Nah don't worry, I live up north in the woods. Closest big city is 2 hours away. Closest down is 20 min away. Well you obviously know a lot more about mortgages then I do.
Property Market
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Nah don't worry, I live up north in the woods. Closest big city is 2 hours away. Closest down is 20 min away. Well you obviously know a lot more about mortgages then I do.
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ssc456
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Damn, you guys are lucky over there.
But then I suppose it all comes down to wages and cost of living too.
Let's use an example i'm familiar with.
How much would your average .net developer get paid?
Over here it it's anything between £25,000 and £45,000 a year so go in the middle at £35k.
So around $58,000 a year.
That developer would probably take home around
£2,200 a month - $3,655
and based on my bills when I moved out for gas, electric, water, food shopping, council tax, TV license etc pay out around
£400 - £600 per month excluding rent or mortgage repayment so outgoing.
£500 - $830.
So that's get paid £2,200 ($3,655) a month.
Cost of living excluding rent / mortgage around £500 ($830).
But then I suppose it all comes down to wages and cost of living too.
Let's use an example i'm familiar with.
How much would your average .net developer get paid?
Over here it it's anything between £25,000 and £45,000 a year so go in the middle at £35k.
So around $58,000 a year.
That developer would probably take home around
£2,200 a month - $3,655
and based on my bills when I moved out for gas, electric, water, food shopping, council tax, TV license etc pay out around
£400 - £600 per month excluding rent or mortgage repayment so outgoing.
£500 - $830.
So that's get paid £2,200 ($3,655) a month.
Cost of living excluding rent / mortgage around £500 ($830).
I looked earlier last year, there was a new build scheme in Aylesbury, there were fairly spacious 2 bed semi detached houses all ready to go.
that is complete fitting kitchen all appliances including washer dryer, fridge freezer hob over, the garden ready landscaped with patio turf, washing lines and a shed.
all ready to move in, the price was £172,000 but they were available on a £72k price, for a 40% shared ownership... you are able to buy new shares in lots of 10% up to complete ownership.
As a deposit you can start with as little as five percent (that's five percent of the £71k) obviously deals get better the larger deposit you can get.
That said, don't you work in Northampton? the houses there are cheaper, (both to buy and to rent.)
To be honest, anywhere "worth" living in Milton Keynes is a lot more expensive than the surrounding area, and anywhere cheap tends to be on a "less than desirable" estate.
American houses are cheaper, you get more land and more "property" as in bigger places more land etc... but there are downsides to living in the states, (Wages are around the same but I believe that taxes are typically higher, on top of that health care isn't really included in those taxes in the same way it is here etc.
i.e things may be cheaper, but the cost of living can be greater...
not everyone lives in some huge space, and there is a reason for that!!
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ssc456
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I refuse to go anywhere near a new build property.
We have some new builds infact lots and lots of them around Milton Keynes but they are ridiculously overpriced.
My dad bought a new build "luxury apartment" (or flat) for £160,000 about 5 years ago, luckily he had a hell of a deposit to put down but his flat is now up for sale and has been for thel ast 12 months at £115,000.
I was offered a 100% mortgage not a single penny deposit on a 2 bed apartment in Wolverton Park, the problem was that the flat was £198,000. Equivalent "old builds" 2 bed flats in nice areas are around £150,000 So you can almost gurantee that within 3 - 5 years your going to end up in a shed load of negative equity.
These 95% mortgages and even shared ownership schemes are useless on new build properties as from my experience (or families experience) and watching new build prices over the past few years all new build properties are overprices by between 10 and 25%.
I see where you're coming from, houses are over priced, and the shared equity and help to buy schemes etc only work to continue high prices.
It's odd that your dads place devalued so much, over the past 8 years or so there has been a general devaluation of property prices, but overall they are picking up again.
