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tulipz

Buying Our First Home - Now?

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Hi All,

We are planning to buy our first home soon. We found a good property - 4 bed semi in petts wood (London). May I please ask you to pour in your thoughts about the following ?

1. 4 bed (3 good size doubles and 1 small single) semi in Petts wood with a separate garage and a good size garden is up for £ 320k (asking price)...its maintained reasonably well...can move in straight away, might need to replace carpets in a few months time...its exactly 15 min walk to the station.. direct trains to central London (in 26 mins). We both work in London. Do you think this property is worth that money??? particularly in petts wood area??

2. How is the property market in London and South east in general? We dont mind if the prices dont rise in the next 3-4 yrs but we are really scared of being in negative equity....

3. What price can I put the offer on? Whats the max this is worth?

We like this property, but its a big stretch on our pockets...we are pulling out even pennies from everywhere to gather enough for a deposit this sort of price tag demands. Is it really worth in the current climate?

Awaiting your thoughts,

Tulipz

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If it is a big stretch to afford now, ask yourself if you can afford if if

(a) interest rates rise - currently at historic lows

(B) house prices fall - close to historic highs in terms of income multiples

© your income situation changes - unemployment rising

I've done the above three and concluded I'd be madder than mad jack mcmad to buy now.

:P

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Hi All,

We are planning to buy our first home soon. We found a good property - 4 bed semi in petts wood (London). May I please ask you to pour in your thoughts about the following ?

1. 4 bed (3 good size doubles and 1 small single) semi in Petts wood with a separate garage and a good size garden is up for £ 320k (asking price)...its maintained reasonably well...can move in straight away, might need to replace carpets in a few months time...its exactly 15 min walk to the station.. direct trains to central London (in 26 mins). We both work in London. Do you think this property is worth that money??? particularly in petts wood area??

2. How is the property market in London and South east in general? We dont mind if the prices dont rise in the next 3-4 yrs but we are really scared of being in negative equity....

3. What price can I put the offer on? Whats the max this is worth?

We like this property, but its a big stretch on our pockets...we are pulling out even pennies from everywhere to gather enough for a deposit this sort of price tag demands. Is it really worth in the current climate?

Awaiting your thoughts,

Tulipz

Don't overstretch or you may regret it for the rest of your life... If you can afford the repayments on 1 income at a stretch go for it. If not, wait.

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Don't overstretch or you may regret it for the rest of your life... If you can afford the repayments on 1 income at a stretch go for it. If not, wait.

Stretch in the sense that we are having to pull out money from everywhere to get a deposit together.

My husband is a perm employee. I am a contractor. We are basing this mortgage on his income alone. His take home is £3200 and mortgage will come up to £1400... we have no other committments. Its going to be a bit high for the first 2 years (term time) but by the end of it, I'll have substantial amount in my account to pay off a some of the principle (and hence reduce the interest rate) to bring monthly payments about £1100 levels...

Does this sound reasonable to go ahead? We really liked the property... the best of what we've seen so far... Appreciate your honest thoughts on this --- I would think my husband and I are not able to decide with our brain alone since the heart has taken a liking for the property!

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Age old wisdom on this forum - if you like it and can afford it, go for it.

And it sounds like you can afford it...

As to what prices will be in six months - everyone is guessing.

My personal guess is that they will be 10 - 15 lower in nominal terms, even in London.

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If it is a big stretch to afford now, ask yourself if you can afford if if

(a) interest rates rise - currently at historic lows

(B) house prices fall - close to historic highs in terms of income multiples

© your income situation changes - unemployment rising

I've done the above three and concluded I'd be madder than mad jack mcmad to buy now.

:P

+1

Tukipz - a. and b. are certainties. c. is out of your control, but if you lose your job it's not easy to find another one. I work just outside London and 45 people applied for a very basic and not highly paid admin job in my department.

I've got enough in the bank for a deposit, a very safe job (or a large redundancy payment), a near perfect credit rating and I also concluded I'd be certifiably mental mad to buy. Not even remotely interested in the notion.

Edited by Starla

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  • 285 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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