Will I ever get on the property ladder?

[Redorangeandblue]

FTB and I've been trying to get on the property ladder for the last 16 months. The first property (flat) I put an offer on sadly fell through 3 months into the process due to legal problems (absent freeholder, we didn't find out until months later and mortgage lender wasn't happy to lend on that property) so I had to let it go. The flat was only 90k which was affordable as I only had a 5% deposit at that time and buying on my own but in hindsight it was for the best and my solicitor saved me from buying a money pit. I then changed jobs and wanted to wait until I passed my probationary period to make sure I was safe and was going to stay in the job long term. Not long after the market went crazy, properties selling after only being on the market for a couple of days (just like everywhere else I know). No way was I ever going to be able to afford somewhere with such a small deposit so my parents gifted me a large deposit (early inheritance).

I now have 60k in savings including my own to go towards a property, although I'm hoping I won't have to spend all of it as I've always tried to have some money as a buffer incase of job loss etc. The market is dire, hardly anything coming on except for large 4/5 bed houses. Smaller FTB type houses are still hugely overpriced and of course the mortgage rates have increased. I've done some calculations and it is more expensive than my rent now. I've rented for the last 6 years and I just can't see an end to all of this. I know I'm incredibly lucky to be in the position that I'm in, but I don't want to overpay for a property and end up in negative equity as I don't know if I will be there long term (I might meet someone and we could buy a house together or move away etc). Just feel like I'm throwing money down the drain renting as well. I know prices will come down eventually (can already see the market changing) but it's so shit having to wait and having no idea what will happen. Anyone else in the same boat?

Also frustrating to see houses so overpriced yet they need around 20-30k worth of work doing to them!

Not in the same boat but I honestly don't think you'll have to wait much longer for prices to go down as they already have started to. It's no longer a seller's market. Also surely as you're renting and not in a chain that ups your chances of having an offer accepted when you do find somewhere you love.

It's certainly frustrating for you that there isn't much choice where you are though. Where I live there are more FTB properties. Hardly any 4/5 beds! Hopefully you won't have to wait too long.

Might also be worth considering having a lodger in your new pad as well, you would really hold all the cards in that situation, for myself I found it different from being in a shared house.

How much can you borrow?
Add on your deposit minus 10k for fees and any urgent work that needs doing.
Add the two figures together, is that enough for a one or two bedroom place in your area?
If so buy one, don’t think it’s overpriced or about it going into negative equity. Enjoy your new home, the security of being on the housing ladder and not having to rent anymore.

Firstly I would do everything in your power to buy a house not a flat and secondly I would widen your search. I had to buy an hour away from work I’m actually nearly 45 minutes away from where I want to live but it’s a stepping stone and it will do for now. Six months after moving in I’ve actually got 100% remote job so I’ve only really had to put up with the commute twice a week for 10 months.

Wait a few months and buy a house for the same money. Prices are really going to drop soon as there will be far more sellers than buyers. You might even get a cheap repo if it is like the 90's.

You will definitely get onto the ladder dear. I understand your frustration, I was at the same stage of thinking as you, and I eventually found something. Hang in there x

I'm in exactly the same boat.

I've also made 4 offers on overpriced properties which have been rejected. Vendors sticking it out for asking price on tiny properties that need new roof, heating systems, wiring, kitchen etc.

One house has been on the market since Jan and has been reduced by 50k since then. It's still overpriced. It has no central heating, odd layout, bathroom next to kitchen, no parking.

I've also got a local development reducing prices of their 3 bed new builds, offering to pay 6 months of mortgage payments and throwing thousands of pounds worth of incentives, in the past two weeks.

One estate agent who showed me around a property last week told me that the media were scaremongering. I told him that my mortgage advisor confirmed that interest rates went up from 3.5% to over 6% in the space of a week. The facts, not scaremongering. But I feel that gives some insight into what they're telling vendors. So they're misleading vendors into thinking that these prices are still achievable.

Sorry, venting there but I've also been renting for years and desperate to get on ladder and it's been a nightmare.

Agents not even acknowledging my offers or coming back to confirm vendor response.

Nothing decent for FTB. Very frustrating.

I completely understand where you're coming from - that's really hard. Having rented in the past it always feels like you're just throwing money away. If you're interested in it, and want to stop renting, my friends decided to all buy a house together using the software service MaryR. They said that it basically helped them to buy together but own individually (they all contributed uneven amounts to the new house etc). It helped them to track their individual shares and they have the option to sell off their portion of the house when the time comes. From the looks of their website, they don't only cater to friends but to unmarried couples etc. If it helps, here it is: www.maryr.co/

Good luck!