can i buy a house or flat?

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can i buy a house or flat?

Postby Sara_platermen112 » Wed Mar 07, 2007 1:28 pm

Heyy!!!

I am soo interested in buying a house or maby aflat and renting this out so i can then start to get on the chain of owning my own place, so when i'm older and want to move in i can or i could sell and afford to buy another place as i would have that as back up.. im so confused as to where to start?

I live with my parents and my credit is just getting good, i have a loan which never missed a payment also credit card... virgin in december have finally gave me a credit card of 15.9 APR which is great! due to the fact that all my other things are 29.9 APR as they treat me as i have bad credit with me having no credit history. I thought that now maybe beucase virgin gave me a credit card with low APR my credit must be getting good? However my income is only around £12,800 ayear would this be possible or just completely impossible?

I jsut worry at times that i will never be able to afford leaving my parents home as where i live is sooooooooo expensive to afford a house here but i wondered want to live in a city... any advice as to where to start would be fab! xxxxxxxxxxxxx
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Postby brfc » Wed Mar 07, 2007 6:41 pm

I don't think you'll be able to buy a house/flat unless you go with someone. I've been recently looking at mortages and they only let you got 4 times your wage. So mine is roughly 60k and houses in my area start at 125k for two bedrooms! I have a little one on the way so I need the extra space. But even one bedroom flats here start at 80k. Not alot under that. Maybe you can halfs with someone. My gf parents are going to go half with us once our rental agreement goes out. Then I'll buy the thier part of the house off them. But at least it will get me on the ladder. Or maybe go house sharing with some friends. Or hopefully wait until the market goes boom and we can all have the houses we need!
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Postby Domus Clamantium » Mon Mar 12, 2007 7:58 pm

The average age of first time buyers is now 30+, so I wouldn't worry too much about getting onto the property ladder - you could consider shared ownership, where you buy a percentage of a property, and a housing association buys the rest, with you paying them rent on their share - however, you wont be able to rent it out - if you are able to afford to buy outright, you would need to get a Buy-to-Let mortgage, which usually have a higher interest rate, and you would also still be responsible for paying it, even if you had no tenants (meaning no rent coming in). You would also be responsible for ensuring the rent is paid, and making sure the property is maintained, etc...
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Postby X_Smiler_X » Wed Mar 14, 2007 7:15 pm

Hey

I just want to give you some advise - and that is - stay at home as long as you can.

Trust me, I moved out last year, everything went wrong, and I'm now back at Mum's - while paying for the flat still.

If and when you move into your own flat, be sure you move in with someone you trust - this is the mistake I've made, and I'm in a right financial mess now.

But all that aside, it is a really nice thing to do, and its a very independant feeling. But just make sure you do your research on the agency/ estate agents your looking into buying/ renting with. Again, this was my mistake and I'm now left with nothing.

Just be careful, and just remember, there's no rush moving out! Enjoy living at home until the time is right.

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Postby katie86 » Thu Mar 15, 2007 1:46 pm

I know a lot of people who are in your situation. One of my friends moved in with her boyfriend they began renting for about a year and they eventually bought a house which worked out well for them. Renting meant that there wasn't a massive financial commitment like a mortage and they learnt how to budget and pay things on time. During this time they saved absolutely every penny they had spare for a deposit on a mortage and managed to save up quite a reasonable amount which I think helped them. I'm not sure exactly how credit ratings work but I think if you go into a bank and show a track record of being responsible and on time with your rent, and show you can afford the payments I would have thought they will be a lot nicer about giving you a mortage. Your bank will be able to give you advice on how to improve your credit rating, and you can also get a copy of your credit report very easily.

There are quite a few schemes running now for first time buyers where you buy a share in the house which could also be a good idea as you will get a lot more for your money. So for example, if you bought a 50% share in a house worth 120k you would only need a 60k mortage.

I have also recently seen quite a few adverts for housing where you share with friends and you all pay rent, but the rent is actually paying for the house, so at the end you all end up with a share in the house.

One friend is in the position where her parents have paid off their own mortage, so they have bought her a house and she then pays them the mortage back.

As Smiler has said be careful who you end up moving in with, draw up agreements in case anything goes wrong. Don't cripple yourself with a mortage you can't afford. You hear stories all the time about banks giving people mortages they struggle to afford.
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