Houses you can't afford but MUST buy.

[jacko lah]

www.rightmove.co.uk/viewdetails-4249774.rsp/svr/2005;jsessionid=5C8C94B37FCF976EE8B19FC8E5F07FAA?pa_n=8&tr_t=buy&chnl=buy

Seen this house right. Offers in Excess of 300K needs a bit of moderisation (say 10K if I do it myself),

Has a bit of land - Might be able to portionit off get planning permission and Flog it or build on it and flog it, or just have a big veggie plot, and room for a 'spares car' a 'Project Car', a daily hack, and the wife's car.

Might get 200K for ours with a following wind and the luck of the Gods,

Which means at least 100K extra mortgage.

Wife says 'No' : I say 'worth investigating further'.

Anyway bought a house outside of their means ? Anyone played 'developer' ?

Yes I've seen the TV programmes but I truely believe it's all scripted !!!

[clapham993]

Jump for the moon, in the long term it will seem a no-brainer ( I remember my father saying that he used to lie awake at night worrying how he could afford the house they bought for £40k in 1968 - its worth £3m now...)

[Coco H]

I really like that house - I don't know the area though.
Piad a touch more than that for mine - I wouldn;t frighten you with the size of my mortgage - but we had to stick another 100k on

[pdV6]

Yeah, but getting into £100k of extra debt isn't particularly wise if that means struggling with payments now and an uncertain future. Wouldn't take much of an interest rate rise to get you into trouble...

{meant to add:} If you could comfortably afford the payments now and have a secure job, then go for it.

Don't forget about the £9k stamp duty bill

>> Edited by pdV6 on Thursday 16th December 10:50

[jacko lah]

clapham993 said:

Jump for the moon, in the long term it will seem a no-brainer ( I remember my father saying that he used to lie awake at night worrying how he could afford the house they bought for £40k in 1968 - its worth £3m now...)

Indeed. But we did loose 8000 quid on our first 2 houses !! (First one I remember writing the cheque for £982 to pay the negative equity)

But both those houses I was moving for work and this one cause we want to.

So 140 K Mortgage is how much per month ? I assume our joint incomes of £35 will allow that.

[Wacky Racer]

clapham993 said:

Jump for the moon, in the long term it will seem a no-brainer ( I remember my father saying that he used to lie awake at night worrying how he could afford the house they bought for £40k in 1968 - its worth £3m now...)

Agree in principle, but no use if you end up in difficulties trying to pay a sky high mortgage in the short term, and end up in negative equity as many found out to their cost in the early 1980's, thrown out on the street......

All I am saying, is look before you leap........

[clubsport]

House is Ok...but at the moment it is clearly a non starter..the details state "single garage"....I would look into planning permission for extra garaging before going any further.

[jacko lah]

Coco H said:

I really like that house - I don't know the area though. Piad a touch more than that for mine - I wouldn;t frighten you with the size of my mortgage - but we had to stick another 100k on

Formby is where posh scousers aspire to, this particular road (a cresent) is where a certain Mr E Hughes, (A Liverpool football player of the late 70's) used to live.

I currently live at the 'Cheap End' of town where a 3 bed semi with a shared driveway is pushing 200K. At the Wayne Rooney end of town, 4 bed detach houses are advertised at 600K plus.

Average 80's 4 bed detached starts £280K. There are large semi's up for £280K.

[jacko lah]

clubsport said:

House is Ok...but at the moment it is clearly a non starter..the details state "single garage"....I would look into planning permission for extra garaging before going any further.

Garaging not a problem if you GO concrete, temp structure and all that.

Planning Permission for a house on the side garden might be interesting, because Formby is the 'world of infill building'

[JonRB]

Equity (positive or negative) doesn't really exist until you you come to sell the house, you know.

(Yes, I know you can borrow further against your house if you have 'equity' in it, but that's really just semantics for gaining a loan secured on your property.)

[jacko lah]

I'm gonna get my Excel Spreadsheet out !

Anyone got a link to a mortgage calculator ?

(Current mortgage is fixed for 9 more years at 4.6 % and then it's paid off )

[Wacky Racer]

jacko lah said:

www.rightmove.co.uk/viewdetails-4249774.rsp/svr/2005;jsessionid=5C8C94B37FCF976EE8B19FC8E5F07FAA?pa_n=8&tr_t=buy&chnl=buy Seen this house right. Offers in Excess of 300K needs a bit of moderisation (say 10K if I do it myself), Might get 200K for ours with a following wind and the luck of the Gods, Which means at least 100K extra mortgage. Wife says 'No' : I say 'worth investigating further'.

