House affordability
Discussion
drainbrain said:
60 seconds searching turned up that:
http://www.rightmove.co.uk/property-for-sale/prope...
Obviously the place needs a good cosmetic overhaul, but what's visible is easy sorted by DIY. And East Kilbride's not that bad as a place to live. So why wouldn't a young couple with a modest income and a kid on the way buy it?
There's property like it (and better) all over the UK at the price point.
Repainting the exterior (yourself) http://www.rightmove.co.uk/property-for-sale/prope...
Obviously the place needs a good cosmetic overhaul, but what's visible is easy sorted by DIY. And East Kilbride's not that bad as a place to live. So why wouldn't a young couple with a modest income and a kid on the way buy it?
There's property like it (and better) all over the UK at the price point.
Refurb the Windows- actually worth investing in ripping them out and new ones in.
Would transform it.
So would a picket fence and actually maintaining the front garden.
Leicester Loyal said:
I'd be buying a much better house and driving around a sub 3k car for a couple of years.
Me too...I managed with a push bike for the first few years of buying my first house in the early 90's after the big 15% interest rate rise and subsequent crashImagine that now, interest rates at 15% and trying to work out if you can afford the fancy car as well as the mortgage
swerni said:
MrBarry123 said:
XMT said:
I totally agree with some of the posts on here, the generally stupidity of some people is beyond me.
People Moan all the time about not having enough money for a house yet their standard of living is of what someone on 100k+ salary would have.
My friend who now earns 45k a year and before that was contracting for 2 years at a bloody good day rate has not a penny to show for 10 years of hard work. Has a new mercedes, wears expensive suits, buys f
king 1k watches and eats and drinks only the best. Recently found out him and his mrs have booked a holiday costing in excess of 3k because she was stressed from washing the fking dishes.
Then complains to me about not having enough money for a deposit for a house, I was just short of swearing at his full family considering he has racked in over 150k in 3 years after tax and has jack st to show for it.
On the other side for the last 4 years I have literally bought the same crap clothes from primark, bought some stuff in sales, kept the same car bought outright 2 years ago and mrs drives a 3k focus. Not been on holiday in 4 years - result: I have a 120k deposit.
People need to get a grip, I am only 30 but the majority of my generation in general wants a job they love, lots of money from it, high standard of living but pay F all in tax. They just think everything is a God given right, no its not, get lost and work for it and save up.
But I bet your mate is less grumpy than you?People Moan all the time about not having enough money for a house yet their standard of living is of what someone on 100k+ salary would have.
My friend who now earns 45k a year and before that was contracting for 2 years at a bloody good day rate has not a penny to show for 10 years of hard work. Has a new mercedes, wears expensive suits, buys f
king 1k watches and eats and drinks only the best. Recently found out him and his mrs have booked a holiday costing in excess of 3k because she was stressed from washing the fking dishes. Then complains to me about not having enough money for a deposit for a house, I was just short of swearing at his full family considering he has racked in over 150k in 3 years after tax and has jack s
t to show for it. On the other side for the last 4 years I have literally bought the same crap clothes from primark, bought some stuff in sales, kept the same car bought outright 2 years ago and mrs drives a 3k focus. Not been on holiday in 4 years - result: I have a 120k deposit.
People need to get a grip, I am only 30 but the majority of my generation in general wants a job they love, lots of money from it, high standard of living but pay F all in tax. They just think everything is a God given right, no its not, get lost and work for it and save up.
Edited by XMT on Wednesday 27th July 11:27
bogie said:
Me too...I managed with a push bike for the first few years of buying my first house in the early 90's after the big 15% interest rate rise and subsequent crash
Imagine that now, interest rates at 15% and trying to work out if you can afford the fancy car as well as the mortgage
Just quoting you on your point RE: interest rates - as someone who has only ever really known 0.5% rates it is scary to consider how high they have been previously! Makes me wonder how affordable all these mortgages will be in years to come.Imagine that now, interest rates at 15% and trying to work out if you can afford the fancy car as well as the mortgage
Welshbeef said:
Let's not even look at London let's look at Readingg /MUCH cheaper.
