Offer on house - work needing doing

poppysocks1

We have put an offer in on a house and this was accepted. A full building survey has been done and highlighted that it needs a lot of work on the roof, new guttering, install damp course in kitchen, new concrete floor, some structural building work to make property safe, plus install new kitchen and double glazing.

I am now concerned having read the survey that the work needing doing will cost us about £25k approx - if house prices drop more, and we spend this on the house are we wasting money - would we be better waiting 6 months to a year and buying a house that does not need this work doing and that has come down in price? I dont want to make a bad financial decision. Or do we go back to vendor and negotiate the price bearing in mind the urgent work that has to be done?

We are first time buyers that are currently renting and have a biggish deposit so would like to buy a place at some stage, and the money we are spending on rent would start paying off a mortgage.

Any advice appreciated. Thank you.

Kavanne

Have you submitted a revised offer to the vendor based on what the survey says?

iwantbargains

The property prices are quite low now. If you intend on living there for serveral years then the additional drop should not matter as in the long run I'm sure house prices will increase.

poppysocks1

Not yet as we dont know exactly how much the work will cost so we need a builder to quote for it first, but it was urgent things that do need doing apparently

Kavanne

poppysocks1 wrote: »

Not yet as we dont know exactly how much the work will cost so we need a builder to quote for it first, but it was urgent things that do need doing apparently

get 3 quotes and then submit a revised offer. If they don't take this then walk away

poppysocks1

We would hopefully be living there for a long time, and at the moment we rent a 1 bed flat costing £600 a month so by buying a house at least we would own it, and the mortgage would be the same monthly payment for somewhere double the size and with a garden - but I still dont want to mess up!! Thanks for your advice so far.

lincroft1710

If it is a house you really like, the agreed price is cheap enough and you intend to stay there for a long time, it won't be a waste of money. BUT the chances are that prices will continue to fall.

The major problem with a £25K renovation is it might turn into a £30K renovation. At the moment renting is not dead money.

iwantbargains

The interest rates are cheap, you will own the property and will make the home to how you want it so I would say I wouldn't be bothered about the current market just as long you can afford the payments and more important you're job is safe!

poppysocks1

Thank you, its just such a massive decision! hopefully our jobs are safe and luckily one of us can cover the mortgage if the other lost their job.

Wickedkitten

poppysocks1 wrote: »

We would hopefully be living there for a long time, and at the moment we rent a 1 bed flat costing £600 a month so by buying a house at least we would own it, and the mortgage would be the same monthly payment for somewhere double the size and with a garden - but I still dont want to mess up!! Thanks for your advice so far.

If your mortgage payment is the same as your rent then I would keep renting.

iwantbargains

This is why the country is in the state it is in! The mortgage rates and houses are at their cheapest for a long time but people are still worrying about making a mistake. Surely your salary hasn't changed so really you are in a better position than a year ago when everything was at a high. You have to also remember stamp duty has changed but currently only for a limited period so the longer you leave it.....

I have a house I can't sell if you want it! lol :-)