smiffy1967 Posted March 28, 2008 Share Posted March 28, 2008 Been renting for two years, the house i am renting although nice, has problems with damp, my kids periodically get sick. the house is extremely awfully insulated (just got a combined gas and electric bill for 550) landlord doesn't give a shite about maintaining the property, i hate the guy, i feel trapped and want to provide a proper home for my kids. The rent is 600 pcm. I hate being the landlords bitch and paying for his kids future, he comments every time i buy anything and generally sticks his nose in my business as well as inviting himself on the property when he feels like it. So, i have been house hunting for two years, found a lovley semi rural old miners cottage, original asking price 140K. I put in numerous offers well below asking price. I started the bidding at 119K and went up to 123,000 he excepted. The loan fixed until 2011 works out at 120 more than my rent, the house i intend to buy is well insulated and my guess is it will cost a lot less to heat, also where i am renting i can only have BT as a service provider and have been paying a fortune in phone calls to run my small business. the new house will enable me more choice for serive providers saving me even more money. Me and my wife have a combined income of around 55,000 and we will need to borrow 110K am i mad? Quote Link to comment Share on other sites More sharing options...
chichi Posted March 28, 2008 Share Posted March 28, 2008 How much have you saved in the bank? Quote Link to comment Share on other sites More sharing options...
InternationalRockSuperstar Posted March 28, 2008 Share Posted March 28, 2008 You don't like renting in the place you're currently in. House prices are still falling and will continue to do so. So just rent somewhere else! Quote Link to comment Share on other sites More sharing options...
garybug Posted March 28, 2008 Share Posted March 28, 2008 Been renting for two years, ...am i mad? I sympathise.. :angry: How much, as a percentage, would your mortgage be compared to your net salary - and what kind of mortgage terms have you been offered? Good luck, BTW Quote Link to comment Share on other sites More sharing options...
newbie Posted March 28, 2008 Share Posted March 28, 2008 Shave another 20k off before you exchange contracts... that'll get you parity with your rental costs. Quote Link to comment Share on other sites More sharing options...
Wannabe Posted March 28, 2008 Share Posted March 28, 2008 (edited) am i mad? No. Sounds like you've got your priorities right - look after your family first. If the mortgage feels affordable and job security isn't too much of a worry, then go for it... First thing you do when you move in is talk to B.Gas about a grant for insulating the place if it hasn't already been done. From memory, I paid £85 to get my entire loft insulated about 5 years ago - no when I go up there it's freezing cold coz' all the heat is trapped below where it should be. If there are enough rooms, get a lodger in to help with the expenses - I've done that in the past and it works very well... Edited March 28, 2008 by Wannabe Quote Link to comment Share on other sites More sharing options...
Guest Steve Cook Posted March 28, 2008 Share Posted March 28, 2008 (edited) am i mad? YES.... Edit: OK.....that was not very helpful. I think any purchase right now is very, very, very unwise. The worst that will happen for you if you don't buy in the coming 6 months or so is that housing will stagnate or fall slightly. You will have lost little by hanging on for another six mo0nths. The worst that can happen if you buy now and the correction accellerates, is that you will have lost a considerbale amount of money you would otherwise have not had to spend. so: Don't buy for six months and the market stagnates = small negative consequcnes Don't buy for six months and the market crashes = large positive consequences Buy now and the market stagnates = small negative consequences Buy now and the market crashes = large negative consequences Three negatives and one positive Think Edited March 28, 2008 by Steve Cook Quote Link to comment Share on other sites More sharing options...
Sledgehead Posted March 28, 2008 Share Posted March 28, 2008 and how much is the council tax and house insurance - bet that f**ks up the calcs concerning those pennies you imagine you'll save by switching to some dodgy broadband supplier Quote Link to comment Share on other sites More sharing options...
Moo Posted March 28, 2008 Share Posted March 28, 2008 am i mad? Wrong question to ask. Ask yourself "am I happy", and go with that answer, as that's the one that matters. Quote Link to comment Share on other sites More sharing options...
daedalus Posted March 28, 2008 Share Posted March 28, 2008 Troll alert? Quote Link to comment Share on other sites More sharing options...
cells Posted March 28, 2008 Share Posted March 28, 2008 one of the big advantages of renting is that you can move, easily. if your combined income is 55K you must be getting about £40k after tax. how much deposit do you have? how much can you save per year? Quote Link to comment Share on other sites More sharing options...
