Wife doesn't work and partner works for uber and have just bought a 500k house..........
.........If you suspect that someone you know is committing Benefit fraud please <b>telephone National Benefit Fraud Hotline on 0800 854 4400 </b>
why can’t I
Yet I didn’t ask that, here and not for a long time elsewhere.
You’ve got a lovely family, you work hard, you ride hard, you’ve combatted some inner demons and I for one applaud very loudly for you.
Thanks. But how do you know my family? 🧐 😉
Or you could just get your buying/selling timing right, along with the right investment amount with each one.
My mates last mortgaged house was bought for about 450K, did a bit to it & sold it for 625K. Moved in with the in laws for a while then bought his current house outright for 350K & It's now worth about 450-475K. It's simple!
Oh & him & his Mrs are sensible. No kids, just a new motorhome they paid cash for & 4 renty houses.
Buy a repo....
I've one terrace that's got coming up to 50 equity and my 3bed detached with the same. I could sell n move into the tterrace mortgage free and that's been possiblefor 6 years I'm 36btw. Took me a lot of work...
Plan is sell terrace buy house in Scotland holiday let it for 4 years sell big house and move north.boom no mortgage and work part time
Doable on Low wages but we don't do finance
A new corsa is 200 a month so 2 newish card is a mortgage payment...
We’re certainly not going to get any inheritance – just about getting ready to pay through the nose for Nursing Care costs for the MIL, that will soon burn through the value of her property.
If this is what your precious offspring - that you've slaved half your life to give them the best you can - will think of you, you've got to ask yourself, is it worth it?
I worked in a manual skilled job that in the late 70s early 80's paid £25ph and £50ph after 6.00pm. When that crashed due to the rise o the machines I was ahead of the game and capitalised on that.
I don't have a huge house after assorted incidents. I do have some great memories of things your children will never do, and and if I could do things different, well being honest I wouldn't.
I saw a 6 bedroomed lochside house on Knoydart last year with 150 acres of land.
650K. The blue one near Inverie?
Or you could pay 1M & live on a new build estate in Harrogate, with a garden about the size of my ex council house one in Durham.
OP they are considerably richer than you.
Or you could pay 1M & live on a new build estate in Harrogate, with a garden about the size of my ex council house one in Durham.
I’ll bite - show me such a £1m house in Harrogate.
Yes you could live in Knoydart but remember you can't eat scenery!
A lot of it is just fortunate timing when entering the housing market.
Out of my friends the value of there houses are all related to when they purchased their first house. I was the last to and concequently have the lowest value one but comparable mortgage payments. It's just one of those things.
I entered 15 years ago, I have no idea how millennials do it without family help.
How I managed it.
It was a series of half chance, right place at right time decisions..
Cheap car?
No Carribean Holidays?
No kids?
No expensive hobbies?
Lots of options of what to spend money on. Choose your own and be happy.
You forgot the designer Italian sunglasses 😎
but remember you can’t eat scenery!
Try telling Nicolas Cage that.
I’ll bite – show me such a £1m house in Harrogate.
https://www.fineandcountry.com/uk/property-for-sale/north-yorkshire/hg2-0jp/1342291
And it's not even detached! 1.4M for a terrace. Sheesh.
And here's a new build stuck right on a busy main road.
https://www.myringsestateagents.com/propertys/details/28584300 🙂
All of the people we know that are 'rich' have inherited property. We know one couple who between them inherited 6 houses before they were both 25, they're doing OK!!!
How expensive is expensive though?
Getting an 'average' house in the SE might take some serious sacrifices. Getting the same value of house out of town anywhere north of Birmingham and you'd be the subject of this thread. Not anymore of a compromise than anyone in the SE makes but suddenly you're not normal.
It’s all about your attitude to risk and reward, we all have different degrees of what we.ll risk but as others have said
the more you risk the greater (potential) reward (or loss)
Easiest example in early 2000 you are earning £20k and have £5k deposit
Do you (A) buy a 2 bed terrace at £40k and live comfortably and pay over on the mortgage or (B) push the boat out and get a £100k 5 bed and struggle to pay the bills..
