Bought in 2006 at 165k spent a little updating so maybe in for around 175k on the market for 220, 13 viewings yesterday. A rough increase of around 30%
that's below inflation over the same period though - if it had gone up with inflation 175K would now be 235K....
Firstly unless they're somewhere near central London, or perhaps a bit daft, I very much doubt that a potential first time buyer saving for a deposit is going to be spending anywhere like £1,600 a month in rent. So you're implying that if they suddenly bought now rather than wait 2 years then they'd suddenly as if by magic have an extra £40k deposit? Where does that £40k suddenly come from? Are you forgetting that 2 years in the future is not the same as today? Would buying a home and paying mortgage interest be completely free over the initial 2 year period then?
Sleepy suburb of Reading. No need for it to be a first time buyer, although IIRC don't stats now show that most people have kids then buy a house so 3 beds aren't going to be uncommon for renting.
My point was, countering your advice that people should do nothing for a couple of years, that if you have a deposit now and buy a house, your 'on the ladder' if things go up further, and if things go south your repayments are still less than the rent would be, and a proportion of that is paying off the balance.
My my fag packet maths on a £250k mortgage (on say a 2 bedroom £300k house), in 2 years you'd repay about £14000+interest at £1100 a month on a 25year 2.5% mortgage, plus SDLT comes to £31400. Renting a comparable house would be about £1300/month or £31200 in total and you'd get nothing back. So you're already £14k better off after 2 years of owning the house.
So over the first 2 years you're net the same if house prices stagnate (which is a net drop with inflation, if that's ~2% then it's a £6k profit for ownership.
I'm still saying that buying a house is good long term, just why risk buy now when things are looking so 'peaky' and displaying (IMO) all the classic signs of a bubble that's bursting?
"Insanity: doing the same thing over and over again and expecting different results."
The doom mongers have been predicting the same thing for the last 9 years since the 'crash (that never happened)'. But people still need places to live in the meantime, so keep buying houses. There will be a correction, but it'll be a slow supply/demand driven correction, I can't see any either the government of the BoE implementing policies to achieve anything but that. Yes the oversupply of credit isn't helping keep prices sensible, but I'd postulate that that's the effect of high prices driven by demand and the bank trying to limit their effects on people, not the other way around.
And that's all before we get to the nice warm cosy feeling of home ownership and being able to paint walls in whatever color you like and hang pictures on them!
Seems there's a trend starting:
[url= http://www.rightmove.co.uk/property-for-sale/property-53815378.html ]http://www.rightmove.co.uk/property-for-sale/property-53815378.html[/url]
The only way i get renting locally vs buying locally is to move house every 6 months as per was standard when i rented and the landlord would hike prices or decide he was selling.
Even in the depressed market atm all id get for my mortgage locally is a 1 bed flat in a crap area!
Oh and of tinas 40k estimate only 1/4 of that went on interest here.... Over 4 years
Happy enough number for me. As oppose to 100% of 700 quid disapearing every month and having nothing to show and >6month security on my address.
Oh and 700 rent got me a 1 bed flat locally in a shit area and 750 on my mortgage minimim gets me a 3 bed with 2 garages and a nice garden in a nice area
