Buying a house in Edinburgh now

[Unknown user]

4 minutes ago, hmfcbilly said:

I guess none of us have a crystal ball to predict the next year mate but if it were me, I'd hold off. With the furlough scheme due to end this autumn (and no indication of it being extended again) I personally think a lot of furlough jobs won't be coming back. If that's the case, then it may well lead to at least a stabilising of the property market. I remember 2008 and it wasn't a good time for many folk who bought a year or so before it. Its now 13 years on and we haven't had a fairly big bump or crash since so my gut is it is coming. Of course I could be totally wrong!  Good luck with whatever you decide to do

You're right, things are changing and the housing market likes certainly.

[Jambo314]

On 07/10/2020 at 21:31, Carl Weathers said:

Sellers dont seem to want to sell to people that are subject to sale as well. It makes purchasing even more difficult. I'll realistically have to sell first before I buy and potentially have to rent somewhere for an interim period. 

 

My wife is pregnant with a baby due in Jan, so we will wait until next year to see how the market is looking. Paying well over the odds doesnt sit well with me during a global pandemic with no deal Brexit still to come. 

 

Good luck to those still in the hunt!

Although not ideal, but this would be my choice going forward with the way the market is at present.

13 hours ago, Carl Weathers said:

Anyone else in the market to buy a house at the moment? It's even worse than last year.

 

We bid 52k over valuation for a property which was valued at 285k and came 8th out of 19 bids! I am starting to wonder if we should wait again until next year in the hope that the madness ends. My worry is that it will just get worse.

 

With every few months that pass, properties seem to be going up in value and what we can get for our money diminishes. 

 

As you know, its a sellers market just now therefore if I were you I'd take advantage of the price boom and sell you're house now. Things will settle down again soon and hopefully you'll find you're preferred choice of location for you're new home without spending thousands and thousands over the market value.

[The Real Maroonblood]

1 hour ago, Smithee said:

 

I bought a house in 2011 and regretted it like ****.

Values went down so I couldn't sell, rent wouldn't cover the costs so I couldn't rent it out, I was just trapped. I hated it. Don't get me wrong, the house was great, I just didn't like the expense or being tied down.

 

Anyway, 10 years later I have a council house, I pay less than a quarter of what I did a decade ago, and no one can take it off me.

 

Think carefully before you buy guys, make sure it's for you, you'll never make a bigger purchase than a house and it's a hell of a commitment.

I bought a house years ago and took out interest only mortgage which turned out not a great decision.

Don’t know if you can still get a mortgage like that now.

All is good now with house.

 

 

 

[Governor Tarkin]

2 hours ago, The Real Maroonblood said:

I bought a house years ago and took out interest only mortgage which turned out not a great decision.

Don’t know if you can still get a mortgage like that now.

All is good now with house.

 

 

 

 

You can, yes.

 

A few years ago when prices were down a couple of mates of mine were buying up 1 bed flats all over the shop on interest only mortgages. Flipped them for a fair profit a few years later.

It was a nice earner but shit like that really pisses on the chips of prospective first time buyers.

[The Real Maroonblood]

1 hour ago, Governor Tarkin said:

 

You can, yes.

 

A few years ago when prices were down a couple of mates of mine were buying up 1 bed flats all over the shop on interest only mortgages. Flipped them for a fair profit a few years later.

It was a nice earner but shit like that really pisses on the chips of prospective first time buyers.

I wouldn’t imagine that today insurance policies would pay a lot to cover the cost when it matures.

[Governor Tarkin]

5 minutes ago, The Real Maroonblood said:

I wouldn’t imagine that today insurance policies would pay a lot to cover the cost when it matures.

 

They didn't even bother with them as they had no intention of keeping the properties until such a policy would mature. I don't know the exact ins and outs of it, but I think they'd used equity on existing properties to put down as deposits on the buy-to-lets. They had a few bob to start with, and it's easier to make money when you already have some. There was a whole raft of tax breaks and avoidance schemes a few years ago, but most of them have been closed off now so I'm led to believe.

