Should I stretch myself?
Discussion
Condi said:
If you can getting a lodger can make life a whole easier. You can earn £7500 a year, which the mortgage company wont take into account for affordability, but will pay most the mortgage and some of the bills. Go for a 35 year term, borrow as much as you can, overpay where possible.
At least you dont have to do anything with it, although an energy rating of F suggests that new boiler, new windows, and possibly some insulation would be sensible investments.
I'll probably heat it with a wood burning stove and have an electric shower for convenience in the summer. I don't think anyone would want to lodge to be honest, it's rural out here and you can rent a house for 300 per month. It's a good idea though, having been the lodger, I'm not sure if I'd want one! haha.At least you dont have to do anything with it, although an energy rating of F suggests that new boiler, new windows, and possibly some insulation would be sensible investments.
Thanks
Busa mav said:
Do it !
Back in the mid 70's I worked in a drawing office as a junior, and when asking advice for how to get a mortgage , and how much to borrow.
A few of them said:
Work out what you can afford, forget that, and just get as much as you can borrow and get the best house you can.
I owe them guys so much.
It's not the 70's anymore and unfortunately houses can't be bought for twice the average annual salary anymore.Back in the mid 70's I worked in a drawing office as a junior, and when asking advice for how to get a mortgage , and how much to borrow.
A few of them said:
Work out what you can afford, forget that, and just get as much as you can borrow and get the best house you can.
I owe them guys so much.
I'm the complete opposite of most people when it comes to buying a house. I've got a deposit of around £30k but being part self employed my income varies month to month.
BlueHave said:
Busa mav said:
Do it !
Back in the mid 70's I worked in a drawing office as a junior, and when asking advice for how to get a mortgage , and how much to borrow.
A few of them said:
Work out what you can afford, forget that, and just get as much as you can borrow and get the best house you can.
I owe them guys so much.
It's not the 70's anymore and unfortunately houses can't be bought for twice the average annual salary anymore.Back in the mid 70's I worked in a drawing office as a junior, and when asking advice for how to get a mortgage , and how much to borrow.
A few of them said:
Work out what you can afford, forget that, and just get as much as you can borrow and get the best house you can.
I owe them guys so much.
I'm the complete opposite of most people when it comes to buying a house. I've got a deposit of around £30k but being part self employed my income varies month to month.
I am well aware its different now, but the fact that stays the same is the house on the next step up will just get further away from you as time passes.
Get on the highest step of the ladder that you can, straight away.
As a junior earning 3k pa back then, evening and weekend jobs were a must to stay afloat , don't for one moment think it was easy then.
Offer 15% less then asking price & go from there. I am another +1 to go for it. Buying cheap & less rooms just forces you into another sell & buy situation in a few years time!
Just adjust your finances accordingly & ensure that if the rates were to go up a few % in the next few years you could make ends meet.
Just adjust your finances accordingly & ensure that if the rates were to go up a few % in the next few years you could make ends meet.
If your not likely to be relocating then why not? I have relocated many times so always chose a sensible, easy to sell/rent option.
My advice is (which I don't always follow)
Buy the area rather than the house, they say location, location, location, it's true. Doesn't actually mean go the to the most expensive, poshest street. But find somewhere you're comfortable with, and likely to stay comfortable with.
My advice is (which I don't always follow
)Buy the area rather than the house, they say location, location, location, it's true. Doesn't actually mean go the to the most expensive, poshest street. But find somewhere you're comfortable with, and likely to stay comfortable with.
mcg_ said:
I'd say stretch yourself, if you know that your income/s are going to increase.
Me and the misses probably played it safe with our first house, we'll be moving after being in it about 4/5 years.
It's always the "what if" with me though. Me and the misses probably played it safe with our first house, we'll be moving after being in it about 4/5 years.
I'd tend to do things as I could afford them, stamp duty wasn't so crippling back in day so trading up was easier.
mikeiow said:
RammyMP said:
Go for it. Negotiate the pool table in to the sale!
I maxed myself when I bought my first house, was skint for a year or two, pay got better then sold the place and doubled my money. Didn't regret it!
This!I maxed myself when I bought my first house, was skint for a year or two, pay got better then sold the place and doubled my money. Didn't regret it!