10 years later house prices have doubled/ trebled. Only one winner and it’s not the risk averse ‘sensible’ bloke
So many other factors; inheritance, lottery wins, luck, or foresight to buy in an up and coming location etc, kids, divorce, career aspirations. Low interest rates, inflation etc, easy access to credit.
I know this thread is about posh houses but I think NJee20 was talking about ANY debt
My answer of "Sell house, pay off mortage, buy smaller new house with proceeds." only really applies to houses. Other debt caused by buying an expensive new car, buying a bike, buying holidays etc,. is clearly money that is being thrown away. Not many things have such a high chance of making money as houses unless you have the foresight to buy the right classic cars at the right time which is much harder to get right.
With brexit and the issues it’s causing at customs, maybe is a good time to buy a shed load of GX eagles spares from crc, a couple of containers held up at customs for months on end could mean a right short supply in the U.K. ;0)
365 days to return if it doesn’t work out
Never judge a book by its cover.
A lot are relying on houses for future income/capital. I just hope they don’t all sell at once.
Lifestyle inflation is difficult to curb sometime, especially with cheap cash around. Not that it is a bad thing.
Being "lucky", "right time, right place" can be a misnomer. Ever heard of the 18 year property cycle? Many here have probably felt they timed it right but have been in the game for a long time. Property is a very long-term investment. Yes, you can make some money from flipping, but only a profit margin and not capital growth.
And here is me trying to get out of being a property magnate.*
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*Ok, sell up a tiny Highland buy to let flat.
I also remember reading something, I think on moneysavingexpert, that over 20% of mortgages are on interest only and that the average mortgage is £600+ but the top 10% of mortgages average £1300+.
A lot does depend on house prices continuing to rise at more than the rate of inflation and even in "good" times that isn't certain or consistent across the country. I reckon our house has increased in value by between 50-60% in 17 years, we either bought at the end of a local bubble or the area has stagnated.
In contrast: I bought a terraced house as a mid-week stopover for work (with a large deposit the mortgage was 1/3 the cost of rented accommodation), when I came to sell it the estate agent asked what I had bought it for, his response was: "I sold this property five years ago, that's less than what it went for then!". His valuation was nearly double what I'd paid for it, my eventual profit was 70% in two years! That sale went through about six months before the 2008 financial crash, so luck played a part.
I think there's a case for there being an unholy alliance between government and home owners. We keep getting told that X thousand houses need to be built a year to solve the housing crisis but that there's been a shortfall for many years. A shortfall in a product leads to higher prices, conversely an adequate supply or over-supply leads to lower prices so NIMBYism is as much about protecting the future growth in house prices as much as "the field next door".
My job takes me into many large properties and some of them are mini mansions.
The owners are:
Business owners,
Dentists,
Surgeons,
People who inherited huge amounts of money
and last but not least, people who bought at the right time, did up houses, sold well and didn't lead an extravagant lifestyle.
Oh and one lottery winner back in the late 1990's (they were a fabulous couple).
Property is a very long-term investment.
.
Yes, and it is impossible to lose when using it as long term. 50 years ago my parents house cost them £2,800 which proves the point well. They don't live in a great area but I can't see the current value of £250,000 ever dropping to close to £2,800...
Sometimes just hard work. My brother started as a Saturday boy in a high street shop and went on to be a world wide head of a department for an online retailer named after a famous river. Retired at 50 and now travels the world in a luxurious way. He got all the brains of the family but I am rather proud of him. Luckily he never rides bikes so won’t read this.
As people have said, you either have made a lot of money, currently earn a lot of money, inherit a lot of money, win a lot of money, trade up carefully or have a pile of debt. Down here in deepest Surrey (Mole Valley has one of highest average house prices outside central London in UK) it seems like its mostly a combination of high earners, high debt and big inheritance.
Those are both nearly 4000 sq ft properties! And neither are new build and neither on an estate. The one on Leeds Road is architect designed, is used for photo shoots (I know, I have commissioned it once) and for filming.
I also remember reading something, I think on moneysavingexpert, that over 20% of mortgages are on interest only and that the average mortgage is £600+ but the top 10% of mortgages average £1300+.
Only the top 10%?
£1300 as a mortgage repayment is probably 3-bed semi detached in a not too rough area of Reading! Average in a very non aspirational kind of way.
