Abbey Well Posted January 25, 2008 Share Posted January 25, 2008 Hello everyone.I have just become a member on this forum, though I have lurked on here for quite some time, reading all of the interesting articles that have been posted up over the last few months. I hope this is the correct section to request advice in, forgive me if it is not. I currently own a home, which I bought for £98k (3 years ago). I have a mortgage of £80k on this house. I have agreed with my father, for him to purchase the house from me for £107k I have found a house which I want to purchase and have had an offer accepted on, for £125k (it was out for £137k, and next door sold for £147k only last year, all be it im sure in a better condition.) I am having to take out and additional £25k mortgage to purchase this house, taking it to £105k. The cost for this comes to just over £620 per month (variable repayment), and I bring in a salary of £1300 per month. Also I am single, I live on my own. Sorry to hit you with so many facts! My question is this: Is it a good time to move? Am I doing the right thing taking on more financial responsibility during this 'unsure' time? The way I am looking at is: This is a house I really would like, I think I could live there for the next good 5-10 years and be happy. I feel it is a 'good buy' at the moment. And it suites all of my current requirements. With my father buying my current home, estate agents charges are avoided. And as its (just) under £125k I don’t have to pay yet more tax on the purchase. I realise that mortgages will be harder to acquire in the future. Though I have no bad credit and no outstanding loans other than the mortgage. I could find it harder to get this £25k mortgage in the future? I'm just unsure at the moment, can someone put my mind a little bit more to rest please? Any help, much appreciated. Thanks. GJUK Hello How much do you think your house is really "worth" at the moment? You are increasing your mortgage by 25K - so the risk is 25k 7 of which is fees. By selling to your Dad you avoid estate agents fees and a HIP and your Dad probably won't bother with a survey. You currently own somewhere so if you stay put you "risk" whatever your house is worth now. I think your Dad is possibly buying at a good rate but you should probably ask a local estate agent for an opinion. It's your decision. Is your salary likely to go up in the next few years? Has the new place got more than 1 bedroom? If so could you rent a room out to cover the increased mortgage? At the end of the day you are a home owner now, unless you sell your current place you will be in a similar position in a few years. Say prices drop 30% - your place will be worth 75k The place you want to buy will be 97.5k a difference of 22.5k so it's small beer in teh grand scheme of things and if you add in having to pay for a HIP & EA fees - it's about the same. If it was me I would just get on with it as you are not a First time buyer, you are a home owner. Quote Link to comment Share on other sites More sharing options...
council dweller Posted January 25, 2008 Share Posted January 25, 2008 A house price crash is underway now.... Sell, rent and read my sig. All the best anyway.. Quote Link to comment Share on other sites More sharing options...
Benedict Posted January 25, 2008 Share Posted January 25, 2008 So you're selling for 107k and buying for 125k, i.e. an 18k difference, but taking out a mortgage that's 25k more. Where's that 7k going when there's no stamp duty or estate agents fees to pay? Quote Link to comment Share on other sites More sharing options...
jez123 Posted January 25, 2008 Share Posted January 25, 2008 How serious are you about the dog breeding? That does have serious size/location requirements. If your present house is not suitable and the new one is How serious can he be about dog breeding with a 1300pcm income and a 620pcm mortgage? Quote Link to comment Share on other sites More sharing options...
GJUK Posted January 25, 2008 Author Share Posted January 25, 2008 If you are 22 then I assume your father is in his 50s, not a doddery old dependent wreck! If you are both clued up about the market possibly turning to a greater or lesser (hiss!!! heresy !!) degree, then I don't think you can be responsible for "shafting" him. How serious are you about the dog breeding? That does have serious size/location requirements. If your present house is not suitable and the new one is (neighbours / garden/ soundproofing / parking etc) then there's an argument for going for it. But DO be sure of the economics - most people I know who are into cat-breeding regard it as an expensive hobby as the damn things are forever needing the vet!A number of posters tend to go for the jugular; just mentally subtract the insults and weigh the advice. My dads 49 yeh. We both are fairly clever yeh and understand what is happening and could happen. Very serious about dog breeding, currntly have 2 dogs, looking to aquire more next year following this move (i hope). Valid points again about the house / area. But i think its going to be okay to have the dogs in and around the house yes. Thank you for your post - very good. HelloHow much do you think your house is really "worth" at the moment? You are increasing your mortgage by 25K - so the risk is 25k 7 of which is fees. By selling to your Dad you avoid estate agents fees and a HIP and your Dad probably won't bother with a survey. You currently own somewhere so if you stay put you "risk" whatever your house is worth now. I think your Dad is possibly buying at a good rate but you should probably ask a local estate agent for an opinion. It's your decision. Is your salary likely to go up in the next few years? Has the new place got more than 1 bedroom? If so could you rent a room out to cover the increased mortgage? At the end of the day you are a home owner now, unless you sell your current place you will be in a similar position in a few years. Say prices drop 30% - your place will be worth 75k The place you want to buy will be 97.5k a difference of 22.5k so it's small beer in teh grand scheme of things and if you add in having to pay for a HIP & EA fees - it's about the same. If it was me I would just get on with it as you are not a First time buyer, you are a home owner. Worth. Well, this area never comes up for sale - its quite desirbable for the location. Everything has been sorted on the house, new combi boiler, new electrics, new garden, new bathroom, kitchen etc etc. I think its worth, and estate agents have said it would sell for £105-107. Im actually letting my dad have it for £105 - 2k less than its worth, im paying him that back at a later date. But hes paying me the full £107k for the house. Thank you for your comment also. So you're selling for 107k and buying for 125k, i.e. an 18k difference, but taking out a mortgage that's 25k more. Where's that 7k going when there's no stamp duty or estate agents fees to pay? 7k - money I owe my father, he lent it me to allow me to buy this house. So that is a repayment to him. Thank you, and well spotted! Quote Link to comment Share on other sites More sharing options...
