First property
Discussion
Hi All,
I'm 22, and looking to buy my own place sometime soon. I live in the West Mids, and property is cheap here. I'll likely be going for a small apartment on a quiet development somewhere.
My parents weren't the most financially-savvy people while I was growing up, and I don't want to get into the same cycle of renting and therefore being unable to save for a mortgage etc. My deposit isn't huge, but the properties I've been looking into don't exceed ~£75k
I'll be doing it by myself without any help from family etc, so was wondering if there is anything you wish you'd have known when first buying a property? Particular things to look out for?
Thanks guys.
I'm 22, and looking to buy my own place sometime soon. I live in the West Mids, and property is cheap here. I'll likely be going for a small apartment on a quiet development somewhere.
My parents weren't the most financially-savvy people while I was growing up, and I don't want to get into the same cycle of renting and therefore being unable to save for a mortgage etc. My deposit isn't huge, but the properties I've been looking into don't exceed ~£75k
I'll be doing it by myself without any help from family etc, so was wondering if there is anything you wish you'd have known when first buying a property? Particular things to look out for?
Thanks guys.
2 sMoKiN bArReLs said:
Do it early (as you are)...but make sure you don't over stretch. You don't want to look back at your young life & wish you'd done more. All the obvious things, shop around for mortgage etc & be well insured.
Just to echo this. I was single, 26 and the guy in the bank said you're still young and don't over-stretch as you need to enjoy yourself. Mark83 said:
2 sMoKiN bArReLs said:
Do it early (as you are)...but make sure you don't over stretch. You don't want to look back at your young life & wish you'd done more. All the obvious things, shop around for mortgage etc & be well insured.
Just to echo this. I was single, 26 and the guy in the bank said you're still young and don't over-stretch as you need to enjoy yourself. I was single and about 26 when I bought my flat, I did stretch rather tight, but have managed to overpay. Yes, I have been stretched on some months (mainly when my car threw ANOTHER bill my way) but I am really glad that I pushed myself more in the house payments rather than spending the cash elsewhere. Now, 10 years later, I have paid off half the mortgage, and can keep it and obtain another property.
View properties, I have been shown around properties with mould, broken doors, drab exteriors, and then other little properties that really spoke to me.
View properties, I have been shown around properties with mould, broken doors, drab exteriors, and then other little properties that really spoke to me.
My top tips:
- Go and see any property at least three times, including after you put in an offer.
- Drive past it at various times of day. What's the parking like?
- Talk to the neighbours if you can, this time of year is good because people are outside more. They will often tell you lots about the *house and the area. Also you'll see if they're nice or not!
- Don't underestimate the cost of everything. You'll be buying lots of small things, like a mop, vacuum and so on. Put aside some money for that.
- Assume that the vendors are hiding something! Not necessarily on purpose, but because they forget or get used to things. I know this sounds silly, but ask about the shower pressure (and turn it on), use the loo and try the taps and make sure there are no odd smells.
- Do one round of the property looking at ceilings. These will tell you a story about leaks, removed walls (so check building regs approvals), bodged DIY. Walls can be filled, carpets hide stuff but ceilings are very hard to make perfect after an issue.
- If you're in a flat, watch for maintenance charges, upcoming works that you'll have to contribute to. Get info on the management company - your solicitor/conveyance should advise - and make sure they have a fund for repairs.
- You're not buying furniture or a lifestyle. They can put flowers round, bake bread, whatever, but you're not buying that. What is being left? How much furniture will you need? You want a big sofa or bed - will it go up the stairs?
- If a flat, watch for noise issues. Search PH for what people have gone through
- Don't assume anything. Ask.
Be wary of Flats; noise, dodgy neighbours, parking issues, unsavoury characters etc.
A two-bit house is better then a nice flat IMO. Flats are great for investments & renting - not so much for first ''home''.
I am another one who goes knocking on doors in the Neighbourhood to get a 'lay of the land'.
