse off and that isn't considering all the extra bills people have these days (mobile phone, internet, entertainment subs etc).
Own my house and paid the mortgage off (last month, phew!).
It's a good feeling.
Bought my first place with the Mrs circa 2015, nothing flash just a 2 up 2 down but in a desirable area of Hertfordshire. Sold in 2020 for approx £75k profit and moved 5 mins down the road - slightly less desirable as there is no station with a direct train into London. For about an additional £120k I was able to get a 4 bed semi on a corner plot meaning it has a very large garden for the house size. Fixed the mortgage rate at just below 2% for 5 years.
Money is tough because I have 2 young kids as well, but no one goes without, we just do camping holidays, drive 10 year old cars, rarely eat out.
Would hate to be a youngster these days starting out in the south east of England, how is the average 25 year old supposed to find a £50k deposit?? I only got on the ladder due to an inheritance and I imagine that’s the only chance for them. I’m putting money away already for my two boys and will consider downsizing and giving them the difference if I can afford it so they don’t have to slave their whole lives
comment by Two Balls, One Saka (U19684)
posted 11 minutes ago
The housing market and rental market are so fecked here in Australia. It's proof if ever it was needed that insane housing bubbles are about poor governing rather than space or land availability.
At least the wages to rent ratio still isn't as bad as many parts of the UK but as we all no doubt know the UK isn't exactly a country worth comparing yours to nowadays anyway
----------------------------------------------------------------------
Shame its gone that way, a few of my friends still out there mentioned the rental crisis
When I was last there looking for rentals, it was unbelievably good. Salaries more than matched the 'expensive' rent, and me and the mrs with half-decent jobs could have our pick of the places on the Eastern suburbs of Sydney.
"Money is tough because I have 2 young kids as well, but no one goes without, we just do camping holidays, drive 10 year old cars, rarely eat out."
Now imagine your mortgage is due in 2 months and you have to spend an extra £500+ a month on your mortgage.....
"how is the average 25 year old supposed to find a £50k deposit??"
Between two people, it isn't unreasonable. Most 25 year olds out of uni are asking for £30k plus, if living at home that is doable in a couple of years.
People want things without sacrifice these days.
With the way house prices have been rising for years, & the overall lack of stock, if you want to get on the property ladder, looks like its better to do it as soon as you can.
Start with smaller cheaper places in those fantastically named "up & coming areas" that you can do up & add value to & start flipping upwards (if you can & want to live like that for a few years)
Sign in if you want to comment
Home Ownership
Page 1 of 6
6
posted on 4/7/23
Not sure how it is in Australia but a mortgage here is much cheaper than renting so I'm not sure why people would go their whole lives renting, paying the mortgage of somebody else with profit on top. Obviously there are circumstances which may determine that the case but in most cases it still makes more financial sense to buy.
posted on 4/7/23
Bought my first house at 20, I know it suits some people but I could never entertain the idea of renting
posted on 4/7/23
And interest rates then were a damn sight higher than they are now
posted on 4/7/23
Just that feeling that the place you live in you own beats renting
posted on 4/7/23
comment by Bobby Dazzler (U1449)
posted 1 minute ago
Bought my first house at 20, I know it suits some people but I could never entertain the idea of renting
----------------------------------------------------------------------
No judgment but did you have help from your parents? Or did you buy a place at a time when the wages from a trolley pusher could get you a 4 bedroom detached house?
posted on 4/7/23
comment by Robb (Steve) Smith (U22716)
posted 3 seconds ago
comment by Bobby Dazzler (U1449)
posted 1 minute ago
Bought my first house at 20, I know it suits some people but I could never entertain the idea of renting
----------------------------------------------------------------------
No judgment but did you have help from your parents? Or did you buy a place at a time when the wages from a trolley pusher could get you a 4 bedroom detached house?
----------------------------------------------------------------------
No help from parents as neither of us came from money, and as I said, interest rates were around the 15% mark at the time, so we went without what a lot of young people today would take for granted just to pay the bills
posted on 4/7/23
Just going through the buying process now and hopefully the end is in sight soon, so we are pretty excited.
We moving from our rented 3 bath, 3 bed house with a huge garden and summerhouse - to a 1.5 bed, 1 bath pretty small cottage so a fair adjustment to get on the ladder, but I'm sure we wont regret it in 5/10 years time
posted on 4/7/23
comment by Bobby Dazzler (U1449)
posted 6 minutes ago
comment by Robb (Steve) Smith (U22716)
posted 3 seconds ago
comment by Bobby Dazzler (U1449)
posted 1 minute ago
Bought my first house at 20, I know it suits some people but I could never entertain the idea of renting
----------------------------------------------------------------------
No judgment but did you have help from your parents? Or did you buy a place at a time when the wages from a trolley pusher could get you a 4 bedroom detached house?
