In NZ, our standard workplace pension scheme is called 'kiwisaver' and it lets you access the funds in there for your first home. So most enroll and basically just use it for the first 10 years or so to get a house deposit. It's not perfect as it means those pension accounts then restart from $0 once a house is bought, so you lose out on time to build for retirement but it's something that's helped a lot of people get into their first house.
I always think that someone with a proven track record of paying rent should be able to get a mortgage. For example, if you pay £1800 a month now a £1400 a month mortgage shouldn't fail a stress test.
We are lucky to have started on a quite nice loan to value, but I understand that these days the deposit is the hard thing to get together..
2016 I was living in London on and saved 20k in order to get a house. House prices appreciated by 30k in that year. Impossible. We decided to move to Scotland. Salary went down but so did expenses. Rent expense was huge. We saved 20k a year and fed that into the mortgage over the next 3 years. Today our LTV is lower than 35%. I remember being so angry at everything at the time. I’m one of those fools that voted for brexit, angry at everything. My advice: when teachers can’t afford to live there, then it’s time to move. Don’t buy leasehold ever! And the retail banks want to make money out of you, so if your credit score is perfect they’ll rather loan their money to someone who will pay for 30 years rather than 15. We ended up getting a mortgage from a building society. Skipton. I will not forget how much the major banks ‘helped’ us back then.
Mine and my wife's wages have stagnated so much despite both moving up the ladder that we could no longer afford our £520k home unless we have a £60k down payment.
Considering we bought it in 2015 for £275k and put a single story extension on it for £45k before the prices went bonkers, I can't help but feel sorry for people getting on the ladder now, and for my young children in the future.
The problem with the housing market is that houses are treated as investments. This is where the problem lies . Housing should be for people to live in , bring families up, until this mindshift takes place, and investments are focused on stocks and shares instead. Back in 2008 is when the trouble started with buy to let booming. Yes, there should be a place for rental, but it dominates the market now. The system is broken sadly and geared to only rich people being able to afford to buy property comfortably and charge over the top rental . It's a sad time in the UK right now for property ownership
There’s a sincerity and level of empathy to your videos that I really appreciate. It genuinely feels like you’re giving the advice you’d want someone to give yourself.
You are quite literally the best financial/economics educator I've seen on the internet. I've been watching this stuff for a long time. Not only that. But you're one of the most thoughtful, honest, humble, relaxed and direct content creators I've seen. Honestly man, you should be so bloody proud! Thank you for your work. And please keep going! The world needs you.
Just bought my first home after years of saving, Nice little 2 bed, only £638p/m mortgage on 5 year fixed. I’m happy with it and it’s affordable for me. As a single man doing it alone it wasn’t easy by any means, but I’m super proud of myself.
I was earning £28k a year in 1993 and bought a new 4 bed detached for £135k, both the job and the house still exist today. The job now pays £42k a year and the house is worth £560k, pay went up by 50% and the house price went up by 315%. Game over !
You’re not taking into account the well known fact that just cancelling your Netflix subscription and giving up avocado toast should free up a few hundred grand.
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We are lucky to have started on a quite nice loan to value, but I understand that these days the deposit is the hard thing to get together..
Considering we bought it in 2015 for £275k and put a single story extension on it for £45k before the prices went bonkers, I can't help but feel sorry for people getting on the ladder now, and for my young children in the future.
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ONS interactive table
www.ons.gov.uk/peoplepopulationandcommunity/person…
Brokers I use:
📈Trading 212
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hwww.trading212.com/join/DAMIEN Terms apply.
This is an affiliate link, I may earn a commission.
If you do not get your free share after depositing £1, use promo code DAMIEN. You will find it in the section with the three lines in the bottom right corner of the app.
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