A two-bit house is better then a nice flat IMO. Flats are great for investments & renting - not so much for first ''home''.
I am another one who goes knocking on doors in the Neighbourhood to get a 'lay of the land'.
What's your living situation at the moment? I only ask because when I first started working I was in the lucky position of living with my parents who charged me very little rent. Looking back in hindsight I wish I'd taken better advantage of that and saved more towards a deposit at the time. Not sure if this would be an option for you?
Have you also looked at new builds and the help to buy scheme?
Have you also looked at new builds and the help to buy scheme?
A crappy house on a good road is better than a good house on a crappy road.
Overpay the mortgage as much as you can. Even the odd £10/20/50 here and there will make a difference. I really wish I had done this from day one.
I've no idea of your area and whether it is feasible but when I bought my first place at 23 I thought I would be getting a flat. I ended up with a tiny house instead which gave me loft space, a garden and parking right outside my door. I would never recommend a flat as a "home" as there's too much you can't control.
When looking at properties, remember that a kitchen/bathroom aren't that expensive in the big scheme of things but the need to replace them will put a lot of people off - if the price is right get something that needs work and you'll make the money back (and more) when you sell.
There are 3 types of conveyancing solicitors in my experience:
1. Dedicated, "old school" conveyancing solicitors, probably based in the high street: good, thorough but expensive.
2. Call centre style conveyancing solicitors. Cheap but difficult to get hold of when you need them and you won't speak to the same person twice.
3. Somewhere in between there are companies/small chains of solicitors that are efficient, contactable and local-ish but half the price of 1. I was lucky enough to find such a company last time I was in the process of moving.
Good luck.
Overpay the mortgage as much as you can. Even the odd £10/20/50 here and there will make a difference. I really wish I had done this from day one.
I've no idea of your area and whether it is feasible but when I bought my first place at 23 I thought I would be getting a flat. I ended up with a tiny house instead which gave me loft space, a garden and parking right outside my door. I would never recommend a flat as a "home" as there's too much you can't control.
When looking at properties, remember that a kitchen/bathroom aren't that expensive in the big scheme of things but the need to replace them will put a lot of people off - if the price is right get something that needs work and you'll make the money back (and more) when you sell.
There are 3 types of conveyancing solicitors in my experience:
1. Dedicated, "old school" conveyancing solicitors, probably based in the high street: good, thorough but expensive.
2. Call centre style conveyancing solicitors. Cheap but difficult to get hold of when you need them and you won't speak to the same person twice.
3. Somewhere in between there are companies/small chains of solicitors that are efficient, contactable and local-ish but half the price of 1. I was lucky enough to find such a company last time I was in the process of moving.
Good luck.
If you can, buy a house rather than a flat, even if it's not as big.
Look for crap houses on good streets. You can always improve the house, but you can't move it.
Use a good local solicitor, not the one the estate agent/developer recommends.
You're lucky to live in a cheap area, but make sure your confident that you'll be able to sell it on easily or at least rent it out easily (and cover your mortgage), as you're at a stage in life where jobs, relationships and priorities can change quickly.
Good luck, I still own my first house (a 2 bed terrace, now rented out) and it brings back lots of happy memories every time I visit. Though the memories of my neighbours are probably less happy, from all the times we got back in at 1am and put The Prodigy on!
Look for crap houses on good streets. You can always improve the house, but you can't move it.
Use a good local solicitor, not the one the estate agent/developer recommends.
You're lucky to live in a cheap area, but make sure your confident that you'll be able to sell it on easily or at least rent it out easily (and cover your mortgage), as you're at a stage in life where jobs, relationships and priorities can change quickly.
Good luck, I still own my first house (a 2 bed terrace, now rented out) and it brings back lots of happy memories every time I visit. Though the memories of my neighbours are probably less happy, from all the times we got back in at 1am and put The Prodigy on!
If this is TL;DR territory - skip to last sentence...
When I was in your position, I was a little older but I considered the following:
1) I wanted a house, not a flat, as I hated the idea of service charges and other maintenance that I wasn't in control of.
