How can anyone afford to buy a house in Aberdeen?
Discussion
decadent said:
My brother has £120k to put dowon (profit from renovating old flat, no family hand outs in my family) on a flat in London on a £65k salary and you should see some of the s
t holes he's looking at for £400-425k and he is getting out bid on all of them as they are going over asking. Most of the flats in the nicer areas are going for cash from foreign buyers who aren't even at the viewing day!
He is 28 and wants SW london as that's where his friends are and has even had to venture into Tooting (gash area) to find something suitable. He needs 2 beds really as he needs the option to rent a room out should interest rates rise to oblivion.
not intended as an attack on your brother but this is the kind of thinking that I cannot relate to in this property game which is why I havent bought anythingt holes he's looking at for £400-425k and he is getting out bid on all of them as they are going over asking. Most of the flats in the nicer areas are going for cash from foreign buyers who aren't even at the viewing day! He is 28 and wants SW london as that's where his friends are and has even had to venture into Tooting (gash area) to find something suitable. He needs 2 beds really as he needs the option to rent a room out should interest rates rise to oblivion.
Edited by decadent on Tuesday 14th January 09:25
120k lovely cash in the bank. Even if he finds something for 400k flat, that leaves 280k to finance. Making the assumption he will mortgage the balance thats over 4x his salary.
So 120k down, gone, 280k liability which is over 4x his salary, for a small flat in an admittedly decent part of town but still, and he needs to worry about having a room to let if interest rates rise?
How could anyone do that? I wouldnt be able to sleep at night.
OP - I disagree with the comments about your strategy being wrong or the houses being undervalued... do not agree with that kind of thinking at all. If we hit another crisis you will be severely underwater on your mortage. What is your current living situation? Why not continue saving and not get caught up in this? General consesus is that the current trend is not going to end well
decadent said:
My brother has £120k to put dowon (profit from renovating old flat, no family hand outs in my family) on a flat in London on a £65k salary and you should see some of the st holes he's looking at for £400-425k and he is getting out bid on all of them as they are going over asking. Most of the flats in the nicer areas are going for cash from foreign buyers who aren't even at the viewing day!
He is 28 and wants SW london as that's where his friends are and has even had to venture into Tooting (gash area) to find something suitable. He needs 2 beds really as he needs the option to rent a room out should interest rates rise to oblivion.
Oh god not this rubbish again.t holes he's looking at for £400-425k and he is getting out bid on all of them as they are going over asking. Most of the flats in the nicer areas are going for cash from foreign buyers who aren't even at the viewing day! He is 28 and wants SW london as that's where his friends are and has even had to venture into Tooting (gash area) to find something suitable. He needs 2 beds really as he needs the option to rent a room out should interest rates rise to oblivion.
Why do all comments regarding unaffordability of London property always have to refer to prime central spots.
Tooting is hardly gash btw.
A big problem with the system is the assumption that the home report valuation is correct, it is sometime very clear that the valuation is way under & therfore you have to bid over, we bit 7% over and only just got it. 4 months later same style house in same order few doors down goes up, valuation 10% higher than ours, then goes for a further 7%.
Both sales took less than a week & there was massive intreast, so how can they say the valuation was correct. 7% is a lot of money on £500k+ houses.
Both sales took less than a week & there was massive intreast, so how can they say the valuation was correct. 7% is a lot of money on £500k+ houses.
Easty-5 said:
Yea it really is just as bad just now. Out of curiosity, did you have to fund the extra £50,000 yourself or did you get a re-valuation in favour of the price you paid?
funded it myself as really wanted house but revaluation couple of years later has it at £75,000 more so okmartin
Surely the answer is just to look at cheaper houses/flats? If you can't afford the final going rate for the £220k house then look a bit further down the ladder. My friend has just made a similar mistake; first time buyers and they're saddled with paying for a £250k house. Other friends who were more sensible and bought at the £150k mark enjoy a much better lifestyle despite being in similar paying roles.
Frio3535 said:
Rethink your buying strategy.
This^Just because it has a home report at 220k does not mean any seller will accept. I recently sold my rental, home report came in at £162k. If I had wanted to hold out I probably could have gotten the 180+ but I needed it sold quick so took my first offer as I could have been waiting months for a higher price.
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