#1 on West side Posted March 28, 2008 Share Posted March 28, 2008 As you pointed out, the cash flow is roughly the same (assuming your energy savings are realised). You certainly have more control on the upkeep of your owned property, but that is because you are responsible for it (stating the obvious, sorry...). So, question is: Have you considered all your options? This is not a buy vs rent question, but also a question of whether you can find a better landlord / property. How about renting another property? You got the property 11% below asking price - good for you. So what if the property might drop another 10% in the next two years, you are not planning on selling, do you? Your multiplier looks conservative. I assume you have no further debts, nor expect to get into debt, e.g. have to go into debt to affort stamp duty, moving cost, etc. Bottom line: If you are happy and can affort it, best of luck. Quote Link to comment Share on other sites More sharing options...
smiffy1967 Posted March 28, 2008 Author Share Posted March 28, 2008 and how much is the council tax and house insurance - bet that f**ks up the calcs concerning those pennies you imagine you'll save by switching to some dodgy broadband supplier the house is less than 3.5 times my and my wifes combined earnings! council tax around 94.00 a month, compared the the energy wasting monster of a house i am living in, this small cute cottage well finished by the previous owner whom put a lot of love into it and had to sell because he needed a bigger house since meeting a new partner whom has her own kids, my monthly outgoings in utilities will come down considerably. Sure, i could hold out, but i love the place and my young kids need a home, not one rental after another, one school after another and all the time having to pay security deposits and paying money to constantly inrich other people! I am truly fed up, it is a risk, what isn't in life? Quote Link to comment Share on other sites More sharing options...
smiffy1967 Posted March 28, 2008 Author Share Posted March 28, 2008 Troll alert? take ya bear googles off, 450 posts! Troll my ass, feel i'm amongst friend here! Quote Link to comment Share on other sites More sharing options...
Harry Sacks Posted March 28, 2008 Share Posted March 28, 2008 take ya bear googles off, 450 posts!Troll my ass, feel i'm amongst friend here! You are. Ignore the c0ck and the childless metro sexual man bag fan. If you can afford it and feel you are doing the right thing then do it. However, house prices are finally falling and we don't know when this trend will stop. Quote Link to comment Share on other sites More sharing options...
smiffy1967 Posted March 28, 2008 Author Share Posted March 28, 2008 As you pointed out, the cash flow is roughly the same (assuming your energy savings are realised). You certainly have more control on the upkeep of your owned property, but that is because you are responsible for it (stating the obvious, sorry...). So, question is: Have you considered all your options? This is not a buy vs rent question, but also a question of whether you can find a better landlord / property. How about renting another property?You got the property 11% below asking price - good for you. So what if the property might drop another 10% in the next two years, you are not planning on selling, do you? Your multiplier looks conservative. I assume you have no further debts, nor expect to get into debt, e.g. have to go into debt to affort stamp duty, moving cost, etc. Bottom line: If you are happy and can affort it, best of luck. I have a couple of small loans, paying 300 a month in repayments, no stamp duty to pay on this house either. Bottom line is, my kids need a home, i managed to pay a mortgage for 10 years before selling to rent, it was sometimes hard sometimes easy, but we kept ed to roof through hard times and good times. I am looking at spending a good decade in this house, prices go up, prices go down, bottom line is, i am not getting any younger (40) soon i'll run out of time and energy. Am i happy, yes do i feel i am making a mistake, only time will tell. whats wrong with wanting to give my kids a lovley house to live in. Quote Link to comment Share on other sites More sharing options...
Moo Posted March 28, 2008 Share Posted March 28, 2008 Sure, i could hold out, but i love the place and my young kids need a home, not one rental after another, one school after another and all the time having to pay security deposits and paying money to constantly inrich other people! Okay, I'm a bloke in his early thirties, no kids, with a logical (to the point of unpleasentness) mindset, but good lord that really does upset me. That really does need printing out, writing on a cast iron frying pan, and smacking repeatedly into the face of every single *****shaft who's contributed to this mess. What a shitty, shitty, shitty country this has become. Quote Link to comment Share on other sites More sharing options...
