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Original poster

Never going to buy a house

172 replies

Juiceey · 26/07/2020 18:55

Just that, really. I feel really sad about it.

Me and OH are in our mid thirties and forties and know it's realistically never going to happen for us. We live in Herts and pay a whopping £1500 a month for rent (for a 2 bed house >not envy) and simply can't afford to save for a deposit as well. On top of that we're in an expensive town anyway, a 2 bed house to buy is at least 400k.

It's sad, considering we both earn good money, to know we're in this position. I'm trying to stay positive about it- we're SUPER lucky after years of bad luck (moving every year thanks to landlords selling etc) to be in a secure lovely let- our house is owned by a charity, they will never sell or evict us, and is about 10 times nicer than anything we could ever dream of buying. It's just small but at least we can decorate as we wish and feel really happy here.

(We really can't move away somewhere cheaper. DC are at school, we live smack in the middle of both of our workplaces, I have a grandparent who relies on me etc, not to mention endless friends and family. We couldn't/wouldn't want to live away from our people)

So how do I get over the sadness?

OP posts:

Oliversmumsarmy · 30/07/2020 01:22

This is similar to a recent thread where a poster thought they could never buy a house.
It turned out she could buy a house but not in the area she wanted Central Oxford.
Where she and her dh worked, where they had friends etc They wouldn’t even consider moving 1 train stop away.
FWIW I used to work in Oxford, so did Dp.

No one we knew lived in Central Oxford as it was too expensive for what you could afford even back in the 80s.

People lived in areas as far away as Banbury or Northants etc.

I think Juiceey is very similar. Looking at the beauty of the surroundings and not looking at the reality of their situation.

BitOfFun · 30/07/2020 01:37

@Oliversmumsarmy

There definitely is a generation that own their own homes more than the young do just now

Dd at 18 bought her first place for cash. 22 year old carpet fitter who came round recently had his own flat and was celebrating that the mortgage rates had gone down.
A few of dds friends have bought with a mortgage.
So it is possible.
However none of them went to uni. Some started work at 16 and all had started work by 18 at the latest and they were very flexible in where they bought.

They bought in quite grotty areas but it cost them much less than renting.

See, i don't understand this. How can an 18 year old possibly buy even a shithole for cash? And surely properties that cheap are either unmortgageable, or won't really ever appreciate in value because they are in areas of deprivation with no jobs or amenities?

It's technically possible to buy a house for around £50K not a million miles away from where I live, but it would never be a shrewd financial decision.

gonshite · 30/07/2020 07:35

I grew up in London. Loads of people who had homes were in normal jobs.

gonshite · 30/07/2020 07:38

I don't understand either. Do they live there or is it a buy to let?

Oliversmumsarmy · 30/07/2020 08:39

I don’t think it is that hard. The 18 year old had been working in a regular Saturday job since they were 14 and doing other evening and weekend jobs as well. Plus she had savings from Christmas and Birthday presents and had been in employment for a couple of years.

I don’t think it is hard to understand.

Of course the property was unmortgageable. That is why she bought for cash. For a 4 figure sum.
She might not make a lot on the place but there is profit there.
She is looking to rent it out and save for the next one.

Even in areas of deprivation people need to live somewhere.

CakeMiddleton · 30/07/2020 08:55

How much did she pay for it?

gingerbeerandlemonade · 30/07/2020 09:20

What ages are your children? We are renting at the moment but relocated whilst renting to an area we know we will be able to afford. It means we are now paying cheaper rent for a four bed house than a two bed flat and the kids are settled in the area we will buy. Is this an option?

gingerbeerandlemonade · 30/07/2020 09:25

Sorry- I've just read that you definitely can't move. I guess just keep saving- my parents got a mortgage in their mid-forties so it is possible to do it later on.

gonshite · 30/07/2020 09:44

That is why she bought for cash. For a 4 figure sum. She might not make a lot on the place but there is profit there.She is looking to rent it out and save for the next one

That makes much more sense now. it's going to be a rental property.

Maybe all young people who live at home should buy cheap property away from home to rent out. Not sure it will help the problem with the housing market though.

