Questionably Bad Advice Given on here!!!!!! FTB Look HERE!

mbga9pgf

Brit, I am sorry, but you are wrong....

That is not a boat.



This is a boat.


that is a picture of a ship.

mramra

mbga9pgf wrote: »

Brit, I am sorry, but you are wrong....

That is not a boat.



This is a boat.


that is a picture of a ship.

And that's a submarine??!!!

This is a boat:



Glad I could help clear up any confusion.

mbga9pgf

http://www.nmm.ac.uk/explore/sea-and-ships/facts/faqs/what-is-the-definition-of-a-boat-versus-a-ship

mramra

mbga9pgf wrote: »

http://www.nmm.ac.uk/explore/sea-and-ships/facts/faqs/what-is-the-definition-of-a-boat-versus-a-ship

Damn! I fell into your cunning trap! :mad:

moongarden

We are FTB at the moment and no, i don't think we are crazy.
We just paid £138k for a 3 bedroom semi and for us the numbers stack up. The property we have purchased has easily realisable potential. We have costed the work, sounded out the planning department and had two quotes done - circa £18k. we have looked at sale prices of other houses in the street which have had the work done and one sold in december for £45k more than we are paying.

Having spoken to mortgage brokers and been offered up to £270k. we set our budget at £150k and based our calculations of affordability on only one of us (with the lower of the two incomes) being able to afford all the mortgage and bills.

We intend to stay in the house for the next few years and start a family. If we decide to remortgage at the end of our term we would be, by our calculations, looking for at least a 75% LTV ratio. Or we could sell when the market is right and capitalise on our development of the property.

We have been paying £650 pcm rent and now will be paying £850 mortgage. The £200 a month difference is in the long term going back in our pockets by increasing our capital.

If we do not do the work and the house drops by 20% to £110k next year we will not go into negative equity. We would be foolish to sell it at that price but our suspicion is that house prices will, at some point in the next 3 years stop falling and start to recover.

The mortgage is 25 years. House prices have never declined over a 25 year period. I would be happy to live there for 25 years but since we also plan to overpay by the maximum 10% per year we hope to be mortgage free a long time before then!

busydaffodil1

so when do we know that the "kinfe has fallen"?

SavingSteve

The moral of this story is that we shouldn't expect a huge peak in prices, but that the house prices will be steady, not rising or falling.

That is the supposed bottom, but there may be a few 'false' bottoms, so you'll only ever know for sure in hindsight.

JimBlizz

hethmar wrote: »

Jim, is there any chance you could get a 2 bed as 1 beds are so difficult to sell later on.

A little out of my price range. Unless I could get a stonking deal of course.

pandamonia

The danger of the market at the moment is that prices are going to take a sharp downturn due to lack of credit. RBS just posted a 45bln loss so confidence in lending is shattered.

What you also have to consider when taking out a mortgage at times like these is your job can be here one day and gone the next.

then your house is repossessed and you are evicted and no one will lend to you for years to come.

if you think your job is safe and you are getting a decent deal on a house, ie 2004/2005 prices on the same property then maybe you can make it pay?

another thing to consider is 10-15% interest rates in the next 3 years due to hyperinflation making your mortgage unaffordable and causing you to default.

in days where banks are almost going under and they are being nationalised the last thing i would want to do is go into the biggest commitment of my life on ground that is falling away beneath you

SandC

That's a very good point pandemonium. We have had boom and bust since time began, we have had recessions, but we have never had banks being bailed out by the government. These are unprecented times.