Killer Bunny Posted March 28, 2008 Share Posted March 28, 2008 am i mad? Yes. Rent somewhere else with 2 year lease. Quote Link to comment Share on other sites More sharing options...
tigsrenting Posted March 28, 2008 Share Posted March 28, 2008 the house is less than 3.5 times my and my wifes combined earnings!council tax around 94.00 a month, compared the the energy wasting monster of a house i am living in, this small cute cottage well finished by the previous owner whom put a lot of love into it and had to sell because he needed a bigger house since meeting a new partner whom has her own kids, my monthly outgoings in utilities will come down considerably. Sure, i could hold out, but i love the place and my young kids need a home, not one rental after another, one school after another and all the time having to pay security deposits and paying money to constantly inrich other people! I am truly fed up, it is a risk, what isn't in life? Hi Smiffy, I know you've had a rough time from your previous posts. Your LL is an @rse and you've probably reached the end of your tether with renting. What happened to the HA place? That sounded so promising. Anyway I wouldn't advise to buy now but if you've had enough, really like the place, plan on staying there for a long time and feel jobs are secure then go for it. All the best Tigs. Quote Link to comment Share on other sites More sharing options...
cells Posted March 28, 2008 Share Posted March 28, 2008 I am truly fed up, it is a risk, what isn't in life? you have yet to answer a few critical questions do you have a decent deposit can you get a decent mortgage rate how much can you save PM ect ect Quote Link to comment Share on other sites More sharing options...
cells Posted March 28, 2008 Share Posted March 28, 2008 Yes.Rent somewhere else with 2 year lease. as a FP that is terrible advice! there are situations where buying still makes sense EVEN IF we get a 50% fall Quote Link to comment Share on other sites More sharing options...
smiffy1967 Posted March 28, 2008 Author Share Posted March 28, 2008 Okay, I'm a bloke in his early thirties, no kids, with a logical (to the point of unpleasentness) mindset, but good lord that really does upset me.That really does need printing out, writing on a cast iron frying pan, and smacking repeatedly into the face of every single *****shaft who's contributed to this mess. What a shitty, shitty, shitty country this has become. wow, i so agree with you! I lived 11 years in Malta a tiny republic of 400.000 people squezed onto a small island, my kids where born there and my wife is Maltese as well. They have more common sense and decency towards fairness and helping each other than we will ever have. we have truly become a shitty country, what will Gordon do if and only if millions of families face homelessness, what will that make his eradicate child poverty promises look like? will he stop the evictions? is there enough social housing for them? Quote Link to comment Share on other sites More sharing options...
Charliemouse Posted March 28, 2008 Share Posted March 28, 2008 (edited) Yes you are quite mad. The landlord cant just stroll in to your home whenever he/she wants to, so investigate your rights as a tenant or the busy body will hack you off from here on out. Secondly you can move out and rent els-where at any time you choose. The moment you buy a house, you will start loosing about a grand per month in equity for about 4 years. Stop being silly and rent a different house, although 600 per month isn't bad. Discover the many and varied rights you have as a tenant and keep that nosy landlord at bay. Edited to say,.. if your children are getting ill from living in your rented house, move out tonight. Nothing, i repeat NO THING is worth that, sue if you can. And stop being a troll, its beneath you. Edited March 28, 2008 by charliemouse Quote Link to comment Share on other sites More sharing options...
cells Posted March 28, 2008 Share Posted March 28, 2008 I have a couple of small loans, paying 300 a month in repayments, no stamp duty to pay on this house either.Bottom line is, my kids need a home, i managed to pay a mortgage for 10 years before selling to rent, it was sometimes hard sometimes easy, but we kept ed to roof through hard times and good times. I am looking at spending a good decade in this house, prices go up, prices go down, bottom line is, i am not getting any younger (40) soon i'll run out of time and energy. Am i happy, yes do i feel i am making a mistake, only time will tell. whats wrong with wanting to give my kids a lovley house to live in. your post sounds like that of an ultra bull trying to ramp the market. your duties to yourself and your family isnt "a home" , it is financial security in the mid to long term. you need to ask yourself, if financially it is the best decision. if not then it isnt gona help your kid in the mid to long term is it? Quote Link to comment Share on other sites More sharing options...
smiffy1967 Posted March 28, 2008 Author Share Posted March 28, 2008 you have yet to answer a few critical questionsdo you have a decent deposit can you get a decent mortgage rate how much can you save PM ect ect I have 10K the mortgage i have been offered is 130 pounds more a month than my rent. we have a joint combined monthly income of roughly 3k. I dont smoke, dont go to the pub and i run a small cis tax business as well as having a full time IT job paying 32K a year, child benefit and my wife brings home 700 per month part time working with the elderly we can do this, be happy and say good bye to asswipe greedy lanlords. I am truly fedup. My kids need security, not YOU HAVE 4 WEEKS TO LEAVE and all the worry and trauma that brings! How many whom have contributed to this chat today have kids and are in rented accom going from place to place? Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.