Moving House (8 Viewers)

[fernandopartridge]

I'm now finally in a position In life to save for a mortgage. I'm 33 so late starter but reasons as to why

Anyway, In just under 4 years time we will have a 30k deposit. However, I look around at House prices and I genuinely think fuck it. Why do I want to owe 300 grand for a 3 bedder in Coundon? What you get for your money now is a shambles.

So I've thought of another plan, tell me if you think this is stupid. Lad is 15 Daughter 10.

Law of averages they'd be moved out, kids married etc by 30. So that gives me 20 years of saving between me and the Mrs 8 grand a year.

In 20 years time we could have £160,000 and of course more if we're better with saving, equivalent at the moment to €190,000.

I would much rather rent until then, and fuckoff somewhere like Torrevieja and buy a nice little 2 or 3 bed place out there to see out my last few decades. You get so so much more for your money in the housing markets abroad

We will have decent pensions to live off.

I know a lot of people say a big plus of owning a house is an asset for your kids to inherit, which is fair, but I have life insurance I pay everymonth and 4.5 times salary life assurance through work so the kids will be fine anyway

Is owning a property really the be all and end all of life? Because it really is not as attractive as it used to be

I've probably paid about £140k in mortgage payments, still got let's say another £240k to make with interest. At the end of it I have a house to live in, nothing more in reality.

I think your plan sounds quite sensible, if you can afford to save money and pay rent better to save the money for your benefit rather than pay interest for the bank's.

 

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[Sick Boy]

I'm now finally in a position In life to save for a mortgage. I'm 33 so late starter but reasons as to why

Anyway, In just under 4 years time we will have a 30k deposit. However, I look around at House prices and I genuinely think fuck it. Why do I want to owe 300 grand for a 3 bedder in Coundon? What you get for your money now is a shambles.

So I've thought of another plan, tell me if you think this is stupid. Lad is 15 Daughter 10.

Law of averages they'd be moved out, kids married etc by 30. So that gives me 20 years of saving between me and the Mrs 8 grand a year.

In 20 years time we could have £160,000 and of course more if we're better with saving, equivalent at the moment to €190,000.

I would much rather rent until then, and fuckoff somewhere like Torrevieja and buy a nice little 2 or 3 bed place out there to see out my last few decades. You get so so much more for your money in the housing markets abroad

We will have decent pensions to live off.

I know a lot of people say a big plus of owning a house is an asset for your kids to inherit, which is fair, but I have life insurance I pay everymonth and 4.5 times salary life assurance through work so the kids will be fine anyway

Is owning a property really the be all and end all of life? Because it really is not as attractive as it used to be

I turn 40 this year and have never owned property and at this point would prefer not to.

 

[napolimp]

I'm now finally in a position In life to save for a mortgage. I'm 33 so late starter but reasons as to why

Anyway, In just under 4 years time we will have a 30k deposit. However, I look around at House prices and I genuinely think fuck it. Why do I want to owe 300 grand for a 3 bedder in Coundon? What you get for your money now is a shambles.

So I've thought of another plan, tell me if you think this is stupid. Lad is 15 Daughter 10.

Law of averages they'd be moved out, kids married etc by 30. So that gives me 20 years of saving between me and the Mrs 8 grand a year.

In 20 years time we could have £160,000 and of course more if we're better with saving, equivalent at the moment to €190,000.

I would much rather rent until then, and fuckoff somewhere like Torrevieja and buy a nice little 2 or 3 bed place out there to see out my last few decades. You get so so much more for your money in the housing markets abroad

We will have decent pensions to live off.

I know a lot of people say a big plus of owning a house is an asset for your kids to inherit, which is fair, but I have life insurance I pay everymonth and 4.5 times salary life assurance through work so the kids will be fine anyway

Is owning a property really the be all and end all of life? Because it really is not as attractive as it used to be

If you're planning on buying and moving abroad in 20 years time, at 53, have you thought about how you'll tide yourself over to when you can access your pension?

 

[Deleted member 5849]

I'm now finally in a position In life to save for a mortgage. I'm 33 so late starter but reasons as to why

Anyway, In just under 4 years time we will have a 30k deposit. However, I look around at House prices and I genuinely think fuck it. Why do I want to owe 300 grand for a 3 bedder in Coundon? What you get for your money now is a shambles.

So I've thought of another plan, tell me if you think this is stupid. Lad is 15 Daughter 10.