----------------------------------------------------------------------
No help from parents as neither of us came from money, and as I said, interest rates were around the 15% mark at the time, so we went without what a lot of young people today would take for granted just to pay the bills
----------------------------------------------------------------------
wages to house price ratio?
posted on 4/7/23
My wife and I are still trying to save to buy. Earn £140k between us(Northern Ireland where wages are lower, although house prices also lower) but have two cars, work in opposite ends of the country, have two kids, with childcare costing £800, per month. We plan to downgrade to one car but no idea how to get around it. Best option would be if I could get a job closer to her but currently I'm able to work from home twice per week and work a four day week, meaning childcare costs are lower. This would likely double if I were to work five days a week and couldn't work from home.
We could do this much quicker if we cut out costs, ate poorer quality food, didn't spend as much on clothing, entertainment etc but easier said than done.
posted on 4/7/23
15% on lower overall prices can be a lot cheaper than 6% on current prices which is why it's been maddening seeing older people say things like this.
I bought just before the market exploded in the highlands. A lot of newcomers are moving up since Covid and there was a newspaper article saying there are only 4 rentals in the city at the moment.
Hotels going up all over the place and i'd imagine the air bnb market is buying up a lot of the stock but everything is going for well over asking.
Might help me because i want to move out to the sticks though.
posted on 4/7/23
Bought our first house in 2008 (when I was 30) and immediately the market crashed. Put it on the market in 2014 for £10k less than paid but still didn't get any bites.
In 2017 had saved enough for a deposit for a Bungalow closer to work so moved and rented the first house out for £450pcm because we couldn't sell. Almost immediately afterwards got an offer for the full asking price but didn't sell as they wanted it to turn it into an Airbnb.
Now we still have both houses but will sell the first one to a local family once the excellent tenant we have says they want to move. Their rent is still £450pcm.
I don't regret buying a house but I also think too much is made of home ownership too. Think we'd all be better off if there was much more affordable housing available for an inexpensive price. Everyone should be able to afford to live somewhere.
posted on 4/7/23
comment by Bobby Dazzler (U1449)
posted 15 minutes ago
comment by Robb (Steve) Smith (U22716)
posted 3 seconds ago
comment by Bobby Dazzler (U1449)
posted 1 minute ago
Bought my first house at 20, I know it suits some people but I could never entertain the idea of renting
----------------------------------------------------------------------
No judgment but did you have help from your parents? Or did you buy a place at a time when the wages from a trolley pusher could get you a 4 bedroom detached house?
----------------------------------------------------------------------
No help from parents as neither of us came from money, and as I said, interest rates were around the 15% mark at the time, so we went without what a lot of young people today would take for granted just to pay the bills
----------------------------------------------------------------------
How did you actually afford a house when you were 20? I very much doubt it is just because you went without a £10 a month netflix subscription.
posted on 4/7/23
comment by Pierre Reedy (U1734)
posted 17 seconds ago
comment by Bobby Dazzler (U1449)
posted 15 minutes ago
comment by Robb (Steve) Smith (U22716)
posted 3 seconds ago
comment by Bobby Dazzler (U1449)
posted 1 minute ago
Bought my first house at 20, I know it suits some people but I could never entertain the idea of renting
----------------------------------------------------------------------
No judgment but did you have help from your parents? Or did you buy a place at a time when the wages from a trolley pusher could get you a 4 bedroom detached house?
----------------------------------------------------------------------
No help from parents as neither of us came from money, and as I said, interest rates were around the 15% mark at the time, so we went without what a lot of young people today would take for granted just to pay the bills
----------------------------------------------------------------------
How did you actually afford a house when you were 20? I very much doubt it is just because you went without a £10 a month netflix subscription.
----------------------------------------------------------------------
Because you could get 3 for a £10 in the 80s.
posted on 4/7/23
comment by Bobby Dazzler (U1449)
posted 20 minutes ago
And interest rates then were a damn sight higher than they are now
----------------------------------------------------------------------
Actually, due to the cost of houses and the lack of things like Mortgage Interest Relief at Source (MIRAS), the current interest rates are at least equivalent to the 15% when you bought.
posted on 4/7/23
Bought my first house as soon as both my wife and I had stable jobs, back in 2000.
I was lucky that back then, even in a decent area, we got a 1 bed flat for £80k. The same place now sells for £220k. We made 50% on it in two years and then moved into London and brought a 2 bed flat, stretching ourselves a bit on the mortgage. Stayed there for 10 years and sold in 2012. In that 10 years the property went up about 25% (it was more like 50% before the 2008 credit crunch) but we had also paid off half the mortgage so had a lot of equity to take into a new property.
