Larger deposits will make a comeback as rates of return exceed the true rate of inflation. As credit issuance decreases, so will inflation.
Many buy to lets are not huge empires but one, possibly two rentals where people have seen the savings offer sweet fa in interest return so the rentals are bought to plan for retirement, so as not to put any financial pressures on their kids and their kids kids. From my own situation, the daughter and son in law bought early. Flat then house but were shit at money management, latest car, latest, holiday, latest kitchen, credit cards, loans must have everything now rather than save. They ended up selling the house with equity to pay their debts off. Lived in rentals since at around £1,500 a month, kept going with advanced tapping into their inheritance (my bank) and last October got a part rent/part buy at £1,000 a month. This will allow them to springboard back into fully mortgaged housing next year. They have between them, a £60k annual wage but because of their squandering were credit rating busted They realised their impatience to have everything and have it now, has probably cost them a 5 year delay on financial common sense and an impact that took about 7 years to learn their lesson.
The old housing association stuff was meant to help this, but I’m not sure that was a success. The companies have shareholders to answer to, and weren’t they leaseholdeing the ground rather than freehiolding so as to later hold the owners to ransom?
Renting is great but you will have to work forever to pay it unless you have savings and it’s a big chunk each month At least with a mortgage it’s paid off at some point
Unless its interest only. And some still have those! The advance of renting is transience. If you fancy a move, crack on. The answer is: Invest in council housing and only allow purchase of that house after 20 years residence Change the rules on lending to allow renters who have 3 years history to be treated as if they have a deposit: 100% mortgages A real shared ownership scheme that works for all, not just ‘the landlords’ IMHO
An I am also in that situation. I was never rich, never quite earned the national average wage, but, apart from a mortgage years ago never bought anything without saving for it and paying cash. Perhaps I have no credit rating, who cares, I don't want credit. What is my house worth? Who cares I have no intention of selling it. When we need to change our bikes, then I will save and buy new ones. Is it an absolute necessity for a youngster to own a house? Not sure, but if they give up smoking, buying cars on HP, having a sky subscription, the latest mobile phone, stop getting credit or credit cards then they will be able to struggle to pay a mortgage, just as we all did when we were younger.
When I first got married I rented my first house at the age of 21 - I was earning £17 - 17shillings and sixpence a week. Then at 22 I bought my first house which cost £7000 on a wage of £21 a week. But because I hadn't been a wally and spent on luxury items such as holidays, eating out and flash cars and bikes, I had a substantial cash deposit. My next house cost £4750 - an uninhabitable cottage which had to be stripped to it's timber frame completely and did that up, adding a large single 1.5 storey garage . Mortgage of £10,000, salary of £3,100 a year. But I could start having a few luxury items including new motorcycles. In 1999 I bought a large cottage for £125,000 now worth close to 0.5 Million. Because I worked bloody hard and was cautious with luxury items, I was able to save more which stood me in good stead for when I got ill. Unfortunately still got a mortgage £90K - but I don't care with that sort of equity, why should I? If house prices drop, then it is usually proportionate and the only time I will want to sell is if I downsize. What I guess I am saying is, instead of the want want want, must have must have, can't wait can't wait can't wait, got no money got no money attitude of today's snowflake lifestyle, my attitude to money must have been a bit better.
And the retired in your 50’s was it? Totally impossible. Unless you bought a house that then massively inflated. That’s not good practice, that’s good fortune. Take averages: Wage - say 26k now before tax (so what, 19k after?) plus spouse at say 14k net (taking in that often there is a disparity especially at this end of the working wage) Rent/mortgage - got to be 10k pa with all the life insurances etc Council tax - 1500 Utilities - 1200 Food & stuff - 6k Transport? Fuel? Clothes? Phone? TV? Any non essentials at all like a weekend away or a cheap hioliday? Tell me how, given that, you saved enough to buy a home, buy bikes and stuff by saving and retried at the age you did? If so, write a book matey: it will sell in the millions. It does seem that its treat like ‘a right’ to won a home. It’s a ‘right’ not to be barred from buying a home based on any reason other than you cant afford it, sure, but owning a home isnt a right: its a choice
You need to Depends on if married, shared allowances, other potential benefits 9didnt even mention kids) Good luck living on 36k, saving for everything including retiring and having big enough pot to last 20 years before pension kicks in.
Maybe it sounded more strict the way I worded it. If I want something I’ll buy it, but I don’t fritter away money like I see so many doing. I get a new car every 9 months via work so no worries there. Currently have a Panigale (bought new 3 years ago) and a Monster 1100s (new 8 years ago) . My main vice is pushbikes we’re I’m currently on around 7 in the stables, with all being over £4K and the top one being £9k new last year. We tend to go on 4 holidays a year (New York , Maldives , Cuba, and driving holiday in Spain this year) . It’s all about priorities and sacrifices. And for perspective I’m not a higher rate tax payer , nor is my teacher Mrs. We just spend it wisely and I’ve saved since starting work at 17. Its possible to live a decent life if you get off you backside and want it. The ones who never want to sacrifice will never get on the ladder with houses.
My 1st house (2 bed starter) was £38,000, I sold it after 5 years for £41,000. That's £3k profit in that time. I regret this as I didn't need to for the deposit on my 2nd house, I wish I'd kept it and rented it. Just went on street view DB, look at those 4 glorious bins. I had a Sierra Cosworth while living with my parents, which I sold for the deposit to buy it for around £5k iirc. I then bought a Renault 5 diesel for about £800. What a come down that was. After a couple of years, I did manage to buy a GSXR1100 though. Although I still had the Renault (bottom pic).
ok ok.... "borrow"... to be honest, that tent was bigger than where i live! its a shame we had to leave it behind,, it was for the best dude and you know it... the curse is broken!!!
