First time buyer - help!

Natalieee_2

Hi

Ive just been accepted onto a scheme which will give me an equity loan to buy a house, the total amount i can borrow is £107,500 which is made up of a £54,000 mortgage and a £53,000 equity loan.. i can get between £5-7,000 for a deposit but in all honesty i dont want to go about £110,000

I've got everything AIP so im ready to go ..

Looked at two properties recently, the first priced at £115,000, small flat in a block of three, really lovley the way they have done it out, brand new kitchen etc. but also very very small, no outside space, on a busy road so my cat would then have to become a house cat and also no parking.. the EA said that if i wanted to put in an offer he would say to start at £100,000 as im in a good position being a first time buyer..

The second is £125,000 on a housing estate just outside town, 2 bedrooms, use of a side garden, private entrance, parking, nice big rooms, feels light and airey.. i really like it!

My question is .. what offer would you put in for each of them realistically?

Do you think that the owner of the 2 bedroom @ £125,000 would actually consider an offer of £110,000 or would they find it insulting?????????

Any advice on which way to go with offers would be great xxx

PasturesNew

Watch this http://uk.youtube.com/watch?v=0AgnD3pXg-Y

Pobby

PN. Itsays that video has been removed. Estate agent police perhaps?

PasturesNew

Pobby wrote: »

PN. Itsays that video has been removed. Estate agent police perhaps?

That was quick then..... it worked for me just 1 second before I posted it.
I loaded it, copied the url, pasted the url here.

Edit: I just checked and I still see it, I even cleared my cache... still see it.

Edit2: Just asked a random person online in the US if it loads ... and they said yes it does.

Pobby

Still not working my end!!!!

Natalieee_2

Works for me ..

3 things though

1. Doesnt really answer my question?

2. I can only afford £54,000 mortgage on my salary, im very lucky to get this grant and if i dont move FAST i will loose it and there wont be another opportunity like this

3. I live in the Lake District .. prices WILL NOT fall enough to make me worry plus i am 21, i will not be planning on selling the property for at least 5/10 years hence why i want to be 100% happy

Anyone else offer me some advice??

My mum doesnt seem to think that someone who's house is on for £125,000 will accept anything lower than £120,000

I understand it depends on the vendors circumstances but just general advice would be much appreciated

_bankrupted

Natalieee,

It dosen't matter if the vendor would think it's insulting, just put the offer in you are happy with. They either say Yes or No, in which case you could revise your offer up, or walk away with a bargain.

Personally asking 110k for a property advertised at 125k is in my opinion perfectly reasonable. Remember that vendors always ask more than they would accept.

With regard to falling house prices, not all areas are going to see big falls. Desirable areas will hold their price. The areas that will fall are those areas that have seen massive price increases over the last 5 or so years. For example my property has only increased by around 25% over the last 5 years. Some areas have doubled in this time..

You know your area better than me. 125k to me says that the area is not one that has seen massive increases, hence I would imagine it will not see massive falls.

The final point is that too many people get hung up on property prices. Your house should be bought because it's a home for you, not some financial investment. If you have the opportunity of a grant that is hard to come by then maybe this is the point at which you should buy. The alternative is that 2 years later you could get property for 80k but not get the grant. So either way you will still be property-less. Now because you don't buy, later because the opportunity has been lost.

Your main point is can you afford it now and later if interests rates went up to 8~9%. Is your job secure. How would you finance the property if you were unemployed. If it makes sense for you to buy now, you can afford it, and in the future, then do so and get on with life. Forget about the price, nobody knows what will exactly happen.

So yes 110k is perfectly reasonable...

FraudBuster

and if i dont move FAST i will loose it and there wont be another opportunity like this

Scammers use that ruse!

Natalieee_2

_bankrupted wrote: »

Natalieee,

It dosen't matter if the vendor would think it's insulting, just put the offer in you are happy with. They either say Yes or No, in which case you could revise your offer up, or walk away with a bargain.

Personally asking 110k for a property advertised at 125k is in my opinion perfectly reasonable. Remember that vendors always ask more than they would accept.

With regard to falling house prices, not all areas are going to see big falls. Desirable areas will hold their price. The areas that will fall are those areas that have seen massive price increases over the last 5 or so years. For example my property has only increased by around 25% over the last 5 years. Some areas have doubled in this time..

You know your area better than me. 125k to me says that the area is not one that has seen massive increases, hence I would imagine it will not see massive falls.

The final point is that too many people get hung up on property prices. Your house should be bought because it's a home for you, not some financial investment. If you have the opportunity of a grant that is hard to come by then maybe this is the point at which you should buy. The alternative is that 2 years later you could get property for 80k but not get the grant. So either way you will still be property-less. Now because you don't buy, later because the opportunity has been lost.

Your main point is can you afford it now and later if interests rates went up to 8~9%. Is your job secure. How would you finance the property if you were unemployed. If it makes sense for you to buy now, you can afford it, and in the future, then do so and get on with life. Forget about the price, nobody knows what will exactly happen.

So yes 110k is perfectly reasonable...

Thanks alot for that, i was starting to think no-one would answer me!!

You're 100% right with what you say, the housing "downfall" is not a big issue for me, i have the opportunity to buy somewhere now and have been very lucky getting this grant, once the funding has gone its gone ..

Houses round here have gone up slightly but thats more to do with the huge increase in people buying "second homes" with it being the lake district ..

My job is secure, i work for the local government and get two payrises a year (albeit not huge ones but every little helps) .. the mortgage i have agreed it a 5 year fixed term so with any luck the market will settle before it comes to an end!

I will go and view the property again with my mum, make sure i really do like it for what it is and not just because its bigger and then if i do ill get my agent to offer £110,000 and see what they say!!

Thanks again

Natalieee_2

FraudBuster wrote: »

Scammers use that ruse!

And what is that meant to mean exactly?

Boppy_2

I would personally go for the house Natalie, especially if you see it as a long term move, more space, big enough for a little family etc.

I have been in a flat before and yes it was cosy but once my son arrived it was cramped and no garden was hard to deal with.

Good luck with it all.