Buy outright and remortgage, or mortgage first?

socrates

Ok thanks for the update.

Having bid at auctions on several occasions be careful not to get caught up in the moment.

Very interested to see how this situation pans out.

I wish you and your daughter good luck on this one.

Normally against this kind of purchase but she has a lot of support around her and the right type of people in the family to help.

Perhaps you should contact the BBC to follow you on this one - they like this kind of auction story.

worried_mummy_4

I'm with you Jenner on the personal loan/interest free credit - she's just a cautious bunny and doesn't want to over stretch herself.

We are going to try and buy it prior to auction but have agreed that if we have to go to the room then I will be doing the bidding for her purely so she doesn't get carried away and get 'flapping arm' syndrome!

Kev09

a6windows wrote: »

if your daughter can save £200 on her travel expenses a month then that is her mortgage paid if only borrowing as you say 30k .personnally i take no notice of the doom and gloomers who say property prices will drop further the only reason they will is because every body is talking about it and i would say the majority of people saying such things dont own there own house.if your daughter is planning to stay there for some time she wont lose over all after all if she left home and rented that would be dead money anyway.

Im no doom and gloomer! in my opinion right now its just a bad time to buy a house, either to live in or for an investment. We have just left massive boom period! now we are experiencing a fall, thats the way markets work. By worried mummy's own admission she feels property prices could fall by a further 10-15% in the next year alone, I think this could be a bit much, but im pretty sure they ain't going to rise, anyway if shes going to stick 75k and then a further 30k if they fell by 10-15% she'd be alot worse off taking into the account the money saved on fuel, incidently does she drive a tractor on that fuel economy!. Mortgage deals right now are rubbish compared to base rates! banks have completely destroyed their balance sheets and are going to be rebuilding them by squeezing customers, do not buy a house, sit on your cash getting all that lovely interest! she is only 20, THE TREND IS YOUR FRIEND to quote a cliche, alot of the people in here have a vested interest in talking up the housing market, brokers, conveyancers etc!

puddy

'all that lovely interest'

you've got to be joking, there is no interest. yes, in comparison a house is losing money, but its also functioning as your home, meaning she is not having to pay either housekeeping to her parents or petrol expenses that she currently incurs. she appears to be going to keep it for 5-10 years, it sounds practical and thought out to me.

so i would get a bathroom, for not more than about 500 quid, a kitchen for 2k tops (if its small then you're looking at much less than this), famiily and friends can do the plumbing, plastering, tiling and fitting. she needs to pay someone to do the electrics.

in addition, lets say she budgets about 5 -7k for the heating system (incorporating the bathroom and kitchen), and about the same for double glazing (depending on what cheap deals she can get).

the rest would be hard work and family helping out. so yes, she could do it for about 15 to 20k, that would include radiators, doors, flooring, fittings.

Kev09

jenner wrote: »

'all that lovely interest'

Straight over your head!

Kev09

what about this then, the catalyst for buying a house is that she has inherited the money, not the necessity, she is only 20! this 5-10 year stuff is crazy, what happens if the shameless crowd move in next door or she would like a change of career!

puddy

Kev09 wrote: »

jenner wrote: »

'all that lovely interest'

Straight over your head!

oh, sorry!! yes, i didnt see the joke!!

puddy

Kev09 wrote: »

what about this then, the catalyst for buying a house is that she has inherited the money, not the necessity, she is only 20! this 5-10 year stuff is crazy, what happens if the shameless crowd move in next door or she would like a change of career!

well then she has an option that she could never have dreamed of without the house, she can sell it, rent it, get lodgers in, what 20 year old should turn down the opportunity of a roof over her head for the longterm without having had to save, borrow whatever. she could rent it out whilst she travels, moves for a job, she has options that i could only have dreamed of at that age

socrates

Lets all just wait and see IF the house gets bought. If its a bargain there will be investors with brown envelopes visiting the agents long before.

Kev09

fair point Jenner!