A jump much beyond inflation is unlikely, as its now becoming impossible to actually pay a mortgage off in 25 years on an average wage. Unless we all (as in first time buyers) suddenly get a lot richer, the housing market has been bled completely dry. Houses are now a residence, not an real investment (as they always should have been)
I know what you mean. I rent at the moment, but I have to say that although I'm pretty much in a position where I can buy I just don't honestly believe its a good place to put the money..not yet. Not only is the house just far too over priced, if you are in a relationship and you own a house, its just a legal nightmare if things go wrong and the relationship ends. The thought someone else could get their hands on half of my hard earned money just doesn't seem worth the risk. I'd be better off investing the deposit elsewhere, and renting until retirement.
The London bubble still continues unabated in its protective atmosphere. given successive governments have depleted manufacturing and put all the eggs in the banking/finance service industries, they have to keep bailing the banks out while the banks will only lend to nailed on certainties or low LTV ratio, so London will be in a different world to the rest of the uk. had my house on the market since feb without a sniff. Flipped to rental and three viewings with high interest in just a few days. Same story of "banks won't lend to first time buyers without a big deposit". Good luck, Al, but realistically, renting out may be your best option. Just my 2p. pete
It's a strange thing in the UK that you are meant to pay your mortgage off. Why bother? In Switzerland it's common not to pay it off. The banks don't care. They have an appreciating asset. They only lent you 80% of the house value anyway and even then had their own assessor look at it and value it at no more than 90% of what you paid for it. They are well covered. Hardly any safer way for them to invest their cash. They don't mind you paying interest forever. Then when you pop your clogs, if no one has the dosh, they can make your inheritors sell it. It's renting Jim, but not as we know it.
Any money-making scheme has maintenance, cost and risk. Home ownership is no different. Renting - you know what you're paying and you know there will be nothing for you at the end. It's a no brainer. Also depends if you want to live your life within the confines of what other allow you to do, or whether you want to take responsibility and do your own thing.
sellers market in london. just went through all finiances, legals, survey etc and was days away from exchange the seller decides he wants to put it back on the market andup the price by £25K so annoyed