[The Real Maroonblood]

2 minutes ago, Governor Tarkin said:

 

They didn't even bother with them as they had no intention of keeping the properties until such a policy would mature. I don't know the exact ins and outs of it, but I think they'd used equity on existing properties to put down as deposits on the buy-to-lets. They had a few bob to start with, and it's easier to make money when you already have some. There was a whole raft of tax breaks and avoidance schemes a few years ago, but most of them have been closed off now so I'm led to believe.

👍

[Byyy The Light]

39 minutes ago, Governor Tarkin said:

 

They didn't even bother with them as they had no intention of keeping the properties until such a policy would mature. I don't know the exact ins and outs of it, but I think they'd used equity on existing properties to put down as deposits on the buy-to-lets. They had a few bob to start with, and it's easier to make money when you already have some. There was a whole raft of tax breaks and avoidance schemes a few years ago, but most of them have been closed off now so I'm led to believe.

 

Spot on.  The whole housing market is a nonsense especially when it comes to making money if you already have a wedge.  One thing that really does my box in is people having to pay stupid money for rent but get dingied for a mortgage that's half the price on affordability grounds.

 

How can a bank turn round to someone who's been paying £800 a month in rent for 7 years and knock them back for a £500 a month mortgage??  Meanwhile, folk with a wedge in the bank, borrow money, buy a gaff, rent it out for £800 a month and pocket £50k profit on the sale 5-10 years down the line.  Without spending a penny of their own cash.

 

It's a complete stitch up.

 

 

[Governor Tarkin]

3 minutes ago, Byyy The Light said:

 

One thing that really does my box in is people having to pay stupid money for rent but get dingied for a mortgage that's half the price on affordability grounds.

 

How can a bank turn round to someone who's been paying £800 a month in rent for 7 years and knock them back for a £500 a month mortgage??  Meanwhile, folk with a wedge in the bank, borrow money, buy a gaff, rent it out for £800 a month and pocket £50k profit on the sale 5-10 years down the line.  Without spending a penny of their own cash.

 

It's a complete stitch up.

 

 

 

Aye it's really unfair, but don't get me wrong,If I had a wedge in the bank I'd be planning a spot of property speculation if/when the Brexit/Covid misery kicks in.

You've got to hate the game and not necessarily the players.

Like I said, a lot of the old tax breaks and loopholes have been closed, and the new second property tax introduced a few years ago should act as a deterrent.

The unfortunate fact is though, that the new measures only really affect the average hard working Joe who has saved a bit and wants to get a flat for their kids or invest for their retirement.

The poor can't afford a flat so they lose out. The guy in the middle has been taxed out of investment, so they lose out. The big players can afford to take the hit, so they bash on and continue getting richer.

 

[Byyy The Light]

Just now, Governor Tarkin said:

 

Aye it's really unfair, but don't get me wrong,If I had a wedge in the bank I'd be planning a spot of property speculation if/when the Brexit/Covid misery kicks in.

You've got to hate the game and not necessarily the players.

Like I said, a lot of the old tax breaks and loopholes have been closed, and the new second property tax introduced a few years ago should act as a deterrent.

The unfortunate fact is though, that the new measures only really affect the average hard working Joe who has saved a bit and wants to get a flat for their kids or invest for their retirement.

The poor can't afford a flat so they lose out. The guy in the middle has been taxed out of investment, so they lose out. The big players can afford to take the hit, so they bash on and continue getting richer.

 

 

👍 of course.  Grumble was only against the game. 

 

Banks accepting rent payment history as part of your assessment would be a start.

[Governor Tarkin]

6 minutes ago, Byyy The Light said:

 

Banks accepting rent payment history as part of your assessment would be a start.

 

Absolutely 👍

[Mars plastic]

Went to put a reservation on a Cala flat in Glasgow the other week until they said they couldn't accept it until I had sold mine. Flat wouldn't be ready until Feb 21 so I'd have to sell mine and rent until then. Err, let me think about that, no.

 

 

Edited June 16, 2021 by Mars plastic

[Randy Marsh]

I started looking to buy in Edinburgh about 4 years ago.  Back then there were loads of 1 bedroom flats around EH11 with offers over £110,000.   Same in Leith EH6.  These same types of properties are now looking at offers over £140,000 at least.  That is some increase in such a short time.  Glad I bought my flat when I did because I would be seriously struggling now to get my foot on the ladder. 

