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nat172

Newbie In Need Of Advice....

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hi all, and what a great forum,i registered a while ago and mainly just observed the posts.

my problem is at 18 i bought my 1st property in 2002 and have done ok with property until me and my partner split up, now im 23 living alone in my house with a 10% ,4x times my salary in feb when i moved in i was payin 388pm interest only which is dreadful but with debt from my partner meant i couldnt afford repayment,since i been here a few months interest rates have gone up 4 times and im now payin 436pm...( alarm bells start to ring)..im thinking of selling as im struggling to have a life with my increase in payments, my family think i should stick it out but im feeling that i should rent cheaper and save for when a crash or lower prices start wether it be in 8 months or 3 years.

my advice is should i go with my gut instinct ( never let me down in the past) and rent and wait( would be renting with a freind and saving alot each month). or hold out and just stay in my own house. baring in mind i have a interest only mortgage and the house im in is what im settleing for as i cant affrod where or what i want atm, im still 23 and could save quite a bit ,i have time on my side so to speak.

any advice would be greatly appreciated. thanks Natalie :unsure:

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advice.... advertise for lodgers, get at least 1..... the government policy 'rent a room' allows you to collect upto 320 quid a month tax free in rent.

is 436pm is less than the equiv rent? If it is your doing better than most, if you rent a room or two out that will pay almost all your mortgage!

Edited by moosetea

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advice.... advertise for lodgers, get at least 1..... the government policy 'rent a room' allows you to collect upto 320 quid a month tax free in rent...

IMHO if you have a spare room, take moosetea's advice ( http://www.landlordzone.co.uk/lodgers_rent-a-room.htm ) and change your mortgage to capital repayment ASAP - failing that, I would sell up.

Edited by studdymx

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You are in the same position that I was in in 1988.

I stayed in the house and made a decent profit when I STR'd last month.

In hindsight however it was a mistake - I should have sold and bought back in in 1996.

I vote SELL.

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its only a 2 bed terrace the front bedroom (mine) being massive and the box room being a box room, dont think it would rent tbh,

at the mo im payin 436 plus £160 bills/insurance policys etc.then car insurance if i was to rent with my friend i would be payin £300 max all in each month giving me more money to save and with the money from the house i could put in a high interest saving account, i would walk away from the house with £14k ,so i would have a good deposit for when they do drop and also be able to afford go back to uni part time and finish my surveying course off.

Edited by nat172

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Sell now. Do you really need the security of your own home right now? No. Take the cash and run.

Good luck.

ditto

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Guest d23
its only a 2 bed terrace the front bedroom (mine) being massive and the box room being a box room, dont think it would rent tbh,

at the mo im payin 436 plus £160 bills/insurance policys etc.then car insurance if i was to rent with my friend i would be payin £300 max all in each month giving me more money to save and with the money from the house i could put in a hight saving account, i would walk away from the house with £14k ,so i would have a good deposit for when they do drop and also be able to afford go back to uni part time and finish my surveying course off.

sound to me like you've made your mind up already and the fact your posting this question on this website would indicate you're looking for approval on that decision

This is a very big decision for you and not sure I'd be comfortable to encourage you either way without knowing your entire situation. I would bear in mind that 2002 is when houseprices hit the trend line on the front page of this site and dependent on where your place is and what deal you got on it you could be looking for 40% falls before it hits the price you paid in 2002.

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Thanks guys for your help, will decorate the bathroom and put it on the market, at the moment i want to concentrate on getting qualified then i can earn more, and renting is cheaper for me at the moment,having interest only mortgage is crap and isdead money so i may as well rent someones house thats cheaper, will wait for prices to come down hope they do in the next 3 years.

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Thanks guys for your help, will decorate the bathroom and put it on the market, at the moment i want to concentrate on getting qualified then i can earn more, and renting is cheaper for me at the moment,having interest only mortgage is crap and isdead money so i may as well rent someones house thats cheaper, will wait for prices to come down hope they do in the next 3 years.

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its only a 2 bed terrace the front bedroom (mine) being massive and the box room being a box room, dont think it would rent tbh,

at the mo im payin 436 plus £160 bills/insurance policys etc.then car insurance if i was to rent with my friend i would be payin £300 max all in each month giving me more money to save and with the money from the house i could put in a high interest saving account, i would walk away from the house with £14k ,so i would have a good deposit for when they do drop and also be able to afford go back to uni part time and finish my surveying course off.

sell house - invest teh profit! do NOT waste this money.

GO move into an all inclusive room in ashared house - preferrably 4 or 5 peeps mixed house. That way you will ahve a scream a minute - enjoy life whilst you are young mate!

Then in 10 years time think about settling down!

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my house is in Nr Wigan lancashire, i only bought this house im in 6 months ago. yes i will put my money in a savings account, lol i know my decision i just wanted to hear its the right one from you guys my family think if i sell now and rent i wont get back on the property ladder. IMO i think in a couple of years maybe 5 yrs i will andit could be the house i want. not a terrace house im settleing for.

Thanks again

P.S this site is great !! :lol:

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2 bed terrace to yourself and you are complaining :blink:

Seriously, you could probably save more than your house will appreciate so in your shoes i'd sell.

Good luck ;)

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i would walk away from the house with £14k ,so i would have a good deposit for when they do drop and also be able to afford go back to uni part time and finish my surveying course off.

Does the £14k take into account the costs of selling up?

Re finishing your surveying course - if you can afford to get a professional qualification IMO you should.

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my house is in Nr Wigan lancashire, i only bought this house im in 6 months ago. yes i will put my money in a savings account, lol i know my decision i just wanted to hear its the right one from you guys my family think if i sell now and rent i wont get back on the property ladder. IMO i think in a couple of years maybe 5 yrs i will andit could be the house i want. not a terrace house im settleing for.

Thanks again

P.S this site is great !! :lol:

So taking your buying costs and selling costs after 6 months - are you still in profit?

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So taking your buying costs and selling costs after 6 months - are you still in profit?

That may tell you whether the OP made a good decision buying 6m ago.

But it's irrelevant when considering what to do NOW.

The question under consideration is, will the profit be greater (or the loss smaller) by selling now than by hanging on.

I'm sure you realise that if you're honest.

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That may tell you whether the OP made a good decision buying 6m ago.

But it's irrelevant when considering what to do NOW.

The question under consideration is, will the profit be greater (or the loss smaller) by selling now than by hanging on.

I'm sure you realise that if you're honest.

I agree that the future costings are vital and that they determine what the (hopefully) right answer is for the OP. I was wondering where he was starting from - thats to say, take buy and sell costs etc. If he is ahead of the game at the minute and the costs of selling wont leave him in a hole and renting is OK then go for it. I just wondered if the costs of buying and selling were such that he was down on the deal and he needed significant savings per month by renting to make it worthwhile.

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I agree that the future costings are vital and that they determine what the (hopefully) right answer is for the OP. I was wondering where he was starting from - thats to say, take buy and sell costs etc. If he is ahead of the game at the minute and the costs of selling wont leave him in a hole and renting is OK then go for it. I just wondered if the costs of buying and selling were such that he was down on the deal and he needed significant savings per month by renting to make it worthwhile.

hi well i bought in Jan 07 and put down £10,000 if i was to sell next month takin in account sol and EA fees i should walk away with £13,500, BUT if my memory serves me correctly im in a clause with the lending company which could be around the £3k mark so what do i do would youall stick it out for 2years til the clause ends or cut my losses and rent and be patient til the prices come down ??

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hi well i bought in Jan 07 and put down £10,000 if i was to sell next month takin in account sol and EA fees i should walk away with £13,500, BUT if my memory serves me correctly im in a clause with the lending company which could be around the £3k mark so what do i do would youall stick it out for 2years til the clause ends or cut my losses and rent and be patient til the prices come down ??

Stay put.

To calculate if your in profit or loss take the amount you've paid so far subtract the amount of capital you've repaid from that figure now add the result to your purchase price. After that add EA fee's, stamp duty (if applicable), any early repayment charge etc. If this final figure is higher than the properties valuation/sale price stay put unless property in your area is falling in price, by moving you would be throwing money away.

Edited by b0rk

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hi well i bought in Jan 07 and put down £10,000 if i was to sell next month takin in account sol and EA fees i should walk away with £13,500, BUT if my memory serves me correctly im in a clause with the lending company which could be around the £3k mark so what do i do would youall stick it out for 2years til the clause ends or cut my losses and rent and be patient til the prices come down ??

There really isnt enough money involved here to get excited over. Do what is best for your day to day life.

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Stay put.

To calculate if your in profit or loss take the amount you've paid so far subtract the amount of capital you've repaid from that figure now add the result to your purchase price. After that add EA fee's, stamp duty (if applicable), any early repayment charge etc. If this final figure is higher than the properties valuation/sale price stay put unless property in your area is falling in price, by moving you would be throwing money away.

replaying to myself bad form I know...

But if you can't really afford to stay as the mortgage payments exceed what you can afford then sell up. Right off any loss and put it down to experience. Also how come you have a tie-in period if the mortgage is on a flexible rate, is it a tracker?

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