Buying a house

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evilwebby said:
Mortage rates are absurdly low at the moment because of quantitive easing and the bond market; just make sure that you're able to handle higher payments costs when rates finally do rise. You can get a 2-3 yr discount or fixed rate for 2-2.5%, which is so low that there is only one way that it can go from here. I wouldn't be surprised if rates were double these in a couple of years' time. Just don't make the fatal mistake of thinking rates will be this low for ever (people who thought that also thought there was no way house prices would fall).

Personally if it were me I'd be locking in a 5 year discount rate and over-paying the mortgage as much possible right now (actually that's what I'm planning to do when I remortgage this year).
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Personally I don't think it's wise over-paying on your first term, because it leaves little movement for anything else. Maybe when you're negotiating another term yes, first; no.
 

manxtoffee said:
Personally I don't think it's wise over-paying on your first term, because it leaves little movement for anything else. Maybe when you're negotiating another term yes, first; no.
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I disagree, overpayments at the start will have a much bigger compounded effect. Back in the 70s-80s you might have been right; 10-15% annual wage inflation meant that there was little point in overpaying, but if you take out a large mortgage today then 2-3% inflation a year isn't going to do much, and a large debt today will remain a large debt in 10 or even 20 years' time.

We bought our place 18 months ago, and have been over-paying heavily. I hope to have the whole mortgage paid off within 10 years - but couldn't hope to do this unless I started doing the overpayments straightaway.
 
I too believe on over payments while the rates are low. When push comes to shove you'll have a lot less capital to pay interest for.
 
evilwebby said:
I disagree, overpayments at the start will have a much bigger compounded effect. Back in the 70s-80s you might have been right; 10-15% annual wage inflation meant that there was little point in overpaying, but if you take out a large mortgage today then 2-3% inflation a year isn't going to do much, and a large debt today will remain a large debt in 10 or even 20 years' time.

We bought our place 18 months ago, and have been over-paying heavily. I hope to have the whole mortgage paid off within 10 years - but couldn't hope to do this unless I started doing the overpayments straightaway.
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Besides the variables and horses for courses not everyone can afford overpaying on their mortgage. Certainly in our case our personal finances would not allow it at that time, besides I'm not really bothered about the length of the term because it'll paid outright before I hit fifty.
We're halfway through our overall term and payments have now come down quite considerably, albeit enough to be paying a similar to the last term repayments to reduce it by a few years.
 

manxtoffee said:
Besides the variables and horses for courses not everyone can afford overpaying on their mortgage. Certainly in our case our personal finances would not allow it at that time, besides I'm not really bothered about the length of the term because it'll paid outright before I hit fifty.
We're halfway through our overall term and payments have now come down quite considerably, albeit enough to be paying a similar to the last term repayments to reduce it by a few years.
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yeah, I agree that it's impossible to forecast macro variables farther out past a few years, but you have to think that if you are in a position to buy a house, that means you have been paying rent and saving towards a deposit, both of which are more expensive than paying a mortgage (typically rent > monthly mortgage).

It's a classic case of mistaking cause and effect in government policy; the government thinks that homeowning per se is desireable, but they are mistaking cause with effect. The good and desireable thing is being thrifty and having savings; being a homeowner comes as a result of that, so what the government should be doing is to encourage habits of thrift, savings and personal investment, not simply encouraging home ownership.
 
deathbyropeandglass said:
I'm 34 now and would kinda like my own place but i'm pretty sure i've no chance of being able to afford it :(

I'm on £17,000 a year and pay £395 a month rent, i can't get bugger all for that can i?
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There is a government initiative at the moment


https://www.gov.uk/affordable-home-ownership-schemes/overview
 
My best house buying advice is, avoid re-possessions unless you're 100% CERTAIN you know what you're doing.

You can lose a lot of money via fees on them.

Gazumping laws don't apply to repos
 
Didn't buy an apartment then. We were a few grand short of what the owners wanted and then some tit came along and offered more than ten k more than we did. OH WELL THERE'S ALWAYS 2018.
 

Thinking about moving house to something a bit nearer Fremantle, but to get a house comparable to my current one in a really good location will cost about an extra $1M, but we can get a pretty decent house in a good location for about $200K more than we could sell ours for. Affordable, but none of the houses I've seen really excite me yet.

Not sure how that helps the OP in New York though?
 
WA Toffee said:
Thinking about moving house to something a bit nearer Fremantle, but to get a house comparable to my current one in a really good location will cost about an extra $1M, but we can get a pretty decent house in a good location for about $200K more than we could sell ours for. Affordable, but none of the houses I've seen really excite me yet.

Not sure how that helps the OP in New York though?
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In contract on a house now. Projected closing date: May 31st. Wish us luck!
 
Nobody wished me luck and it was pushed back a bit ya bar stewards

All in and unpacking our stuff now. Loving it like, it's bloody gorgeous
 

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