I want a house! Posted June 1, 2011 Share Posted June 1, 2011 Well, that's it. I have a young family now, so I can no longer wait and bit the bullet. Got a "3" bed house, okay 2 and a half bed house, with garden for under £350,000. Now to ride the interest raises. Offer accepted... Quote Link to comment Share on other sites More sharing options...
Si1 Posted June 1, 2011 Share Posted June 1, 2011 Well, that's it. I have a young family now -> so I can no longer wait and bit the bullet. care to connect these 2 points? Quote Link to comment Share on other sites More sharing options...
I want a house! Posted June 1, 2011 Author Share Posted June 1, 2011 care to connect these 2 points? Have a second kid on the way and my rent is currently £1000 pcm. I am starting to struggle with the idea of paying someone else £1200+ for another room when I can buy a house and pay £800 pcm for a repayment mortgage. At least it is cheaper than what it was originally on the market for. The geezer was asking £350,000 for the property and I got it for £320,000 So happy but wondering if I am making the right decision. Quote Link to comment Share on other sites More sharing options...
Tired of Waiting Posted June 1, 2011 Share Posted June 1, 2011 Have a second kid on the way and my rent is currently £1000 pcm. I am starting to struggle with the idea of paying someone else £1200+ for another room when I can buy a house and pay £800 pcm for a repayment mortgage. At least it is cheaper than what it was originally on the market for. The geezer was asking £350,000 for the property and I got it for £320,000 So happy but wondering if I am making the right decision. Southeast? Near London? Quote Link to comment Share on other sites More sharing options...
exiges Posted June 1, 2011 Share Posted June 1, 2011 (edited) So happy but wondering if I am making the right decision. You'll only know in 10-20yrs time if it was. Congratulations. You can't always do what your head says, sometimes you have to go with what your heart says (or what a hormonal pregnant partner says) Edited June 1, 2011 by exiges Quote Link to comment Share on other sites More sharing options...
Si1 Posted June 1, 2011 Share Posted June 1, 2011 Have a second kid on the way and my rent is currently £1000 pcm. I am starting to struggle with the idea of paying someone else £1200+ for another room when I can buy a house and pay £800 pcm for a repayment mortgage. At least it is cheaper than what it was originally on the market for. The geezer was asking £350,000 for the property and I got it for £320,000 So happy but wondering if I am making the right decision. fair play it is tricky good luck Quote Link to comment Share on other sites More sharing options...
mfp123 Posted June 1, 2011 Share Posted June 1, 2011 Have a second kid on the way and my rent is currently £1000 pcm. I am starting to struggle with the idea of paying someone else £1200+ for another room when I can buy a house and pay £800 pcm for a repayment mortgage. At least it is cheaper than what it was originally on the market for. The geezer was asking £350,000 for the property and I got it for £320,000 So happy but wondering if I am making the right decision. whats your interest rate on your mortgage? Quote Link to comment Share on other sites More sharing options...
I want a house! Posted June 1, 2011 Author Share Posted June 1, 2011 whats your interest rate on your mortgage? BOE +1% I have been saving, thank god for HPC.co.uk as it does help you to get your house in order. Wish that prices went down a lot more before being forced to buy but hey ho. Quote Link to comment Share on other sites More sharing options...
I want a house! Posted June 1, 2011 Author Share Posted June 1, 2011 Southeast? Near London? Next to South Wimbledon, London Quote Link to comment Share on other sites More sharing options...
Pent Up Posted June 1, 2011 Share Posted June 1, 2011 Well, that's it. I have a young family now, so I can no longer wait and bit the bullet. Got a "3" bed house, okay 2 and a half bed house, with garden for under £350,000. Now to ride the interest raises. Offer accepted... London prices are shocking! But as long as you are happy and can ride it out. Good luck to you. Quote Link to comment Share on other sites More sharing options...
I want a house! Posted June 1, 2011 Author Share Posted June 1, 2011 London prices are shocking! But as long as you are happy and can ride it out. Good luck to you. I am with you there, I don't get it. There are too many bankers in London. What I paid for a house, I would only get a two bed flat in Wimbledon itself. That's the shocking bit. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted June 1, 2011 Share Posted June 1, 2011 (edited) Have a second kid on the way and my rent is currently £1000 pcm. I am starting to struggle with the idea of paying someone else £1200+ for another room when I can buy a house and pay £800 pcm for a repayment mortgage. At least it is cheaper than what it was originally on the market for. The geezer was asking £350,000 for the property and I got it for £320,000 So happy but wondering if I am making the right decision. What sort of deposit have you got....traditionally to borrow £300K will cost you about £2K per month. + you have the stamp duty on 320K, about 10K...if you think prices will drop in 12 months so that 320K house is a 250K house you would save 7.5K in stamp duty alone not to mention the 50K capital and savings on interest. To have savings of 300K traditionally net you about 1800 a month so if had all the money in the bank then you'd be better off renting still. Are you confident prices will be going up or that you got that good a deal ? How does the price stand up to scrutiny against the land registry sale over the last 3/4 years ? Edited June 1, 2011 by TheCountOfNowhere Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted June 1, 2011 Share Posted June 1, 2011 I am with you there, I don't get it. There are too many bankers in London. What I paid for a house, I would only get a two bed flat in Wimbledon itself. That's the shocking bit. There are too many bankers idiots in London Quote Link to comment Share on other sites More sharing options...