Law of averages they'd be moved out, kids married etc by 30. So that gives me 20 years of saving between me and the Mrs 8 grand a year.

In 20 years time we could have £160,000 and of course more if we're better with saving, equivalent at the moment to €190,000.

I would much rather rent until then, and fuckoff somewhere like Torrevieja and buy a nice little 2 or 3 bed place out there to see out my last few decades. You get so so much more for your money in the housing markets abroad

We will have decent pensions to live off.

I know a lot of people say a big plus of owning a house is an asset for your kids to inherit, which is fair, but I have life insurance I pay everymonth and 4.5 times salary life assurance through work so the kids will be fine anyway

Is owning a property really the be all and end all of life? Because it really is not as attractive as it used to be

The main reasons to buy are:

Mortgage ends up cheaper than rent the way rents are going, so you save more;
Some of the money you pay on a mortgage comes back to you, as opposed to none of your rent;
Whether right or wrong, it's highly likely governments will keep house prices at least around an inflation increase, so your asset will rise in value;
Rents could well rise with inflation, so your savings would be less;
Selling said asset to move could well realise more than the £160k;
All things being equal, you won't get chucked out of your own house, whereas renting you're at the whim of a landlord (and whether they want to sell or not). Also potentially more of an issue with kids, as you might end up a fair way from their school through no fault of your own.

Advantage of renting is if you end up with damp / subsidence / leaking windows / need a new roof etc, that's somebody else's problem!

 

[chiefdave]

Advantage of renting is if you end up with damp / subsidence / leaking windows / need a new roof etc, that's somebody else's problem!

Disadvantage of renting is it can be near impossible to get anything fixed by the landlord.

 

[nicksar]

I'm now finally in a position In life to save for a mortgage. I'm 33 so late starter but reasons as to why

Anyway, In just under 4 years time we will have a 30k deposit. However, I look around at House prices and I genuinely think fuck it. Why do I want to owe 300 grand for a 3 bedder in Coundon? What you get for your money now is a shambles.

So I've thought of another plan, tell me if you think this is stupid. Lad is 15 Daughter 10.

Law of averages they'd be moved out, kids married etc by 30. So that gives me 20 years of saving between me and the Mrs 8 grand a year.

In 20 years time we could have £160,000 and of course more if we're better with saving, equivalent at the moment to €190,000.

I would much rather rent until then, and fuckoff somewhere like Torrevieja and buy a nice little 2 or 3 bed place out there to see out my last few decades. You get so so much more for your money in the housing markets abroad

We will have decent pensions to live off.

I know a lot of people say a big plus of owning a house is an asset for your kids to inherit, which is fair, but I have life insurance I pay everymonth and 4.5 times salary life assurance through work so the kids will be fine anyway

Is owning a property really the be all and end all of life? Because it really is not as attractive as it used to be

Your plan makes sense to me particularly if you're in "Affordable" secured tenancy rental property currently.

 

[nunchuckas]

If you're saving 160k over 20 years, please tell me you're investing it and not just sticking it in a bank account, as you'll barely keep up with inflation. Stick it in a stocks and shares ISA, invest in global tracker funds, SP500 etc. diversify as much as you see fit.

General rule of thumb is over any given 10 year period, you should get at least 10% cumulative annual growth. At 10% you double your money every 7 years, so if you're putting on 8k per year, you'd be looking at more like 300k - 400k tax free (make sure it's ISA'd) if you include your compound growth.

 

[fatso]

Your plan makes sense to me particularly if you're in "Affordable" secured tenancy rental property currently.

There's no future guarantee that the rent will remain "affordable" beyond the current tenancy agreement,

there's also no guarantee that the landlord won't, decide to sell the property at some point in the future, which leaves the tenant having to up sticks and try to find another suitable property at the future market rate.

That's a risk you don't have to take if you buy.
Also, as I've said above, how do you pay your rent if your struggling to live on an old age pension? Today's money purchase pension plans are pitiful, and a state pension is only £12k a year, and the age at which you can claim it is climbing and will no doubt be under review again after the election.

If you pay rent, your paying someone else's mortgage! Think about it, your going to work, to pay someone else's mortgage to make them wealthy!!!!
You really should be looking to get on the property ladder asap if you possibly can.

Looking long term, Labour's piss poor immigration policy is only going to lead to more demand for housing, and therefore higher prices, their historic record of fucking up the economy (much like the current Tory party) is highly likely to lead to interest rate rises which will mean higher rental prices and higher mortgages.

