Housies; The Future; fear

[kingandy]

Bah.

Apparently the woman who owns the house next to samharber's is demanding an exhorbitant price (twice what Sam and Nook, also in the same street, paid - and it's been on the market for a good while now) and will not budge. She is a fool. The fallout from this is that myself and Ms bacony will require somewhere to rest our heads come July. Anyone know any good letting agencies in Notlob? The plan is to move there and rent temporarily while I (a) build up capital and (b) find somewhere to buy... hard to arrange house viewings when you live the far side of Manchester.

In case anyone's interested, the crazy woman is asking £57K. I suspect I could get a mortgage for that on my salary - just about - but I think I'd want something a bit larger for that much. I know, housies are expensive these days, but it seems daft considering what other houses in that street went for.

It is still tempting though, if only somebody would sort out the administration... and give me a big pile of cash.

Comments

[kingandy]

Hmm, alright then, I can probably get about 70K mortgage...

The annoying thing is it's not a huge house - fine for one, but pokey for two. And I'm not sure I have enough time to get it through before we have to move out...

And I don't have enough money for surveyors and furniture.

And it frightens me.

[icklejo]

Houses have continued to rise in value drastically over the last two years. Sam didn't buy that long after Nook and his was already more than Nook paid. Multiply that between the time since Sam bought and I bet she's charging an appropriate amount.

It's the fright that holds you back most, because it is a huuuuge step to take, but one you're thankful for when you realise you've been paying off some of your capital rather than putting it in the pocket of an evil landlord. The amount you would save on rent by paying the much reduced repayment on your mortgage would help to buy furniture and/or pay off any money you might borrow to help with solicitors fees etc. On a house of that value you wouldn't pay stamp duty either (normally 1%). You can get mortgages that only ask for 5% deposit now, and if you're really struggling you can get 100% mortgages, they charge a fee but this is added to the mortgage so you don't have to fork out any money outright, and you can always wait a couple of years and then move if the deal isn't fantastic.

Anyway, all I can say in this time of stupid house prices if you get an opportunity to get on the property ladder, do it. When we were first thinking of buying all the reports said there was going to be a slow-down and to wait. Nearly 3 years later I'm glad I ignored them.

Motherly advice suspended...

[kingandy]

My Mother's advice is always "You don't have enough money! You can't afford it! Etc, etc."

Will mope around about the idea tonight, see shat she says.

[pkgem.livejournal.com]

Have you ever though that your Mother isn't totally on board with the idea that you are a grown-up now?

[kingandy]

There may be an element of that, but she went away gave it a good hard think. And looked things up on the intarweb. She was actually quite open to the concept, but advised caution on the basis of no furniture and financial hardship. "You really want to save up until you've got a good few thousand behind you" would be a more accurate transcript.

[icklejo]

My mum's advice was 'You could wait a couple of years while you save up enough for a deposit, but in those two years house prices will have gone up sufficiently that you will then not have enough and need to save more for a larger deposit because of the price rise'.

I think she wanted me to buy a house so that I could finally remove my piano from her living room. Unfortunately her plan was foiled when I bought a house that it wouldn't fit in.

How much is your combined rent at the moment? I will try and put my numbers head on and work out some comparison figures for you so you can see if it's even worth thinking about.

[kingandy]

Combined - 400pcm.

We couldn't really live together in that widdle house for very long though. Unless, um, maybe we could.

I don't know. I can't remember what Katy's last word on the subject was ...

[icklejo]

For examples sake I've used 57k. This minus 5% deposit would be 54150 which would work out at about £314/month (going off the Egg website mortgage calculator thingy). The full 57k would be about £331/month.

[kingandy]

Hmm ... I can probably afford that by myself. Easily if Katy decides to come along, I can charge her like 125pcm to sleep in the spare room...

(Though I don't think I can afford that and loan repayments unless I get a better job.)

[ghostbritain.livejournal.com]

Get a larger mortgage than you need (say buy a house for £50k and get a £57k mortgage) then spend the extra cash on furniture and the like.
Mortgages are so much cheaper than loans.

In fact you can get Current Account Mortgages that allow you to lump everything together, which as long as you're not a complete idiot means you can pay your mortgage back much earlier.

The minimum you can borrow is £50k, so it should be ok for you...

[kingandy]

Where would you suggest getting such a thing from?

This is, in fact, the major stumbling block. I am paralysed by not having done anything remotely similar at any point in my life. Who does these things? Where do they live? Why doesn't all just magically appear in front of me? Etc, etc.

[arwel.livejournal.com]

Try Egg. They're great. No current account, but you can link a savings account to your mortgage and have that offset the balance.

[icklejo]

Get a mortgage for more than you're buying your house for? How's that possible? Banks will only lend you up to 95% of your property's value.

[kingandy]

Eh? What? What about that 100% mortgage you mentioned earlier?

Confusled!

[icklejo]

Sorry to confuse, regardless of 95% or 100% mortage, banks won't lend more than the value of the house (they have to be able to recoup what they've lent you if they reposess and sell it, so lending you more than it's worth isn't in their interest). Nook's suggestion would mean a 110% or so mortgage which I've never heard of unless they do it as some sort of bank employee perk but I haven't heard of it for us normal people.

[pkgem.livejournal.com]

You do realise that it is just so wrong having sensible financial advice coming from the mouth of a brownie?

However, Andy - listen to icklejo. She is wise beyond her years.

[arwel.livejournal.com]

It's ok, she got her financial advisor badge.

[samharber.livejournal.com]

I bought my house about 9 months ago.
A 20 grand rise is not normal.
The house should be worth about 45k or so.

[icklejo]

My bosses house in Bolton has gone up 60k (at the lowest valuation he's just received) in the 2 years since he bought it, so I wouldn't discount such a huge price hike although it does sound a bit much for 9 months. The ones round us have gone up about 30k in two years. I have no idea what the others around your area are going for though as this would give a better idea of whether it's extortionate compared to the current market. Have you had a look around the inside? That too would help with whether it's worth the money or not.

[kingandy]

Oh - yes, also, Sam's house was more expensive than Nook's anyway, on account of being haunted by the ghosts of dead homosexuals.

(Read: Being vacant for over a year since one of the last occupants - two males, different surname, double bed - died there.)

Also Nook's was substantially more of a fixer-upper. As far as I gather.

[myki.livejournal.com]

But Nooks has lots of culture... mostly in the form of Cat smells... but still