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Advice To First Time Buyers

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Salary

A steady income is vital if you want to get onto the property ladder. Try to find a secure job that pays at least £10,000 to £20,000 a year.

What to buy

Although you can get starter homes for a little as £250k, you will regret it within a matter of days if you buy something too small. Trading up is now very expensive so it is best to hold back until you can afford a small family home You can get one of these for as little as £450,000 and the repayments will be between £20 and £30K a year. Given that we are at a low point in the interest cycle however make sure you afford slightly higher paymenst (say £30-40K a year).

Moving in

When you move into your new home, you will be faced with miscellaneous costs such as curtains, white goods, dry rot and underpinning. Put a little bit of money aside to cover these incidentals (say £100-200K).

Insurance

The mortgage lender is putting a lot of trust in you so don't let him down. Be responsible and take out an insurance policy to cover his losses in the event that he has to reposses your property. You can get for as little as £500 per month.

The deposit

It is always good to put down a deposit of 10-20% when buying a house. If you don't have the money yourself, your conveyancing solicitor may be willing to give you an interest free loan. If you are really stuck for the £70K deposit you can always use your credit cards.

Council tax

Remember that council tax doubles every five years. For long term budgeting purposes you should allow at least £500 per month to cover this.

Renting is dead money

Remember that you are always better off buying. If you pay rent of £1000 per month, this is dead money. If you pay £1000 on an interest only mortgage however you are building up a store of wealth even if the house value goes down.

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If you pay £1000 on an interest only mortgage however you are building up a store of wealth even if the house value goes down.

Should they be allowed to say things like that?

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Salary

A steady income is vital if you want to get onto the property ladder. Try to find a secure job that pays at least £10,000 to £20,000 a year.

What to buy

Although you can get starter homes for a little as £250k, you will regret it within a matter of days if you buy something too small. Trading up is now very expensive so it is best to hold back until you can afford a small family home You can get one of these for as little as £450,000 and the repayments will be between £20 and £30K a year. Given that we are at a low point in the interest cycle however make sure you afford slightly higher paymenst (say £30-40K a year).

Moving in

When you move into your new home, you will be faced with miscellaneous costs such as curtains, white goods, dry rot and underpinning. Put a little bit of money aside to cover these incidentals (say £100-200K).

Insurance

The mortgage lender is putting a lot of trust in you so don't let him down. Be responsible and take out an insurance policy to cover his losses in the event that he has to reposses your property. You can get for as little as £500 per month.

The deposit

It is always good to put down a deposit of 10-20% when buying a house. If you don't have the money yourself, your conveyancing solicitor may be willing to give you an interest free loan. If you are really stuck for the £70K deposit you can always use your credit cards.

Council tax

Remember that council tax doubles every five years. For long term budgeting purposes you should allow at least £500 per month to cover this.

Renting is dead money

Remember that you are always better off buying. If you pay rent of £1000 per month, this is dead money. If you pay £1000 on an interest only mortgage however you are building up a store of wealth even if the house value goes down.

:lol::lol::lol:

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If you don't buy a house now you are avoiding responsibility. I didn't realise that until my father-in-law kindly pointed that out to me at the weekend. He's a retired financial adviser. He is also advising my sister-in-law to buy a slum miles from work on 6 times her salary interest only :o

I went away, did my own calculations and will continue renting, maybe I am avoiding responsibility, the responsibility of owning a depreciating asset.

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great post Dog - I think I see the light. :D

I would add that in a couple of years this property will have also have MEWing potential which will allow this FTBer to develop a healthy portfolio of properties and to finance his current spending which would be very healthy for the economy too - in fact it's the patriotic thing to do.

Fingers crossed: maybe I am avoiding responsibility

bet you end up selling drugs from your squat too :lol:

Edited by Sisyphus

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:P

Salary

A steady income is vital if you want to get onto the property ladder. Try to find a secure job that pays at least £10,000 to £20,000 a year.

A few pay rises and I should be ok then! Excellent! Afterall - nothing is a safe as bricks and mortar...

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Salary

A steady income is vital if you want to get onto the property ladder. Try to find a secure job that pays at least £10,000 to £20,000 a year.

...

the repayments will be between £20 and £30K a year.

Nice post. Explains the problem rather well. :)

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As a native Briton who's tribe roamed the London area for thousands of years before our land was sold and taken without compensation I want some of our land back. I appreciate there might be skyscrapers on the land now and it might to difficult to clear them away thus why I suggest the alternative of paying compensation. Just pop a compensation cheque in the post for 50 billion pounds and I will be happy.

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  • 301 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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