Is this allowed?m Offer the seller £10k more than the 1st buyer?

maz_student

silvercar wrote: »

and you are unlikely to be able to get a 95% mortgage.

and you can't afford the other costs like surveys and legal fees and mortgage fees and stamp duty......

and this is going nowhere.

Stay at home, save some money and wait.

I havent managed to find a thread which details this... perhaps i should start another thread

Wickedkitten

maz_student wrote: »

The thing is, I want to buy a 1-2 bedroom flat anywhere in central London
So usually im looking at properties based in haphazard locations all over central london.

When searching online, the first thing I look for is (1) Initial asking price and (2) location. Whats the best thing to do, then? Should I research properties in a particular area in central London, or shall I go to a good estate agents and ask them to give me the lowdown? What would you do if you were me (or another First Time Buyer?)

And this question isnt directed at 456789. If anyone could answer it, it would be great. If not, then no big deal. I just wanted to get people's opinions on this whole situation. (lol, i doubt my question even makes sense because im a bit tired, but i'll just leave it up here instead of editing it out).

Oh, and some background info:

• I have about £10,000 saved up.
• I might be able to get a £200k mortgage, and
• I thought i should just jump at the chance of getting my own place because im also not happy living at home (Parents are constantly arguing and theres a possible divorce).

Have you thought about renting? Buying a house at anytime just in order to get out of a bad situation is silly really. If you are actually set on buying, then sit down and work out what you want out of a house, ,and keep in mind future circumstances because you don't want to buy a studio and then end up stuck there in negative equity when end up meeting someone and want to sell up to move in with him.

poet123

I agree,there is more than 1 way to get your own place.

Especially in London,there are so many areas,rent first,to get a feel of where you want to be. Renting gets a bad rap,but in the current climate it is so much more sensible than buying in the wrong place at the wrong time,and paying for it for years.

No matter what you want to pay for a property,that property will only be woth what a valuer and market forces decide it is worth.

You may offer £10,000 above the asking price,your mortgage co may decide itis worth £20k less,so you are £30k adrift. Plus an asking price is a starting point,you may well find that the sellers have accepted 5k or more under that so you will have offered 15k over what they were willing to accept.

Rent and save,research,get a mortgage in place in principle,offer after thoroughly researching prices on that road,and live happily ever after......

Good Luck,everyone has to start somewhere.

maz_student

Wickedkitten wrote: »

Have you thought about renting? Buying a house at anytime just in order to get out of a bad situation is silly really. If you are actually set on buying, then sit down and work out what you want out of a house, ,and keep in mind future circumstances because you don't want to buy a studio and then end up stuck there in negative equity when end up meeting someone and want to sell up to move in with him.

Yes, I did at first. But renting isnt for me because it seems like a waste of money. But I dont just want to buy a house so that I can get away from here... I will be 25 by the end of this calendar year and its time for me (in my opinion) to just have my own place... And id much rather buy (as opposed to rent) because, like i mentioned, i strongly consider renting to be a waste of money. Money will be going out of my pocket, so why not contribute towards a mortgage rather than some random landlord??

Sorry to come across as being naive -- i have actually given this a lot of thought!

I do know what I want... Im actually quite picky by nature, so this is why ive fallen in love with this place.
Without a doubt, NO studio apparments... just not my cuppa tea :-S
I want a 1-2 bedroom flat located centrally in London (NOT in east or south london, because the crime rate has to be low),with good transport links (ie close to a tube station). It has to have a good floorplan and have south-facing living room. Doesnt matter if the kitchen or bathroom needs re-doing (i can redecorate later on) but the bathroom has to be a good size and the kitchen has to be unique (ie not just a square!) This property has all of these!!
And i forgot to mention that ideally i would like the place to be 2 bedroomed, because if the worst comes to the worst and i end up staying there even after having kids, then there will already be another bedroom for the 1st child...
LOL..i sound really naive, but these are the honest thoughts which im thinking of !

And im fussy because within 5 years or so i will soon sell the property and buy another bigger place, so obviously if i think "hmm..." whn i see a floorplan or visit the property (no matter how good the decoration is) then without a doubt, another future buyer will think that about my property!

I hope all that made sense!

Wickedkitten wrote: »

Have you thought about renting? Buying a house at anytime just in order to get out of a bad situation is silly really. If you are actually set on buying, then sit down and work out what you want out of a house, ,and keep in mind future circumstances because you don't want to buy a studio and then end up stuck there in negative equity when end up meeting someone and want to sell up to move in with him.

Yes, I agree with you, but sometimes people say things which make you think twice. Ive been unhappy at home these past few years. I went out to a restaurant with 2 close friends i hadnt seen in a few years and they both said that i look really different and i look upset. I took that as a sign to gradually make improvements to my living conditions ... Hence why im here!

Wickedkitten

Well, renting certainly wouldn't be a waste of money because right now with a 5% deposit, you are guaranteed to be in negative equity even before you end up getting your keys. Not only that but if you put your 10k into your deposit, solicitors fees, stamp duty, mortgage arrangement fees, and buying furniture, what will you do if the boiler packs it in and you have to pay for a new one 2 weeks after you move in?

At least when you are renting, any maintenance that needs done will be completely out of your hands as it's the landlords shout to sort out any expensive repairs.

Definitely though if you are set on buying, pop into a couple of estate agents and tell them what you are wanting out of a flat, so they can start sending you property particulars.

poet123

Whilst you may think renting is dead money(and in a different property climate and personal situation I may agree with you)until you are certain where,and what you want it is the best option.

To remove yourself from the situation is the aim,dont jump from the frying pan into the fire. The above poster is correct,negative equity is a distnct possibility,or probability,you really don't want that.

Imagine 5 years down the line,you are in the wrong place,can't sell,and are back being miserable again,but this time with no way out.

chewmylegoff

maz_student wrote: »

Yes, I did at first. But renting isnt for me because it seems like a waste of money. But I dont just want to buy a house so that I can get away from here... I will be 25 by the end of this calendar year and its time for me (in my opinion) to just have my own place... And id much rather buy (as opposed to rent) because, like i mentioned, i strongly consider renting to be a waste of money. Money will be going out of my pocket, so why not contribute towards a mortgage rather than some random landlord??

the choice is not between "contributing" towards a mortgage and paying some random landlord.

your mortgage payments are mostly interest on the capital - as much "dead money" as rent is. paying mortgage interest does you no more good than paying rent - until you can really start eating into the capital element of the mortgage, all you're doing is renting the place off the bank in reality.

on a 95% mortgage you're going to be paying a fair whack in interest alone, dunno what rate you might get but it's not going to be a great one with only a 5% deposit. then you need to factor in stamp duty and all the buying costs, also money you'll never see again.

furthermore, if the price of the property continues to fall then you have the capital loss to consider as well - you aren't going to lose that £10,000 in a bank, but there is a serious risk that it might by wiped out in a few weeks if you buy a property. if you bid £10k over the agreed price then you will have essentially lost your £10k straight away by overpaying by £10k for the property.

in the current climate, if you really want this place then rather than go in with a higher bid, you're far better off hoping that the sale transaction collapses because the buyer cannot deliver or gets cold feet, or attempts to over-gazunder to the extent that the seller refuses to sell to them.

in my view you need to properly sit down and do your sums and work out whether it is cheaper for you to rent or buy, based on a number of different interest rate and future property price trends. look at what would happen if the interest rate went up to 6 or 7%, whilst the price fell by a further 15-20%; would you think it was sensible to buy rather than rent if that happened?

because you're not in the market at the moment, you can wait whilst the market falls, and buy in at a lower point, so there is no rush for you to buy.

border_collie

Have you got a secure well paid job?

Do you know how much the other people have offered? They may have offered 25k UNDER the asking price and then you will be offering 35k MORE than that.

If I were you I would stay at home, keep your head down and save like crazy.
You will never be as rich again lol.

Running_Horse

£10,000 won't be enough. Offer £20,000 above the asking price.

poet123

Running_Horse wrote: »

£10,000 won't be enough. Offer £20,000 above the asking price.

Very droll,and very helpful:rolleyes: