Mortgage: How many properties did you look before..

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Originally Posted by scaryjim

.... I think what we're all getting at here is that there is no "right" or "wrong" choice when it comes to where you live - it's down to which bits of your life you're willing to compromise on.

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Exactly. Just what I've been trying to get at. Well put.

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Originally Posted by dbh

Wow I'd love to be saving 30k a year. I was doing my calculations the other day as well. If you want any reasonable mortgage rate like 3 figures under £600 you got to put down a 50% deposit. Sigh!

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It's not 50%, but I put down a 40% deposit when I bought my first house, and I did it on my earnings alone, as I wasn't married, and wasn't sharing the house with anyone.

And while I certainly wasn't badly paid, I wasn't earning silly, banker-bonus type money either. House prices weren't what they are now either, but then, nor were salaries.

And I kept enough back to fully furnish it, too, from replacing ALL carpets, to buying fridge, freezer, washing machine, microwave, bed, drawers, TV, and everything from dining plates to the kitchen bin. Had I not kept back enough to fully outfit the place, pretty much on day 1, I probably would have hit 50%.

And that size of deposit reduced the mortgage rate a fair bit, too. ;)

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Originally Posted by TheAnimus

Two people on £40k a year each, with a £100k deposit. If your not an idiot with your money and your living in a £500pcm share, its very easy to save £50k up over 5 years whilst still having a good lifestyle. Hell a friend of mine is saving £30k every year, because despite earning now some £70k (which is not a remotely unusual wage for a senior type in London) she still lives in the same flat share she has been in for the last 3 years.

The difference is most people I know in London kinda 'choose' to have kids. By this I mean they plan it, are financially able to support them and so forth.

It's actually the complete opposite to those I know from school/6th form in Cornwall who just have an accident or just don't think anything through and then except the government / parents to pay.

When you consider most graduates get a starting wage of £25k (http://news.bbc.co.uk/1/hi/education/8504999.stm) in London many can expect £35k within 6-9 months if they really put the effort in. All my London friends from uni who worked hard and got a first or a high two one, are all now comfortably earning 40k+, the only exception been a few of the teachers, but they living in considerably cheaper areas.

I'm not saying its a case of moving to London will effortlessly let you have a fortune, but hell even a mate of mine so lazy he dropped out of uni, yet squandered his entire loan, is now able to pull in 40k, but amittedly he is in debt, compared to the 30k he was getting in manchester where interestingly he built up the debt he is now trying to reduce.

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30k a year? Thats like saving over 2k a month mate. Most people dont even earn that in one months worth of wages.

even earning 40k its DIFFICULT to save 2k a month as you get around 2.5k after tax deduction in your pocket each month http://www.thesalarycalculator.co.uk/salary.php

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Originally Posted by j.o.s.h.1408

30k a year? Thats like saving over 2k a month mate. Most people dont even earn that in one months worth of wages.

even earning 40k its DIFFICULT to save 2k a month as you get around 2.5k after tax deduction in your pocket each month http://www.thesalarycalculator.co.uk/salary.php

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Did you read the block you quoted, that is because she earns £70k, but still has the same outgoings as when she earned half that. Its about 4k a month after tax, and quite easy to only spend £1k in London if your actually in control of your out goings.

I'll also re-iterate that moving to London is no quick way to get rich, but there are a hell of a lot more tax payers in London earning £40k or £70k than there are those earning £30k up north. Even the same role pays more in London and some people live for less (like a mate of mine who moved down from Manchester, mostly because of the public transport and work meaning he no longer needs a car. Does live in a bit of a **** hole mind.)

hope i earn 70k soon lol but yes u can live on 1k

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Originally Posted by j.o.s.h.1408

hope i earn 70k soon lol but yes u can live on 1k

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Well you've a higher probability of doing it in London that anywhere else in the UK!

yea im over halfway to that salary!

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Originally Posted by Saracen

It's not 50%, but I put down a 40% deposit when I bought my first house, and I did it on my earnings alone, as I wasn't married, and wasn't sharing the house with anyone.

And while I certainly wasn't badly paid, I wasn't earning silly, banker-bonus type money either. House prices weren't what they are now either, but then, nor were salaries.

And I kept enough back to fully furnish it, too, from replacing ALL carpets, to buying fridge, freezer, washing machine, microwave, bed, drawers, TV, and everything from dining plates to the kitchen bin. Had I not kept back enough to fully outfit the place, pretty much on day 1, I probably would have hit 50%.

And that size of deposit reduced the mortgage rate a fair bit, too. ;)

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This is literally my kind of position right now. I'd like to take advantage of the FirstBuy / HomeBuy scheme as that'd help offset a large deposit but did read around and apparently these new builds are at over inflated prices anyways. So probably worth just looking around at normal places ideally refurbed etc so I can just move in and not have to do little if any work to the place. House prices are still dropping. Gutted will probably miss out on the stamp duty but hoping to find something nice this year.

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Originally Posted by TheAnimus

... like a mate of mine who moved down from Manchester, mostly because of the public transport and work meaning he no longer needs a car. ...

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If your mate thought he needed a car to live in Manchester he was doing it wrong ;) If he needed it to work he should've got his work to provide it.

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Originally Posted by dbh

This is literally my kind of position right now. I'd like to take advantage of the FirstBuy / HomeBuy scheme as that'd help offset a large deposit but did read around and apparently these new builds are at over inflated prices anyways. So probably worth just looking around at normal places ideally refurbed etc so I can just move in and not have to do little if any work to the place. House prices are still dropping. Gutted will probably miss out on the stamp duty but hoping to find something nice this year.

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Prices are hard to judge at the best of times, let alone new build.

Obviously, recent history of similar properties gives some guidance, but we are, and for a couple of years have been, living in volatile times. I remember watching a house double in price over a year or two, then close to halve in price over the next couple, back to within about 10% of what I paid. Had I bought a year after I did .... hello, negative equity.

I have no idea what the next year or three holds, but I have to say, I'm nervous about it. I think it'd take a moron or someone that's been living deep on a TV-less cave for several years to not feel that, at the very least, the economy is in trouble, and times are going to be hard. But it remains to be seen if it's "hard" as in several years of near stagnation, rumbling along at or near zero growth, plus of minus a little bit, or of we have a calamitous collapse and spend 10 years or more understanding the Great Depression.

And what that implies for jobs, for the prospects for those running businesses, who knows.

All I will say, without seeking to influence you one way or the other, because I really don't know what to expect, is that I'd be nervous as hell about buying property right now, especially if I wasn't sure I bought in at a good price.

It might prove to be a brilliant idea, and prices might continue going up, but I wouldn't discount the possibility of them halving, or worse, again, like they did as I described above (in, what, 89-92 sort of period).

Also, of course, if we do see a dramatic reduction in price, that's exactly the time you want to be a cash-rich buyer. But that's a damn big "if". ;)

Pay yer money and take yer chance, I guess. :D

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Originally Posted by scaryjim

If your mate thought he needed a car to live in Manchester he was doing it wrong ;) If he needed it to work he should've got his work to provide it.

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Manchester has much higher levels of un-employment than London, as such you've got less chance of getting a good benefits package.

For every company car up north, you get a £3k pa travel allowance in London, it really does balance out!

However if I was going to be dole scum, its obvious London is a poor choice, your money won't go far!

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Originally Posted by TheAnimus

... you get a £3k pa travel allowance in London ...

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I assume that £3k is a taxable expense? You know, living in Manchester and commuting to London is starting to look increasingly interesting... ;)

oh yeah, before any income is paid, thou I think you have to pay NI on it, I duno, doesn't apply to me, I just cycle.

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Originally Posted by Saracen

Prices are hard to judge at the best of times, let alone new build.

Obviously, recent history of similar properties gives some guidance, but we are, and for a couple of years have been, living in volatile times. I remember watching a house double in price over a year or two, then close to halve in price over the next couple, back to within about 10% of what I paid. Had I bought a year after I did .... hello, negative equity.

I have no idea what the next year or three holds, but I have to say, I'm nervous about it. I think it'd take a moron or someone that's been living deep on a TV-less cave for several years to not feel that, at the very least, the economy is in trouble, and times are going to be hard. But it remains to be seen if it's "hard" as in several years of near stagnation, rumbling along at or near zero growth, plus of minus a little bit, or of we have a calamitous collapse and spend 10 years or more understanding the Great Depression.

And what that implies for jobs, for the prospects for those running businesses, who knows.

All I will say, without seeking to influence you one way or the other, because I really don't know what to expect, is that I'd be nervous as hell about buying property right now, especially if I wasn't sure I bought in at a good price.

It might prove to be a brilliant idea, and prices might continue going up, but I wouldn't discount the possibility of them halving, or worse, again, like they did as I described above (in, what, 89-92 sort of period).

Also, of course, if we do see a dramatic reduction in price, that's exactly the time you want to be a cash-rich buyer. But that's a damn big "if". ;)

Pay yer money and take yer chance, I guess. :D

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its a big gamble no doubt but aint life in general a gamble? i.e you make some decisions based on gut feelings as there is no way of telling right at the time if its the right decision or not?

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Originally Posted by j.o.s.h.1408

its a big gamble no doubt but aint life in general a gamble? i.e you make some decisions based on gut feelings as there is no way of telling right at the time if its the right decision or not?

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Yup. You can do as much research as you can, and take all the precautions possible, avoid all the obvious pitfalls, and still end up suffering from cancer or getting run over by a bus. And not a small percentage of people, even on here, will have been impacted by the former, whether it be personally or via a loved one, me included. Several times.

If you never take a gamble, you'll never get out of bed. And even then, you're gambling that a meteorite won't hit the house or a plane crash on it, when getting out of bed might have saved your life.

As they say, only two certainties in life, death and taxes.

And with medical advances, I'm not entirely sure about death any more. :D

Regarding London have always lived/worked London zones 1 to 3 since school to current working days ( apart from 6 months commuting in from Surrey which i hated) personally I have always lived closer in (1-3) but if your commute in from Epping is not to bad then why not (just remember to factor the extra travel costs as well for the extra zones)

We all know London is more expensive but the pay rates makes up for it, and many of us have jobs in industries that we cant do elsewhere in the UK. Despite London having always been my home (foreign travelling/working excluded) i really cant imagine living anywhere else in the UK during peak earning years. Hopefully with our house being fully paid off in the next couple of years may well re-evaluate to move further out and cut down the work, but while "relatively" young and pulling in good earnings myself and the mrs cant entertain living anywhere else.

Word of warning though and main concern talking about buying though as a first time buyer have you thought about the possibility (and not to scare) that in the current environment house prices might crash and timing may not be so great? :shocked2: