Unaffordable Housing

[sparkle82]

With all the recent paycuts is anyone else starting to find that their once affordable housing has become quite "unaffordable", especially those of us on fixed rate? I'm locked into a 5 year fixed rate at the mo and am finding it v. annoying that I have to pay a ridiculously high mortgage for the next 4 years. With the mortgage I have at the mo I could be living in a much bigger place, closer to town. Affordable my backside!

 

[Cheeus]

You're in the same place as everyone else with a mortgage. It's the chance you take. Affordable housing gives you a leg up when you need it, it's not supposed to cushion you from bad financial circumstances forever.

That is hard to be on a fixed rate for 5 years - it could have gone the other way though with interest rates rising. It's the chance you take.
Might be worth paying the penalty and going to variable, but then interest rates could rise again next year...

 

[hgf]

this sounds all well and good but some councils are not allowing people to get out of their fixed rate 5 year mortgages, even with a penalty fee.
i can totally understand the frustration of the OP i am in exactly the same boat and yes, "affordable" is not feeling as affordable anymore!

 

[discogirl]

I wish I had never gone down the affordable housing route but I was young and naive when I signed up and thought it would be a great help, if I had researched it properly I probably could have bought myself by stretching a little more. I put nearly E60,000 of an inheritence towards buying the property which is now locked in as we can't release equity or top up. My clawback is nearly 20% of the original market value which is much more than it is worth today.

IF I want to rent out a room I have to go begging to the council who I hate dealing with as they were most unhelpful and condescending with any previous queries I had. After I bought I was in my neighbours apartment and she has a lovely high gloss finish on her doors. I rang the developer and was told as my apartment was with the scheme my doors were matt. Haha I didn't even get an extra coat of paint as I was under the affordable housing!

Thankfully I'm with BOI and have a variable rate, I'm so sorry people are stuck with fixed.