GJUK Posted January 25, 2008 Author Share Posted January 25, 2008 How serious can he be about dog breeding with a 1300pcm income and a 620pcm mortgage? Sorry for calling you a tosser earlier, got a bit mad. My friend owns a 3k stud dog from marbleton boxers, which I use for free. Costs of breeding are minimal really. Its time and experiance that it comes down to. I work from home also, which helps! Quote Link to comment Share on other sites More sharing options...
Laura Posted January 25, 2008 Share Posted January 25, 2008 If you want some opinions that are possibly more to your liking, might I suggest the www.moneysavingexpert.com forums? ......... as we tend to be rather pessimistic regarding house purchases on here at present. Quote Link to comment Share on other sites More sharing options...
Lepista Posted January 25, 2008 Share Posted January 25, 2008 If you want some opinions that are possibly more to your liking, might I suggest the www.moneysavingexpert.com forums?......... as we tend to be rather pessimistic regarding house purchases on here at present. A bit more eloquently answered than I had been... Quote Link to comment Share on other sites More sharing options...
GJUK Posted January 25, 2008 Author Share Posted January 25, 2008 If you want some opinions that are possibly more to your liking, might I suggest the www.moneysavingexpert.com forums?......... as we tend to be rather pessimistic regarding house purchases on here at present. Thanks I'll have a look. Though I'd rather get advice from the 'negative' side. If that comes up possitive then i should/could/might be okay! Thanks. Quote Link to comment Share on other sites More sharing options...
jez123 Posted January 25, 2008 Share Posted January 25, 2008 Sorry for calling you a tosser earlier, got a bit mad. My friend owns a 3k stud dog from marbleton boxers, which I use for free. Costs of breeding are minimal really. Its time and experiance that it comes down to. I work from home also, which helps! No problem. I can see your side of the equation as well, you want somewhere to live! Good luck with whatever you decide. Quote Link to comment Share on other sites More sharing options...
ronpember Posted January 25, 2008 Share Posted January 25, 2008 No problem. I can see your side of the equation as well, you want somewhere to live!Good luck with whatever you decide. Must be joking - you say poster is shafting his own father without any knowledge of the circs other than the bare bones placed in the initial post - I'd find that pretty thoughtless, crass and offensive. I hope he/she won't retract the bid on this new place as quickly as he/she retracted the much deserved epithet. There's too much vitriol and bile on this site somtimes, comes from sitting in front of PC's all day and thinking about money. Now flame me! Ron Quote Link to comment Share on other sites More sharing options...
jez123 Posted January 25, 2008 Share Posted January 25, 2008 Must be joking - you say poster is shafting his own father without any knowledge of the circs other than the bare bones placed in the initial post - I'd find that pretty thoughtless, crass and offensive. I hope he/she won't retract the bid on this new place as quickly as he/she retracted the much deserved epithet.There's too much vitriol and bile on this site somtimes, comes from sitting in front of PC's all day and thinking about money. Now flame me! Ron No need to flame. If I'm off the mark then sobeit, but I don't see why anyone shouldn't speak their mind. Quote Link to comment Share on other sites More sharing options...
GJUK Posted January 25, 2008 Author Share Posted January 25, 2008 Any more coments relating to the post topic please? Many thanks, Quote Link to comment Share on other sites More sharing options...
gavp Posted January 25, 2008 Share Posted January 25, 2008 Any more coments relating to the post topic please? Many thanks, Is your Dad paying cash or will he have to take out a mortgage? Quote Link to comment Share on other sites More sharing options...
GJUK Posted January 25, 2008 Author Share Posted January 25, 2008 about 50/50 is the answer to that. Quote Link to comment Share on other sites More sharing options...
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