Buying a house (and renting)

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jawa
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PostRe: Buying a house (and renting)
by jawa » Thu Nov 19, 2020 9:56 am

Cuttooth wrote:I used to have a dream of living in London but the costs are beyond a joke now and are just spreading to more and more of the surrounding areas. I'd quite happily move out of the South / South East altogether really...

It is crazy; I live in a cheaper London suburb and prices are just too high even for very average dwellings. It is so busy and noisy, too.

But... I don't drive and transport (buses and trains) are pretty good. Packed but reasonably reliable.

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PostRe: Buying a house (and renting)
by Moggy » Thu Nov 19, 2020 10:02 am

Grumpy David wrote:
Moggy wrote:
Oblomov Boblomov wrote:How does a normal person (you are normal, right? :shifty:) get to a budget of £600k?

I had a pretty big deposit, but that was only because I got lucky and sold my flat for more than I bought the house! Surely even if you had something crazy like £200k to put down, you'd still need a household income of ~£100k to borrow enough to take you to £600k?!

Christ, what a ridiculous state the market is in. This is all Robbie Fowler and Marcus Rashford's fault :shifty:.


I can never understand it either and that's talking outside of London. Basing it just on a single person (I know couples can get more), average earnings are £26k or so in this country. 5x that is £130k. Even with a £50k deposit (which is BLOODY hard for anybody normal to get hold of) that only gives you £180k.

It's beyond me how any normal first time buyers manage it.


2 people both earning 50k each would probably qualify for 5x income so that gets the other 500k sorted. If you had 200k and needed to borrow 400k that gets "easier" by London standards as that's 2 people earning a combined 80-85k.

And once people actually look to buy at that price range, it's almost always with significant help from the Bank of Mum & Dad.

Those are obviously very good salaries nationally and almost double the average, but London salaries of 40-50k aren't that unusual.

The deposit is the harder issue. Other than parents having the savings to gift tens of thousands of pounds, the next best option is to live at home for years after starting full time employment and save like crazy (assuming parents only want a token amount of rent instead of charging full whack).


Yeah, I get how it's possible when people have large salaries, especially as a couple.

I don't see how people on average salaries manage it though.

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Jenuall
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PostRe: Buying a house (and renting)
by Jenuall » Thu Nov 19, 2020 10:22 am

Yeah getting on the property ladder with a "normal" salary is just a fantasy in many places unless you have significant help from family. How anyone does it in somewhere like London is frankly beyond me.

That said apparently a tube train driver earns £70k in London so maybe it's not so impossible after all! :lol:

Moggy wrote:
Jenuall wrote:[I drive to Southmead for work each day and it takes 45 minutes on a good day so it's not a crazy journey but appreciate that might be pushing it


Southmead? You go to the nicest places. :lol:

45 minutes from Cardiff? That's pretty good! I wouldn't have an issue but the wife would as she doesn't drive. I'll suggest it to her though if we can't find anything affordable that's closer to Bristol.

Oh yeah I'm living the dream here! To be fair we only moved to Southmead in the last year and so far it hasn't been entirely terrible, but I'm sure it's just a matter of time! :lol:

Yeah the journey to Cardiff isn't too bad at all most of the time. During busy periods like rush hour it does get slower obviously but it's not a crazy journey.

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Grumpy David
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PostRe: Buying a house (and renting)
by Grumpy David » Thu Nov 19, 2020 10:23 am

Moggy wrote:Yeah, I get how it's possible when people have large salaries, especially as a couple.

I don't see how people on average salaries manage it though.


Average earners (especially single people) don't manage to buy in London. They're stuck renting a room in a shared house.

Unless they have very well off parents / grandparents able to provide an absurdly large deposit.

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Victor Mildew
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PostRe: Buying a house (and renting)
by Victor Mildew » Thu Nov 19, 2020 10:29 am

Jenuall wrote:A brewery that does good food? When can we go!? :lol:


There's a small tiny rebel in Newport high street, which we go to before gigs. They do amazing buttermilk chicken burgers :datass:

The BEST tiny rebel though is their proper brewery, which is in Rogerstone, a 10 minute taxi ride from here.

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Food and drinks there on a sunny afternoon *chef's kiss*

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PostRe: Buying a house (and renting)
by Moggy » Thu Nov 19, 2020 10:42 am

Grumpy David wrote:
Moggy wrote:Yeah, I get how it's possible when people have large salaries, especially as a couple.