[theshed]

When guys at work come in and tell me they have just bought a new house and how much it cost them a month it nearly brings tears to my eyes. Honestly don’t know where people get the money 

 

Thank god I’ve got around two years left on my mortgage 

[Phage]

Second home or third homes+ should be taxed out the whazzoou

[Governor Tarkin]

16 minutes ago, Phage said:

Second home or third homes+ should be taxed out the whazzoou

 

They more or less are.

[Sooperstar]

We must have got lucky. Moved a couple of weeks ago and paid less than 2% over valuation.

 

We've only ever bid for 3 properties. First we bought for valuation 7 years ago, 2nd bid was accepted. 2nd was declined and went to a closing date and we decided not to bother with it. 3rd we bought a couple of weeks back, 2nd bid accepted again.

 

When we were selling we made it clear to viewers that we were willing to take an acceptable offer and not go to a closing date. 1st person that put an offer in we accepted their 2nd bid.

[IronJambo]

4 hours ago, The Real Maroonblood said:

I wouldn’t imagine that today insurance policies would pay a lot to cover the cost when it matures.

No such need for those properly in the game. Your business plan should always have an out. It's standard practice to pay an interest only mortgage and as an out, sell the property towards the end of the mortgage term. Equity is gained from value increases whilst making money from rent on the way. Eg. On a £300k property here it would be sensible to put down £60k and pay around £600pm on the mortgage and rent it out for £1200/1300pm. 

[IronJambo]

1 hour ago, theshed said:

When guys at work come in and tell me they have just bought a new house and how much it cost them a month it nearly brings tears to my eyes. Honestly don’t know where people get the money 

 

Thank god I’ve got around two years left on my mortgage 

The struggle is real. Try putting a kid in nursery at the same time 😭, that costs more than my mortgage.

[theshed]

Just now, weehammy said:

Think how we oldies felt back in the day coming home from work and finding that the interest rate had gone up to 15%!
 

 

I wish it would go up to that now so I could get a return on my savings.

[IronJambo]

3 minutes ago, weehammy said:

Think how we oldies felt back in the day coming home from work and finding that the interest rate had gone up to 15%!
 

 

My heart bleeds. It must've effected my parents (and many others) massively in their right to buy council houses with a mortgage less than the size of a years salary.

 

Edit: my youngest ones nursery costs £1221pm. That's perspective.

Edited June 16, 2021 by IronJambo

[The Real Maroonblood]

6 minutes ago, theshed said:

I wish it would go up to that now so I could get a return on my savings.

Same here.

The interest rates are not worth a sook.

[CJGJ]

If only we had a council able to focus on what is truly important to people like affordable housing instead of their fixation with traffic measures and the middle class cyclist brigade

 

Identify areas of land, get them purchased or ensure some of the private housing really is affordable to people

 

The benefits will vastly outweigh the expenditure

 

PS stop some of this student housing nonsense springing up all over the place as well

Edited June 16, 2021 by CJGJ

[Sharpie]

26 minutes ago, weehammy said:

Think how we oldies felt back in the day coming home from work and finding that the interest rate had gone up to 15%!
 

 

 

That was one of the things I considered when deciding about Canada, it seemed I was just getting back to affordability when the interest rate went up again and back  to my position behind the eight ball.

[Governor Tarkin]

1 hour ago, IronJambo said:

My heart bleeds. It must've effected my parents (and many others) massively in their right to buy council houses with a mortgage less than the size of a years salary.

 

Edit: my youngest ones nursery costs £1221pm. That's perspective.

 

Thats over double the current mortgage on my primary residence. 

 

The Mrs doesn't have a big enough earnering capacity to justify that so it'll be alfernoons in the Braidburn Valley with their Mum, and council nursery for my boys. **** paying that.

Edited June 16, 2021 by Governor Tarkin

[IronJambo]

50 minutes ago, weehammy said:

We live in a time of cheap borrowing and low inflation. That hasn’t always been the case. 

We also live in a time where House prices are mahoosive compared with average earnings. Some of us are also mortgage prisoners on shite rates due to cladding issues.