2) I wanted a place where if I got stuck there (this was at a time when everyone thought the property market was topping out), it would be OK to start a family in.
3) I had motorbike, and I wanted a place to get it off the road and behind a gate that could be locked.
4) I didn't want to move far from where I grew up, because I didn't want to completely uproot and change my life.
5) I am quite handy and willing to get stuck in, so was OK with something a bit 'in need of modernisation'
I ended up in an end-of-terrace house in Catford (which is where I was already living at the time)
What happened/I learned:
1) The property market didn't top, and it's not ever since (20 years...)
2) I spent lots of time and money on the place, at a time of my life when I should have worried less about learning DIY skills and more time enjoying myself (that said, it's stood me in good stead for the next 2 places)
3) Motorbikes are ace, and not having them nicked is awesome.
4) I should have moved away from Catford - location, location, location.
5) The money I made selling the place was mostly due to the property market, not my renovations, however, the place moved fast.
What I could/should have done:
Mitigated my hatred of service charges/maintenance bills by choosing a modern development with a proper schedule.
Bought a purpose built flat in a 'nice' area with secure parking for motorcycles
Spent the renovation time/money going on holiday, travelling on my motorbike, doing motorsport events.
I don't regret what I did - as I say, i'll tackle most things in a house now, and actually in some ways, I learnt well the things that I'm not good at, so I don't waste my time on those anymore....
However, you're young only once, and you're generally not in your first property *that* long, so bear that in mind.
When I was in your position, I was a little older but I considered the following:
1) I wanted a house, not a flat, as I hated the idea of service charges and other maintenance that I wasn't in control of.
2) I wanted a place where if I got stuck there (this was at a time when everyone thought the property market was topping out), it would be OK to start a family in.
3) I had motorbike, and I wanted a place to get it off the road and behind a gate that could be locked.
4) I didn't want to move far from where I grew up, because I didn't want to completely uproot and change my life.
5) I am quite handy and willing to get stuck in, so was OK with something a bit 'in need of modernisation'
I ended up in an end-of-terrace house in Catford (which is where I was already living at the time)
What happened/I learned:
1) The property market didn't top, and it's not ever since (20 years...)
2) I spent lots of time and money on the place, at a time of my life when I should have worried less about learning DIY skills and more time enjoying myself (that said, it's stood me in good stead for the next 2 places)
3) Motorbikes are ace, and not having them nicked is awesome.
4) I should have moved away from Catford - location, location, location.
5) The money I made selling the place was mostly due to the property market, not my renovations, however, the place moved fast.
What I could/should have done:
Mitigated my hatred of service charges/maintenance bills by choosing a modern development with a proper schedule.
Bought a purpose built flat in a 'nice' area with secure parking for motorcycles
Spent the renovation time/money going on holiday, travelling on my motorbike, doing motorsport events.
I don't regret what I did - as I say, i'll tackle most things in a house now, and actually in some ways, I learnt well the things that I'm not good at, so I don't waste my time on those anymore....
However, you're young only once, and you're generally not in your first property *that* long, so bear that in mind.
Don't even consider shared ownership, such a hassle trying to sell the place and the housing association trying to fleece you at every opportunity....£15k for a 6 camera CCTV system recording onto a hard drive in a cupboard anybody?
That brings me onto the next point (and even more reason to avoid shared ownership) - make sure that your nowhere near council housing or housing association subsidised housing - the typical tenant will make your life hell!
Parking - make sure that you have your own parking space/unrestricted parking and that access to the car park is controlled if street parking is restricted/there isn't at least 2 bays per property - people will just decide to use your space when theirs has been taken/their other half is already in the bay....
That brings me onto the next point (and even more reason to avoid shared ownership) - make sure that your nowhere near council housing or housing association subsidised housing - the typical tenant will make your life hell!