So average house let's say a terrace £380k++ so your going to need a deposit of what 10% so nearly £40k deposit between 2 people by the age of 25. Let's say they lived with mum and dad from 18-25 that's £208pcm for 8 years not an insignificant amount.
Now if you went to uni you'll have £60k of student loans which reduces your income and clearly you have not got £20k or person @ 25yo. So you'd then be what 32yo with £20k in the bank - I'm pretty sure than in 8 years time that same property will be a lot more let's be conservative and say 4% year on year so it will be £520k and you'll need £26k each deposit oh... Plus a lot more stamp duty than before so more years of saving. Also at this point it's not clear you'll earn enough to have the banks affordability for the delta between he 10% deposit and the house price.
hmm... £200 a month to save for a house? So that is less than 6% of this couples gross salary. You are not seriously suggesting this is a high price to pay for getting your first home?So average house let's say a terrace £380k++ so your going to need a deposit of what 10% so nearly £40k deposit between 2 people by the age of 25. Let's say they lived with mum and dad from 18-25 that's £208pcm for 8 years not an insignificant amount.
Now if you went to uni you'll have £60k of student loans which reduces your income and clearly you have not got £20k or person @ 25yo. So you'd then be what 32yo with £20k in the bank - I'm pretty sure than in 8 years time that same property will be a lot more let's be conservative and say 4% year on year so it will be £520k and you'll need £26k each deposit oh... Plus a lot more stamp duty than before so more years of saving. Also at this point it's not clear you'll earn enough to have the banks affordability for the delta between he 10% deposit and the house price.
When I first started saving for a house (back in the late 80's) I was saving more like 30% of my gross salary. Sure that meant I could only afford an old wreck of a car but that was to be expected......
CrouchingWayne said:
bogie said:
Me too...I managed with a push bike for the first few years of buying my first house in the early 90's after the big 15% interest rate rise and subsequent crash
Imagine that now, interest rates at 15% and trying to work out if you can afford the fancy car as well as the mortgage
Just quoting you on your point RE: interest rates - as someone who has only ever really known 0.5% rates it is scary to consider how high they have been previously! Makes me wonder how affordable all these mortgages will be in years to come.Imagine that now, interest rates at 15% and trying to work out if you can afford the fancy car as well as the mortgage
Which comes back to the original question, and Id still give advice of dont stretch your finances to afford cars you dont need so you can "just" afford your new house on 0.5% rate. It could quite easily become 5 or 6% over a year or so, there is a lot of uncertainty about the future economy and no-one really knows
brman said:
hmm... £200 a month to save for a house? So that is less than 6% of this couples gross salary. You are not seriously suggesting this is a high price to pay for getting your first home?
When I first started saving for a house (back in the late 80's) I was saving more like 30% of my gross salary. Sure that meant I could only afford an old wreck of a car but that was to be expected......
Let's say they start off on £18k so your monthly take home assuming zero pension investment or student loan would be £1,284pcm. When I first started saving for a house (back in the late 80's) I was saving more like 30% of my gross salary. Sure that meant I could only afford an old wreck of a car but that was to be expected......
Take off £200pcm
£1,084pcm
Then you need to consider
Rent
Rates
Land line
Broadband
Mobile
House ins
Commuting costs
Car cost MOt ins servicing and any repairs
Food and drink
Clothing budget
TV licence
Then unless your not planning on doing anything ever for 8 years not visit anyone or any holiday no cinema no sky no buying gifts for people no going out for meals ever no buying yourself s new laptop in 8 years
Just where does that work?
Also that totally excludes the stamp duty solicitor fees moving costs the fact your likely to need to spend some cash on the place new white goods etc.
Sorry it was £200 each minimum PCM
Welshbeef said:
This is much more inline with my c£28k is the breakdown point for working or being a home maker
For Mrs rangeroverover "breakdown point" is what she is hoping to avoid, she enjoys work, happily she earns more than £28k the £8-900 per month is for 4 days, it will be good for her to go back to work and interact with adults, it will also be good for young Boris to go to nursery and be with other kids.Much as we both enjoy young Boris, I wouldn't want to spend 8 hours every day on my own with him, eventually cabin fever and brain to mush/competitive talking about baby geniusness with other mothers would make you go postal. So even if it was break even we would do it
Welshbeef said:
Let's say they start off on £18k so your monthly take home assuming zero pension investment or student loan would be £1,284pcm.
