First Time Buyer - Aaarrrggghhh!!

moneysavinmonkey

Staciep88 wrote: »

I am greatful for your comments and I am re-thinking the idea. Not to start a sob story but my sister (24) is married to a rich bloke (24) and they have a house with no mortgage, my brother who is younger than me (18) is seeing a rich girl (19) and they are building a house, and then there's me (19) and OH (26), renting my parents house and him in debt. I just wanna get out there and proove we can do it you know. Like i said, not a sob story but I feel like i want to get on with it as I've kind of failed compared to them.

thanks again

Gah!! this sounds like the worst possible reason to jump on the housing ladder(snake)!
I'm sure you brother and sister don't think of you being a failure cause you haven't bought a house yet - and you are only 19!!! Go live your life and have some experiences, build your career, create some once-in-a-lifetime memories with your boyfriend and keep on saving and you'll get there! Think about what you want out of life for you and not for other people. Remember that committing to a house/mortgage is tying you + your money up and limiting your other opportunities.

If my younger sister was in your situation I would be doing everything I could to encourage her out of this idea!! I certainly wouldn't think she was a 'success' if she settled down bought a house + had a child before the age of 20!! That is not 'getting out there' or 'doing it'!!

Just my opinion and everyone has different life philosophies but it does seem like you are too quick to throw away your youth in order to impress your siblings!! 19!! gah!! I can't get over that I assumed you were in late 20's at least!!

cupid_s

I can’t get over this renting = dead money compared to buying stuff that people go on about. It may be cheaper than £800 to pay a mortgage but then you’d have a 2 bed house not a 3 bed. I’m not sure that planning for a family and buying a 2 bed in this market is entirely sensible. What if you have twins next year? What about when you have 2 kids? For how long would that house be big enough until you’re forced to sell at a knockdown price?

And if you’re 19 and have 20k deposit in a couple more years you’ll have even more meaning you can buy a better house, possibly after they’ve fallen a lot in price. Also you are gaining interest on your deposit in the bank and that could help pay towards the rent on somewhere. And don’t forget extra costs with buying such as buildings insurance and repairs (and as this house is seemingly so cheap I suspect there might be a lot of hidden repairs necessary which might not show up on even a comprehensive survey)

In my opinion having a 20k deposit at 19 is nothing to feel a failure about. Your siblings have had it handed to them on a plate by getting together with rich people that’s nothing to be especially proud about. You’ve saved your money yourself which is much more impressive.

justpurchased

cupid_s wrote: »

I can’t get over this renting = dead money compared to buying stuff that people go on about. It may be cheaper than £800 to pay a mortgage but then you’d have a 2 bed house not a 3 bed. I’m not sure that planning for a family and buying a 2 bed in this market is entirely sensible. What if you have twins next year? What about when you have 2 kids? For how long would that house be big enough until you’re forced to sell at a knockdown price?

And if you’re 19 and have 20k deposit in a couple more years you’ll have even more meaning you can buy a better house, possibly after they’ve fallen a lot in price. Also you are gaining interest on your deposit in the bank and that could help pay towards the rent on somewhere. And don’t forget extra costs with buying such as buildings insurance and repairs (and as this house is seemingly so cheap I suspect there might be a lot of hidden repairs necessary which might not show up on even a comprehensive survey)

In my opinion having a 20k deposit at 19 is nothing to feel a failure about. Your siblings have had it handed to them on a plate by getting together with rich people that’s nothing to be especially proud about. You’ve saved your money yourself which is much more impressive.

If buying is cheaper than renting in her area (belive it or not there are places in the UK) it is better to buy surley that is basic economics.
Remember if you class like for like rent is equal to a IO mortgage. (but obviously you would want to do repayment which is the equiverlent of renting and saving)
But saying that they would still be better of paying there debts and getting a discount on the property.

wymondham

justpurchased wrote: »

If buying is cheaper than renting in her area (belive it or not there are places in the UK) it is better to buy surley that is basic economics.

Sorry but in this climate I strongly disagree with this - with rent you can always walk away, with a mortgage and in negative equity (which is what she will be in) she will be stuck, alongside her other debts.

Being just 19, in debt, with children (possibly in a home too small, depending on numbers!) and stuck in negative equity is not something I would recommend and is a recipe for feeling trapped.

Staciep88

Ok firstly, yes I know Im only 19, I guess I grew up quite quick. I havent saved that £20k, its from my parents the other 2 got the same. Its not getting interst on it as thats the set amount that they are going to give me when I have found the right place.

Tbh, Im glad that I posted this as I've had a lot of different feedback and I am looking at it differently now. I think Im going to really work my a** off and get the OH to and finially get his debts out the way. Thanks again

wymondham

Staciep88 wrote: »

Tbh, Im glad that I posted this as I've had a lot of different feedback and I am looking at it differently now. I think Im going to really work my a** off and get the OH to and finially get his debts out the way. Thanks again

Top Banana Stacey!!!!!! :j :j

justpurchased

wymondham wrote: »

Sorry but in this climate I disagree, with rent you can always walk away, with a mortgage and in negative equity (which is what she will be in) she will be stuck, alongside her other debts. Being 19, in debt, with children (possibly in a home too small, depending on numbers!) and stuck in negative equity is not a something I would recommend....

Thanks for not reading my posts and just picking on one point. No you cant not just walk away from a rental agreement you have to complete or pay the agreed lease period £800X12M is £9600 still a lot of money in my books). I said in all my other post she would be better clearing her debts first and if she still wanted to by get a 20-30 % discount. :mad: Why do some people find in necessary?
I am not advising her to buy but she wants to buy and if i was in the same situation i would go in to it debt free first before even thinking of buying.

justpurchased

wymondham wrote: »

Top Banana Stacey!!!!!! :j :j

Oh it must have been you:A the saviour.

Staciep88

thank you everybody

neverdespairgirl

justpurchased wrote: »

If buying is cheaper than renting in her area (belive it or not there are places in the UK) it is better to buy surley that is basic economics.

No, it's not. There are other factors in the basic economics, such as whether the couple can afford the mortgage if they go down to one income, after having children (LHA available for rents, not for mortgages) whether the house is likely to lose value in the next few years, how long they plan to stay there, whether they want to commit to living in the same place for a long time....