Parking - make sure that you have your own parking space/unrestricted parking and that access to the car park is controlled if street parking is restricted/there isn't at least 2 bays per property - people will just decide to use your space when theirs has been taken/their other half is already in the bay....
I'm still undecided between going for an apartment/flat, or a small house.
Plenty more choice with apartments for my budget, many of which are in much nicer areas.
On the flip side, less space is a cast off of that.
Houses within budget look ropey and will need some work, so for my first property I am slightly leaning towards an apartment. I'll do some research into whether a help-to-buy mortgage will be better off than a standard mortgage with a lower deposit too.
Much appreciated all.
Plenty more choice with apartments for my budget, many of which are in much nicer areas.
On the flip side, less space is a cast off of that.
Houses within budget look ropey and will need some work, so for my first property I am slightly leaning towards an apartment. I'll do some research into whether a help-to-buy mortgage will be better off than a standard mortgage with a lower deposit too.
Much appreciated all.
Firstly, you are doing the right thing buying a property young - I bought my first house at 26 which I rented out. What I made on that allowed me to buy a nice flat in Chester which I now also rent out alongside other properties.
There are pros and cons for both houses and flats. As I see it:
The big ones for a flat are that everything is taken care of for you - maintenance, decorating, gardening, issues with the building, building insurance etc. but you pay for this and from my experience the service charge only goes one way and that's up. I've also been stung for other stuff with flats where everyone needs to chip in to sort something out when the service charge doesn't cover it. Biggest pro is it all laid on and there is often little remedial work to do if you buy a new or renovated one. If you want to buy something and not have the hassle of the upkeep of a property then this is probably for you. I chose this route in my 20's as I was lazy and wanted to just go out and party
A house will require upkeep from yourself and possibly in your budget you might need to look at something which requires a degree of work? Pros for a house is that you aren't beholden to a leaseholder or management company (assuming you buy freehold) and you will save the monthly management charge. You will also only have people either side of you or possibly one side, unlike a flat where you may have people either side and above and below. You will probably also have your own outside space with a house - unlikely you would with a flat. Cons are an older house, which most terraced are require upkeep and work and this costs if you can't do it yourself
My advice is view plenty of property and look at things from the perspective of who might be buying you house next. Big no's for me are restrictive covenants, shared drive ways, opposite or close things which will cause you issues (Schools, pubs, industrial units, fire or police stations etc.), pylons close by etc. I'm sure you get the idea
Best of luck and hope you get a great first property. Also negotiate hard. If you don't feel embarrassed by your first offer (and I'm thick skinned) then its isn't low enough!!
There are pros and cons for both houses and flats. As I see it:
The big ones for a flat are that everything is taken care of for you - maintenance, decorating, gardening, issues with the building, building insurance etc. but you pay for this and from my experience the service charge only goes one way and that's up. I've also been stung for other stuff with flats where everyone needs to chip in to sort something out when the service charge doesn't cover it. Biggest pro is it all laid on and there is often little remedial work to do if you buy a new or renovated one. If you want to buy something and not have the hassle of the upkeep of a property then this is probably for you. I chose this route in my 20's as I was lazy and wanted to just go out and party
A house will require upkeep from yourself and possibly in your budget you might need to look at something which requires a degree of work? Pros for a house is that you aren't beholden to a leaseholder or management company (assuming you buy freehold) and you will save the monthly management charge. You will also only have people either side of you or possibly one side, unlike a flat where you may have people either side and above and below. You will probably also have your own outside space with a house - unlikely you would with a flat. Cons are an older house, which most terraced are require upkeep and work and this costs if you can't do it yourself
My advice is view plenty of property and look at things from the perspective of who might be buying you house next. Big no's for me are restrictive covenants, shared drive ways, opposite or close things which will cause you issues (Schools, pubs, industrial units, fire or police stations etc.), pylons close by etc. I'm sure you get the idea
Best of luck and hope you get a great first property. Also negotiate hard. If you don't feel embarrassed by your first offer (and I'm thick skinned) then its isn't low enough!!
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