CraigSN1 Posted July 13, 2008 Share Posted July 13, 2008 While i realize that alot of people will be negatively effected by this i suspect i shall work it rather good for myself. Im 20 years old earning ?22,000 although once I've completed a two year management program it goes up to around ?26,000. I'm currently renting a property at 600 pcm and i reckon when i'am in a position to buy that i may be able to do so at an affordable rate. Far too many people spent a disproportionate amount of they're salary on a mortage. Now as long as i save up a decent deposit and buy at the right time i could stand to make a decent profit and a nice home to boot. Or am i seeing things from a far to positive angle? Also any advise/hints and tips welcome. Link to comment Share on other sites More sharing options...
Lochend Brazil Posted July 13, 2008 Share Posted July 13, 2008 While i realize that alot of people will be negatively effected by this i suspect i shall work it rather good for myself. Im 20 years old earning ?22,000 although once I've completed a two year management program it goes up to around ?26,000. I'm currently renting a property at 600 pcm and i reckon when i'am in a position to buy that i may be able to do so at an affordable rate. Far too many people spent a disproportionate amount of they're salary on a mortage. Now as long as i save up a decent deposit and buy at the right time i could stand to make a decent profit and a nice home to boot. Or am i seeing things from a far to positive angle? Also any advise/hints and tips welcome. Enquire about the Lift Project prior to buying a property. The Lift Project is funded by the government etc and that they give first time home owners a percentage of what the property maybe valued at. Say 100g for a flat if you can only afford 80%, then they will buy the other 20% etc. Just a suggestion as chucking all your eggs in the one basket can be really expensive and that you will be able to free up some beer money this way. Link to comment Share on other sites More sharing options...
BadVlad Posted July 13, 2008 Share Posted July 13, 2008 While i realize that alot of people will be negatively effected by this i suspect i shall work it rather good for myself. Im 20 years old earning ?22,000 although once I've completed a two year management program it goes up to around ?26,000. I'm currently renting a property at 600 pcm and i reckon when i'am in a position to buy that i may be able to do so at an affordable rate. Far too many people spent a disproportionate amount of they're salary on a mortage. Now as long as i save up a decent deposit and buy at the right time i could stand to make a decent profit and a nice home to boot. Or am i seeing things from a far to positive angle? Also any advise/hints and tips welcome. If a recession hits...will you still have your job? Link to comment Share on other sites More sharing options...
CraigSN1 Posted July 13, 2008 Author Share Posted July 13, 2008 If a recession hits...will you still have your job? Considering its in sales and i have been and i'm one of the top salesmen in a labour force of 1,500 id hope so - for a huge company as as well so i'm not too concerned. Although i realize nobody is indispensable i'm not too worried. Link to comment Share on other sites More sharing options...
Therapist Posted July 13, 2008 Share Posted July 13, 2008 While i realize that alot of people will be negatively effected by this i suspect i shall work it rather good for myself. Im 20 years old earning ?22,000 although once I've completed a two year management program it goes up to around ?26,000. I'm currently renting a property at 600 pcm and i reckon when i'am in a position to buy that i may be able to do so at an affordable rate. Far too many people spent a disproportionate amount of they're salary on a mortage. Now as long as i save up a decent deposit and buy at the right time i could stand to make a decent profit and a nice home to boot. Or am i seeing things from a far to positive angle? Also any advise/hints and tips welcome. So long as your job is safe, then you are in a very good position. As am I, as my mortgage on Therapist Towers in less than 10% of its value and I am sitting on a monty of cash. Good luck in your profiteering. Link to comment Share on other sites More sharing options...
coppercrutch Posted July 13, 2008 Share Posted July 13, 2008 Considering its in sales and i have been and i'm one of the top salesmen in a labour force of 1,500 id hope so - for a huge company as as well so i'm not too concerned. Although i realize nobody is indispensable i'm not too worried. And they pay you ?22,000.............. Something does not compute... As for your original post I do agree this 'credit crunch' will be a good thing in the long term. Teach people that they need to save and work for things rather than just expect to have it handed to them on a plate. Of course this is assuming the entire World's financial system does not collapse. Which is a possibility. A scary one at that... Link to comment Share on other sites More sharing options...
coppercrutch Posted July 13, 2008 Share Posted July 13, 2008 So long as your job is safe, then you are in a very good position. As am I, as my mortgage on Therapist Towers in less than 10% of its value and I am sitting on a monty of cash. Good luck in your profiteering. And it all becomes clear....... See in those things you call Casinos ? You don't actually get any profit until you cash in your chips. Same goes for something else... Paper profit is well...............paper profit...... Link to comment Share on other sites More sharing options...
cosanostra Posted July 13, 2008 Share Posted July 13, 2008 As an NHS employee with a mortgage that stands about 50% of my pad's value, am I likely to be affected? I'm not an expert on this stuff by any means. Link to comment Share on other sites More sharing options...
