Moving out

Chimaera

20/11/2002 at 22:28

Having a discussion with my mate last night about leaving home as we both live with our parents. Now being a few days shy of 19 we don't know much about the housing market and what I do know is prolly wrong. The main thing I want to know is:

House prices are fappin hugely expensive yet mortgages are dirt cheap. However if house prices drop, mortgage rates will rise and although the mortgage is costing more, as the house was cheap to start off with, does it really make a difference?

Don't they both work out the same in the end?

It's time to kick ass and chew bubble gum... ...And I'm all outta gum!!!

Defy convention. Be conventional

BN77

YU#3

Mr. Dazzle

20/11/2002 at 22:29

Not exactly my area of expertise, but wouldn't it make more sense to rent at your age?

The Man in Pink
T'was Mr. Dazzle, he IS the Mr. T of us lot. - Irn Bru Freak

qwerty

20/11/2002 at 22:31

A2Y wrote

wouldn't it make more sense to rent at your age?

*snigger*

Mr. Dazzle

20/11/2002 at 22:31

How did I guess someone would say that?

The Man in Pink
T'was Mr. Dazzle, he IS the Mr. T of us lot. - Irn Bru Freak

trogladyte

20/11/2002 at 22:32

My Brian hurts.

Say hello Brian. "Hello Brian".

I see good people

The ORIGINAL Southern Death Racer
Great Boobie of the Shafted Path
TIT#205/C
RADIO-TROG

prilla girl

20/11/2002 at 22:33

At 18, do you really want to commit yourself to that yet. Somewhere down the line you could f**k right up with your credit rating etc etc and basically wont be able to afford licences, phones, food, bills, mortage etc.

At 18, try and get yourself a small bank loan to put down a deposit on a flat or something and sit down and work out realistically what you will be able to afford. If a few months down the line, you are struggling to afford to pay everything, you are able to move out and get your deposit back in order to pay off your remaining loan so you're out if debt and in the clear.

My advise is work out if you can afford to rent, dont commit yourself to buying a home yet.

HTH

Life is not measured by the number of breaths we take, but by the moments that take our breath away

Funkette #1 (By order of ABF)

& Funkette #18 cos i is special

VD Pervert #18

2ST#125
prilla_girl@hotmail.com - msn

trogladyte

20/11/2002 at 22:38

Why dont you just get a tent and set it up in the back garden. You can take bedding, food, and canles out there with you. And if it gets too cold or rains you can go back indoors.

That should give you the taste of independence you're looking for.

I see good people

The ORIGINAL Southern Death Racer
Great Boobie of the Shafted Path
TIT#205/C
RADIO-TROG

Mr. Dazzle

20/11/2002 at 22:40

Or go to Uni. Kind of a halfway house, living alone but with some stuff done for you. Do it all yourself (well most of it) in the second year.

Well, I like it.

The Man in Pink
T'was Mr. Dazzle, he IS the Mr. T of us lot. - Irn Bru Freak

Chimaera

20/11/2002 at 22:42

I'm not thinking of buying yet
I know I can't afford to even rent a room let alone buy a house.

I hate living at home and thats why we were talking about it but it makes better financial sense at the mo @ £60 a month (when I remember) B4 u say lucky bastard bear in mind I only earn 400 a month.

I see renting as throwing money away, you live in a house paying 400 odd a month and when it's time to buy, all the money that could have gone into a deposit is now in someone elses pocket.

Or am I missing something.

It's time to kick ass and chew bubble gum... ...And I'm all outta gum!!!

Defy convention. Be conventional

BN77

YU#3

Mr. Dazzle

20/11/2002 at 22:45

Your missing something.

I've no experience of this, but as far as I can see...

Buying a house is a massive commitment, and it's not worth doing at your age. In all likelyhood you'll not be in the house you buy for long (relatively speaking), so making that kind of commitment is a waste. Makes more sense to rent, where you not so 'tied down'.

The Man in Pink
T'was Mr. Dazzle, he IS the Mr. T of us lot. - Irn Bru Freak

qwerty

20/11/2002 at 22:51

A2Y wrote

Makes more sense to rent, where you not so 'tied down'.

*snigger*

Mr. Dazzle

20/11/2002 at 22:52

You find something funny Mr. Soap? Prehaps you'd like to share it with the rest of the class?