Take off £200pcm
£1,084pcm
Then you need to consider
Rent living at home so no rent?
Rates ditto
Land line ditto
Broadband ditto
Mobile £5 month will do that.....
House ins living at home so no
Commuting costs fair enough
Car cost MOt ins servicing and any repairs £50 a month is more than enough if you run a cheap car
Food and drink two people, £10 a day so £300 is generous
Clothing budget what is that, you are making sacrifices to save for a house don't forget
TV licence what is that, £10 a month, if you even need it....
So we are now are down to about £719 to pay for the commute, holidays and having fun. Take off £200pcm
£1,084pcm
Then you need to consider
Rent living at home so no rent?
Rates ditto
Land line ditto
Broadband ditto
Mobile £5 month will do that.....
House ins living at home so no
Commuting costs fair enough
Car cost MOt ins servicing and any repairs £50 a month is more than enough if you run a cheap car
Food and drink two people, £10 a day so £300 is generous
Clothing budget what is that, you are making sacrifices to save for a house don't forget
TV licence what is that, £10 a month, if you even need it....
Welshbeef said:
Then unless your not planning on doing anything ever for 8 years not visit anyone or any holiday no cinema no sky no buying gifts for people no going out for meals ever no buying yourself s new laptop in 8 years
Just where does that work?
see above, it works just fine, and that was on £18k a year where the OPs friends have about double that.Just where does that work?
As long as you are prepared to make a few sacrifices of course. Millions of people get by on a lot less than that and survive! On the other hand, if you want a macbook air, 65" LCD with sky TV, 100M broadband, a new car or two, a meal out a week and holidays abroad every year then yes, you might have to give up on that dream of a house....
btw. In case you think I am talking b
ks, for the last 5 years our household income has averaged around the £18k gross. That manages to pay for running a decent house (think poll tax band F) within commuting distance of london, wife, two daughters at college/uni, 2 cars and a van.and no, I don't just sit at home all day counting my pennies.....
Sorry
You say clothing budget what is that?
Work shoes work suits work shirts all wear out easily in a year you need a couple of suits and shoes plus 7 shirts on a rolling replacement otherwise your a pretty scruffy fker.
Clothing you wear outside of work... Surely you have clothing wear out all the time - or did you recently fully refresh your wardrobe otherwise you've a continuous replacement situation or you'll run them until everything is scruffy worn out and face a large procurement exercise again for new stuff.
£50/PCM for all car running costs?
You expect your parents to pay for you at home rent rates utilities grub etc? Wow very selfish / you've been milking them for 18-25 years and now want some more give it a rest.
You say clothing budget what is that?
Work shoes work suits work shirts all wear out easily in a year you need a couple of suits and shoes plus 7 shirts on a rolling replacement otherwise your a pretty scruffy f
ker. Clothing you wear outside of work... Surely you have clothing wear out all the time - or did you recently fully refresh your wardrobe otherwise you've a continuous replacement situation or you'll run them until everything is scruffy worn out and face a large procurement exercise again for new stuff.
£50/PCM for all car running costs?
You expect your parents to pay for you at home rent rates utilities grub etc? Wow very selfish / you've been milking them for 18-25 years and now want some more give it a rest.
I'm surprised at the number of scrooges on this thread who seem to think driving a crap car is some kind of economy measure.
It isn't. It's quite the opposite. It's how to spend a fortune unnecessarily. I thought all car people knew that.
Doubly surprising given it's an opinion on a car forum.
It isn't. It's quite the opposite. It's how to spend a fortune unnecessarily. I thought all car people knew that.
Doubly surprising given it's an opinion on a car forum.
drainbrain said:
I'm surprised at the number of scrooges on this thread who seem to think driving a crap car is some kind of economy measure.
It isn't. It's quite the opposite. It's how to spend a fortune unnecessarily. I thought all car people knew that.
Doubly surprising given it's an opinion on a car forum.
I drive a £500 Golf, its costs me less than that to maintain over the last 3 years.It isn't. It's quite the opposite. It's how to spend a fortune unnecessarily. I thought all car people knew that.