CraigSN1 Posted July 13, 2008 Author Share Posted July 13, 2008 And they pay you ?22,000.............. Something does not compute... As for your original post I do agree this 'credit crunch' will be a good thing in the long term. Teach people that they need to save and work for things rather than just expect to have it handed to them on a plate. Of course this is assuming the entire World's financial system does not collapse. Which is a possibility. A scary one at that... As with most things in sales, the more you sell the more you earn. The figure quoted is my salary. Does not include any sales bonus. However i felt there was no point including bonus's within my OP as im sure mortgage lenders wouldn't even consider those? Link to comment Share on other sites More sharing options...
coppercrutch Posted July 13, 2008 Share Posted July 13, 2008 As an NHS employee with a mortgage that stands about 50% of my pad's value, am I likely to be affected? I'm not an expert on this stuff by any means. Who knows, having a job that is necessary no matter how the economy is doing has to be a good start. However the World mortgage market is currently imploding, and that is not an exaggeration. How that will end up is a rather complex issue. Bad anyway. Don't worry though, someone will always be interested in your debt. They can make money off it !! The whole financial system is based on debt. That is the whole point. *******s. Link to comment Share on other sites More sharing options...
cosanostra Posted July 13, 2008 Share Posted July 13, 2008 As with most things in sales, the more you sell the more you earn. The figure quoted is my salary. Does not include any sales bonus. However i felt there was no point including bonus's within my OP as im sure mortgage lenders wouldn't even consider those? Guaranteed bonus and projected income can be taken into account on mortgage applications I think. You have to provide decent evidence though. Link to comment Share on other sites More sharing options...
cosanostra Posted July 13, 2008 Share Posted July 13, 2008 Who knows, having a job that is necessary no matter how the economy is doing has to be a good start. However the World mortgage market is currently imploding, and that is not an exaggeration. How that will end up is a rather complex issue. Bad anyway. Don't worry though, someone will always be interested in your debt. They can make money off it !! The whole financial system is based on debt. That is the whole point. *******s. I think i'll buy a bigger place when i graduate next summer. In your opinion, are property prices in Glasgow West End likely to change much in that time? Link to comment Share on other sites More sharing options...
coppercrutch Posted July 13, 2008 Share Posted July 13, 2008 As with most things in sales, the more you sell the more you earn. The figure quoted is my salary. Does not include any sales bonus. However i felt there was no point including bonus's within my OP as im sure mortgage lenders wouldn't even consider those? I were just having a larf !! Up until a few years ago I imagine most lenders would not have included these as they are not guaranteed. Maybe a percentage or something, not sure. I imagine just now they are a good bit tighter. Anyway at the age of 20 why would you want to saddle yourself with debt? Enjoy yourself. Debt will always be available. Being young will not. Link to comment Share on other sites More sharing options...
coppercrutch Posted July 13, 2008 Share Posted July 13, 2008 I think i'll buy a bigger place when i graduate next summer. In your opinion, are property prices in Glasgow West End likely to change much in that time? I have no idea about Glasgow West end. However I think most places will see serious falls in price in the next few years. Of course if you are wanting to move up to somewhere larger this is a good thing as the difference in price will be smaller. For most people falling prices are a great thing in the long term. Link to comment Share on other sites More sharing options...
CraigSN1 Posted July 13, 2008 Author Share Posted July 13, 2008 I were just having a larf !! Up until a few years ago I imagine most lenders would not have included these as they are not guaranteed. Maybe a percentage or something, not sure. I imagine just now they are a good bit tighter. Anyway at the age of 20 why would you want to saddle yourself with debt? Enjoy yourself. Debt will always be available. Being young will not. Have done the whole traveling thing, the sleeping around - the getting totally pished every weekend. I'm currently paying 600 a month with no return what so ever which i hate. If i buy a home, in a nice area then theres practically no way i can lose a severe amount of money. Buy a house and you get a house. Buy a home and you get a proper sustainable asset that will always be in high demand. Unlike other property's Link to comment Share on other sites More sharing options...
coppercrutch Posted July 13, 2008 Share Posted July 13, 2008 Have done the whole traveling thing, the sleeping around - the getting totally pished every weekend. I'm currently paying 600 a month with no return what so ever which i hate. If i buy a home, in a nice area then theres practically no way i can lose a severe amount of money. Buy a house and you get a house. Buy a home and you get a proper sustainable asset that will always be in high demand. Unlike other property's Indeed. But don't forget that if you get a mortgage you will be paying the bank a massive amount in interest. If you simply want to buy a home then of course getting a mortgage can make perfect sense. However, I would personally wait until they are less expensive than they are today. PS. Ask people in California and Florida what they think of "a proper sustainable asset that will always be in high demand". Their views may surprise you... Link to comment Share on other sites More sharing options...