I don't see how people on average salaries manage it though.


Average earners (especially single people) don't manage to buy in London. They're stuck renting a room in a shared house.

Unless they have very well off parents / grandparents able to provide an absurdly large deposit.


I know, that's why I excluded London in my post. ;)

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PostRe: Buying a house (and renting)
by Jenuall » Thu Nov 19, 2020 10:53 am

Victor Mildew wrote:
Jenuall wrote:A brewery that does good food? When can we go!? :lol:


There's a small tiny rebel in Newport high street, which we go to before gigs. They do amazing buttermilk chicken burgers :datass:

The BEST tiny rebel though is their proper brewery, which is in Rogerstone, a 10 minute taxi ride from here.

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Food and drinks there on a sunny afternoon *chef's kiss*

Fair play that does look nice. 8-)

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PostRe: Buying a house (and renting)
by Moggy » Thu Nov 19, 2020 11:00 am

Victor Mildew wrote:
The BEST tiny rebel though is their proper brewery, which is in Rogerstone


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Drumstick
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PostRe: Buying a house (and renting)
by Drumstick » Thu Nov 19, 2020 11:21 am

That's not a growth wrote:How do you all balance friendships / family relationships and your home goals / moving some distance?

As most of my friends in this area have young kids even if things weren't locked down I'd only see most of them a few times a year - but the idea of moving somewhere just for a house and being isolated is very unappealing. I like the idea that we *could* see each other quite easily, even if it doesn't always work out. But moving away just means I'm essentially admitting I'm going to be a hermit most of the time.

My family don't live around here, with me being in greater Manchester and them in Essex and Cumbria. But in Essex houses are more expensive, so I'd be less likely to afford anywhere and Cumbria has strawberry float all jobs. And my experience job hunting is not promising, either.

Since I'm 33 and saved up a 'decent' amount for a deposit I would like to get somewhere, but I'm concerned since I've been working towards it for so long I've become blinkered to the idea.

Bin off any preconceptions and weigh up the pros and cons between moving to a property still in your local, a property 10 miles away and a property greater than 20 miles away. Are you somoene that absolutely needs people around you, or are you comfortable being a short journey away?

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PostRe: Buying a house (and renting)
by That's not a growth » Thu Nov 19, 2020 11:50 am

Drumstick wrote:
That's not a growth wrote:How do you all balance friendships / family relationships and your home goals / moving some distance?

As most of my friends in this area have young kids even if things weren't locked down I'd only see most of them a few times a year - but the idea of moving somewhere just for a house and being isolated is very unappealing. I like the idea that we *could* see each other quite easily, even if it doesn't always work out. But moving away just means I'm essentially admitting I'm going to be a hermit most of the time.

My family don't live around here, with me being in greater Manchester and them in Essex and Cumbria. But in Essex houses are more expensive, so I'd be less likely to afford anywhere and Cumbria has strawberry float all jobs. And my experience job hunting is not promising, either.

Since I'm 33 and saved up a 'decent' amount for a deposit I would like to get somewhere, but I'm concerned since I've been working towards it for so long I've become blinkered to the idea.

Bin off any preconceptions and weigh up the pros and cons between moving to a property still in your local, a property 10 miles away and a property greater than 20 miles away. Are you somoene that absolutely needs people around you, or are you comfortable being a short journey away?


I think a big part of it is I've never had a car, so non-local journeys couldn't be as spontaneous or quick.

I think it would either be this area, or somewhere completely different - somewhere that's 'just' 20 miles away would still be pretty isolated from a general point of view.

And while I don't need people around me all the time, the fact it is technically possible to do the occasional pub quiz or similar is nice, and if I were to lose that I'd want to gain something to make it feel worthwhile.

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PostRe: Buying a house (and renting)
by Drumstick » Thu Nov 19, 2020 11:57 am

Have you considered buying a car which will then provide you with a greater breadth of options?

For instance, I couldn't live where I am without a car. There are public transport options but they are reasonably inconvenient, so having a car makes life possible.

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PostRe: Buying a house (and renting)
by Pancake » Thu Nov 19, 2020 12:03 pm

Yeh everyone has different priorities but one of mine is definitely proximity to friends, pre-COVID I would meet up with friends at least twice a week, it's such an important thing for me that I absolutely couldn't move too far away.