Doubly surprising given it's an opinion on a car forum.
Welsh - I don't spend much cash on clothes, obviously at some point you have to buy clothes, but I'm wearing shirts that I've had for at least 3-4 years. Its not that I don't want to, or can't, its that I cannot be arsed to do so!
Welshbeef said:
Sorry
You say clothing budget what is that? it was a joke.......
Work shoes work suits work shirts all wear out easily in a year you need a couple of suits and shoes plus 7 shirts on a rolling replacement otherwise your a pretty scruffy fker.
Clothing you wear outside of work... Surely you have clothing wear out all the time - or did you recently fully refresh your wardrobe otherwise you've a continuous replacement situation or you'll run them until everything is scruffy worn out and face a large procurement exercise again for new stuff.
One suit jacket, two pairs of trousers and 3 shirts and a pair of shoes. Call that £25 a month. and if your clothes only last a year you need to either get better clothes or look after them better...
double that if you like for out of office stuff
£50/PCM for all car running costs?
actually, agreed there, I forgot insurance and tax. Make that £100 a month
You expect your parents to pay for you at home rent rates utilities grub etc? Wow very selfish / you've been milking them for 18-25 years and now want some more give it a rest.
most will if it is clear you are making sacrifices to save for your own house.
You say clothing budget what is that? it was a joke.......
Work shoes work suits work shirts all wear out easily in a year you need a couple of suits and shoes plus 7 shirts on a rolling replacement otherwise your a pretty scruffy f
ker. Clothing you wear outside of work... Surely you have clothing wear out all the time - or did you recently fully refresh your wardrobe otherwise you've a continuous replacement situation or you'll run them until everything is scruffy worn out and face a large procurement exercise again for new stuff.
One suit jacket, two pairs of trousers and 3 shirts and a pair of shoes. Call that £25 a month. and if your clothes only last a year you need to either get better clothes or look after them better...
double that if you like for out of office stuff
£50/PCM for all car running costs?
actually, agreed there, I forgot insurance and tax. Make that £100 a month
You expect your parents to pay for you at home rent rates utilities grub etc? Wow very selfish / you've been milking them for 18-25 years and now want some more give it a rest.
most will if it is clear you are making sacrifices to save for your own house.
drainbrain said:
I'm surprised at the number of scrooges on this thread who seem to think driving a crap car is some kind of economy measure.
It isn't. It's quite the opposite. It's how to spend a fortune unnecessarily. I thought all car people knew that.
Doubly surprising given it's an opinion on a car forum.
you are joking right? How can you spend a fortune on something that is worth £500? It isn't. It's quite the opposite. It's how to spend a fortune unnecessarily. I thought all car people knew that.
Doubly surprising given it's an opinion on a car forum.
drainbrain said:
I'm surprised at the number of scrooges on this thread who seem to think driving a crap car is some kind of economy measure.
It isn't. It's quite the opposite. It's how to spend a fortune unnecessarily. I thought all car people knew that.
Doubly surprising given it's an opinion on a car forum.
I think you are misguided. A true car person, like many on this forum, are capable of running a car for peanuts. See it all the time on here. If you're handy with a spanner, there's no reason a £500 car can't get through a year with just a few pounds spending on upkeep.It isn't. It's quite the opposite. It's how to spend a fortune unnecessarily. I thought all car people knew that.
Doubly surprising given it's an opinion on a car forum.
Edited by nitrodave on Thursday 28th July 15:10
brman said:
you are joking right? How can you spend a fortune on something that is worth £500?
Generally - (ok, PH scrooges excepted, because a PH scrooge always buys a concourse condition minter for a monkey plus uses his F1 pit&shed-honed super skills to keep it better than new for at least 250000 miles) - as they get older they get needier. Like houses. Or pets. Or people. Which is why fleets and renters are renewed at 3 years and why many/most/all business types chop in their lease when the first MoT's due. The bills start getting more regular y'see. They become not-cost-effective. Not to mention age related stuff like timing belts etc etc.
It's also why MoTs are after 3 years of age, not 13.
A supercar is considerably cheaper to maintain than a banger.
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