Iwalkinmyclothing · 30/07/2020 10:30

"Move to somewhere you can afford to buy" is often given as advice; if you cannot afford to buy anywhere within 2 hours travelling time of the job you need to keep to actually pay the mortgage and bills and so on, such advice is as useful as "have rich parents".

Xenia · 30/07/2020 12:22

That is what a lot of teachers used to do. When we moved to London in the 80s they could not get teachers even here in outer London due to very high house prices (the London weighting extra money was derisory) and no rental property so we started off in a school flat (I slept on the floor when pregnant). We did buy before the baby came but a lot of teachers would buy somewhere in the country hundreds of miles away for their retirement as they could not afford to buy near work. it is a good plan if you cannot afford to buy where you work.

Totickleamockingbird · 30/07/2020 12:31

@Bearnecessity

Why not buy some land and wack up a pre-made timber framed house.There is a Scottish company that makes them they are supposed to last 200 years plus..land, house assembly could cost less than £150,000.

@Bearnecessity How can you do that in the UK? Is that legal?

user327253 · 30/07/2020 13:26

What about buying in a cheaper area (North East I think so cheapest) as a buy to let until you have enough equity to buy something closer?

JessStu · 30/07/2020 14:49

*Have you looked at flats / apartments, OP?

I don't know whereabouts in Herts you are, but on Rightmove there are lots of 2 bed flats under £300k (and quite a few at £250k, some even £200k) in Watford, Hatfield, Welwyn Garden City, Cheshunt and surrounds.

Perhaps if you do want to get on the housing ladder as an ambition you could move to a cheaper rental for a year whilst saving like mad for a deposit on an apartment to buy? With the money then saved on renting going on a mortgage, you could then move up the housing ladder into a house a few years later if you wanted?*

Be very careful of fleecehold OP.

Oliversmumsarmy · 30/07/2020 22:02

Move to somewhere you can afford to buy is often given as advice; if you cannot afford to buy anywhere within 2 hours travelling time of the job you need to keep to actually pay the mortgage and bills and so on, such advice is as useful as have rich parents*

But if Juiceey lives in the general area I think they do then moving to a cheaper area would be nearer London or if they go further out to certain towns they could end up with a quicker commute.

notheragain4 · 30/07/2020 22:11

@JessStu isn't "fleecehold" a term only appropriate for houses that are leasehold? (Which is scandalous) The person you quoted was discussing flats, and flats are largely acceptably leasehold due to the nature of shared ceilings/floors? I could be wrong but that was what I thought.

BMW6 · 30/07/2020 22:19

This is mad! I own a 2 bed terraced house within a mile of Southampton city centre, trains to London (1 hour 20 mins to Waterloo) incredibly frequent, buses from my house to train station every 10 mins (journey time 10 mins).

House 3 doors away from me up for sale at 180k.........

JessStu · 31/07/2020 19:35

@notheragain4

Yes flats are often leasehold. However a lot of new build ones are fleecehold. Lease only 99 years, service charges and ground rent increasing exponentially each year. You should look into it.

notheragain4 · 31/07/2020 19:54

@JessStu ah I'm with you, thank you for explaining, I hadn't heard about that. I remember the scandal around some new build houses being leasehold, and I've heard garages can be a problem too if separate to the main plot. But hadn't heard about the flats, appalling.

Rayn · 31/07/2020 20:14

We are the same. However we have decided that when the kids are grown up we will be in a position to save and will buy a little flat. We invest heavily into our pensions.

Maoams · 31/07/2020 21:20

I watched an episode of Location Location Location years ago where this issue was addressed. The suggestion if you can't afford to buy in your current location was to buy a property in a much cheaper area and rent it out. It would get you on the property ladder, would possibly earn equity and would be somewhere for you to potentially retire to, if it's an area you like.

Sorry if this has already been suggested upthread but thought I'd just put the suggestion out there.

JessStu · 01/08/2020 09:26

@notheragain4

The developers often recommend a conveyancer for buyers to use. The recommended solicitor will usually gloss over the fleecehold elements. If you are buying a new build or flat it's best to use a conveyancer who has been independently recommended, not one recommended by the estate agent or developer.

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