how do people afford to buy houses nowadays?

Originally Posted by e.d.

What if there's no kids? No point in buying a house

I disagree. I have no kids and when I bought my place I was single. Its an investment and there is nothing like the feeling of coming home to your home. When I was renting, I was always aware its kinda temporary and its not really my place, just somewhere I happen to be.

Originally Posted by Nutkins

£150,000? .... If only they were that cheap down here.

I agree! Im in york, and my "not so nice" mid terraced 2 up 2 down in a really crappy area of town is already worth £145k.

My folks detached house in the suburbs is worth in excess of £1/2 Mil.

Originally Posted by getyerkneedown

I agree! Im in york, and my "not so nice" mid terraced 2 up 2 down in a really crappy area of town is already worth £145k.

My folks detached house in the suburbs is worth in excess of £1/2 Mil.

145k? - how much did you pay for it?

Originally Posted by Kate

I disagree. I have no kids and when I bought my place I was single. Its an investment and there is nothing like the feeling of coming home to your home. When I was renting, I was always aware its kinda temporary and its not really my place, just somewhere I happen to be.

Yeah but once you buy it's so much hassle to move, i'm a bit of a nomad i've lived in 6 different houses in the last 2 and a half years. It would cost me a fortune to pay all the fees if it was my own place.

[timwilky]

I bought my house for £23,000 in 1985. and took a morgage of £20,000. It was a killer, twice my salary at the time. Interest rates suddenly shot up to about 15%. I increased my payments and struggled/starved even stayed sober, and never reduced them as the rates dropped. Last year I made my final payment 5 years early.

I do despair for the kids today. I have 3 children and doubt that the younger two will ever have the ability to buy. My eldest is studying to become a barrister so hopefully will be considerably richer than me.

It is a chain, and the supply/demand balance can only be maintained if those at the end of the chain can afford to buy. Therefore the overheated market will have to collapse.

I have looked to relocate and to be honest cannot afford it. I guess my little 3 bed semi would sell for about £190,000 What can I afford to buy for that down south. So these inflated prices do nothing for mobility of labour either.

Originally Posted by Gnan

145k? - how much did you pay for it?

I didnt. Its actually owned by my parents, but i "rent" it off them for a "preferential rate", and rent out the other bedroom to make some extra cash.

Its in their will that when it dies its mine, but in order to avoid the dreaded death tax, im trying to persuade them to sign it over prior to that.

Its my retirement fund basically. I can sell it. Remortgage it and attempt to buy another property and thus start building a portfolio up, or i can just rent it out on an AST.. will provide a nice regular source of income, plus the 9-5 job.

Gnan..They neeed to make inheritance tax provision otherwise yes sir tax to pay. they could make it as a gift to you (but still live there) and as long as they survive 7 years(Ed?) after making the gift then no tax payabale.

There can be some issues about them having a benefit from the gift...free rent...you let them live there...this can oft be covered by a nominal rent being paid by them! Mad isnt it?

Your man Sythree could draw the papers up for you Im sure!

Please remember my knowledge is a bit sketchy as been out of UK now fo almost 6 years.

Originally Posted by Peter Henry

Gnan..They neeed to make inheritance tax provision otherwise yes sir tax to pay. they could make it as a gift to you (but still live there) and as long as they survive 7 years(Ed?) after making the gift then no tax payabale.

There can be some issues about them having a benefit from the gift...free rent...you let them live there...this can oft be covered by a nominal rent being paid by them! Mad isnt it?

Your man Sythree could draw the papers up for you Im sure!

Please remember my knowledge is a bit sketchy as been out of UK now fo almost 6 years.

Be careful doing this and get expert advice - otherwise you could end up worse off:
http://news.bbc.co.uk/1/hi/business/3669347.stm

it's within the IHT threshold anyway so i'm ok

it's all rather mercenary this isn't it

Originally Posted by timwilky

I bought my house for £23,000 in 1985. and took a morgage of £20,000. It was a killer, twice my salary at the time. Interest rates suddenly shot up to about 15%. I increased my payments and struggled/starved even stayed sober, and never reduced them as the rates dropped. Last year I made my final payment 5 years early.

.

Same thing happened to a mate of mine, he'd only just taken his mortgage when the interest rates rocketed, mortgage payment nearly quadrupled. He posted the keys of the house to the mortgagor and never paid anything more.

Never heard anything back.