Would you buy this house right now?

[Lrla90]

In my situation what would you do. 

(my offer already accepted, bank have valued it, solicitor stuff under way, rics level 3 done) 

With interest rates going up I'm getting nervous. I was/am buying a house that needs a lot of work. I'd need to borrow money to get it done to a nice standard (it needs a new kitchen and every room needs re-plastering and carpets). I do have some of the money already but may need to borrow 10k.

 

I'm worried that with interest rates rising and what may happen to house prices that soon I'll have borrowed more/spent more than the house is worth. 

I'm buying for £160k and once it's done could be worth £180k based on other houses in the streets' sold prices. But I'll need to spend that on it and maybe more because who knows what may crop up when I get going on it. And with rates going up and cost of materials. 

 

I'm a ftb btw. Maybe I should wait? 

[BaldED]

So why did you go for the house in the first place? To buy it to live or to buy and make a profit? If its the first point what difference does it make what the value is if it's where you want to live. If it's the second point to make a profit I hope the market crashes tbh.

[Gawdon Bwown]

Could you not just do the property up little by little over a period of time without resorting to borrowing?  Your already taking on a large chunk of debt with the mortgage I guess ? 

One thing is for sure, you need to be very careful if you expect property to continue to increase in value in the near future. 

[PeanutButter]

Lot of variables.

How long you been looking?

What fix is the mortgage?

What percentage of your salary is mortgage each month? Do you expect to earn more over the fixed term?

Is it somewhere you can raise a family? Are the schools good, green spaces, good transport?

If you lose your job do you have contingency fund? Can you upskill quickly? 

How much mental space has this purchase been taking in your mind and are you prepared to do it all again in whoever knows how many months/years?

 

[Insane]

Two things to remember when doing a project.

1. It will always cost more than you budget for.

2. It will always take longer than you thought.

If the whole place needs re plastering you won't be able to live in it while that is taking place. If you think you can and do one room or a few at a time that is going to be very a uncomfortable way to live, plastering makes one hell of a mess. 

[Lrla90]

It's to live in but I'm single, 31, no children, I hope it isn't my forever home in that sense. It's an end terrace. 

I'm a midwife so have total job security however no pay rises for us! 

My fixed rate is 1.9% on a 2 yr or 2.6% for a 5yr. 10% deposit. I'm a bit worried about how much energy bills are going to cost me on top of renovating it. 

At the moment I have a cushy set up in a house share (live in landlord is in the army and never home) where bills are included for £550pm. Although turning 32 this year and I'd love my own place and my own bed and be able to spread out more. 

 

How I don't want to be stupid if it would be more sensible to wait and buy something that either doesn't need any work or something more affordable. If interest rates climb again next year to 3% I may start feeling the pinch? It's so hard being single I feel very vulnerable financially as have no family to help. 

[Lrla90]

My offer was accepted back in January before I realised how much energy was rising and before the war in Ukraine. 

I was recently single and feeling determined but now I have doubts. 

It's in a nice area yeah, the only one I want to live in really. The street is ex council with some existing council on it but is nice and quiet. 

 

[Timm]

I'm in almost exactly the same boat, and I'm having second thoughts too.

The difference is, I'm not a FTB, so it is more of a sideways move.

[winkie]

Buy it if can afford it, the right property in the right place and can live in it for 5 years plus...... don't worry about doing up, or what it might be worth done up......live in one room if have to or get a lodger, one with DIY skills all the better.

[Lrla90]

It's constantly on my mind and consuming my thoughts. I'm an indecisive person as it is. 

The rics survey said it needs a new roof (at the end of its cycle). I certainly can't afford that any time soon without borrowing. Yikes 

[wighty]

1 minute ago, Lrla90 said:

It's constantly on my mind and consuming my thoughts. I'm an indecisive person as it is. 

The rics survey said it needs a new roof (at the end of its cycle). I certainly can't afford that any time soon without borrowing. Yikes 

Typical Rics. All houses will need a new roof in the future.

[winkie]

2 minutes ago, Lrla90 said:

It's constantly on my mind and consuming my thoughts. I'm an indecisive person as it is. 

The rics survey said it needs a new roof (at the end of its cycle). I certainly can't afford that any time soon without borrowing. Yikes 

Don't worry about any leaky roof.....a bucket does wonders......a cycle can be many years away from now, just do it.

[Lrla90]

https://www.zoopla.co.uk/for-sale/details/60506945?utm_source=v1:5bWFDybfWx7C7AGpeagt7mP3PgcqjuqJ&utm_medium=api

 

This is the house. It's been unoccupied since January which also makes me a bit nervous. There's soooo much to do. 

The walls are artex but can hopefully be skimmed rather than fully replastered? (I had the artex checked for asbestos and all samples were negative) 

[Lrla90]

Pros

My own space, my own bed, can decorate it how I like, never have to share again unless I want a lodger

Cons 

Inflation, rising IRs, the amount of work that needs doing, needing to borrow, council houses on that street (a couple of them are scruffy) 

I've been offered roles in medical sales if I wanted (due to a background in sales) which would be a very good pay rise, which oftentimes because maternity services are so dire rn I do consider. By this time next year if I took the role I'd be on a lot more and be offered a bigger mortgage (unless the criteria becomes very strict). My point being I could maybe afford something else that didn't need as much work doing this time next year. Especially if house prices do come down a bit. Do you think they will? 

