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Getting on the housing ladder...

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  • Getting on the housing ladder...

    I don't know about anyone else, but I'm sick to death of people whinging about how hard it is to get on the property ladder. Lets be honest here, people manage it each and every day. Today, many people will have got the keys to their first home. Fact! So why are we constantly reading about people struggling to get on the ladder in the first place, complaining that homes costs £3000,000 in the area they want to live in etc?

    Is it just me, or should people :-
    Work harder?
    Look at the possibility of taking on a second job or setting up a business in addition to their regular day job?
    Have realistic expectations about where they want to live?

    There are properties available to buy from just £40.000. And there are mortgage products available that only require a 5% deposit. So is it fair to assume that there are some lazy or just plain stupid with money types about who can't save, or simply don't work hard enough to try and realistically get on the ladder. I can't help thinking if the financial history of these whingers was scrutinised we'd find dodgy credit ratings of their own making and an inability to save hard.

    I know there are exceptions to every rule, but am I alone in thinking there are a lot of people who simply don't have the common sense to get themselves on the ladder due to having unrealistic expectations of their first home, or simply not very career driven?

    Discuss....

    P.S I know people will imagine a £40,000 flat as somewhere horrible, probably imagining it between the homes of a murderer and a drug dealer. But if this is all you can afford to purchase, work harder.....

  • #2
    Re: Getting on the housing ladder...

    Ha ha! Your post did make me laugh because it reminded me of something I saw on the news a couple of weeks ago. Basically, a couple of first time buyers, both teachers, were being interviewed about getting on the ladder. They were feeling extremely sorry for themselves, saying they had no chance of saving a deposit as all their wage went on their outgoings. I found this a bit hard to believe as surely they have a joint income of around £60k per year.

    What made me laugh was they were sat in a very lavish looking house (I assume it was rented), dressed in designer clothes, sporting expensive looking haircuts and in the background was a plasma screen TV.

    When I was saving for a house, I rented a cheap room in a shared house in a rough area, didn't buy any new clothes for 2 years, cut my own hair and had a £20 second hand TV. And guess what? Within 2 years managed to save a 10% deposit on just one income.

    So yes, you're right Moby, with a bit of hard work and smart thinking, it can be done

    Comment


    • #3
      Re: Getting on the housing ladder...

      Thats where I was going wrong - time to get the scissors out and start doing my own hair!

      Fair points made though Moby, there is a lot of moaning on TV saying 'Ill never get on the property ladder as houses are £300k on average where I live' - move then, or try looking at the lower end of the market? It is not a God given right to live in a huge house if you do not earn the wage to purchase one.
      Anthony
      Compare the Mortgage Market
      http://www.comparethemortgagemarket.com

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      • #4
        Re: Getting on the housing ladder...

        I couldnt agree more!
        People should buy where the prices are at a level they can afford and stop moaning.
        Interest rates are so low that borrowing is almost free.
        Nationwide has a fixed rate at the same as it pays on a one year fix for a cash ISA.
        BRAND NEW HOMES
        Information for UK new home buyers
        New Home Blog The latest news and views

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        • #5
          Re: Getting on the housing ladder...

          You're certainly courting controversy Moby Jones...but you make some valid points! Am I allowed to ask which side of the grass you're posting from? Are you trying to get on the ladder or are currently enjoying the view?

          Regards
          Free Guides For First Time Buyers!

          www.FirstTimeBuyerGuru.com

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          • #6
            Re: Getting on the housing ladder...

            Moby Jones was absolutely right when he said "unrealistic expectations" - a natural consequence of the "Because I'm worth it" school of thought - but 'twas ever thus.

            Like others, I scrimped and saved to get on the housing ladder; my first house was a little two-up two-down terraced property with no garden, no parking and no form of heating. One or two of my peers did the same but many more thought I was completely mad for taking on the financial burden of a mortgage. They preferred to live for the moment - and always at the outer limits of their overdrafts. However, after two further years of abstemious living, I was able to trade up to a bigger house (with central heating - oh the joy and luxury of it!) and I've bought and sold several times since, never looking back. However, it wasn't solely down to hard work. I was favoured by the prevailing political and market conditions at the time and took full advantage of them. In no particular order, these were:

            1. Government policy to transform the UK into a nation of house owners and shareholders. I saved myh deposit with a government-backed homebuyers' scheme that offered a number of financial incentives to FTBs including a sizeable bonus on payment of the first month's mortgage. This was a huge help at the time.

            2. MIRAS (mortgage interest relief at source) - remember that? In its heyday, MIRAS refunded into my bank account almost 25% of my monthly mortgage payment. Another huge help.

            3. Rising house prices.

            Determined FTS will still get on the ladder but I think it is much tougher than it used to be, which is what Dan S is alluding to.

            Having said that, there is just one small bit of Moby's post that I would challenge. Only unsuccessful drug dealers live in £40k flats. Successful ones probably live in much more affluent surroundings!

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            • #7
              Re: Getting on the housing ladder...

              Although a drug dealer of any calibre may find getting a self certified mortgage rather tricky!
              Free Guides For First Time Buyers!

              www.FirstTimeBuyerGuru.com

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              • #8
                Re: Getting on the housing ladder...

                Tbh im in that situation i dont think its to hard if your educated and careful with money. i think its hard if people dont have somewhere they can stay and save but it shouild just take them longer.

                what annoys me is people i know of that have a "bad" back but still work for cash in hand and warrant a 4 bedroom bungalow at 19 because they have had 2 children already.

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                • #9
                  Re: Getting on the housing ladder...

                  This has all gotten dangerously right wing!
                  Free Guides For First Time Buyers!

                  www.FirstTimeBuyerGuru.com

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