A question for 'mature' home owners

J

Jeanne

Registered User
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Ok, by mature I mean home owners who bought 10+ years ago.

If you were a First Time Buyer, would you buy now at current house prices?

Sometimes it's hard to have sympathy for First Time Buyers when they seem to know no bounds when it comes to purchasing property (don't mean to offend anyone, just sort of stating the obvious with this 'buy buy buy' at any cost mentality when it clearly drives property prices ever upwards).

Is the obsession with owning a home a recent obsession, or is it part of our culture. If you, the maturer AAM contributer were starting out today, would you be intent on purchasing too, no matter the cost.

Anyway, just curious....:)
 
As one of the more mature (had my first house in 1975) here I will have to say yes but only if I was married. I dont think that I would worry about it if I was single.
 
Yes, I would feel I had to. However I would be terrified by the current loan size and 30/40 years repayment mortguages.
As soon as people buy today they start talking/boasting about 'equity' in their property. In my time it was a fear of negative equity. Afraid it may come around again soon. Dont seem to realize that equity is not money!
 
I bought 11 years ago and agree with Woods.
To me buying now, particularly as an investment, is a bit like spread betting with borrowed money; you may loose what you put in (entry costs) plus the negative equity on the property.
 
Is the obsession with owning a home a recent obsession, or is it part of our culture. If you, the maturer AAM contributer were starting out today, would you be intent on purchasing too, no matter the cost.
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An unfair question, because in the most cases it's the 'maturer people' (not necessarily AAM contributors) who give the whole "rent is dead money" speech - and "you'll never go wrong with property, your father and me bought this 15yrs ago for £4,000 and now it's worth €4.8m, here's 200K equity we've released, now off you go and don't come back until you've bought".........
 
My mother is still sending me clippings from the property supplements despite the fact that I've told her over and over that I have no intention of buying.

Little side notes on the clippings telling me how much money I'm throwing away in rent.

Agree with Glenbhoy, the attitude of older friends and relatives is invariably "buy".
 
gearoidmm said:
My mother is still sending me clippings from the property supplements despite the fact that I've told her over and over that I have no intention of buying.
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Why not send her clippings of all the bear-ish articles of late..? :cool:

Seriously though, very few people who are 40-60 have any real appreciation of the mammoth debt levels younger people are being asked to undertake - inflation ate their 20 year mortgages.

As hard-working 20 & 30 somethings we're bank-rolling alot of them.
 
soma said:
Seriously though, very few people who are 40-60 have any real appreciation of the mammoth debt levels younger people are being asked to undertake - inflation ate their 20 year mortgages.

As hard-working 20 & 30 somethings we're bank-rolling alot of them.
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You younger ones have no appreciation of the interest levels that we were paying. My bank agreed to fix my loans when interest rates were rising but they missed one and it went to 28% at one stage. The other 2 only went to 17%.
And nobody is bank rolling me or never will. My hard work in the past is doing that.
 
woods said:
You younger ones have no appreciation of the interest levels that we were paying. My bank agreed to fix my loans when interest rates were rising but they missed one and it went to 28% at one stage. The other 2 only went to 17%.
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What was the inflation rate..? Interest Rates are meaningless without an inflation context. Plus the size of the loans most definitely matter (we are in the age of the jumbo mortgage as you know), I seriously doubt anyone in the 70s or 80s lost much sleep over a 0.25% increase ,whereas it's a cause of concern for alot of recent buyers these days because of the mammoth amounts being compounded over 35-40 years instead of 15-20 years.
 
I would not blane the buy buy buy attitude, if banks had stuck to the 2 1/2 times plus one wage structure people would only been allowed a certain amount of money therfore prices would not have gone throught the roof, seen a program on C4 before person went to 10 different lending place's in England and all but one gave him much more money that their structure allowed, same has happened here I know first when I went to buy over 10Yrs back that they would only give me 2 1/2 times my salary which amounted to a mortgage of 50 K Punts, Irish permanment would only give me 40K at the time, now people can get at least 10Times their salary if not more
 
Glenbhoy said:
An unfair question, because in the most cases it's the 'maturer people' (not necessarily AAM contributors) who give the whole "rent is dead money" speech - and "you'll never go wrong with property, your father and me bought this 15yrs ago for £4,000 and now it's worth €4.8m, here's 200K equity we've released, now off you go and don't come back until you've bought".........
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Thanks for the replies.