[winkie]

9 minutes ago, Lrla90 said:

https://www.zoopla.co.uk/for-sale/details/60506945?utm_source=v1:5bWFDybfWx7C7AGpeagt7mP3PgcqjuqJ&utm_medium=api

 

This is the house. It's been unoccupied since January which also makes me a bit nervous. There's soooo much to do. 

The walls are artex but can hopefully be skimmed rather than fully replastered? (I had the artex checked for asbestos and all samples were negative) 

Looks okay.....go for it, nothing wrong with artex, not the worse thing have to live with.

[Insane]

33 minutes ago, Lrla90 said:

I was recently single and feeling determined but now I have doubts. 

There is always doubt , there has never been a time when people bought a house and the whole world was a rose garden. 

Where there is a will there is a way. It is a bit like jumping in a cold swimming pool it is much easier to stand on the pool side and think I don't want to do it I feel comfortable here but if you jump in and take a deep breath , move about the water soon gets comfortable. If you stand on the poolside for ever you will never take that swim. 

The biggest issue is the job as you say you have secure employment with that covered you can deal with any other eventuality. 

I nearly pulled out of the first place I ever bought as my job was insecure , but I didn't the job lasted another 3 years and the property went up in value during that period. 

Do it or rent for ever. 

[PeanutButter]

Midwife? High demand, no worries there. Can even go private for more money. 

3 bed so you get in a pinch can take in a lodger (also easy to find since you’ll be in contact with junior hospital staff in that bracket).

Rather than pulling out consider lowering offer, cite the Rics roof etc. Buys you some breathing room.

Edited May 21, 2022 by PeanutButter

[Gurgle]

2 minutes ago, PeanutButter said:

Midwife? High demand, no worries there. Can even go private for more money. 

3 bed so you get in a pinch can take in a lodger (also easy to find since you’ll be in contact with junior hospital staff in that bracket).

Rather than pulling out consider lowering offer, cite the Rics roof etc. Buys you some breathing room.

Yep, the roof thing gives you room to negotiate.  That’s a big chunk of cost and you can ask them to take it off the price 

[Insane]

46 minutes ago, Lrla90 said:

At the moment I have a cushy set up in a house share (live in landlord is in the army and never home) where bills are included for £550pm. Although turning 32 this year and I'd love my own place and my own bed and be able to spread out more. 

But the situation can change without you having control over it. 

My Brother was in exactly the same position as you live in landlord in the army. There were 3 tenants in a huge 4 bedroom house. With the landlord in the army and one tenant spending a lot of time with her partner there was just my brother and 1 other guy who he got on very well with in this huge house. 

Then one day the landlord decided to sell and they all had to vacate. 

[“Nasty Piece of work”]

Bale out!

 

The “cost of living” crisis is currently being kicked up people Joe’s back-passage - it sooo bad even the BoE recognises it’s a Richard sandwich with a side of Tramp’s sick.

 

[Lrla90]

3 minutes ago, “Nasty Piece of work” said:

Bale out!

 

The “cost of living” crisis is currently being kicked up people Joe’s back-passage - it sooo bad even the BoE recognises it’s a Richard sandwich with a side of Tramp’s sick.

 

Huh? 

[“Nasty Piece of work”]

46 minutes ago, Lrla90 said:

Huh? 

 Basically costs and IRS up, House Prices eventually down.

 

[70PC]

5 hours ago, Lrla90 said:

In my situation what would you do. 

(my offer already accepted, bank have valued it, solicitor stuff under way, rics level 3 done) 

With interest rates going up I'm getting nervous. I was/am buying a house that needs a lot of work. I'd need to borrow money to get it done to a nice standard (it needs a new kitchen and every room needs re-plastering and carpets). I do have some of the money already but may need to borrow 10k.

 

I'm worried that with interest rates rising and what may happen to house prices that soon I'll have borrowed more/spent more than the house is worth. 

I'm buying for £160k and once it's done could be worth £180k based on other houses in the streets' sold prices. But I'll need to spend that on it and maybe more because who knows what may crop up when I get going on it. And with rates going up and cost of materials. 

 

I'm a ftb btw. Maybe I should wait? 

If you buy a new car for £15k, it might be worth £8k after 5 years. If you want it to be worth £15k after 5 years you buy a vintage car and spend your weekends under the bonnet. It definitely depends on why you are buying. 

[winkie]

Just to get some context..... a £150k freehold in Leeds a good deal.......a £500k or £600k in London walk away.....midwives are required all over the UK, same as teachers, dentists and doctors.....

[winkie]

Levelling up....that is if they practice what they preach, don't hold your breath......you home is what a London or a South East home was not that many years ago.