Starting out first time buyer - Investment/DIY
Discussion
Background Summary.
Partner and I have rented properties for the last 2 years. We are currently on a 2 month notice period and looking for somewhere more central for our place of work.
We have savings of around £20k which will be used for the deposit. Further funding is also available if required.
My FIL (I'm not married, may as well be) has offered to part invest in our first property, though having done this himself, believes the 'way forward' is to purchase a property which requires basic work (Plaster/Paint/Carpet/Kitchen/Bathroom - preferably nothing structural).
I'm lucky enough to have contacts in the building trade, so not only am I guaranteed cost price materials, I have contacts for the areas which I will be unable to DIY (plastering/electrics).
So, with a very basic high level overview on the project, where the hell do I start?
Our location is fairly large (ideally we would like to be central (10 miles each way to work), though 20 miles for one of us and 0 for the other is also satisfactory (if it sways in my favour
)
I'm just daunted by this whole matter. I'd rather not come across as incompetent to my FIL, he's suggested that we part invest in the house together and then 'rent it out' to my OH - what would the benefit be in doing this, as opposed to just me and the OH buying a place with him giving £x to the OH?
Few questions really.
1) What sort of mortgage should I go for? Buy to let, first time buyer?
2) Am I better off getting a smaller property in a more expensive area, or bigger property in a less sought after area?
3) How do you budget for DIY? Example:
Bathroom - Look at B&Q for a bathroom suite & flooring & lights & plumbing & tiles, use this as a 'worst case scenario' and then try to beat it on price? Repeat for other rooms..
4) Is it worth maximising what mortgage is available to us, which we can realistically afford with scope for additional funds for DIY?
Partner and I have rented properties for the last 2 years. We are currently on a 2 month notice period and looking for somewhere more central for our place of work.
We have savings of around £20k which will be used for the deposit. Further funding is also available if required.
My FIL (I'm not married, may as well be) has offered to part invest in our first property, though having done this himself, believes the 'way forward' is to purchase a property which requires basic work (Plaster/Paint/Carpet/Kitchen/Bathroom - preferably nothing structural).
I'm lucky enough to have contacts in the building trade, so not only am I guaranteed cost price materials, I have contacts for the areas which I will be unable to DIY (plastering/electrics).
So, with a very basic high level overview on the project, where the hell do I start?
Our location is fairly large (ideally we would like to be central (10 miles each way to work), though 20 miles for one of us and 0 for the other is also satisfactory (if it sways in my favour
)I'm just daunted by this whole matter. I'd rather not come across as incompetent to my FIL, he's suggested that we part invest in the house together and then 'rent it out' to my OH - what would the benefit be in doing this, as opposed to just me and the OH buying a place with him giving £x to the OH?
Few questions really.
1) What sort of mortgage should I go for? Buy to let, first time buyer?
2) Am I better off getting a smaller property in a more expensive area, or bigger property in a less sought after area?
3) How do you budget for DIY? Example:
Bathroom - Look at B&Q for a bathroom suite & flooring & lights & plumbing & tiles, use this as a 'worst case scenario' and then try to beat it on price? Repeat for other rooms..
4) Is it worth maximising what mortgage is available to us, which we can realistically afford with scope for additional funds for DIY?
Edited by JDMFanYo on Tuesday 2nd March 14:21
Personally I can`t see the benefit of your FIL getting involved at all. If you can get a 20,000 deposit between you and your missus and don`t need additional financial support then go alone.
There is two many complications with the FIL. e.g. You go halves on the property, chances are you end up doing most of the work and also seem to be the person with all the contacts so why get him involved ?
Thats without going into the complications of the two of you ever splitting up... I hope you don`t but you never know.
There is two many complications with the FIL. e.g. You go halves on the property, chances are you end up doing most of the work and also seem to be the person with all the contacts so why get him involved ?
Thats without going into the complications of the two of you ever splitting up... I hope you don`t but you never know.
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