[Shanks said no]

15 hours ago, weehammy said:

Think how we oldies felt back in the day coming home from work and finding that the interest rate had gone up to 15%!
 

 

Remember that day as if it was yesterday. Partner came home and asked what it meant? Basically we were absolutely f’ed, I was by that point taking home less than my mortgage payment, without taking into account all the other bills. Credit cards were getting maxed out and we didn’t have enough money for food. We would regularly visit in-laws in the hope that they would feed us. 
 

Thatchers Britain. 

[Darren]

We ended up paying 7.5% over home report value for a house in East Renfrewshire, which is something of a minor miracle at the moment.

Came 10th out of 13 for a doer upper in Strathbungo, Glasgow, a couple of weeks ago. We'd offered just under 10% over the home report value. It's mental.

[Pagey]

I managed to get a 3 bed flat in Craigleith area under valuation in March for my sons. It had been on the market a while and two other flats in the same area for sale at the same time helped us I think. Biggest challenge coming out of lockdown has been fitting a new kitchen and bathroom as supply chain (COVID and Brexit) has worsened and labour availability is scarcer so the refurb budget has eaten more into my purchase gain than I'd anticipated. We'll still be under valuation but not by much now.

 

And the property market over here in NC has gone bonkers. House stock is low so prices are rocketing in good school areas. A fairly average $400/430k house will go for $500-540k at the moment. Nuts everywhere I think.

 

 

Edited June 17, 2021 by Pagey
spelling

[TheOak88]

Read an article not that long ago which compared UK house prices with UK average salary.

 

Since 1993 if UK average salary had grown at the same speed as house prices, the average salary in the UK today would be £55K. In reality it is £31K. 

[Tommy Brown]

£31K seems realistic, where does £55k come from.

 

I earn about £36.5k and feel well enough paid, but always noticed its less than average on these types of report.

[Carl Weathers]

Thanks for all the feedback. It's crazy times indeed. 

 

We are lucky that we have a nice flat with an affordable mortgage. My wife is on maternity leave, so not bringing much money in at the moment. It probably makes sense to wait until next year now (not that I feel we have much choice anyway). 

 

We'd like to have one more child and by that point I think we might be forced to look out of town to get a bigger place. Will be very interested in seeing how the market goes over the next year or so.

 

[Governor Tarkin]

8 hours ago, Tommy Brown said:

£31K seems realistic, where does £55k come from.

 

I earn about £36.5k and feel well enough paid, but always noticed its less than average on these types of report.

 

Is that top line pay or take home pay, though? I'm never sure which figure they use when producing their stat's.

[Tommy Brown]

39 minutes ago, Governor Tarkin said:

 

Is that top line pay or take home pay, though? I'm never sure which figure they use when producing their stat's.

Ive just assumed top line.

[Dazo]

10 hours ago, Tommy Brown said:

£31K seems realistic, where does £55k come from.

 

I earn about £36.5k and feel well enough paid, but always noticed its less than average on these types of report.

I’m guessing London skews the figures to be higher than the rest of the uk. 

[John Findlay]

The good old days.

First property. 1 bedroom flat, Othello Drive, Waterlooville, Hants.

1983, cost £21,000.

10% deposit was required.

Second Property. 2 bedroom end of terrace, with integral garage, Lechlade Gardens, Fareham, Hants.

1985, cost £28,000. 10% deposit required.

Third property. 3 bedroom mid-terrace with garage in a block, Galaxie Road, Cowplain, Hants 1988.

Cost £61,500. 10% deposit required.

Fourth property. 3 bedroom semi-detached, Roselands, Lovedean, Hants 1995. Cost £59,999(was on the market for £67,995). 10% deposit required.

Due to getting divorced, the above house was sold in 2004, for £210,000. 

I have not owned property since.

Edited June 18, 2021 by John Findlay

[CostaJambo]

15 hours ago, Governor Tarkin said:

 

Is that top line pay or take home pay, though? I'm never sure which figure they use when producing their stat's.

That's his gross you muppet.

[Governor Tarkin]

38 minutes ago, CostaJambo said:

That's his gross you muppet.

