Buying a House

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Buying a House

Postby rufio89 » Mon Mar 09, 2009 11:57 am

I wasnt sure which category to put this under.

I'm thinking about buying a house. Obviously house prices are really low, and I'm in a job where I could afford a mortgage, and I have a decent deposit, so financially speaking, I'd be alright buying a (cheap) house, and getting on the property ladder, and I've even seen a few houses (only on the online search things, mind, not in real life), that would be worth a look at.

I used to work in Mortgages so I know the ins and outs of the costs etc, and I have people I know who would be able to let me know what's available in terms of mortgage rates.

The thing I'm worried about is what a huge commitment buying a house is. I'm looking at minimum 2 bedroom houses so I'd have someone live with me (that would be my plan all the time, to have a tenant). But then there's always a risk that I wouldnt be able to find anyone - although now I'm talking about it, my boyfriend has made comments about him living with me, but nothing solid, so I wouldnt want to take that too seriously at this stage.

I was just wondering what other peoples opinions are really, I've only been in my job a couple of months, so it'll be another 4-10 months before I'd be able to buy, but then I'll need that time to look at houses and save up some more money and stuff anyway.

so yeah, any advice? Things for me to think about other?

thanks guys
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Re: Buying a House

Postby Bel Bel » Mon Mar 09, 2009 12:07 pm

I would go for it while it's cheap
The market will come back up again it's just how long that will take
Renting is chucking money down the drain and you are fortunate enough to be in a position to do what most other people would love to be able to do at your age, in fact alot older people are struggling too
Have a bit put aside in case you have any odd times when you don't have someone to rent
If you pick to live close to transport links you will find lodgers more easily
If you do let your b/f rent draw up a proper rental agreement with him just as you would anyone else
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Re: Buying a House

Postby dipsydoodlenoodle » Mon Mar 09, 2009 12:18 pm

I'm also in the same situation as you Ruth.

My mams friend typed in on the internet about getting a mortgage and the maximum she could get would be £27K. The best option is to go in a few places and ask around first.

Also with buying a house and needing a tennant; I was also considering that but then when the time came I wanted to live alone how would I say to my friend "oh by the way I want you out". What happens if you get a tennant who breaks everything and you have to pay for it? You need to consider all of this first.
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Re: Buying a House

Postby Bel Bel » Mon Mar 09, 2009 12:28 pm

you can get insurance for tenants and you will have their deposit to keep if they break stuff
Their are agency that specialize in helping you find people to rent and the vet them and check out their finances etc
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Re: Buying a House

Postby rufio89 » Mon Mar 09, 2009 12:30 pm

Yeah, I would have some agreement in place with him, and even if I knew he was definitely going to move in with me I'd still certainly go for a 2 bed house, cause if we broke up, obviously it wouldnt be ideal living together, but it would make it possible in the short term until he found somewhere else, plus I like having guests, so it would be nice if people would come and stay with me.

Money etc:
I'm looking at houses 75k and under, (I am well aware these arent going to be palaces, but the ones I'm looking at look alright, and they're in improving areas, I'm not prepared to live in the high-crime areas).
I have approximately a 14k deposit, so that's AROUND 20% of 75. My thought on that would be that if I went for that upper price, i'd put it ALL down as a deposit, or if I went for the lower price range, I'd put the same percentage deposit down, but have some money left over to make the house a bit nicer.

I hadnt really looked into it before the past week or so because I assumed any house I could afford, I wouldnt want to live in, but they're actually nowhere near as bad as I thought they would be, some of them are quite nice, and they'd be nice to live in as they are (although I'd still give them a lick of paint).

Dipsy (you posted after I wrote all the first bit).
I dont think I'd get one of my friends to live with me, I think I'd advertise, but not rush into anything. I live with someone I hadnt met before and in a sense I think it's better, because we didnt have any idea about what it would be like living together, and it's actually turned out we get on really well, and are friendly, but as we werent friends first, if he decided he wanted to live alone, or for his girlfriend to move in, I wouldnt be too upset about having to move out. But yeah, it's definatly something to think about.

I looked into mortgages, and I should be able to get a mortgage of around 55k, obviously depending on the company. But as I said, I used to work in mortgages so when I've given this some more thought, I'm going to email my old boss and see if he can give me any advice.
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Re: Buying a House

Postby dipsydoodlenoodle » Mon Mar 09, 2009 1:01 pm

Bare in mind you'd need money left over for furniture as well.
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Re: Buying a House

Postby rufio89 » Mon Mar 09, 2009 1:08 pm

yeah.. I have a bed that's mine already and I could get a table and probably a sofa and stuff for free (my parents just downsized their house so they have quite a lot of furniture), but I'd have to have enough to buy a fridge/oven etc.

However, some friends of mine bought a house not long ago, and they had no furniture and all they bought was a fridge (the oven was left in), and they got everything else from that freecycle website, and it's all nice stuff as well, so I could have a look on there closer to the time. but I'd probably start a fund for stuff like that when I decide definatly whether I'm going to buy a house or not.
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Re: Buying a House

Postby Pigglet » Mon Mar 09, 2009 1:48 pm

I would definately say go for it while the property market is slow.

