FTB, making an offer on new build tomorrow - advice needed please!

redrabbit29

Pete - just wanted to say, I think the days of renting being "dead money" are gone. I think it is the most sensible thing to do at the minute. My rent has been £750 a month for 3 years now, anything that breaks, is fixed by someone else. It's a great house in a great area, and thanks to the low rent I am now in a position to save some money each month.

I'm keeping my eye on the property market, but hope to but in 18 months-2 years time.

Good Luck.

mircea

Incisor wrote: »

Still a bad idea. Again due to your s=current and personal situation. Nobody gets on the property ladder at the moment, everyone lands on the property snake. If you are near the top of the board, you can survive landing on a snake if you are happy to go back a few places. In your case, with only £1000, you will be of the bottom of the board when you land on the property snake - into virtually instant negative equity the moment you move in, even with a resale house. Come back to it when you have a 10% deposit.

What a daft thing to say - so if he buys a house that's worth lets say 200k for 250k he wouldn't be in negative equity because he paid a 10% deposit. Really? On the other hand if he bought a house thats worth 250k for 200k with 100% mortgage he would instantly be in negative equity. Really? People on this forum seem to have a little obsession with a deposit. Personally, I believe the banks brought them back to cover the costs of reposesion if things go wrong. I hope nobody is naive enough to believe that banks have the public's interest at heart?

Incisor

mircea wrote: »

What a daft thing to say - so if he buys a house that's worth lets say 200k for 250k he wouldn't be in negative equity because he paid a 10% deposit. Really? On the other hand if he bought a house thats worth 250k for 200k with 100% mortgage he would instantly be in negative equity. Really? People on this forum seem to have a little obsession with a deposit. Personally, I believe the banks brought them back to cover the costs of reposesion if things go wrong. I hope nobody is naive enough to believe that banks have the public's interest at heart?

Shows how qualified you are to call daft on anyone. On the issue of deposits, of course lenders' and borrowers' interests are convergent.

Oh and read the rest of the thread, you might learn a thing or two.

geoffky

christ i did not think you would see the light but well done for not committing financial suicide.....beleive me its no fun being stuck in a house you hate and cannot afford to go out or go on holiday or have that little treat.........you have my respect

bostin

Is this the development on the southern side of Eastleigh (next door to Lakeside Country Park)? If so, only a handful of these (over 400 to be built) have actually sold and there are over 400 houses still to be built. For £150k you can get a 3 bed in one of the Victorian terraces which is what we are looking at buying instead.
Feel free to PM me if you have any specific questions about the site(s).
Bost

hethmar

I have to say Pete - today my son rung and had seen a flat that had been reduced by about £80k due to being a repossession. I was gobsmacked but I guess the B.S. is just looking for their money back.

Keep your eyes open and watch as the market changes.

chrisandanne

I've just read this whole thread from the beginning...thank god it's Sunday and I don't have to get up early.

It's been like watching a toddler stood on the edge of a roof twenty floors up..and everyone trying to talk them away from the precipice. I'm exhausted.

I hope he doesn't change his mind....it doesn't make sense. I can understand that overwhelming desire to have your own place though. I feel so sorry for people starting out now. At least there's some light at the end of the tunnel.

Great posts... and most of them from the 'nutters' who post on the house price thread !!. A x

Rabiddog_2

LOudhaler "MOVE AWAY FROM THE SALES OFFICE, PUT DOWN THE SALES BROCHURE! YOU HAVE ONLY ONE WARNING! YOU WILL BE IN IMMEDIATE NEGATIVE EQUITY"

Don't forget to factor lotto cards into your weekly outgoings...
Exiled for money...They used to send convicts to OZtralia for punishment

ginvzt

Pete, I am glad you reassessed the situation. I know the desire to have your own home - I am desperately looking for one myself!!!! We sold our house few months ago as we both moved jobs. We are in a rented place now, which was rented in a rush as I had to start the job in 2 weeks and anything we liked was let already!!! (There was some mad rush to rent, or something!!!!) We have actually seen a house we fell in love, but we were outbid. Fair enough. We saw another - repo, and EA hinted, that we would probably get it for £180 (on the market now for £210, reduced from £240), when similar sized house on the same street is on for £250k. We know we could make that a great house with a bit of work, but yesterday we decided to walk away - due to no sun in the garden at 6pm, even thought the skies were blue! I am constantly on the rightmove looking if there is anything that would sway me to spend £200k at the moment, but I didn't find anything so far! I think we are going to look for soemthing bigger to rent when this contract runs out and stay put for a bit longer. And seeing your savings grow is so therapeutic!!!! I don't want to give them away!

Just watch your savings grow - and when the time is right you will find your perfect house!

GDB2222

hethmar wrote: »

I have to say Pete - today my son rung and had seen a flat that had been reduced by about £80k due to being a repossession. I was gobsmacked but I guess the B.S. is just looking for their money back.

The lender has to get a proper market price for the property, and so the usual procedure is to get two surveyor's valuations. The chances are that the new price is probably about right for a quick sale. The £80k higher price was presumably the previous owners, who possibly put it on the market for the amount they needed to clear their debts, quite probably not what they thought the flat was worth.