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Rob759

Buy To Live In?

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Dear all,

I'm considering purchasing a 3 bed terraced house in Westcliff-On-Sea Essex. I'm a first time buyer, in my 30's, and the properties I've looked at are well within my affordability. I'd be putting down 15% and the asking prices are no more than 3 times my salary.

My intention is to stop paying rent and live in the property for about two years, then I will be emmigrating to Australia, where I currently own a flat. I had in mind that at such time I would keep the property in Westcliff and let it out, so someone else can pay off the mortgage.

So really there is a few opinions I seek. Firstly is it a bad time to buy, even though I am buying well within my means? Secondly, going forward 25 years, would it not be a good thing to keep the property, weathering the cycles as they come and go and one day, in my retirement, be the owner of a house that I've not had to contribute much toward?

Am I just plain mad?

Thanking you for your opinions.

Rob

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I think it's a great idea. Emigrate to Australia - and stay there.

Forget the rest of the "plan". It's clearly impractical and frankly downright lunacy.

Did you post this question on the wrong site?

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Dear all,

I'm considering purchasing a 3 bed terraced house in Westcliff-On-Sea Essex. I'm a first time buyer, in my 30's, and the properties I've looked at are well within my affordability. I'd be putting down 15% and the asking prices are no more than 3 times my salary.

My intention is to stop paying rent and live in the property for about two years, then I will be emmigrating to Australia, where I currently own a flat. I had in mind that at such time I would keep the property in Westcliff and let it out, so someone else can pay off the mortgage.

So really there is a few opinions I seek. Firstly is it a bad time to buy, even though I am buying well within my means? Secondly, going forward 25 years, would it not be a good thing to keep the property, weathering the cycles as they come and go and one day, in my retirement, be the owner of a house that I've not had to contribute much toward?

Am I just plain mad?

Thanking you for your opinions.

Rob

Go for in dude. Everyone's doing it. Thanks to GB everyone can have a house ' without contributing much to it'. You just have to be brave enough to get on that ladder. Hurry up thiugh you might miss it.

Good luck in Aus btw, and watch out for sting rays.

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I dont think its a bad idea for living in, as for renting you want to make sure your tenants are well checked out as you wont be here to check them yourselves you will need a decent reliable person to look after your intrests.

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Secondly, going forward 25 years, would it not be a good thing to keep the property, weathering the cycles as they come and go and one day, in my retirement, be the owner of a house that I've not had to contribute much toward?

Am I just plain mad?

Rob

Plain mad keeping it on here with you in Oz.

Sell it and take the money with you.

I've tried being a long distance LL and its murder.

Dont do it.

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Dear all,

I'm considering purchasing a 3 bed terraced house in Westcliff-On-Sea Essex. I'm a first time buyer, in my 30's, and the properties I've looked at are well within my affordability. I'd be putting down 15% and the asking prices are no more than 3 times my salary.

My intention is to stop paying rent and live in the property for about two years, then I will be emmigrating to Australia, where I currently own a flat. I had in mind that at such time I would keep the property in Westcliff and let it out, so someone else can pay off the mortgage.

So really there is a few opinions I seek. Firstly is it a bad time to buy, even though I am buying well within my means? Secondly, going forward 25 years, would it not be a good thing to keep the property, weathering the cycles as they come and go and one day, in my retirement, be the owner of a house that I've not had to contribute much toward?

Am I just plain mad?

Thanking you for your opinions.

Rob

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I think it's a great idea. Emigrate to Australia - and stay there.

Forget the rest of the "plan". It's clearly impractical and frankly downright lunacy.

Did you post this question on the wrong site?

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Hi All,

Thanks for the responses, I'm tipped quite heavily in favour of not proceeding, although I'd really like to stop renting (then again perhaps I need to rationalise that a bit, for example, investigate safer areas to distribute my 15% deposit).

Moving slightly away from my immediate situation, do the bears on here think that all sectors of the market will be equally hit by a slump in prices. Will my proposed 3-bed terrace in Westcliff, asking price of around £170 drop by 30% in the same way that the £1m flat in Belgravia will be hit?

I would have thought that at the lower end of the market, prices would be hit, but not to the same extent. Would a 30% average fall mean 50% in some areas 20% in others? On the face of it that seems to make sense to me. Nonetheless, properties in that area seem generally to have enjoyed around 9~11% (in some cases 15%) annual appreciation in the past five years. Even if I could knock 10% off the asking (unlikely), I'd still be in the neg.

Any thoughts on the impact of the crash on sub £200K end?

Thanks very much.

PS: I realise that buy to dwell decisions should place more emphasis on the cost of renting vs buying, rather than focussing only on appreciation of a non liquid asset (I don't imagine ever getting involved with MEWs), however no one wants to buy at the top of the market, even if one never sells to realise a loss.

Edited by Rob759

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Why are you buying a place to live in if you are emigrating in 2 years? Renting is perfect for someone in your situation. The transaction costs alone make buying for only two years a silly move.

As for buying as an investment, that's a completely different scenario. Don't confuse the two. The best investment property may not be in the area you want to live in, or it may be a different type of property. There are also other types of investment to consider!

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Sydney prices are already crashing nicely, and interest rates are still going up.

It's going to get worse (or better, depending on your view)

http://www.smh.com.au/news/national/housin...6012414995.html

Why not rather save the money for 2 years, take it all with you and buy a couple of BTL properties in Sydney in 2 years time, at the bottom of a property cycle, rather than the top.

Edited by BandWagon

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Buy a house now, when prices seem to be near their peak ? I wouldn`t do it, you`re unlikely to make any profit in the next two years. Looking at all of the statistics and current market conditions would rule out much of a chance of a house going up in value over a couple of years. No doubt, this means that if you do buy today, it`ll be worth 15-20% more in 2 years time. :rolleyes:

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.......

Am I just plain mad?....

Rob, mad you may be but fear not, we are here to help you. Now, imo, is a fine time to buy. Property prices are 'keen' to say the least. Asking price is the only way to go if you want to secure that dream home but don't think of it as a home, think about it as a house. If you offer 10% more you are sure to secure it. Rental income on it should secure you in the manner in which you deserve when you move to Australia.

Good luck.

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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
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      • up 5%



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