My Journey as a First Time Buyer!

Zandoni

hethmar wrote: »

Exactly, you only make a loss if you sell up. /quote]

Not correct.

If the house he buys drops 20k that's just the same as throwing the money down the drain. If you put that 20k over the length of the mortgage, how much is it then, probably 50k. That amount can make a serious difference to his house buying life time.

Lot's have people have tried to convince the OP not to do it. It does seem such a shame to me to throw away those hard earned savings, but in the end it's his money to spend how he wishes.

If you also consider the rate he is saving at the moment just think how big the deposit would be if he waited until they bottom.

Saver-Rob

Wow, so many replies I dont think I can reply to them all individually, but thanks for the input. Today went well, on our first trip to a BS we have had a mortgage agreed in principle and know what that particular company will offer us and @ what rate and terms. Its good to know we have one agreed as we are now in a position to make offers should we choose.

There seems to be a distinct negative feeling towards buying now with lots of people attempting to throw figures around that they have read somewhere or come up with at home. Has anybody worked out the (non financial) value to living with somebody that you want to live with?

And I still see comments about renting not being dead money. I dont know your individual positions but for 2 people both living with parents and paying housekeeping renting IS dead money, whatever anybody says. Why on earth would we want to move out and pay out 4 times as much as it costs us now to live somewhere else?! It makes no financial sense whatsoever. There is no chance on earth of renting even if it meant staying at home until we could buy a house with cash!

So, the situation now is that a bit of weight is off my shoulders and I feel like we can start to explore more property for sale in the area and are now in a position to put in 'cheeky' offers. Afterall, we are in no rush to move until something comes along right for us.

As for those who plan on spending x number of years waiting for the 'bottom' of this housing price slip, I hope they are somehow able to know exactly when that happens. If there are alot of people thinking like that then there is going to be a huge surge of interest in the market all of a sudden (which will ultimately drive prices up?) and alot of competition between you all! Thats how I see it anyway.

I'll keep everybody updated as per usual.

hethmar

Zand, you cant put a monetary value on everything in life - as Rob has said, it will mean he can be with someone he wants to be with and not paying some other home owner for that privilege. As I said, as someone who has lived through two of these crashes and now on to my third, my opinion is that it will likely bottom out by the end of this year and then stagnate for several years.

We can all make guesses, but who in the wildest dreams would have thought my house would be worth - at peak - 7 times what we paid in 1992? It doesnt matter a fig to me as we arent selling but the point is, no one knows what will happen.

I dont know, no one knows when "the right time" will be but why put your life on hold until that moment comes? Life is short.

nig0609

Only hindsight will be able to tell you when is the best time to buy a property, financially that is. I feel that its up to the individual to decide when it is best for THEM to buy a house, and if they can afford it and it makes sence then they should buy.

Saver-Rob

hethmar wrote: »

Zand, you cant put a monetary value on everything in life - as Rob has said, it will mean he can be with someone he wants to be with and not paying some other home owner for that privilege. As I said, as someone who has lived through two of these crashes and now on to my third, my opinion is that it will likely bottom out by the end of this year and then stagnate for several years.

We can all make guesses, but who in the wildest dreams would have thought my house would be worth - at peak - 7 times what we paid in 1992? It doesnt matter a fig to me as we arent selling but the point is, no one knows what will happen.

I dont know, no one knows when "the right time" will be but why put your life on hold until that moment comes? Life is short.

Thanks for your post. You are quite right in my opinion. Although money is important it isnt the only thing thats important to me right now and there are other things to consider too. Some people may view money as the most important thing in their life, which is fair enough.

kbrownmini

Saver-Rob wrote: »

Thanks for your post. You are quite right in my opinion. Although money is important it isnt the only thing thats important to me right now and there are other things to consider too. Some people may view money as the most important thing in their life, which is fair enough.

I have just one thing to say really
Saver-rob is looking for somewhere to settle was does the value of the market mean to him in a couple of years time
He wants a HOME not a £XXXX priced house
its a,life time thing
when you have a partner have kids etc your not think gosh y house is only worth £XXXX
yer you sell up move etc
but for it is a home somewhere fo your own
and who knows when the market will chnge
if you dont buy when you want and keep waiting
you might just end up missing out.

Sorry for butting in but i think people like us FTB need encouragment
not negativity
At least theres a chance to even get on the property ladder

kt xx

Phunky

Good luck in finding the right property for you and your partner i've been in a similar situation for some time although without the great deposit that you have!

I want a home, i've rented for 10 years now (i'm only 26! shh its still young!) and i've wanted to own my own house for the last 4yrs but kept putting it off - mainly thinking i'd lose too much money on it, but i've had enough now - i want my own house that i can make my family home in. This is not something you can do when renting!

Good luck and i hope you find the home of your dreams.

Saver-Rob

Thank you both for your posts. Still just hunting on Rightmove for when something comes along!

giraffe01_2

Great thread Rob and best of luck!

I understand all the concerns of posters with share of property issue and whether now is the right time to buy but I can see that you have already considered these points. I therefore wish you luck.

I had a property purchase fall through last year when I was made redundant so I know what's it's like in the initial stages (still haven't found a new place to buy). The job I was made redundant from was also in conveyancing so feel fee to give me a bump with any queries.

I look forward to your next update :beer:

Karinalou_2

Hi Rob

Firstly I thinkits fantastic that you've managed to save so much and are in a position to buy at such a young age. I am 25 and hoping to buy with my bfriend later this year

How have you managed to save so much so quickly? I know you mention your salary and bonus etc but cant see any kind of breakdown etc of outgoings and how you are able to put so much away. We are currently trying to save 3k a month, but would love to be able to put away more and get to our target quicker. Any tips would be appreciated

Thanks

K