Any interest rate rises will mean your increased rent will eat into any saving plan you may have, and increasing house prices will mean you need more cash for a deposit, which will then be harder to achieve.

We've had historically low interest rates for the last decade, which has meant many people have become complacent, believing that it will always be that way. Trust me, it won't last.

So if at all possible I'd definitely look at buying now, and getting on a long term fixed rate if you can.

 

[Saddlebrains]

If your saving £8k a year AND paying rent, why not just get a mortgage ASAP?

The rent you'll pay is dead money, and house prices may well rise as fast as your saving. And remember your rent will increase every year, while you can lock into a fixed rate mortgage for years, so eventually your mortgage will be less than the rent.

When your mortgage is finally paid, you can rent your house out and rent a cheaper place abroad and have cash in your pocket, while keeping your house here as an asset to pass onto your kids, or to move back to if you ever need to.

Was only able to start saving towards a Mortgage from end of April mate

 

[Saddlebrains]

If you're planning on buying and moving abroad in 20 years time, at 53, have you thought about how you'll tide yourself over to when you can access your pension?

I work remotely in cyber security so would hopefully be able to carry that on

 

[fatso]

Was only able to start saving towards a Mortgage from end of April mate

Good luck, it's a slow process, but ultimately worth it.

I've said before, that the current demand for a 5 or 10% house purchase deposit is a big disadvantage to those people who are currently renting. Its incredibly difficult to pay rent, bills, food etc AND save enough to get that deposit. Especially through a cost of living crisis! (As I'm sure you know)

IMHO, the banks should look at a tenants payment history, if the tenant can prove they've paid rent on time and arnt in any arrears for the last 12 or 24 months, then the lenders should be able to offer a 100% mortgage, and wave the need for a hefty deposit.

That would give so many people a chance to own their own homes. I'm sure there's a way the government could underwrite a 5% mortgage deposit agreement, even if it meant that 5% was to be repaid by the owner if/when they move up the housing ladder.

 

[Saddlebrains]

Good luck, it's a slow process, but ultimately worth it.

I've said before, that the current demand for a 5 or 10% house purchase deposit is a big disadvantage to those people who are currently renting. Its incredibly difficult to pay rent, bills, food etc AND save enough to get that deposit. Especially through a cost of living crisis! (As I'm sure you know)

IMHO, the banks should look at a tenants payment history, if the tenant can prove they've paid rent on time and arnt in any arrears for the last 12 or 24 months, then the lenders should be able to offer a 100% mortgage, and wave the need for a hefty deposit.

That would give so many people a chance to own their own homes. I'm sure there's a way the government could underwrite a 5% mortgage deposit agreement, even if it meant that 5% was to be repaid by the owner if/when they move up the housing ladder.

Agree with you completely. We've been in the same house for 4.5 years now, never missed a bill or rent payment, but because I can't magic 20 grand plus out my arse I don't have a chance

 

[TomRad85]

Always invest in property when you get the chance mate. Buy asap, at least you'll get some of your money back when you flog it and move.

Sent from my SM-G973F using Tapatalk

 

[nicksar]

There's no future guarantee that the rent will remain "affordable" beyond the current tenancy agreement,

there's also no guarantee that the landlord won't, decide to sell the property at some point in the future, which leaves the tenant having to up sticks and try to find another suitable property at the future market rate.

That's a risk you don't have to take if you buy.
Also, as I've said above, how do you pay your rent if your struggling to live on an old age pension? Today's money purchase pension plans are pitiful, and a state pension is only £12k a year, and the age at which you can claim it is climbing and will no doubt be under review again after the election.

If you pay rent, your paying someone else's mortgage! Think about it, your going to work, to pay someone else's mortgage to make them wealthy!!!!
You really should be looking to get on the property ladder asap if you possibly can.

Looking long term, Labour's piss poor immigration policy is only going to lead to more demand for housing, and therefore higher prices, their historic record of fucking up the economy (much like the current Tory party) is highly likely to lead to interest rate rises which will mean higher rental prices and higher mortgages.

Any interest rate rises will mean your increased rent will eat into any saving plan you may have, and increasing house prices will mean you need more cash for a deposit, which will then be harder to achieve.

We've had historically low interest rates for the last decade, which has meant many people have become complacent, believing that it will always be that way. Trust me, it won't last.

So if at all possible I'd definitely look at buying now, and getting on a long term fixed rate if you can.