CraigSN1 Posted July 13, 2008 Author Share Posted July 13, 2008 Indeed. But don't forget that if you get a mortgage you will be paying the bank a massive amount in interest. If you simply want to buy a home then of course getting a mortgage can make perfect sense. However, I would personally wait until they are less expensive than they are today. PS. Ask people in California and Florida what they think of "a proper sustainable asset that will always be in high demand". Their views may surprise you... Obviously i realize at the moment buying is simply stupid. I was thinking maybe 4 years down the line - with a decent deposit. Need i say more? Link to comment Share on other sites More sharing options...
coppercrutch Posted July 13, 2008 Share Posted July 13, 2008 Obviously i realize at the moment buying is simply stupid. I was thinking maybe 4 years down the line - with a decent deposit. Need i say more? You seem to have a sensible outlook. Willing to work hard to pay for part of something up front. If only the rest of the population did the same the 'credit crunch' would be only a minor issue. Link to comment Share on other sites More sharing options...
Wattie Posted July 13, 2008 Share Posted July 13, 2008 "With a decent deposit". That's the key phrase Craig. Right now, the mortgage business has hit rock bottom because nobody has any capital to put down a deposit. I do have money that will go on a deposit, but like coppercrutch, I'm holding back for a year or two. I currently rent a proprty for ?550 pcm in Dalry that would cost ?160-180k to buy...making renting a relative bargain (I stress the relative part!). I see the credit crunch as a good thing. Only last week I saw for the very first time on TV, someone stating that the credit crunch is not all bad. Amidst the media doom and gloom, most seem to have missed that some people may benefit - and if you're smart about it you might do well out of the credit crunch. So save up, remain patient, and make the kill at the right time. Link to comment Share on other sites More sharing options...
BadVlad Posted July 13, 2008 Share Posted July 13, 2008 Considering its in sales and i have been and i'm one of the top salesmen in a labour force of 1,500 id hope so - for a huge company as as well so i'm not too concerned. Although i realize nobody is indispensable i'm not too worried. Depends on the type of product you are selling. Link to comment Share on other sites More sharing options...
doctor jambo Posted July 14, 2008 Share Posted July 14, 2008 earning 22k and trying to buy anything at the moment will be next to impossible as they will only lend you an income multipe 3x22k= a hole in the wall really What can you get for ?60-70 k? This is where the cunch does not help you. They will only loan what they SHOULD- ie not nearly enough for you to buy somewhere, and even with property falls of 20% that still leaves property beyond your reach Link to comment Share on other sites More sharing options...
CraigSN1 Posted July 14, 2008 Author Share Posted July 14, 2008 earning 22k and trying to buy anything at the moment will be next to impossible as they will only lend you an income multipe3x22k= a hole in the wall really What can you get for ?60-70 k? This is where the cunch does not help you. They will only loan what they SHOULD- ie not nearly enough for you to buy somewhere, and even with property falls of 20% that still leaves property beyond your reach Of course, however my other half is also on around 20k per annum. You then factor in a deposit and the fact i only really need a one bedroom then its not as bad as you make it out to be. Especially considering some experts are estimating a fall of around 40%. Link to comment Share on other sites More sharing options...
Coco Posted July 14, 2008 Share Posted July 14, 2008 As an NHS employee with a mortgage that stands about 50% of my pad's value, am I likely to be affected? I'm not an expert on this stuff by any means. Several issues here. Obviously it is less likely that the NHS will shed jobs as quickly as the private sector. But the public sector finances are in the worst shape for a very long time, and there will have to be cut backs at some point in the medium term. So wage negotiations are going to be very tight - unless you have a skills which are in short supply. Mortgage rates on average are going up as fixed term deals end. There have been some cuts in interest rates by the Bank of England, but they have been more than offset by the rising 'risk' of lending on houses. Fewer mortgages are available and the cost of them is rising. This will continue I think. So the rate on your mortgage might go up in future, depending on how long you have a fixed deal for. The 50% loan to value of your place means that you are likely to avoid a negative equity situation (owing more than the place is 'worth'). Few are suggesting a 50% fall in prices. That should mean that if you sell the property you will not have extra debt hanging over you. The chances of rises in house prices in the next few years in the UK is remote in my opinion though. If house prices fall and you do move however, a record of paying back your mortgage steadily will help you with credit ratings etc. And a house you might move to could have fallen in price by more than your current one. But the key thing is that nobody has all the answers on this! Link to comment Share on other sites More sharing options...
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