 

Ken what's gross? 

Yer ma, ya muppet.

[Savage Vince]

On 16/06/2021 at 20:35, IronJambo said:

My heart bleeds. It must've effected my parents (and many others) massively in their right to buy council houses with a mortgage less than the size of a years salary.

 

Edit: my youngest ones nursery costs £1221pm. That's perspective.

 

I went part time when my wee one was one. The other half was able to work her hours around mine a tad and the family helped out a bit. The bairn only needed to go in to nursery a couple of afternoons a week which the SG subsidise very generously once they're 3, soon to be 2. I paid the mortgage off af the same time. 🙂

[Governor Tarkin]

1 hour ago, Savage Vince said:

 

I went part time when my wee one was one. The other half was able to work her hours around mine a tad and the family helped out a bit. The bairn only needed to go in to nursery a couple of afternoons a week which the SG subsidise very generously once they're 3, soon to be 2. I paid the mortgage off af the same time. 🙂

 

This is how most of us do it, Vince. 

Iron is just making sure that we know he's minted.

[Savage Vince]

11 minutes ago, Governor Tarkin said:

 

This is how most of us do it, Vince. 

Iron is just making sure that we know he's minted.

 

😀

 

Probably has a round-the-clock Nanny dropping the kids off at that expensive nursery of his. 😊

[IronJambo]

1 hour ago, Governor Tarkin said:

 

This is how most of us do it, Vince. 

Iron is just making sure that we know he's minted.

I'm not minted mate 😂. I'd maybe not worry about bills if I didn't have nursery and breakfast club/after school club to worry about. My wage doesn't do a lot more than cover them

[IronJambo]

1 hour ago, Savage Vince said:

 

😀

 

Probably has a round-the-clock Nanny dropping the kids off at that expensive nursery of his. 😊

Hahaha just seen this one. He actually goes to the cheapest nursery in town. 

 

Edit: it's impossible to have family help out when they're over 400 miles away as well. 

Edited June 19, 2021 by IronJambo

[Savage Vince]

19 minutes ago, IronJambo said:

Hahaha just seen this one. He actually goes to the cheapest nursery in town. 

 

Edit: it's impossible to have family help out when they're over 400 miles away as well. 

 

We were lucky, I know that. Childcare is extortionate, the wee buggers are expensive. 

[TheOak88]

On 17/06/2021 at 22:47, Tommy Brown said:

£31K seems realistic, where does £55k come from.

 

I earn about £36.5k and feel well enough paid, but always noticed its less than average on these types of report.

 

Not sure you understood my post. 

 

Over the past 28 years, if the UK average salary had grown at the same speed as UK house prices, then the UK average salary would be £55K today. As we know it is far lower than that. 

 

The point was more about the ridiculous inflation of house prices in the past 25-30 years. In a functioning property market, house prices should not grow at a pace so different to average salaries, otherwise a situation will occur whereby it is very difficult if not impossible for significant sections of society to ever get on the housing ladder. 

 

As a side not to answer your other question, average salary in Edinburgh for a full time worker is £29K. 

[Alex]

7 hours ago, TheOak88 said:

As a side not to answer your other question, average salary in Edinburgh for a full time worker is £29K. 

I don't suppose your stats tell you the median?

[TheOak88]

14 hours ago, Alex said:

I don't suppose your stats tell you the median?

 

That is the median. 

[Alex]

13 hours ago, TheOak88 said:

 

That is the median. 

There's probably better ways to explain it, but it's  the middle number if you sort them low to high. Say you had five people, one earns £10,000, one £20,000 two £30,000 and one £1000000. The median would be £30,000 and the average would be £218,000.

[TheOak88]

14 hours ago, Alex said:

There's probably better ways to explain it, but it's  the middle number if you sort them low to high. Say you had five people, one earns £10,000, one £20,000 two £30,000 and one £1000000. The median would be £30,000 and the average would be £218,000.

 

Think you may have misread my post. I said “That is the median” - as in, the £29K figure I posted is the median average salary. 

 

The other average you have referred to is the mean average (add all the values up and divide them by the number of individual values). 

 

 

[Alex]

.

Edited June 21, 2021 by Alex