Lepista Posted June 1, 2011 Share Posted June 1, 2011 What sort of deposit have you got....traditionally to borrow £300K will cost you about £2K per month. + you have the stamp duty on 320K, about 10K...if you think prices will drop in 12 months so that 320K house is a 250K house you would save 7.5K in stamp duty alone not to mention the 50K capital and savings on interest. To have savings of 300K traditionally net you about 1800 a month so if had all the money in the bank then you'd be better off renting still. Are you confident prices will be going up or that you got that good a deal ? How does the price stand up to scrutiny against the land registry sale over the last 3/4 years ? particularly if you take into account: (1) Getting a 12 month rental agreement; (2) Interest on the money that you've used on the deposit (£250k?) All sounds rather fishy to me. Quote Link to comment Share on other sites More sharing options...
I want a house! Posted June 1, 2011 Author Share Posted June 1, 2011 What sort of deposit have you got....traditionally to borrow £300K will cost you about £2K per month. + you have the stamp duty on 320K, about 10K...if you think prices will drop in 12 months so that 320K house is a 250K house you would save 7.5K in stamp duty alone not to mention the 50K capital and savings on interest. To have savings of 300K traditionally net you about 1800 a month so if had all the money in the bank then you'd be better off renting still. Are you confident prices will be going up or that you got that good a deal ? How does the price stand up to scrutiny against the land registry sale over the last 3/4 years ? £150,000 deposit. Are you confident prices will be going up or that you got that good a deal ? No to either but I don't see homes in London ever becoming £250,000 for too long or that at all. Currently, that's the price for a 2 bed on that road, a very small room with a large double. How does the price stand up to scrutiny against the land registry sale over the last 3/4 years ? House next door got picked up for £315,000 a month ago. Quote Link to comment Share on other sites More sharing options...
I want a house! Posted June 1, 2011 Author Share Posted June 1, 2011 All sounds rather fishy to me. What does? Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted June 1, 2011 Share Posted June 1, 2011 (edited) What sort of deposit have you got....traditionally to borrow £300K will cost you about £2K per month. + you have the stamp duty on 320K, about 10K...if you think prices will drop in 12 months so that 320K house is a 250K house you would save 7.5K in stamp duty alone not to mention the 50K capital and savings on interest. To have savings of 300K traditionally net you about 1800 a month so if had all the money in the bank then you'd be better off renting still. Which bank is paying that 6% pre-tax please? At 3% his £300k would earn £7,200 after 20% or £5,400 at 40% tax giving him £600 or £450 a month for a rental. Edited June 1, 2011 by Redhat Sly Quote Link to comment Share on other sites More sharing options...
dervis Posted June 1, 2011 Share Posted June 1, 2011 Next to South Wimbledon, London Jesus. Its like being mugged. If you say near South Wimbledon I am guessing you are between there and the Colliers Wood area. Its too much, but you weren't going to get anything cheaper in that area for what you are looking for. I like it when you say the guy was asking £350k. If he has had it say, 15 years, he wouldn't have paid more than 80k for it. I can only hope he bought at the peak of the market You should have come up my neck of the woods, North Mitcham. Lovely 3 beds going for £250-80. We are all under Merton Council. Quote Link to comment Share on other sites More sharing options...
snowflux Posted June 1, 2011 Share Posted June 1, 2011 BOE +1% I have been saving, thank god for HPC.co.uk as it does help you to get your house in order. Wish that prices went down a lot more before being forced to buy but hey ho. Where did you find that? Did you have to pay a large fee for it? Just asking because I'm buying too at the moment (for special reasons), and I couldn't find anything that low, even with an 80% deposit! Quote Link to comment Share on other sites More sharing options...
Russe11 Posted June 1, 2011 Share Posted June 1, 2011 care to connect these 2 points? kids=taxcredits=income=abletoaffordrepayments Quote Link to comment Share on other sites More sharing options...
I want a house! Posted June 1, 2011 Author Share Posted June 1, 2011 Where did you find that? Did you have to pay a large fee for it? Just asking because I'm buying too at the moment (for special reasons), and I couldn't find anything that low, even with an 80% deposit! Soz, saw I put 1%, soz mate 2%. I am writing this at work, hiding screens without proof reading, my bad. My partner organised it through some independent financial advisor. It's a tracker. Guess I understand now why, next time do what you did, just ask and I will tell. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted June 1, 2011 Share Posted June 1, 2011 Which bank is paying that 6% pre-tax please? At 3% his £300k would earn £7,200 after 20% or £5,400 at 40% tax giving him £600 or £450 a month for a rental. 300K in indexlinked savings certs ( you'd needed to have taken full allocations for a 4/5 years but some of us did ) will earn you about 6-7 % tax free at the mo....job done. Quote Link to comment Share on other sites More sharing options...
I want a house! Posted June 1, 2011 Author Share Posted June 1, 2011 kids=taxcredits=income=abletoaffordrepayments I earn too much mate, I pay for other ppl's kids. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted June 1, 2011 Share Posted June 1, 2011 House next door got picked up for £315,000 a month ago. Have prices gone up in a month ? Why not £300 K ? Sounds like you're overpaying by 5K. £5K is the price of a good 2nd car. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted June 1, 2011 Share Posted June 1, 2011 (edited) What does? I think he is more cynical than me. Not sure what your logic is that house prices wont drop to 250K...I'd have thought if there is a 10% drop the houses about 300K are then going to be looking at 270K...which is prime territory to be hauled under the 250K stamp duty limit. I'd personally have offered 250K on the 350K house. Good luck to you though, we all need a place to live. Some people see there being security in borrowing money off a bank to keep a roof over your head and stuck in one place. I see paying rent to get someone else to borrow the money to keep a roof over my head, maintain the place and leave me with the flexibility to move for work or invest my cash as I see fit a much better form of security. The british population have been brainwashed into a blinkered view of the security of housing. The only person who's home is their castle are the ones who own the bloody castles. Edited June 1, 2011 by TheCountOfNowhere Quote Link to comment Share on other sites More sharing options...
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