(you're saying five years ago your dad bought his flat for £160k and now it's worth £110k, the flip side is that 25 years ago my dad bought his house for £19k and it's now worth £115k, [i did not make a typo there])
I get what you're saying: new builds can carry a slight premium, and new build flats even more so, because at the start the whole building is exclusive, and new and shiney, after five years there is disrepair in hallways or dirty etc, it's just not as nice and people don't want to pay as much...
A 30% devaluation is very very far from the average fall in house prices (which was 3%) and doesn't anywhere near account for the "brand new" aspects having faded)...
If I was your father I'd be questioning the original surveys and valuation. unless something drastic happened in the local area (shop and school closures, removal of local amenities, a new railway being built at the bottom of the garden etc then a devalue that great should not have happened...
the bonus with a devaluation and shared ownership is that the shared owner also takes a hit.
say you buy a £200k house on a 50 50 split, you'd end up paying for a £100k mortgage (probably £500 PCM) and around £300 in rent (PCM). (which is likely the equivalent of rent or cheaper on a similar property on the rental market.
If that house is devalue d by 100k (ie drops by 50%) you'll only take a 50k hit.
if the house had devalued by 3% (national average) then you'd have taken a 3% drop in value on your £100k share of your £200K house...
I'd said that there was 95% mortgage opportunities available as I don;t know your situation, personally I was going for an 85% one, that has much better rates.
and so far as the valuation of the house goes, the bank should have it valued before you buy it.
and house prices categorically are NOT over valued by 25%, if that were the case you'd never get a mortgage because the bank would know that if they foreclosed they would loose money themselves.
It's odd that your dads place devalued so much, over the past 8 years or so there has been a general devaluation of property prices, but overall they are picking up again.
(you're saying five years ago your dad bought his flat for £160k and now it's worth £110k, the flip side is that 25 years ago my dad bought his house for £19k and it's now worth £115k, [i did not make a typo there])
I get what you're saying: new builds can carry a slight premium, and new build flats even more so, because at the start the whole building is exclusive, and new and shiney, after five years there is disrepair in hallways or dirty etc, it's just not as nice and people don't want to pay as much...
A 30% devaluation is very very far from the average fall in house prices (which was 3%) and doesn't anywhere near account for the "brand new" aspects having faded)...
If I was your father I'd be questioning the original surveys and valuation. unless something drastic happened in the local area (shop and school closures, removal of local amenities, a new railway being built at the bottom of the garden etc then a devalue that great should not have happened...
the bonus with a devaluation and shared ownership is that the shared owner also takes a hit.
say you buy a £200k house on a 50 50 split, you'd end up paying for a £100k mortgage (probably £500 PCM) and around £300 in rent (PCM). (which is likely the equivalent of rent or cheaper on a similar property on the rental market.
If that house is devalue d by 100k (ie drops by 50%) you'll only take a 50k hit.
if the house had devalued by 3% (national average) then you'd have taken a 3% drop in value on your £100k share of your £200K house...
I'd said that there was 95% mortgage opportunities available as I don;t know your situation, personally I was going for an 85% one, that has much better rates.
and so far as the valuation of the house goes, the bank should have it valued before you buy it.
and house prices categorically are NOT over valued by 25%, if that were the case you'd never get a mortgage because the bank would know that if they foreclosed they would loose money themselves.
I've been fortunate over the years in that the houses I've owned have always appreciated in value. First house I bought for $67K, sold for $121K. 2nd house bought for $148K, sold for $325K. The house we're in now was purchased for $400K and is currently valued at almost $1M. I plan to retire in a few years so plan to sell the current house and move to something smaller and less expensive.
Because I was a veteran, I was able to purchase my 1st house with zero down payment, just moved in and started making the payments. At that time, 1977, house prices were going up so fast that saving money for a down payment was a rapidly moving target.
Because I was a veteran, I was able to purchase my 1st house with zero down payment, just moved in and started making the payments. At that time, 1977, house prices were going up so fast that saving money for a down payment was a rapidly moving target.
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