When we sold we moved to Kent and bought a house on the coast and although we could readily afford the mortgage, it needed a lot of work and an extension and in this respect I was luck that i was left some money from my dad who passed in 2011. We've added a lot of value to the property since but also the market has shifted big time, so we now hold a lot of equity in it and its worth a lot. Not that we'll move, its probably our 'forever house' and once the mortgage gets paid off it will be my legacy to our kids when we snuff it!
My advice to anyone is get on the ladder asap. Property is cyclical but overall it goes up. As long as you can see through any of the tough times without being forced to sell then you will benefit long term and your money will be paying off YOUR asset rather than paying for your Landlord's ski holiday.
Be smart with mortgaging. If buying right now go short term. When % rates drop, fix your rates. Be prepared to jump mortgages as it can save you big time. I took a sizable early exit fee to remortgage in 2021 because i could see some inflation (& rate rise) down the line as a fall out of covid and my fixed rate would have ended last summer. Never imagined it would be sooo high, but now fixed on 1.19% which compares to current 6% deals !! Saved myself a fortune and a lot of worry.
posted on 4/7/23
My mrs and I were both working in London. Hated it, so after a few years sold her one bed flat which was just outside London; moved to a four bed detached in the midlands. Downsized a few years ago from that to a 3 bed semi. Paid off the mortgage. Is awesome.
posted on 4/7/23
The housing market and rental market are so fecked here in Australia. It's proof if ever it was needed that insane housing bubbles are about poor governing rather than space or land availability.
At least the wages to rent ratio still isn't as bad as many parts of the UK but as we all no doubt know the UK isn't exactly a country worth comparing yours to nowadays anyway
posted on 4/7/23
On our second home, first in 2015 then 2019.
We were thinking of moving in April when we fixed rate is up, that won't be happening now our mortgage is about to go from £600 to around £1000.
posted on 4/7/23
comment by HB Fashion Sakala is offside again (U21935)
posted 23 minutes ago
15% on lower prices can be a lot cheaper than 6% on current prices which is why it's been maddening seeing older people say things like this.
_____________________________________
I saw a comparison of the average wage, house price and salary, people now are around 15%-20% worse off and that isn't considering all the extra bills people have these days (mobile phone, internet, entertainment subs etc).
posted on 4/7/23
Own my house and paid the mortgage off (last month, phew!).
It's a good feeling.
posted on 4/7/23
Bought my first place with the Mrs circa 2015, nothing flash just a 2 up 2 down but in a desirable area of Hertfordshire. Sold in 2020 for approx £75k profit and moved 5 mins down the road - slightly less desirable as there is no station with a direct train into London. For about an additional £120k I was able to get a 4 bed semi on a corner plot meaning it has a very large garden for the house size. Fixed the mortgage rate at just below 2% for 5 years.
Money is tough because I have 2 young kids as well, but no one goes without, we just do camping holidays, drive 10 year old cars, rarely eat out.
Would hate to be a youngster these days starting out in the south east of England, how is the average 25 year old supposed to find a £50k deposit?? I only got on the ladder due to an inheritance and I imagine that’s the only chance for them. I’m putting money away already for my two boys and will consider downsizing and giving them the difference if I can afford it so they don’t have to slave their whole lives
posted on 4/7/23
comment by Two Balls, One Saka (U19684)
posted 11 minutes ago
The housing market and rental market are so fecked here in Australia. It's proof if ever it was needed that insane housing bubbles are about poor governing rather than space or land availability.
At least the wages to rent ratio still isn't as bad as many parts of the UK but as we all no doubt know the UK isn't exactly a country worth comparing yours to nowadays anyway
----------------------------------------------------------------------
Shame its gone that way, a few of my friends still out there mentioned the rental crisis
When I was last there looking for rentals, it was unbelievably good. Salaries more than matched the 'expensive' rent, and me and the mrs with half-decent jobs could have our pick of the places on the Eastern suburbs of Sydney.
posted on 4/7/23
"Money is tough because I have 2 young kids as well, but no one goes without, we just do camping holidays, drive 10 year old cars, rarely eat out."
Now imagine your mortgage is due in 2 months and you have to spend an extra £500+ a month on your mortgage.....
posted on 4/7/23
"how is the average 25 year old supposed to find a £50k deposit??"
Between two people, it isn't unreasonable. Most 25 year olds out of uni are asking for £30k plus, if living at home that is doable in a couple of years.
People want things without sacrifice these days.
posted on 4/7/23
With the way house prices have been rising for years, & the overall lack of stock, if you want to get on the property ladder, looks like its better to do it as soon as you can.
Start with smaller cheaper places in those fantastically named "up & coming areas" that you can do up & add value to & start flipping upwards (if you can & want to live like that for a few years)
Page 1 of 6
6