Had a look at the picture, nice house with plenty of land, (imo) would benefit from a first extension to the left hand side if finances and planning permission allow, if it was my house I would render the first floor walls and fit some mock tudor beams, for more visual impact......

Two further points.....

Even if you do any improvements yourself 10k will probably buy you bugger all, last year I built another stone garage on the side of my house, doing EVERYTHING myself and that cost in excess of 12k in materials alone...

Also you say your wife is not keen, what you don't want is for it to go all tits up and she says "I told you so"................

[jacko lah]

I wonder save money by not selling current house : Buy to let mortage on our current house ?

I'm gonna do a scarey mad proposal to the wife !!!!

[jacko lah]

Wacky Racer said:

Two further points..... Even if you do any improvements yourself 10k will probably buy you bugger all, last year I built another stone garage on the side of my house, doing EVERYTHING myself and that cost in excess of 12k in materials alone... Also you say your wife is not keen, what you don't want is for it to go all tits up and she says "I told you so"................

Point 1 : Indeed. 10K to make it habitable in a 1980's way.

I put Central Heating in, did the kitchen, rewired, put down wood floors and redecorated our current house, for under 5k.

then over 5 years as as when cash was available :

Then spent 4 K on windows and 15K on a 4m square loft conversion and brick porch, and 800 quid on a garage (concrete) 600 quid on new bathroom. and 1000 quid on a nice fire-place

This Needs : Central Heating, Rewiring a new kitchen and the bath room upstairs.

Everthing else is a nice to have.

2: the wife : On ideas like this I treat her like the majority shareholder she is and do worst case, best case and most likely case scenario's.

it's only with cars where I no longer consult, and just bring home FREE future classics with out discussion (she did go mad with the Mk2 SRi saloon for a week and when the head gasket went the day after I'd sold the mk2 cav cdi auto she did say I told you so) .

>> Edited by jacko lah on Thursday 16th December 11:19

[jacko lah]

So mortgage would double from £420 quid to £850 (ish)
Poll tax from 130 to 200
Insurance from 30 to 50
Need 9K for tony the tax man, 3K for other moving professional fees, £5k for initial improvements.

I think I need to apply for that new job on 10K more !!!!

[door]

Sorry to steal your thread but I am in the same situation.

I find out today or tomorrow if the bank will lend me the money to buy a 2 bed penthouse just outside Duss. The repayments are no problem it's the pressure I will put myself under to pay it off ASAP. I am worried about a few things.
I need the deposit in feb which is a bit of a push.
I need to save up for new furniture, kitchen would need a complete rework and I would need to buy a fire for the new place too.
For next year I will have rent and mortgage to pay whilst they are building it. That will be a pain.

Once it's built and we are in I know I can afford it, it's just getting to that point which is going to be tough.

Is it a wise investment. Well the bank manager was pissed that he didn't see it first! And my friends over here that know the area say it will double in 10years with no trouble because the government is running out of building land. So I think it's the right thing to do. Good to see your advice Tonker.

[alexkp]

I would make a couple of strong suggestions:

Now is not a good time to be buying houses - so if you do then bargain very hard.

Secondly, whatever you think it will cost to renovate a place will be wrong. You need to double it or treble it. It will also take two to three times as long, and will be a huge amount of hassle.

Third, be absolutely sure that you both want it, and you must be in total agreement. Otherwise one will resent it if things get tough and stressful. House moving can damage relationships unless you are both 100%. I have seen this with friends more than once.

When the missus and I buy property we have an understanding that we must both be in total agreement, and if we aren't, then one will not try to convince or pursuade the other.

[Jon C]

"Three Entertaining Rooms"?

What? they can dance? tell a good knock-knock joke?

I weep for the future, I really do.

BTW, go for it. Better to regret something you did, than to regret something you didnt. At the end of the day, if it goes tits up, demolish it, build ten houses on the land and retire to Jersey on the proceeds.

[Graham]

and they say the housing market is dead

we are also in a similar situation...


borrowing 130k to move to a 1930's 3 bed detatched with large garden workshop and garage with a pit. loads of potential to exend to 5-6 bed and the size of the plot is still a good size then..

bit of a gambel and made worse by the fact we have bought before selling our house.

which means for a time i'll have 2 mortgages and owe the parents 100k i've borrowed from them.. plus a car loan( for the new race car ouch)

and on top of that there is a race budget to try and find..

when this place sells things will be fine but untill then its a little scarey..

if it doesnt go quickly i'll let it for a while and then try again.

G

[burnt]

I thoroughly regret not doing this 18 months ago. Found a great place, nice 4 story old convent (with alter!). Oh well.

Short term might be a tad wobbly but longer term it's a no brainer.

Good luck.