Should I buy a house?

vickipompey

I honestly have no idea about mortgages and buying a house so can someone help me.

I am hoping to buy my first house with my boyfriend in 2010. My boyfriend is in a good job (electrical engineer) and I am currently a student, however I will qualify as a midwife in 2009. By approx Jan 2010, we will have £20k for a deposit and £3-4k for fees. We are only looking to purchase a small two-bed property for around £160k.

Am I being realistic? Is £20k deposit enough? I am desperate to move out when I qualify as I am still living with parents (28 yrs old).

Many thanks!

moneysavinmonkey

20k deposit is around 12.5% which with the current criteria is adequate but won't get you access to the best deals.

You don't say what your combined salaries are so can't comment on whether you would be lent the remaining balance: 140k

You don't say where you live so don't know if 160k is realistic for a small 2 bed house


You've plenty of time so start reading up no. There are excellent guides on this website on both house buying + mortgages.

At the moment prices are falling so it makes sense for FTBs to wait if it suits their circumstances. Who knows what will be happening in 2010 though!

If you are really desperate to move out of your parents then there is always renting.

vickipompey

Sorry, my salary will be approx £20k but will go up after 6 months (£22k) and a year (£24k). My boyfriends is also on £20k.

I live in South Oxfordshire and two bed apartments start at £140k at the moment and houses from £155k.

I understand that we can't make any decisions until we are both in a position to buy. I have mentioned renting and part rent part buy schemes for Key workers to my boyfriend but he is not keen at all.

SquatNow

Just rent.

Prices are dropping.

There is no rush to buy.

Consider:
You buy a house for £160k
n 2 years time it is worth £120k
you are stuck there forever

or

you wait 2 years, paying £12k in rent
you buy the house at £120k
you have saved £28k, even ignoring mortgage payments.

Why anyone would buy in the current market beats me.

RHemmings

I am impressed by the fact that you're planning well ahead, and researching the topic.

I don't think anyone can predict what credit conditions and the housing market will be like in 2010. But if you watch carefully the drama unfolding around us right now, you're going to be in a much better position to know how to act by then.

If many more people had been as sensible as yourself, we wouldn't be in this big housing mess in the first place.

vickipompey

SquatNow wrote: »

Why anyone would buy in the current market beats me.

I wouldn't like to buy in the current market - I would like to buy in 2 years time - DEPENDING on what the market is like.

**Amy**

Hi Vicki

I am also a FTB and will be waiting until 2010 (mainly because I have a CCJ that will come off and I would have saved a nice deposit).

I have found the guides on here, and other sites about mortgages really helpful and have made me feel a little bit less like im out at sea without a boat. It is worth just taking the time from now until then to familiarise yourself with the terminology and all the ins and outs. Obviously we cant predict what the market will be like then, but I think you have a good idea of prices etc.

x

madmandy1

Im not going to give advice
First house cost 14.700K sold for 70K ( sold in 4 days)55.300k profit
I bought my current house cost £75.1/2K in 2002 its now worth approx K130
( lots of improvements done to it as it was an ex council house in a bad state)mortgage free in 2009
If I were to buy another property now I would buy at the bottom end of the market possibly a 60s 70s 80s property 3 beds gardens drive.off road parking possiblility of loft conversion. (a doer upper is not a bad thing long term)
bearing in mind these are essentials for selling in the future
Im convinced the improvements made on both properties upped the sale prices
( consider the area its located wether theres lots of new build eg up and coming/thriving )
then live in it make improvements as you go along enlist the help of qualified friends and always return the favour
Good luck
Mand :O)

byrneand

I wouldn't stress too much.

Everyone here has an opinion on when you should buy but no one will actually be able to tell you if this was the right thing to do until about two years after the event.

Why don't you just save up as much as you can over the next 18 months and then see what the market is like then. What's the point in worrying for 12 months.. because what's the other option... your not going to save up and blow the money on a drugs and alcohol.

You sound pretty screwed on and rather than worrying about where the market will be in 18 months just focus on saving up as much you can and on having a good time - your doing all the right things, your only young once, and nothing you can do will effect the housing market over the next 12-18 months. Just do everything you can to be in a position to make a move then if that's what you decide at the time is best.

downs523

its a good idea to save now and spend later when all this property market disaster settles dow.

im currently sacing with my partner looking to buy late next year.
aslong as you have atleast a 10 percent deposit you should be fine getting a mortgage without getting stung by high fees and rates

save ur dosh as u watch them prices drop each month!!! like me!

madmandy1

I read that reposessions are up again....
This could be another way of grabbing a property cheap
If you see a piece of paper in the window of an empty house its usually a repo order and sometimes states what the starting offer should be
Dont forget the bank wants their money back for these properties and while its sitting there its doing nothing for them... no mortgage payments are coming in.
Dont be afraid to go up to the window and read the details on the notice
You never know if you make an offer you might grab a bargain
Mand