FTB - Advice & reassurance needed!!!!

Davesnave

You've done really well on the savings front. I'm not you, but if I were, I'd risk a small amount of 'dead money' on a six month tenancy in one of those very small places you spoke of. That will take you through to, say, Jan/Feb next year when there might be more clarity about the situation regarding house prices and the wider economy.

You have seen 8-10% come off prices already, and things are still at an early stage. It is beyond most people's belief that thse percentages will go back on property in the next year; indeed it is more likely that another 10% will come off. For these reasons, renting, while not allowing you to save as much, should still be giving you a net 'profit. It will not be wasted money if it helps you stay sane and pick your moment. You'll only be a FTB once.

I agree that people like you don't need to become fixated about buying at the very bottom of the market. The question is whether you should buy in the uncertain situation we're in now.

bluejake

kirstyreanne wrote: »

Hi all,
since then prices have skyrocketed. Prior then you could buy a house for around £25k easily & now the same house would cost you around £100k.

If that alone does not set off alarm bells in your head then more fool you.

Buying at the top of the biggest housing bubble in history is not a good idea.

alunharford

kirstyreanne wrote: »

We both feel that renting would be dead money

Personally, I suspect that the rent on my place doesn't even cover the inflation on the place I'm renting - let alone any interest.
Paying a mortgage would seem to be dead money at the moment.

MonkeySaving?

kirstyreanne wrote: »

Hijacked somebody's thread yesterday with this but I think it's got lost within...

Me & my partner have been looking to buy a house since January & still haven't found a property we like. I'm obviously worried about the state of the market & I think this is why we're so fussy - thinking this is somewhere we need to be happy to live for 5 years plus so it needs to be right!

My partner earns £18.8k/year & I earn £15.5k (partner also has chance for overtime most weeks but we don't want to take this into account incase it dries up in the future) & we have been in our current jobs 12 & 5 years respectively.

We're looking to buy a house for the maximum of around £110k, we have a total of £22k saved & intend to use between around £15k & £17k as a deposit. This is changeable though as we have capped our possible monthly mortgage payments at max £650 & so total mortgage we're willing to take out changes with the rates.

I know on paper this sounds good, but I'm still worried that we'll have a problem either getting a mortgage or that we'll choose the wrong thing. At the moment I've decided to fix for 5 years so that hopefully we won't have any (or little) negative equity in the house to enable us to remortgage. Is this the sensible option? Scared I'll do the wrong thing as my partner isn't great with figures & has said that choosing the right mortgage is down to me!!!

Sorry that this is long winded but just wanted a bit of advice with our situation from people who know more than we do!!!

Note: Forgot to say we're FTB's who currently live with parents & are desperate to fly the nest.......

Hmmmmmm,
1) Low combined salary
2) Still living with parents therefore can only assume they've not lived together yet.
2) Comments that "renting is dead money"
3) Comments that "renting is not the same as having your own bricks and mortar"

What happens if you don't get on? Another repo, waiting to happen.....

mrs_deadline

Very sound advice above, to rent together before buying. Take your time choosing your first home, and with a bit of patience you'll get a whole lot more house for your money.

mickym

hi there. first off. congrats on your savings. im 31 and better half 33, and were in a position now in which we would wish to be in your position with your savings.

We wanted to buy, but just havent got enough for a decent deposit. Still at home with parents ourselves we are eager to get out and start our life/family together.

As the current market isnt good for buying we are looking to get on with our lives by renting, but living as if we had a mortgage, so saving what we would be paying on a mortgage and putting it away to build our deposit.

It would be alot slower than saving whilst at home, but at least it allows us to 'spread our wings' so to speak. Also if your looking at this pesimisticly, seeing if we are compatible with living together!

We just need to find a place to rent now which is decent whislt being just what we require rather than un neccessary luxury.

Davesnave

MattHardwick wrote: »

Hi Kirstyreanne,

I have just started a not-for-profit company that intends to run training courses for first time buyers in exactly your situation. However, in order to find out exactly what you guys need to be taught we are doing a survey. If you are interested in taking the survey - for which we'll send you a lovely cheque for £3 - send an email to:

[EMAIL="hornydolphin1@yahoo.co.uk"]hornydolphin1@yahoo.co.uk[/EMAIL]

We'll send you the survey; you fill it out and email it back; and we send you a cheque. The survey takes 10 minutes max. Simple as that.

Either way best of luck,

Matt

First post. Load of carp. I hear Inside Track is also a non profit-making company now.:rotfl:

_bankrupted

Originally Posted by MattHardwick

...However, in order to find out exactly what you guys need to be taught we are doing a survey...

How to avoid paying for simple common sense information, as a guess would be one lesson

geoffky

i bet you are a bmv or btl that is now clutching at straws now mr hardwick
your idea is stupid because your idea thinks first time buyers are stupid..the singing pig will be proud of you with this one...

kirstyreanne

MonkeySaving? wrote: »

Hmmmmmm,
1) Low combined salary
2) Still living with parents therefore can only assume they've not lived together yet.
2) Comments that "renting is dead money"
3) Comments that "renting is not the same as having your own bricks and mortar"

What happens if you don't get on? Another repo, waiting to happen.....

Hi Monkeysaving all all others kind enough to reply,

No, we've not actually lived together yet but we've been together for 8 years & for the last 6 years I've been staying at his house every night & spend all our time together. This is what we find hard as doing this we are limited more or less to one room in the house & we just want some space.

While I appreciate your comments about renting, but the places available for rent at the moment cost the same per month as would the mortgages we've been looking at which is why we see it as dead money. Therefore we feel like we will be wasting money which could bring down the capital of a house that we actually buy.

I hope that explains our situation.