I know all of the above is true... but none of that applies if @Saddlebrains is in a council/housing association tenancy

 

[Saddlebrains]

I know all of the above is true... but none of that applies if @Saddlebrains is in a council/housing association tenancy

Nope Private rent mate

 

[nicksar]

Nope Private rent mate

That being the case then most of what others have said is worth seriously considering .
PS: Between me & my wife we have six adult offspring aged from 43 to 35 ,3 renting 3 buying on mortgages.... it's horrendous for younger people trying to get on the property ladder these days... fucking disgrace tbh.

 

[jimmyhillsfanclub]

I'd try & buy asap. There are a few 100% mortgages now available to folks with a good financial track record.

Get on the ladder with a 100% mortgage & still save your 8K per year (maybe more if your repayments are less than your current rent)

Then, when your initial 3 or 5 year term is up, you'll have a good chunk to either pay down some of the capital and get a better mortgage deal or even better, get an offset mortgage (if they still exist) and offset your savings against it.

I shaved many years & many thousands off my mortgage by offsetting.

Good luck.

 

[SkyBlue_Bear83]

I'm now finally in a position In life to save for a mortgage. I'm 33 so late starter but reasons as to why

Anyway, In just under 4 years time we will have a 30k deposit. However, I look around at House prices and I genuinely think fuck it. Why do I want to owe 300 grand for a 3 bedder in Coundon? What you get for your money now is a shambles.

So I've thought of another plan, tell me if you think this is stupid. Lad is 15 Daughter 10.

Law of averages they'd be moved out, kids married etc by 30. So that gives me 20 years of saving between me and the Mrs 8 grand a year.

In 20 years time we could have £160,000 and of course more if we're better with saving, equivalent at the moment to €190,000.

I would much rather rent until then, and fuckoff somewhere like Torrevieja and buy a nice little 2 or 3 bed place out there to see out my last few decades. You get so so much more for your money in the housing markets abroad

We will have decent pensions to live off.

I know a lot of people say a big plus of owning a house is an asset for your kids to inherit, which is fair, but I have life insurance I pay everymonth and 4.5 times salary life assurance through work so the kids will be fine anyway

Is owning a property really the be all and end all of life? Because it really is not as attractive as it used to be

Hi saddle, have you considered getting that £300k 3 bed house now and you can still sell it in 20 years time to move abroad?

I think it would work out better?

In 4 years time use the £30k money saved for the deposit.

Presumably the mortgage would be similar to or even less what you can expect to pay in private rent so this would allow you to carry on saving for the next 16 years?

Then in 16 years you will have £130k saved (£160k you predicted minus the £30k house deposit)
The morgage remaining will be about 195k-£200k on the house assuming a 35 year term and 4.5% interest rate.

In 16 years you can expect that property to be worth around £400k-£450k accounting for a 2-3% growth in house prices yearly.

After selling your property, once the mortgage is settled and fees are paid you will be looking at having around £320k-350k available funds to buy your property abroad?

Plus having a mortgage protects you from inflating rental costs as your mortgage should only fluctuate by a couple of 100 pounds depending on the interest rates, where as rents will likely keep going up. Your private rent in 10 years time is very likely to be significantly more than you would pay on a mortgage taken out today.

 

[napolimp]

Agree with you completely. We've been in the same house for 4.5 years now, never missed a bill or rent payment, but because I can't magic 20 grand plus out my arse I don't have a chance

Can't you get Overson to pay your deposit? (Jokes)

 

[Sick Boy]

I work remotely in cyber security so would hopefully be able to carry that on

Would you both have the right to just move to Spain?

 

[Saddlebrains]

Would you both have the right to just move to Spain?

I was planning on wearing a sombrero, giving out some complimentary sangria and wearing an Iniesta shirt, I thought that should swing it for me


But in all seriousness Brexit has scuppered things like that hasn't it

 

[Sick Boy]

I was planning on wearing a sombrero, giving out some complimentary sangria and wearing an Iniesta shirt, I thought that should swing it for me


But in all seriousness Brexit has scuppered things like that hasn't it

Unless you've got a fair bit of money, I imagine it'll be difficult to just move there, i'm sorry to say.

 

[chiefdave]

IMHO, the banks should look at a tenants payment history, if the tenant can prove they've paid rent on time and arnt in any arrears for the last 12 or 24 months, then the lenders should be able to offer a 100% mortgage, and wave the need for a hefty deposit.

