I'm a little bit worried. I keep seeing on tv and hearing on the radio how impossible it is for first time buyers nowadays, and how house prices are going through the roof. Is this just scaremongering or will I never be able to buy my own home? Considering I will not be wanting to buy a house for about another 4 or 5 years, will it be loads worse then? Will I be renting for the rest of my life?

Could anyone who has recently bought their first home share their experiences? Or could anyone give any general reassuance/doomsday prediction about my future?!

I bought my first house last year (although this was with my partner) and I am still at University . If you are willing to live in one of the nicer bits of the less favoured areas you can still get a house fairly cheaply. The house we bought was less than 70k and so far it has been great. Then once I get a job we can get somewhere better, partly coming from the equity we have got in this house.

I reckon generally prices are going to rise far more slowly than the last 3-5 years, and there are going to be more reasonably priced new homes built, to help first time buyers.

I'm in the same situation, I'm a student and don't qualify until next year. I'm hoping to buy a house as soon as possible, but i will be buying one on my own (i can see the overtime rota being covered in my name as i type!).
The problem IMO is that the banks/building societies can lend so much money these days, it is an impossibilty that anyone could 'save up' for a house.

Another problem is the amount of houses that are bought by people just wanting to do them up for a profit, because they have the ways and means of cash/immediate payment, this is taking all the 'first rung' bargin houses off the ladder!!!

The housing market is and always will be cyclical. Because people tend to panic, they are likely to buy at the top or near the top of the market. The problem is no one knows when the peak is reached, or indeed when the market is about to rise again.

I think the big difference between the recent boom and previous booms (e.g. in the 1970s and 1980s) is that in previous periods even at the top of the market houses were still affordable for those on average incomes (with mortgages given at most of three times one's salary).

I would still advise you to get onto the property ladder though - as when prices fall, they don't fall back to their previous levels - there is a ratchet effect.

Houses in England are far cheaper than in the States, but thats about the only thing thats cheaper over there right now.

Rents in the US are very hight too so young people don't stand much of a chance saving for a downpayment on a house while paying high rents.

It depends where you live in the States. If you live in a big city like New York, they are more expensive. If you live for example in a small town in many parts of the US, they are much cheaper than over here.

Sorry Poppins, I misunderstood - we agree that houses are cheaper in the US generally speaking. I have been astonished at the low price of some really beautiful, large houses in the US, with acres of garden (or yard) attached.

LordChaverly, if I cannot afford my own home may I come and camp on the grounds of your stately home?

Kathy, indeed you may. I will prepare quarters for you in my French Chavteau.

I worry about my children being able to afford their own homes. Real estate prices in California are obscene.

This is what a little over a million dollars will buy you in my old neighborhood in San Francisco. My uncle still lives not far from there.

http://www.zephyr-re.com/listingdetail.cfm?ID=2636

And this:http://www.realtor.com/FindHome/HomeListing.asp?snum=948&mlsttl=Omaha&frm=bycomm&pgnum=95&mls=omaha&js=on&poe=realtor&st=ne&areaid=1094691&typ=1&mnprice=0&mxprice=1500000&mnbed=3&mnbath=2&mnsqft=2250&vtsort=on&ss_mitm=n%2Fa&sid=049759A61F7EC&snumxlid=1045008601&lnksrc=00001

is what the same amount of money will buy you in Omaha, Nebraska. Seven bathrooms?!! Over 6300 square feet?! Can you imagine what it cost to heat and cool that place?

Quite a difference no? Lord Chaverly (by the way, I like your name, very clever! ;) ) you are correct. It certainly does depend on where you live in the US. It's a big country, and there are huge differences in prices.

:) Sierra

Thanks lord chaverly! I will pack my white tracksuit and pink thong post haste.

Sierra - maybe I should move to omaha, eh? I suppose its probably not possible just to move to america becuase you feel like it eh?

Certainly you can move to America if you feel like it! Why not? People do it all the time. Come on over, we'd love to have you! :clap:

After seeing that house, I'm seriously thinking of moving to Nebraska. Meh. Maybe not. It's on the prairie, the wind blows, it snows...horrors! I'm a California girl. But it's sure tempting.

:) Sierra

Don't worry, just wait till Christmas people will be giving them away by then...

Originally posted by poppins
Houses in England are far cheaper than in the States, but thats about the only thing thats cheaper over there right now.

Rents in the US are very hight too so young people don't stand much of a chance saving for a downpayment on a house while paying high rents.


Are you sure houses are cheaper in the UK? I would've thought that, like for like, the US would be much cheaper. A 4 bed detached in a good area in England would cost around £350,000 upwards, which is about $665,000 upwards at the current rate.

Originally posted by kathythebean
Thanks lord chaverly! I will pack my white tracksuit and pink thong post haste.

Sierra - maybe I should move to omaha, eh? I suppose its probably not possible just to move to america becuase you feel like it eh?

Kathy, I already have a selection of thongs waiting for you at the Chavteau. You must realise that centuries of inbreeeding have given me certain predilections and pecadillos which those from the lower orders may at first find a little strange.

As you arrive you will be greeted with the sounds of 'Just a Thong at Twilight' and The Thong Remains The Same'.

the prices are getting rediculous now! but what goes up must come down! they'll start falling sooner or later, because soon most people (let alone 1st timers) wont be able to afford nething! lol

The way things are going and the trend prices wont go down but will ease off.

Sheffield was the number one position for value increases last year with the average being 17% increase over the prevous year!

I would say that "new build" properties will increase alot more compared to the older homes.

I moved into my new place in feb this year and i would estimate the value has increased already. Meaning ive made about 8-14k so far.... its still locked away in the property ofcourse but its all good in the long run.

I managed to get a mortgage which wasnt difficult as i had a substantial depost to put upfront first.

The usual trend is that lenders give lend you 3-5x your annual wage, but this also dependant on how much deposit you put up.

If you can buy into the market now dont hang around, also look out for first time buyer offers from various builders.

Good luck.

Riz :)

In a small town in Germany you can buy a modern house with 4 large bedrooms and a luxury bathroom, and huge tiled cellars within a largeish garden and huge barn/garage for the same price as you would buy a century old 2 bedroom terrace here in woodseats.
My estimation of one of these houses if it were in sheffield would be something like 600-800k.
In addition all the neighbours leave all their doors unlocked all the time as there is no crime, garage doors are all open and most have bikes and stuff in there unlocked, some have motorbikes with the keys left in. A little different to how life goes around here.

I wouldn't mind living in Germany, but i speak very little german. In my profession i can hardly pronounce the Latin or Greek words in English nevermind in German... although i suppose the best way to learn a language is to live in the country itself!! It might be the only option for a poor 'homeless' single girl in the years to come!!

Probably not,but you must if at all possible.I bought mine 30+yrs ago in the midle of a housing boom.It was a struggle at first more than 25% of my wages for mortgage.After a few years it gets easier,I paid all increases in interest and kept payments the same when they went down.Think how much rent you might be paying for nothing at the end.I realise that the high deposit is a big problem these days,but after a few years you will find things do get easier.
PS I believe in Germany the mortgage period can be a lot longer as families tend to live together and the mortgage can be transferred to children.