A good deal can be made on the right house in the right location in need of renovation. We sold our first house for £220k and stretched ourselves like mad to buy a seriously run down cottage in North Hampshire. Six years of DIY renovation, combined with Crossrail being announced 20 minutes north of us, mean we have just sold the house and have made a good deal more than the first place cost - the house has earned more in six years than my (moderately well paid) day job.
Just stretching again to buy another fixer-upper - but this time it'll be our forever home.
I reckon they have gone for an interest only mortgage. I know a couple of people with those and I'm amazed that they don't admit to having any real idea of how that's going to get resolved (except in both cases they will one day inherit from parents).
Doesn't really matter how it is going to be resolved, keep it long enough and it will make some money. Look at it like a smart form of renting especially as an interest only mortgage is probably about the same price as rent for the same type of property.
Look at it like a risky form of renting
Ftfy
I reckon they have gone for an interest only mortgage. I know a couple of people with those and I’m amazed that they don’t admit to having any real idea of how that’s going to get resolved (except in both cases they will one day inherit from parents).
What exactly do they need to "admit"?
They're riding the property value escalator, ride it long enough and they'll probably make a tidy sum as well as getting to live in a nicer house...
Makes me feel like a bit of a mug for having a repayment mortgage.
TBH the British have an unusual attitude to housing. We don't build enough and yet we all want to buy instead of rent as an investment (that grows in value due to scarcity of supply) and then we gat all judgemental about the way people fund this odd behaviour...
We have developed a huge liquidity issue in the UK as part of our obsession with buying houses "because property always makes money".
Does anyone really believe we're not building sufficient numbers of new houses? Given the number of empty properties in city centres, I'd say we're building plenty (have you looked at the share price of the major homebuilders?) but they aren't necessarily in the right locations or funded in the right way.
If you buy a new build investment property, which you do with a mortgage based on its theoretical let-out value, but never actually let it out, you can then get further borrowing based on your existing property portfolio. As your portfolio grows, based on house price inflation, your loan to value improves, and you can borrow more and buy more. All without actually populating your properties, which might be being offered at "market" rates for rent set by the local estate agents NOT the market itself.
So the bubble exists, people become paper millionaires and the apartments never get filled lest the market discovers that it ain't worth the rent being charged. The savvy investors must have a vehicle that services the debt, I guess, and I bet that's used to offset gains made elsewhere. And that's easy to set up because we've made creating companies simple, with very little accountability (see the failure of the FRC).
In 2007-08 in Liverpool this was southern Irish investors buying in places like Liverpool on tick. When their economy went south, they apparently just disappeared. Is the UK housing market based on foreign money? Ask anyone in the South East.
Ftfy
Hardly. If you believe that having an interest only mortgage for 20+ years is in any way risky and less likely to waste money than renting you are a fool.
Where did you find a 3 bed semi in London for 300K ?
Never understood the obsession with big houses, more to clean, more diy, **** that!.
We bought a 4 bed ex-LA house years back, was 2 big for the 3 of us, wee 2 bed terrace cottage makes far more sense, for us.
@nobeerinthefridge. Where do you keep all your bikes? Isn't that what the extra bedrooms are for? 🤔
Jealous?
Should have worked hard in school when you were younger innit.
Could have a business on the side.
If you believe that having an interest only mortgage for 20+ years is in any way risky and less likely to waste money than renting you are a fool.
Mmm. Yet someone might have been paying interest for 20 years then at the end of it, find that they now owe the bank several hundred K to buy it. Unless they've saved hard, they're stuffed.
Hundred and one ways of them being able to get into the house.
We had a friend who was born into old money family- you'd never know. He rented a small flat and drove a shed. Didn't do big holidays. Lived very humbly. His parents and brother died in a helicopter crash and everything was left to him. He stopped working and moved into a caravan in Cornwall and bought a new RS6 and a nice watch. He would have preferred his parents were still around.
A chap I worked with owned a niche accounting software company as a 90% shareholder. He lived modestly in a 3 bed semi with 2 kids and drove an old Passat. He sold the business after 6 years to one of the largest accounting companies in the world for a high 8 figure sum. He carried on living the same way, but sat on millions. He could have bought anything!