I moved from a rental to buying in the same street. My mortgage at the time (won't be when I renew in a few months!) was about a third less than my rent. Despite having never missed a rent payment, or any payment for that matter, I kept failed the mortgage affordability test.

Stupidly the solution was to take a longer mortgage which means I'll be paying well into retirement rather than letting me have the one I originally wanted which would have been paid off ready for me to finish work. End result is unless I can pay it off early I'll be working well past retirement age.

 

[chiefdave]

I work remotely in cyber security so would hopefully be able to carry that on

We're fucked if saddles is in charge of security, can't keep anything a secret!

 

[fatso]

I moved from a rental to buying in the same street. My mortgage at the time (won't be when I renew in a few months!) was about a third less than my rent. Despite having never missed a rent payment, or any payment for that matter, I kept failed the mortgage affordability test.

Stupidly the solution was to take a longer mortgage which means I'll be paying well into retirement rather than letting me have the one I originally wanted which would have been paid off ready for me to finish work. End result is unless I can pay it off early I'll be working well past retirement age.

That's shit mate, the banks can be such dicks at times.

If I were you I'd take the longer mortgage but look to move lender if possible ASAP and get the debt paid before retirement.

I think their lending requirements are far too rigid, and allow no room for common sense.

 

[nicksar]

I bought my first house aged 22 in Purefoy Rd Cheylesmore , that was 48 years ago and it cost £8000...mid terrace two bedrooms & a box room,it was a pokey little house tbh, I've just looked at how much they go for now and I'm staggered to see they sell for £220,000....house prices are a total scandal now.
While on the house price subject it's even worse in Australia,my eldest daughter lives in Sydney (in a nice suburb) they have purchased a 3 bedroom apartment off plan that isn't built yet so rent currently 1360 aud a week rent, that's £716 in our money... fucking unbelievable.

 

[chiefdave]

That's shit mate, the banks can be such dicks at times.

If I were you I'd take the longer mortgage but look to move lender if possible ASAP and get the debt paid before retirement.

I think their lending requirements are far too rigid, and allow no room for common sense.

this was about 5 years ago, took the longer mortgage and I've been trying to make overpayments to get it down. got to remortgage soon as my fix is ending

 

[San Francisco]

I bought my first house aged 22 in Purefoy Rd Cheylesmore , that was 48 years ago and it cost £8000...mid terrace two bedrooms & a box room,it was a pokey little house tbh, I've just looked at how much they go for now and I'm staggered to see they sell for £220,000....house prices are a total scandal now.
While on the house price subject it's even worse in Australia,my eldest daughter lives in Sydney (in a nice suburb) they have purchased a 3 bedroom apartment off plan that isn't built yet so rent currently 1360 aud a week rent, that's £716 in our money... fucking unbelievable.

Nearly 4x what 8 grand was worth back then. Insane really.

 

[fatso]

this was about 5 years ago, took the longer mortgage and I've been trying to make overpayments to get it down. got to remortgage soon as my fix is ending

Hopefully you won't get reamed with a new rate.
On the plus side it's easier to move a mortgage than to apply for a new one (presuming you have a good payment record)

 

[chiefdave]

Hopefully you won't get reamed with a new rate.
On the plus side it's easier to move a mortgage than to apply for a new one (presuming you have a good payment record)

Credit rating is pretty much perfect and I'll be staying with CBS as it looks like moving with only save at most around a tenner a month and frankly I can't be arsed with the hassle if that's all its going to save so should be fairly straightforward

 

[wingy]

When the Boe base policy on catching a small cohort out , when did there policy shift, I thought they were doing what's best for the country not themselves!!

 

[Kneeza]

I bought my first house aged 22 in Purefoy Rd Cheylesmore , that was 48 years ago and it cost £8000...mid terrace two bedrooms & a box room,it was a pokey little house tbh, I've just looked at how much they go for now and I'm staggered to see they sell for £220,000....house prices are a total scandal now.
While on the house price subject it's even worse in Australia,my eldest daughter lives in Sydney (in a nice suburb) they have purchased a 3 bedroom apartment off plan that isn't built yet so rent currently 1360 aud a week rent, that's £716 in our money... fucking unbelievable.

I'm the same age as you, and bought my first pokey little end terrace in Southam (4 Elmbank) in 1976, for £9250 and stayed about five years selling for a small uplift.
It sold six years ago for £212500. No extensions, nothing. Still pokey, with a tiny garden, and a small garage at the other end of the terrace.
I really feel for people trying to get on the merry go round now. Awful.