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PostRe: Buying a house (and renting)
by That's not a growth » Thu Nov 19, 2020 12:26 pm

Drumstick wrote:Have you considered buying a car which will then provide you with a greater breadth of options?

For instance, I couldn't live where I am without a car. There are public transport options but they are reasonably inconvenient, so having a car makes life possible.


I'm reluctant to spend that kind of money on 'just' transport, but I feel a lot of that is down to the fact this is the first time in my life I could afford a car as before my 30s I've been in minimum wage jobs mostly stuck in my overdraft.

I would consider it, but it's not something i would rush to do.

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PostRe: Buying a house (and renting)
by OrangeRKN » Thu Nov 19, 2020 1:08 pm

A lack of a car definitely factors heavily in for me. I passed my test years ago but I really don't like driving for multiple reasons. When my girlfriend passes her test we probably will get a car which will make future moves easier, but the main motivation for wanting a car is so we can have a dog :lol:

Living near friends is definitely important at my current point in life, but we do plan to move somewhere more remote (and cheaper) in the future. I'd really like to go to the north east or even Scotland, but I think my girlfriend is set on Cornwall as she is from there and while it's a bit too warm for my tastes I think I can live with somewhere on the north Cornish coast. That's definitely need a car and rarely see friends territory though!

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Victor Mildew
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PostRe: Buying a house (and renting)
by Victor Mildew » Thu Nov 19, 2020 1:12 pm

We moved away from, every one, no regrats.

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Bunni
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PostRe: Buying a house (and renting)
by Bunni » Thu Nov 19, 2020 11:58 pm

I was finishing driving lessons when I got offered the house we move into on Monday. It's only 3 miles from work but public transport at 7am is absolute gooseberry fool. I'll be taking taxis to work and fumbling home in awful weather until such time as I'm back on my feet enough to get the last lessons and get a car.

As for the cost of houses especially down south, I agree it's fantasy for most average earners. Though I do LOVE they click bait stories about how 27 year olds have managed to by a house without bank of mum and dad handing over £20k for a deposit. There's always a some unreasonable way they've saved up themselves that seems to be praised rather than realised for the awful stands we live by. 'I saved up £17k living in my sister's garage!' or 'I ate only rice and beans for 6 years'. Absolutely mental the sacrifices folk go through for housing despite working full time.

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PostRe: Buying a house (and renting)
by That's not a growth » Fri Nov 20, 2020 6:53 am

Yeah, the only reason I've got a deposit is because I've moved back in with my mum, and even though I pay half of everything its still cheaper than a house share because it's a council house.

It wasn't quick though, this spring will be 6 years - and when ever I see family I'm repeatedly asked when I'm getting my own place. I remind them since work keep lying to me about a pay rise that never materialises this is holding back the amount I might be able to borrow, and since they're pushing me to get somewhere that's big enough that they/my brother can come and visit I'm going to need that extra amount towards a mortgage application. My step mums reply to this once was to set up my own business and lie about my income so I can borrow more. I shot that down quickly and thankfully it wasn't mentioned again.

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PostRe: Buying a house (and renting)
by Errkal » Fri Nov 20, 2020 7:18 am

Only reason I got a deposit was because my mum gave me it, not a hope otherwise I’m crap at saving and discipline like that I get far too distracted by shiny stuff. I now give her some money each month as a sort of paying it back thing which means she gets to work less which is nice.

God knows if I’ll be able to do the same for moo when she is old enough, I hope so.

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PostRe: Buying a house (and renting)
by Drumstick » Fri Nov 20, 2020 7:21 am

We saved our deposit (£20k) by basically doing nothing for 18 months. The only luxury we allowed ourselves was a Cineworld Unlimited card (this was back around 2015 when there were some decent films on at the cinema, unlike the last few years).

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PostRe: Buying a house (and renting)
by Oblomov Boblomov » Fri Nov 20, 2020 8:43 am

I found it surprisingly easy to save for my first deposit in 2013 (£28k + £4k for fees), especially considering I was unemployed until mid-late 2011. The major advantage I had was still living with my parents, who only asked for 10% of my salary for rent. I think my life was essentially just working overtime during the week then going out every Friday and Saturday night. Going out seems to be much more expensive these days, so I doubt I could have managed it in today's climate.

Unless it is made illegal to be a banana split Landlord™ and there is a serious drive to build hundreds of thousands (millions?) of houses, this problem is only going to keep getting worse.

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