Do remember you are in the BEST position you will perhaps ever be in - FTB, no chain - so do make a lower offer in a positive manner: certainly you could start at 250K - you can ALWAYS go up (but never down!), and for sellers (if they are keen to sell), dropping 5-10% is not unreasonable.
If (when!) the first offer is rejected, you have a conversation with the agent to get the vendors situation in more detail - then you creep up a bit, and as said above, make sure you get the pool table ;-)
Good luck!
Marvtec said:
mikeiow said:
RammyMP said:
Go for it. Negotiate the pool table in to the sale!
I maxed myself when I bought my first house, was skint for a year or two, pay got better then sold the place and doubled my money. Didn't regret it!
This!I maxed myself when I bought my first house, was skint for a year or two, pay got better then sold the place and doubled my money. Didn't regret it!
Do remember you are in the BEST position you will perhaps ever be in - FTB, no chain - so do make a lower offer in a positive manner: certainly you could start at 250K - you can ALWAYS go up (but never down!), and for sellers (if they are keen to sell), dropping 5-10% is not unreasonable.
If (when!) the first offer is rejected, you have a conversation with the agent to get the vendors situation in more detail - then you creep up a bit, and as said above, make sure you get the pool table ;-)
Good luck!
the art of negotiation has some odd tactics!p1stonhead said:
Marvtec said:
mikeiow said:
RammyMP said:
Go for it. Negotiate the pool table in to the sale!
I maxed myself when I bought my first house, was skint for a year or two, pay got better then sold the place and doubled my money. Didn't regret it!
This!I maxed myself when I bought my first house, was skint for a year or two, pay got better then sold the place and doubled my money. Didn't regret it!
Do remember you are in the BEST position you will perhaps ever be in - FTB, no chain - so do make a lower offer in a positive manner: certainly you could start at 250K - you can ALWAYS go up (but never down!), and for sellers (if they are keen to sell), dropping 5-10% is not unreasonable.
If (when!) the first offer is rejected, you have a conversation with the agent to get the vendors situation in more detail - then you creep up a bit, and as said above, make sure you get the pool table ;-)
Good luck!
the art of negotiation has some odd tactics!
Marvtec said:
I'm not sure starting at 250k is the best bargaining advice for OP.
Agreed. Offer 300k and I'm sure they'll accept, especially at 50% over asking ;-)It'll obviously depend on the vendors, but I struggled to get anywhere near the discounts people are suggesting he go in at.
In some cases, it led to an offended vendor and actually less willingness to negotiate.
I reckon I'd go in at 15k under asking and expect to get around half that.
p1stonhead said:
I'd go £165k with a view to agreeing £175k if necessary.
That's the view I started with, expecting people to appreciate a chain free buyer.It didn't work out too well.
That said, the area does looks 'very competitively priced'. This sold a year age for half the price of the OPs potential house, on the same street:
http://www.rightmove.co.uk/house-prices/detailMatc...
It's not the same, obviously, but pleasant enough and gives a yard stick to measure by.
Edited to add: The OIRO is also a pain; I learnt to speak to estate agents when I saw that since many mean 'we'll take less than this', but for most it was a starting point to attempt to get people bidding and didn't actually reflect the sale price at all (or what they wanted to achieve).
100% go for it if you are in a stable job and can afford the repayments. You are probably going to take a fixed rate deal so your costs will be known. Do your research on council tax, utilities, insurance etc. I would guess you are looking at c.£1600 a month to run a property like that including mortgage. Don't forget rates might go up but if your income is going to rise over time also then its not so much of a problem if they do. Also factor in some money for R&M which looking at the property it would be advisable to have a small reserve as its quite a big house.
We went small and cheap for our first house and I will openly admit it was a mistake. We could have afforded the bigger more expensive house but we went conservative and its probably cost us well over £100k in equity alone over 10 years. We have now moved up the ladder but it was painful and we should have just done it in the first place.
We went small and cheap for our first house and I will openly admit it was a mistake. We could have afforded the bigger more expensive house but we went conservative and its probably cost us well over £100k in equity alone over 10 years. We have now moved up the ladder but it was painful and we should have just done it in the first place.
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