I hope the question wasn't unfair. I think your response sort of proves the point that even though many of us who bought 10+ years ago shake our heads at the amount of money changing hands for property today (and I'm actually not REALLY that ooold, in my early 40's as it happens and since 40 is the new 30 so they say, I'm feeling quite youthful but I digress;) ) still, if I was 20 years younger I, like others, would probably be paying out mad money for a few concrete walls and a roof!

I do actually remember when interest rates were about 16%. Hard to believe now:eek:

Oh well, I guess everything is relative........
 
(and I'm actually not REALLY that ooold, in my early 40's as it happens and since 40 is the new 30 so they say, I'm feeling quite youthful but I digress;) )
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I like your thinking, time to relive my twenties!!
No, seriously, there are a number of factors such as the affordability which is probably similar nowadays to 15 yrs ago, the reasons why this is so are manifest, but interest rates and 30-40yr mortgages are the main reasons. Of course we all know the main reason is that as we've now entered a new paradigm, you better get in now or you'll never have a chance!!
 
To give a different (younger) slant. We bought (went Sale Agreed) in October last year at 350k. Our house would now get 400k.

We borrowed from parents to top up our mortgage amount and basically maxed out. Tight now, but we're both due pay increases to help us out.

Anyway, what I'm trying to say is that the buy now paradigm is very true. We WOULD have missed out if we had waited. That's six months in the difference.

So while I'm sure my opinions will be different in years to come, for now I've got my first home and can envisage staying there longer-term should the "bubble" burst.

And yes, I envy you older folk, who may go on about your interests rates, but who are basically in a much much better position than I could ever imagine. (My house would need to sell for nearly €7m in order for me to see the same level of rise my parents did in 15 years.)

Sorry...... just choking on that thought!!!! :)
 
sun_sparks said:
To give a different (younger) slant. We bought (went Sale Agreed) in October last year at 350k. Our house would now get 400k.

We borrowed from parents to top up our mortgage amount and basically maxed out. Tight now, but we're both due pay increases to help us out.

Anyway, what I'm trying to say is that the buy now paradigm is very true. We WOULD have missed out if we had waited. That's six months in the difference.

So while I'm sure my opinions will be different in years to come, for now I've got my first home and can envisage staying there longer-term should the "bubble" burst.

And yes, I envy you older folk, who may go on about your interests rates, but who are basically in a much much better position than I could ever imagine. (My house would need to sell for nearly €7m in order for me to see the same level of rise my parents did in 15 years.)

Sorry...... just choking on that thought!!!! :)
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sorry for being pedantic bit i dont think your parents home rose twenty times in 15 years. average nominal increase across country has been 5times increase over last 15 years,so its highly unlikely any house increased more than ten times over 15 years.
 
Maybe you're right, and I think I underestimated the years now that I think about it (knocked a few off my own age first!!) but I'm not sure on the conversion, they bought in Glasnevin for £40k in 1987 and a house two doors down recently (same in every way) sold for €900k.

Anyone fancy doing the math?
 
Ok, so I was off a little (or a lot :eek: ) but my point still holds true.

I'll just have to sell my little Lucan semi-d for €6.3m in 2025!!! Sure what's €700k???? :)
 
sun_sparks said:
Maybe you're right, and I think I underestimated the years now that I think about it (knocked a few off my own age first!!) but I'm not sure on the conversion, they bought in Glasnevin for £40k in 1987 and a house two doors down recently (same in every way) sold for €900k.

Anyone fancy doing the math?
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my parents bought here in glasnevin in 1988 for 46kpunts and its only worth around 650k now,but maybe your parents got a bargain.
 
What I can't figure about FTB now is how not only do they have huge mortgages but they have the house done in the best of everything top to bottom six months before they move in !! I was a FTB 10+ years ago but I spent at least two years in the house with hand me downs and garden furniture in the dining room and that wonderful concrete flooring !!!
Well done to those who can do it I just can't figure how.
angie
 
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