The Man in Pink
T'was Mr. Dazzle, he IS the Mr. T of us lot. - Irn Bru Freak

qwerty

20/11/2002 at 23:00

A2Y wrote

You find something funny Mr. Soap? Prehaps you'd like to share it with the rest of the class?

Sorry, I'll sit over here.

blue owl

21/11/2002 at 09:04

dont even think about leaving home yet ...have one hell of a party while your young say for the next 5 years , travel, buy loads O bikes, nice car just enjoy while your young ..leave the hard things while later

Nippy

21/11/2002 at 09:19

blue owl wrote

dont even think about leaving home yet ...have one hell of a party while your young say for the next 5 years , travel, buy loads O bikes, nice car just enjoy while your young ..leave the hard things while later

Look'ee here, blue owl. As a parent, I can say that, much though I love and even admire my kids, there comes a time when they should leave home and take their lifestyle with them. Then we can meet up from time to time for civilised conversations, and the relationship is improved rather then soured.

At the latest, that time is when they leave Uni, at say 21 years old.

I can't imagine some hulking 25 year old with any self respect still living with Mum and Dad.

They should round the world, or live for a year or two somewhere civilised like Paris or Rome, or, if they really are prematurely middle-aged, then buy a flat in UK. I don't mind. Just NIMBY

ruffers

21/11/2002 at 09:46

Stay at home a bit longer, save up a deposit, then rent. This is potentially the phase of your life when you have most disposable income so take advantage of it.

As for what happens if mortgage rates go up, the cost of the loan goes up and regardless of what happens to the value of the house you've borrowed the same amount of money and it's the payments against that which count, so it costs you more (ignoring fixed rate terms etc etc).

And £60 a month (when I remember) - make an effort to remember. You've got a right good deal. Landlords don't forget so it might be good practice.

I'm getting old.

Big_Daddy

21/11/2002 at 10:46

Nippy wrote

Look'ee here, blue owl. As a parent, I can say that, much though I love and even admire my kids, there comes a time when they should leave home and take their lifestyle with them. Then we can meet up from time to time for civilised conversations, and the relationship is improved rather then soured.

At the latest, that time is when they leave Uni, at say 21 years old.

I can't imagine some hulking 25 year old with any self respect still living with Mum and Dad.

They should round the world, or live for a year or two somewhere civilised like Paris or Rome, or, if they really are prematurely middle-aged, then buy a flat in UK. I don't mind. Just NIMBY

I couldn't agree more.

Especially with your comments about 25 year olds.

JamesZX-6R

21/11/2002 at 10:56

Go live up north, u can buy a house for a months wages

Spackhead #45

VTR

21/11/2002 at 11:45

If you want to buy - buy. Everyone's different and it could be the right thing for you.

Personally I bought (well took 1st mortgage) out when I was just 21 (back in 1988) - a 3 bed Semi that over doubled in value in 8 years.

Traded up to a 4 bed detached in 1996 and that had over doubled in value in the last 6 years - plus I have the best view from my window.

However regarding your question - it is unlikely that house prices will fall dramatically even in a recession. OK it's happened before but that was the exception rather than the rule. More likely IMHO prices would stablise rather than fall.

Personally I would get on the housing ladder ASAP - however with only £400ish per month the best mortgage that you'd be likely to get is c.£17K (with a 3.5 * multipler) - possibly enough to buy a dog-house unless you fancy moving up North.

Interestingly that's about the same mortgage that I had in 1988 for a 3 bed Semi. Sorry.

TIT#183A

--------------------------------------
Not overweight just under tall

braindead

21/11/2002 at 12:19

Problem Solved

Do what I did join the army live in a derlict Mill in Northern Ireland for 6 months followed by a rat infested house in Armagh, followed by a hole in the ground in Germany followed by a tent in Norway followed by another hovel in Northern Ireland and a hole in the sand in the GULF.

NEVER NEEDED A HOUSE BUT PAID ALOT OF RENT FOR A BED IN A BARRACK BLOCK IN GERMANY ALL THE TIME.

Seriously leave all your mail addresses etc at home and find a squat with some mates. Works out really cheap. Or get a room in a house share and get the expeince of living with other people. Its an invaluable education.

I meet so many young guys who have lived at home all their lives and when they move in with a girl it doesent work cos they expect her to cook clean and wash like their doting mummy did.

Get some life experince out of the move dont saddle yourself with a debt you cant afford though.

BD

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