I bought my house when the market was down 7 years ago and don't regret a thing!

I do believe that mortgage lenders like to know if you are to have a tenent in but I'm not sure of all the ins and outs of that (you'll propably know more about that yourself)

I also had a tenent in for a while before my bf (now ex) moved in, I now have another tenent in and its all going well upto now!(its been six months)

You can get some good ideas of tenancy agreements of the internet, I always think its better to just ahve a six month agreement first then if things aren't working out you know its not going to be long. Also make sure that in the agreement there is a clause that says 'if any part of the contract is broken you can ask the tenent to leave blah blah words to that affect!' I think I have the agreement I used, though I admit I didn't have it checked in any official capacity, if you want a look at it for ideas (and I can find it on my home computer) I'll gladly mail it to you! :)
Just remember, nobody can make you feel inferior without your permission. :D x
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Re: Buying a House

Postby rufio89 » Mon Mar 09, 2009 1:57 pm

thank you Pigglet, I might call you up on that if I decide to go ahead with it.
Everyone I've mentioned it to has been really encouraging it, so I think i am going have to seriously consider it.

I sent an email to one of the mortgage advisers at my old work that i used to be friendly with, asking for her advice on it, so hopefully I'll hear back from her this week.

The main thing I need to find out before I can go any further is how long I'll need to have been in my job for - I'd think it would be 6-12 months depending on the lender.

If anyone has any more advice, please, keep it coming.

Oh, does anyone have a very rough idea of how much it would cost to cheaply furnish a house that is:
2 beds,
1 bath
lounge
kitchen/diner - including oven/fridge

This is assuming that there's a fitted kitchen and the bathroom doesn't need replacing.
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Re: Buying a House

Postby dipsydoodlenoodle » Mon Mar 09, 2009 2:00 pm

It all depends on how much decorating needs to be done. If it's ok it can be done in time.

How structurally sound the house is - we had a damp course on our house so ALL of down stairs was ripped out.
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Re: Buying a House

Postby rufio89 » Mon Mar 09, 2009 2:13 pm

This is assuming that no building work needs to be done, I dont mind redecoration because that wont need doing immediatly, just at some point, and a pot of paint doesnt cost much and I'd do painting etc myself.

I havent actually looked at any houses yet, so I am very much just drawing vague costs up in my head.

Lets assume I dont have to do ANY redecoration (I know I will have to at some point unless I'm very lucky, but this is just for arguments sake), and I have to furnish the rooms I said before

can you think of anything else I'd need:
Bedroom 1
Bed
Wardrobe
Chest of Drawers
Bedside Table
Bookshelves

Bedroom 2
Bed
Wardrobe
Chest of Drawers
Bedside Table

Lounge
Sofa(s?)
Coffee Table
TV unit

Kitchen/Diner
Dining Table
Chairs
Oven/Hob
Fridge/Freezer
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Re: Buying a House

Postby dipsydoodlenoodle » Mon Mar 09, 2009 2:28 pm

You have the main things in there I think; some things can wait. The essentials are bed, somewhere to sit and kitchen stuff. The rest can all come in time.
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Re: Buying a House

Postby Bel Bel » Mon Mar 09, 2009 4:59 pm

There is a lot of cost in the little things you don't think of. You may not need some of these but just worth considering

curtains/blinds
towels
sheets
washing up drainer
tea towels
cutlery including spatulas etc
pots and pans
microwave
Bath mat, toilet mat
toothbrush holder
door mat
kettle
toaster
toilet brush/holder
Plates, bowls, mugs, glasses
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Re: Buying a House

Postby rufio89 » Mon Mar 09, 2009 5:27 pm

There is a lot of cost in the little things you don't think of. You may not need some of these but just worth considering

curtains/blinds
towels
sheets
washing up drainer
tea towels
cutlery including spatulas etc
pots and pans
microwave
Bath mat, toilet mat
toothbrush holder
door mat
kettle
toaster
toilet brush/holder
Plates, bowls, mugs, glasses


I hadnt thought of stuff like that - curtains I'll have to get, but I already have towels, sheets, cutlery, pots and pans, plates bowls etc from my current house, so it's just washing up drainer, kettle, toaster, toilet stuff, etc that I'll need and I can get most of that from wilkos in the short term. I'm gonna just get stuff as cheap as I can in the short term I think and then gradually replace it with better stuff.

I spoke to someone at my old work and she said I'll need to have been in my job for 6 months before they'd consider me, but then I can apply, so that will be mid-july, and to be honest that's ideal because it gives me a few months to think about it, save some money, look at houses etc :)
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Re: Buying a House

Postby dipsydoodlenoodle » Mon Mar 09, 2009 5:37 pm

Curtains may be left at the house. You'd have to ask in advance and see if they are leaving them. If they are then it's always something more long term to replace the curtains rather than needing them instantly.
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